Marketing

Podcast: 4 reduction rules for when the price is wrong

Use these tactics before asking the sellers to change the price
  • Price reductions are a collaborative conversation. Do it wrong, and you'll get fired.
  • What sellers would you not want to run into at the store? Those are ones you're doing a crappy job of taking care of.
  • Communicate weekly with your sellers. The No. 1 complaint about agents according to NAR is bad communication.

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Your sellers insisted on a higher list price — and now the home is just sitting. How do you get the much-needed price reduction without being shown the door?

Before the sellers gets the chance to fire you, make sure you’re not the one committing real estate malpractice by not communicating with them.

Remember: When you signed the listing agreement, you made a commitment to the sellers to do everything in your power to sell their home.

When you know what to say, you won’t have to have that uncomfortable, awkward feeling whenever their number comes up on your phone. Here are our four rules to help you stop resisting the conversation:

  1. Communicate weekly, ideally on the same day each week. It’s easier to get a reduction when they’ve heard from you regularly.
  2. Meet face-to-face; you can show your empathy for their situation. Text and email can be misconstrued.
  3. Never say the words “reduce,” “reduction,” “drop,” “cut” or other volatile words. Replace with “adjust,” “improve” or “update” the price.
  4. Always speak in percentages, not in dollar figures. Think about it: 5 percent sounds better than $5,000. It’s more professional and in alignment with the National Association of Realtors’ recommendations.

Remember to employ these tactics before you ask for a reduction, but be careful how you phrase the request.

 

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Subscribe to Tim and Julie Harris’ podcast on iTunes or follow us online at realestatecoachingradio.com.

Tim and Julie Harris have over 20 years’ experience in real estate. Learn more about their real estate coaching and training programs at timandjulieharris.com, or request more information about their programs at joinharris.com.

Email Tim Harris.