In low-inventory or seller-dominated markets, NEGOTIATORs® may not always be able to push the price down significantly due to competitive multiple-offer scenarios. However, what they can do is provide a strategic advantage through transparency, trust, and value-driven guidance.
For instance, let’s break it down with an example.
Scenario: Low-Inventory Market (Role Model Comparison)
- Listing Price: $1,000,000
- Market Situation: 3 competing offers, requiring a budget of $1,100,000 to win the deal.
1. NEGOTIATOR® Approach:
NEGOTIATOR®: “My compensation model is based on the Inverse Commission structure, where I get paid 50% of what I save you. To help you secure this home, I’ll ask for 2.5% to be refunded into a GAP fund and put it in the offer. Part of this fund goes toward my compensation, and the rest directly benefits you. My goal is to negotiate the deal at $1,050,000 instead of $1,100,000 and find flaws in the house to your advantage. If I succeed, you save extra $$, and I get paid more for delivering better results. If I can’t, I’ll get paid less than traditional fixed 2.5% agent. That’s my financial motivation.”
2. Traditional Agent Approach:
Traditional Agent: “I earn 2.5% of the total sale price, as added in the offer. It doesn’t matter to me whether the final price is $1,050,000 or $1,100,000—my compensation remains the same. Ethically, I’ll try to secure the property for $1,050,000, but my income isn’t tied to this effort. That’s my moral obligation, rather than absent financial incentive, drives me to do my best for you.”
This comparison highlights a critical point, while both scenarios for buyers has almost the same $ cost: why buyers should consider being represented by a NEGOTIATOR® instead of a traditional agent or falling into the pitfalls of dual agency. The NEGOTIATOR® approach not only prioritizes the buyer’s best interests but also builds trust by aligning financial incentives with results.
Even in challenging markets and low-inventory environment, this approach gives buyers a compelling reason to choose proper representation and ensures they feel confident about the process. Ultimately, it’s about showing buyers that having a skilled and certified NEGOTIATOR® on their side is about much more than just getting the deal—it’s about getting the best possible deal with full transparency and trust.