So let me ask you this: Are you one of those REALTORS® that throws money at a problem to make it go away? You know what I'm talking about. You're sitting at the closing table and the Buyer is refusing to close because the Seller didn't complete the repairs and the Seller ain't budging. Don't you hate it when that happens? You've worked your butt off for the Seller to get to the table and now the deal is getting ready to collapse over a $1,000 repair item.
Of course, the Buyer's agent was smart and stayed home. I guess they thought if they weren't at the closing and couldn't be reached, they wouldn't have to spend any money to get this sucka closed. You know, there's a lot of truth to this thought. "It's a late Friday closing, if they can't reach me they'll solve the problem and get it closed."
So here I am sitting at the closing table with a deal getting ready to fall apart. The agent can't be found, the Buyer and Seller are standing firm and playing hard ball. What do you do?
I'll tell you what I do, I solve the problem and get the deal closed. Usually by eating a $1,000 of my commission. I know what your thinking: "Broker Bryant that's weak. It's their problem why are you throwing your hard earned money at the deal to get it closed? It's not your responsibility."
Well, that is a valid point so let's see if I can explain my way of thinking. First, my policy is to get the deal closed no matter what, of course, it has to be legal but other than that I get it closed. I make a lot of money. I figure my time is worth between $100 to $150 an hour. If I have to spend 10 hours of my time to solve a problem I'm way ahead of the game by just "chipping in" to get it done.
But most importantly, I truly believe it is the right thing to do. My Sellers are under a lot of stress and I feel it's not fair of me to add to it. So before things get ugly I just "throw money" at the problem and make it go away. I've done this many times and have never felt bad about doing it. To me it's just part of the business.
It also helps that I'm the Broker. I have the authority to make on the spot decisions, all the money is mine, and I can do what I want with it. I truly don't have the time or the desire to stress over the small stuff. If all I have to do is make a little less on the deal, to get it done, then I will. My job is to get my Sellers to the closing table and to get the deal done. Until this happens I have not earned my fee. Some may call me weak but I call it taking charge and getting the job done.
Now here's the catch: I do not negotiate or reduce my fee at time of listing. The reason I don't is because I know that during the course of the year I will have problems that I need to make go away. This cost of business is figured into my commission structure.
When I "throw money" at a problem I just think of it as an advertising cost. I am building good will with the Seller, the Buyer and the other agent. It almost always comes back ten fold in referrals and repeat business. It makes very good business sense to me.
Next time you have a problem, that just won't go away, consider just "throwing money" at it. It doesn't make you weak….it makes you stronger. I'm sure quite a few folks will disagree with this but that's OK. Everyone has to find what works for them. So what works for you?
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