Three tips to help show your seller why they should adjust their price.
Every homeowner wants to get the most money for their home when they list. They’ve paid for the mortgage for years and probably have most of their savings tied up in their property. The sale of their house can have a direct impact on the quality of life they will have in the future. That’s why price reductions can be such a touchy subject, even though they’re sometimes necessary. As their agent, how can you convince them to lower the price? Here are three things you can do when talking about price reductions with your clients:
1. Manage their expectations. Discussions about price reductions should be held right from the start to set your client’s expectations. Make sure to explain that the price you’ve come up with is based on the last 30 or 60 days of market history and is what makes sense at the moment. By the time you actually put your client’s home on the market, conditions may have changed. If they are worried by this, assure them that you will give them weekly updates on relevant numbers so you can adjust quickly.
2. Maintain constant communication. You need to be checking in on where your client is at any given moment. How are they feeling about their listing? Are they worried that they aren’t getting enough showings, or do they want to stick to their guns? Make sure that the timeline your client had at the beginning of the listing is still on track. Plus, if you maintain communication, it will be easier to have a conversation about price reductions if it comes to that.
3. Find the correct price adjustment. In the end, the decision on how much of a price reduction should be made will depend on the seller. As their agent, you’re the expert your client will rely on for guidance. You have to offer your market expertise and share the latest data on comparable sales in your area. How you educate your seller will be crucial when determining the price adjustment. Pull data from pending homes, not just solds—this information is a more accurate representation of where the market is at.
Price reductions can be a tricky subject; agents have to broach this conversation strategically. By following these three tips, your seller will be more agreeable when asked to lower the price and will feel more involved in the process, thereby easing some of the burden on you. If you need more help on how to talk to your clients about price reductions, call or email me. I’d love to connect with you.
