Agent commissions are under currently fire. One way we may be able to combat this is by developing our competencies of skilled negotiation techniques that result in an improved bottom line for our customers, and, improve long term relationships through a positively memorable transaction. Negotiating the terms of the contract is where we prove our worth and earn our commission. As a former healthcare administrator, I was trained in the keys to principled negotiation. These concepts are further emphasized within the Keller Williams culture which teaches "win-win, or no deal" strategies.

Principled Negotiation is a win-win approach where the goal is to reach a lasting agreement, rather than traditional positional (win-lose) bargaining.

Elements of Principled Negotiation:

• separate the people from the problem
• focus on interests rather than positions
• generate a variety of options before settling on an agreement
• insist that the agreement be based on objective criteria

As an agent, I always seek to write a contract that considers the needs of both parties. What I have found in practice, falls very short of the theory. Here are a couple of recent examples:

1. A buyer that I represented submitted a full price offer on a home that was "for sale by owner". We are in a buyers market, and we requested that the seller contribute to the buyers closing costs. After conferring with her real estate "friends", the seller countered by raising the price the same amount as closing cost contributions. The buyer rejected the counter-offer. I tried to reason with both parties, however, in the end, there was nothing I could do to salvage the perceived offensive nature of the negotiation. The seller was ill-prepared for negotiation and the buyer was so offended by the price INCREASE that any future negotiation was deemed futile.

2. A buyer submitted a contract for an older home in which the heating and air system was at the end of its useful life. The seller had left a home inspection report on the counter indicating that the system had been "serviced". Despite that, we requested an allocation for a new heating and air system. The seller would not agree to install a new system prior to closing. The lender would not accept any allocation after closing. The buyer was left in a position of "trusting" that the seller would fulfill the agreement. I had several discussions with the agent, trying to find a common ground to protect the interest of both clients. There was no compromise. In order to protect my client, I had to create a "paper trail" of documents that could be used in small claims court if necessary.

3. I submitted an offer for a buyer on a home that needed repairs for wood rot. We requested that the repairs be completed by a carpenter, to include replacement of wood, sealing, painting and caulking. The walk through revealed that the repairs had not been completed in a professional manner. I advised my buyer not to accept the quality of the workmanship and contacted the sellers agent to discuss a plan to complete the repairs and close. I met great resistance to what should have been a simple issue.

Call me naive, but I believe it is possible to create and nurture relationships and transactions that are good for both parties. In order to grow my business, I want the other agent to look forward to working with me again, I want agent referrals, and, I want repeat customers, and referrals from my past clients. If you really believe that it is more about the relationship than the transaction, we have a prayer of improving the image of real estate agents. Our reputation and image are at stake. We have alot of work to do!

Have a great week,

Kendra