Recently a friend of mine had the opportunity to meet Oprah Winfrey in person (twice in one week!) and she told me how she shared with Oprah, her "A-Ha" moment.
Suddenly, I realized that I had just had my own "A-Ha" moment. This is something that I have been practicing for a long time now, but only until earlier this year, did I find a way to articulate my philosophy.
I was in escrow with a first time home buyer. My client was very very nervous about the large purchase that he was about to make. His last contingency was
coming due, but he was still nervous about releasing it. He stalled on removing the contingency. I warned him that at some point the seller would run out of patience and serve him with a notice to perform. A notice to perform is like a written warning telling the buyer that if he does not remove his contingency (or perform whichever duty is late) by a certain time, that the seller can legally cancel the deal. My "A-Ha" moment suddenly came to me. I explained to him that we always have to keep some goodwill in the bank, no matter what, and if he does not respond soon, the seller would serve him with a notice to perform. I advised him to make a decision about removing his contingency right away and before the seller served him with a notice to perform. This way, he can stay in the seller's good graces and if he needs anything between now and the end of the deal, the goodwill that we have in the bank will likely pay for the favor that we might need down the line.
Sure enough, the buyer's lender was running late and we had to ask for an extension on our close date (which was granted to us). How did I know that he would need a favor from the seller before we closed? I can't really explain this, except to say that we never know when we will need a favor or when we will need to make use of our goodwill bank account. It is critical when making deals between parties that we negotiate in good faith and that we do the best that we can. Keeping the deal positive and polite is one way to do this. Another way, is to remember that selling Real Estate is not about the Agent, but it is about the buyer and the seller coming to an agreement and helping each achieve their goal of buying or selling. I can't tell you how many cancelled deals I have heard about from other Realtors due to agents not getting along. In a deal, there is no room for agent egos, and also, there are times when buyers and sellers need to be reminded that their emotions can get in the way of their ultimate objectives. I guess that is why it is best to have a Realtor that understands this, represent you in your purchase or sale. Listen to that person and let them guide you to a successful close. I promise you that once your escrow has closed, you will not remember any of the minute details that may have consumed you at an earlier date. Do what you can to give in on a point that is not that important to you. If you can figure out your most important deal breakers and focus on those, you are way ahead of any buyer or seller out there. And remember to always keep some goodwill in the bank, you never know when you will need it.
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