Turning concessions into Victories

Buyer offers are usually accompanied by home inspection conditions that require the seller to make concessions before the deal is closed. Usually, these concessions take the form of repairs that the seller needs to make before the buyer takes possession. The presentation of repair concessions is one of the toughest steps in the negotiation process. Buyers often use the home inspection step to wring a bit more value out of their offers. Sellers, who feel they already gave at the office when they accepted the price offer, aren’t in the mood to give more.

No matter whether you’re representing the buyer or seller, bring the focus down to the value of the requests. By itemizing the concessions and assigning value in terms of money, hassle, and time invested, you can maneuver a transaction to the end. Follow these recommendations:

  • Of the items on the list, select more than half of the easiest, least expensive issues to act upon. For example, if the list has ten items, pick six or seven of them. By dealing with more than half the requested items, you demonstrate your client’s goodwill effort to meet the other party more than halfway.
  • Explain to the other agent that while you can’t guarantee you’ll get your seller to agree, you’ll see what you can do. This lets the other agent know that you’re working for the win/win for all. But remember, you’re setting a low standard upfront and when you come back with more than half you can explain it as a victory for them.
  • Focus on what your client’s gaining out of the deal. If your seller’s pocketing a huge equity increase, focus on that fact.

To turn concessions into victories, focus your clients on what they’re gaining rather than on what they’re giving up.

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