When and How to Make Concessions
6 Top Seller Concessions
- Sellers let buyers move in quickly.
- Sellers help with financing.
- Sellers let buyers rent with an option to buy.
- Sellers permit certain contingencies.
- Sellers pay closing costs that are traditionally paid by the buyer.
- Sellers pay for improvements such as exterior painting.
Source: Adapted from “Counteroffers: What Sellers Need to Know,” Julie Garton-Good (Real Estate Update, December 2000)
Because negotiating is a give-and-take process, come prepared to make concessions. As you plan, identify concessions that are important to the other party but of little or no value to you. Then, during the negotiation, watch for opportunities to use your concessions advantageously.
"Recognize that the real purpose of the negotiation is not to sign a deal, but to accomplish something." —Danny Ertel and Mark Gordon, "The Point of the Deal"
- Avoid making the first concession, and never make the first major concession. Doing so sets up the dangerous expectation that you are a pushover.
- Ask for a trade-off by saying, “If I do that for you, what can you do for me?” Show that each time you meet one of the other party’s demands, you’ll make a counter-demand.
- Offer concessions of decreasing value. Making smaller and smaller concessions will imply that you’re reaching your limit and will discourage the other party from asking for more.
- Keep track of the concessions both sides make. Use the resulting scorecard to show how generous you’ve been and to encourage the other side to make additional concessions when high-value issues are on the table.
Source: Adapted from “True Negotiation: An Exchange of Satisfaction,” by Richard J. Laser (The Real Estate Professional, September/October 1990)
Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.