How to broach the conversation about a price reduction successfully.
Let’s discuss how to approach price reductions in a changing market, a challenging but necessary conversation for sellers. I’ll provide some valuable pointers to make this discussion smoother and more effective.
“If you come prepared and put yourself in the shoes of your clients, they will notice.”
If you haven’t been keeping track of market statistics, you’ll soon notice that the “months on market” is on the rise. It’s crucial to monitor these figures weekly rather than waiting for reports that lag behind. Being proactive is key.
First, gather all the necessary statistical information. Instead of telling the seller to lower their price based on your judgment, back it up with data. Know the current status of active, pending, and recently sold properties in their neighborhood over the last 30 days. Then, expand your analysis to the broader zip code or area, focusing on homes with a similar square footage range. This will provide evidence if their price is too high and needs reconsideration, especially when time is of the essence.
Secondly, examine the showing data using statistics from platforms like ShowingTime. If you find that they’ve had only one showing in the past month while the average listing receives about five showings, it’s a clear indicator that the price should be adjusted. Sharing these insights will help sellers understand the urgency of the situation.
Lastly, consider the seller’s personal circumstances and timing. Reiterate their goals and preferences. Do they have a specific date in mind for the sale? All these factors can play a role in the price reduction conversation.
I hope you find these tips useful in navigating price reductions effectively. If you have any questions or need further guidance, please don’t hesitate to call or email us. We’re always ready to help.
