Almost every article that I have written so far is about profit. Bigger, faster easier. Isn’t that what we all want?

There is one thought that has been bothering me over the years. Is the profit that we earn from a transaction not harming our opponents? Can we win without defeat?

Last year we mediated the sale of a property in Ubud. The owner was an old man who needed money urgently to “liberate” his son from a legal case. His appearance was disheveled, eyes glazed, always looking down and his voice faltered. On his right sat a heavyset man who was very intimidating, which turned out to be a debt collector. On his left side was a lawyer who was handling his son’s legal case. His lawyer was the one actively talking to us at the time.

They had been trying to sell their land for months, but so far did not succeed because the market situation was not that suitable. The negotiation was very brief and without significant resistance. The buyer and the father finally agreed to a transaction value of only 50% of the property price.

While making the contract agreement, I saw that old man silently in tears. His hands were occasionally wiping away his tears. Without looking, I was sure the buyer was smiling and imagined the profit that he made. For me, this is ironic. The face and the expression of the seller continue to show up in my memory, alternating with a happy smile of the buyer.

Have we ever thought about the fact that the profit we make can be a disadvantage to the opponent of the transaction? Or that a low negotiated price can harm others?  It is in human’s nature, - if we want to buy something it should be as cheap as possible and if we want to sell again, then as expensive as possible. If the seller is indeed willing to sell at a low price, then why would we feel guilty?

The answer is obvious. Vendors usually sell their property very cheap if they need cash urgently. If we feel that the price is cheap and we like the property, we’d buy without further negotiation. That is what it takes to not be greedy. For once, let’s put ourselves in their position.

As Gandhi taught us: ’win without defeat’.

What makes me sad is that the reality is different.  As an agent we inform our clients that the property is good, cheaper than the normal market price and the owner is selling because they need quick cash. Just too often the buyer will still want to bargain further to get an even cheaper price and make a bigger profit.

That is excessive greed! :(  What do you think?

By the way, we have received one comment to the above article which said : ’are you indicating that everyone who is aiming for a super low price has a questionable moral’? This is absolutely not our opinion. We just wanted to raise the awareness that even ’those real estate guys’ value the principle of fairness and like to witness this in the deals being closed, - if any possible.

It goes without saying, that low buying cost are essential for good deals. As just mentioned in the last monthly letter covering property investments.
Like in all things - avoiding excesses is the way to go. Not more, not less was meant. D