The Negotiation Secret Behind A 2% Mortgage!

I closed a subject-to deal with a 2.26% interest rate mortgage—and here's the simple negotiation rule that made it possible:

Persuasion is about guiding the other party to believe that the solution you propose is their own idea.

This means helping the other side believe that the deal genuinely serves their best interests.

When they feel like it's their idea, they’re more likely to support—and even defend—it.

Most people approach negotiation as a back-and-forth haggling over terms until they meet somewhere in the middle.

While that approach can close a deal, neither side typically feels they’ve achieved a great outcome.

That’s because the focus is on the wrong issue.

The real challenge isn’t the terms—it’s the underlying emotions driving those sticking points.

By understanding the other side’s position, needs, and wants, you can craft a solution that meets them exactly where they are.

The Deal

I spotted a house scheduled for foreclosure listed on the MLS—a beautiful property in a desirable master-planned community.

Being on the market meant the seller was ready and willing to sell, clearing the biggest initial hurdle for a pre-foreclosure deal.

But with only about a week left until the foreclosure action, time was truly of the essence.

Just when I thought we’d reached an agreement, the listing agent dropped a bombshell: the sellers preferred to let the home go to foreclosure.

That revelation told me there was more to their situation than I initially understood.

I immediately called the agent to salvage the deal, and that’s when I uncovered a major roadblock.

With less than 48 hours to close the deal and avoid foreclosure, I got permission to speak directly with the sellers.

Within an hour, I found myself sitting in the seller’s kitchen.

It turned out she was eager to find a solution—but only if it worked for both her and her ex-husband.

She shared three concerns about my offer—but in reality, there were only two underlying issues.

One was something I’d suspected from my call with the agent, while the other was a new challenge that, though surmountable, demanded considerable time and patience to resolve.

After several hours of conversation, we finally reached an agreement.

Around 8pm that night, the mobile notary met us at the house — and we closed the deal!

Summary

This experience reaffirmed that successful negotiation is all about addressing the emotional core of a deal, not just the numbers on paper.

Had I left the negotiations solely to the listing agent, everyone would have lost: the sellers would have lost their home to foreclosure, I would have missed a great opportunity, and the agent would have walked away empty-handed.

By digging deeper to understand the underlying concerns, I turned a potential loss into a win-win outcome for everyone involved.

Exit Question: What wins (big or small) have you stacked up this month? Share your thoughts.