Summary: Sticking to minor concessions in the opening rounds of a negotiation.
Here’s a good rule of thumb: If you are going to concede in the opening rounds of a negotiation, Concede Small.
You are selling your house and your asking price is $550,000. You receive an offer of $500,000. Instead of countering with $525,000 in the first round, which is what most people would do, you counter with $548,250. This small concession is a better starting point for this negotiation.
Although negotiating this way takes time, conceding in small increments makes it more likely that you will end up with $540,000. If you immediately counter the buyer’s offer at $525,000, he will probably counter with $512,500, and you will end up getting less money for your house.
The best counter for the buyer in this scenario is to respond with his own small concession, for example, a counteroffer of $508,250.
Have you used or encountered this tactic in your negotiations? If so, how’d it go?