A concession – a thing granted in response to demands – is not a loss. It is merely a key component of every negotiation – something done or agreed to, sometimes grudgingly, to reach an agreement or improve a situation.
As a real estate salesperson, your negotiations on behalf of clients or customers will involve concessions. In fact, it is unlikely you will bring a negotiation to a close without them. But, make sure your concessions count! Here’s how…
Tip 1: Realize that concessions aren’t bad
Advise your client that making a concession is not a sign of weakness. It’s simply part of the negotiation process.
Tip 2: Don’t make the first concessions
Let the other side make the first concession. Studies have shown that whoever made the first concession in a negotiation set up a pattern of predictable behaviour.
Tip 3: Always get something in return
After making a concession, ask for a concession in return. You want to send the signal that each time you meet a demand of the other party, you will expect something in return.
Tip 4: Keep Score
Like currency, concessions are valuable. Keep track of all concessions made. When something becomes an issue, you can show how generous you’ve been with your concessions.
For More Information
For more information on handling concessions and negotiation tactics, please consult our A Mentoring Kit for New Salespeople: Training For Success at http://www.oreacollegestore.com/ShowItem.aspx?ItemID=LT-PB-MentoringKit&Design=false&CurrentTab=divCatLearningTools. This is a valuable resource for both brokers and salespeople.
What have been your experiences regarding concessions? Do you have additional tips? Let us know.