Are You Starting a Negotiation With a Concession?

As a new home salesperson, how many times has a customer asked you about incentives and discounts before even looking at the property? Of course, a new home purchase is the single biggest investment that most people will make in a lifetime, so price is important. But your job as a salesperson for the builder or developer is not to give away the profits but rather to reinforce the value of the home. How can your customer appreciate the value of something he hasn’t even looked at? If you lead by either hinting or full out offering that the price is negotiable, you have already put yourself in a wobbly chair at the negotiating table.

If someone is asking you about concessions at the outset, use it as an opportunity to delve into their interest more fully. If they’re focused on price, they haven’t yet been convinced of the home’s value. So rather than snipping away at the price tag, build up the value: features and amenities, quality construction, builder reputation, location, school district, and all the other factors that contribute to the pricing.

You should use incentives as a closing tool, not an opening statement. No matter what you dangle in front of your customers in the early stages of discussion, be assured that they will expect more when you sit down to negotiate. If you gave everything away too soon, what will you have left to offer them to close the sale?

When your customer asks about incentives at the beginning of the discussion, give them the list of advantages and top it off with, “In addition, once you’ve found the home you want, we can talk about pricing options, financing incentives, and other opportunities to discover real value in your purchase.”

If you let the discussion focus solely on price, then the buyer’s decision will be based on the same criteria. Don’t get drawn into a battle of the bucks.

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