Today we’re talking about pricing and price reductions
As I travel across the nation I hear stories that in many markets and price points the days on market is starting to build.
Of course, in some markets, especially high end resort markets, having properties on the market for many, many months is just normal.
I do find though that for many agents increased days on market can create stress and worry about keeping the seller satisfied that they are doing their best to get the property sold.
I wonder if this is ever a challenge for you?
If it is read on….
Step One: Be a market expert and fine tune your skill of pricing properties. This means you need to know the stats, the area, the demand, and be able to guide the seller in selecting a price that will allow the property to be sold in a reasonable amount of time.
Step Two: Be honest about the price but also give them options and work with them to select the price that matches their timeline.
Step Three: When in doubt ask your real estate friends in the market to view the property and give you their opinion.
Step Four: If you are still uncertain consider recommending an appraisal. This may be more critical for unique and unusual properties.
Step Five: Consider laying out a price adjustment plan at the table with them just after you take the listing (we have a great script for this email me if you would like for me to send it to you).
Now that you have done your best be committed to calling your sellers each and every week. Be specific about the feedback, the online activity, and the things you are doing to get the home sold.
Be strong, be confident, and tell them what needs to be done for the property to sell.
Remember, it’s a little bit like you are the doctor and they are the patient. They may not like the news and yet, as a professional it’s your responsibility to tell them the truth.
If they are unwilling to adjust, you need to make a decision if you are going to keep the listing or not. If you choose to keep it then it is your responsibility to keep making the necessary reductions.
Just like the doctor will keep telling you that if you want to get well you need to take the medicine he or she prescribes, no matter how many times you ask.
If they will not adjust ask them to grant an extension if you want one, this will at least allow you potentially have the time you need to get it sold.
In all situations motivation is critical, if they have a strong motivation they will usually over time do what you recommend, but only if you keep the lines of communication open!
Another thought to remember, most sellers have only 2-3 price reductions in them before they rebel. That’s exactly why it’s important to take at least a 5-10% reduction in most cases. Small reductions will just chip away at their patience, destroy their faith in you, and usually not accomplish much.
One last tip! You know how they love to ask you, “Do you think this is the right price? Will this get it sold?” Be careful, they will remember what you say and hold you to it.
My favorite response to this question is, “Mr. and Mrs. Seller, the data seems to indicate that we are in the right range, however the real estate market is like the stock market and it fluctuates daily. While I cannot promise that it will sell for this price I can promise I will do everything in my power to make it happen and I will keep you informed every step along the way.”
