A successful negotiation between buyer and seller that results in an accepted Purchase and Sale agreement is often described as a meeting of the minds.
It’s the point at which adversarial interests mutually acknowledge that the terms and conditions of the sale are agreeable to both parties.
But it doesn’t always happen. Many times, negotiations can go on for days without a successful resolution. Although the seller wants to sell, and the buyer wants to buy, the chasm that divides them is just too wide to cross.
And after each party has made their”highest, best, and final offer” without an acceptance, the chance for a meeting of the minds is gone..
In those cases, it’s best to respect the needs and desires of each participant, and move on to the next potential deal.
And start the process anew.
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I just had that happen. And the agent wouldn't let go. Bullying another client just doesn't cut it, you know? Bullying the other agent is a really foolish thing to do. There is NOT a fine line between being agressive and being a bully, it is a huge chasim.
Terrific post topic Richard. And, valid point made Andrea.
Reminds me of the Kenny Rogers song. "Know when to hold 'em, know when to fold 'em, know when to walk away, know when to run....
Richard....the longer it takes to negotiate a deal, the less likely it is to go together......wrap it up quickly and you'll probably have a deal.
Richard, did you happen to notice that you posted this on 08/18 at 08:18 AM? I meant to share this before selecting the "Submit Comment" button.
Richard - great point. Trying to force the deal could cost you a client. Trust is essential in our business.
Featured@ Club Chaos
Often disappointing when this happens and more often than not it's due to some emotional as opposed to rational issues. I personally feel like I've not done my job well enough when I can't get clients to look past emotional issues.
Richard, I'm sure it's happened to all of us more than once. Knowing when to leave it and move on is a valuable lesson to learn, in life as well as in real estate.
Some people think that a meeting of the minds mean to butt heads. That usually does not get far
I have a feeling that I am about to experience one of these chasms too wide to navigate. A bank countered on one of my short sales. It countered above a fair list price. The property isn't in good condition, but the BPO was done as if it were freshly painted, new carpet, etc. I think the buyer is likely to come back with something the bank will find unacceptable.
Sometimes if the agent is the first to say that "maybe this isn't going to work out" it will jar a buyer or seller back into the reality of the offer on the table and the desired goal of all, and not on whatever it is in their mind that is holding up the meeting of the minds.
Sometimes it doesn't work out for the right reasons!
Once an impasse between buyers and sellers is reached, it's best to let both parties take a day or so to think about the options and consequences of their position. If after that time nothing can be resolved, it's time to move on.
Richard, has 2 of these just this week.
I agree with Barbara, if it takes long to negotiate a deal, there probably isn't going to be a meeting of the minds. IMO, it's usually on the buyer's side which could be for many valid reasons.
Richard - I haven't faced this particular issue myself but have definitely seen a few deals go south on my peers and it seems like there is definitely a 'bully factor' at play with some agents. It's rough because even if that tactic does work it leaves everyone with a bad feeling about the whole transaction. What a sad way to leave the closing table!
Richard - Beating a dead horse will never get the job done. You are so right that there are times when its best to move on. Excellent post
great article and great ending line Richard. Sometimes it seems a rope can pull the parties together and other times you feel like getting a rope around one of the parties' neck and......
Ditto Richard, sometimes there just isn't any reason to waste any more time or resources.
I recently had this happen. The listing agent personally called me the day everyone acknowledged "verbal acceptance", questioning if we were really closing USDA Rural Home Loans, which we are. A few days later we were informed the seller accepted the contract at the agreed sales price, but the contract specified the loan amount...essentially dictating the terms of the loan and the loan program! The buyer walked...
I hate it when that happens!