Compression Of Commissions’ Cure (And So Much More)

Compression Of Commissions’ Cure (And So Much More)

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Commission compression is a problem in several markets around the world... Everyone expects you to do your work – which you do exceptionally well – for less money than you are worth. With discounters and disruptors vying for a slice of the real estate pie, you must accomplish two things now more than ever:

  1. Make yourself stand out from the crowd.
  2. Master the art of bargaining.

That's why I'm so happy to introduce Chris Voss, a former FBI hostage negotiator and author of the best-selling book "Never Split the Difference: Negotiating as If Your Life Depended on It," to thousands of attendees at this year's Success Summit. Chris will open up his bag of tricks and share his secrets to winning every negotiation with us in August as one of our Summit keynote presenters! Meanwhile, in today's blog, I'd want to discuss one key aspect of Chris' method that you might not be taking advantage of... and you might be surprised!

 

How To Demonstrate Your Concern

When you initially discover about Chris' experience as a 24-year FBI veteran specializing in negotiating with international kidnappers, it's tempting to fall into Hollywood-fueled stereotypes of a gruff, scary hard-ass who'll out-power you to win the bargain. Then you see him, and his gruff appearance and raspy voice further add to the image.

With all of that in mind, it's always surprising when Chris unveils the true secret to successful negotiations.

It's not a case of intimidation. It isn't about power. It isn't any of the qualities that come to mind automatically.

It's all about empathy.

Chris refers to it as tactical empathy.

It makes a lot of sense when you think about it for a minute.

What would you want from the individual you chose to assist you in selling your most valuable financial asset? I'm not talking about their track record or marketing strategy... I'm talking about their core.

You want someone who you believe genuinely cares about you and your transaction's outcome.

 

There's More To It Than Meets The Eye

Tactical empathy entails more than simply being able to put yourself in another's shoes.

It's showing them that you're aware of their position.

You're not going to convince them to agree to what you want if you don't show them that you comprehend their point of view.

Chris emphasizes the importance of communicating some of the other party's concerns and feelings. When interacting with a homeowner, this includes making reassuring words like:

  • "I understand how inconvenient it is to get calls from so many Realtors."
  • "I understand that talking to another Realtor is the last thing on your mind right now."
  • "It appears that you're anxious that you won't get the most out of your property sale."
  • "It appears that you are hesitant to commit to a single agent at this time..."
  • "It appears that you adore your home, and that selling it will be an emotional experience for you."
  • These words help the other side to feel heard and understood, which is a universal human desire. You suddenly don't appear to be a combatant. Instead, you're someone who supports them.

 

8 Questions To Help You Think Empathetically

Consider how many aspects of your job need negotiation: scheduling appointments, defending your commission, pricing listings correctly, obtaining price reductions, negotiating offers from buyers or on behalf of purchasers, contingencies and allowances, interacting with other agents, and so on.

Isn't there a lot more?

I'd like you to begin tackling each of them with tactical empathy to observe how it affects your outcomes.

To do so, complete this exercise before you actually interact. Put yourself in the shoes of your "opponent" and pose the following questions:

  • When you disagree, how does this person react?
  • What anxieties motivate him/her to hold the job that he/she does?
  • What can you do to alleviate your fears?
  • What solid counter-arguments may this person make to your point of view and how you handled the situation?
  • What kind of positive intentions does this individual have?
  • What are the good incentives behind a negative outcome, in your opinion?
  • Do you agree with the reasons for the motivations?
  • Are they, if so, more important than the particular conflict?

Experience The Difference

With Therealestateuno