Take the Bite Out

A farmer wanted to buy a hunting dog for his son. There were two for sale in a nearby town. The first seller told the farmer he was asking $300 for his bloodhound, non-negotiable.

The second seller told the farmer about his bloodhound, long before he mentioned a price or asked for a commitment. He said the puppy was from a long line of champion bloodhounds, well-known in the area for their tracking skills. He brought out the puppy's mother and explained that she was like a member of the family.

The man went on to tell the farmer that he wanted the farmer's son to try out the puppy for a month before he made a decision. He offered to provide a kennel and a month's supply of food. Finally, he said, at the end of 30 days, he would drive out to the farmer's house and either take back the puppy, or ask then to be paid.

Which puppy do you suppose the farmer decided to purchase for his son? Obvious isn’t it? When risk is reduced it is much easier to commit.

We feel safer when a product or service comes with a guarantee. As real estate practitioners we are entrusted with one of the biggest decisions one will make.

What can you do to reverse or reduce your buyer or sellers sense of risk?

I know a realtor who offers a 12-month guarantee. If the buyer is unhappy with their new home he will buy it back no questions asked. I recall a broker who did something similar with sellers. He guaranteed the seller if the home did not sell within a certain time frame his company would buy it.

Big guarantees and reversal of risk create big decisions and great rewards.