Always Leave Something On The Table

by Glenn Freezman

If you've been in business for any period of time you been a situation where a deal needs to be negotiated. Sometimes it's a gentle push and pull that allows both a buyer and seller to get a lot closer to what they need out of the agreement. There are other times, for various reasons, when the deal is just not going to happen because one side or the other is not willing to make concessions.

The art of negotiation is just that, an art. At the end of the day it's about finding effective ways to communicate with other people so that they can express their needs and you can express your needs and that you can meet somewhere in the middle. A truly meaningful negotiation means that both sides walk away feeling like they won.

This means that any negotiation that tilts too far to one side or the other is generally doomed. Years ago I worked with a gentleman who seriously believe that a good negotiation was one in which he won and his opponent was crushed. I'm happy to say I've never shared his point of view.

Obviously, at the core of most negotiations is money. Money makes the world go around but it also sometimes get seriously in the way. However, money is also a great way to get someone's attention and can be a huge motivator.

While the dream of owning a new home may be enough for many home buyers, getting used to the financial realities of a new mortgage is often stressful.  For agents who are able to sweeten the deal with alternative compensation models, they can not only set themselves apart from the rest of the crowd but also offer home buyers some sort of financial incentive that takes them beyond the closing.

It's worth remembering that home buying is a highly technical and emotional process for many home buyers. Most people don't have years and years of experience of buying homes and the few times during their lives if they do are significant. If a little cash can be left on the table to help cover closing costs, transfer tax, or other extraneous expenses that come with the closing (or perhaps allow the new home buyers to avoid having to live on Ramen noodles for the next three months) it can have a significant impact on their willingness to do business.

Are you able to offer any type of financial cushion to your home buying prospects?