How do you deal with price reductions when talking to your sellers? If you’re struggling with this, here are a few things you can do to handle price reductions confidently:
1. Set expectations. The best offense is a good defense. The best approach is to be upfront and honest with your sellers. Set their expectations by explaining the current market conditions and what may happen if their home doesn’t sell within a specified time frame. Keep an eye on the market and be prepared to readjust the price based on the feedback you receive. If your home has a significant number of showings but no offers, it may be overpriced by around 5%. If there are no showings at all, it could be overpriced by at least 10%. Have these conversations with your sellers from the beginning.
2. Set up your sellers with available reporting tools. For example, in your CRM or MLS, you can provide them with activity updates, marketing efforts, and MLS clicks. It’s essential to show that you’re actively working on their behalf.
3. Maintain regular communication. Make sure to call your clients regularly so that you can address any necessary adjustments or plans before the weekend. Since you’ve already set up clear expectations upfront, your sellers won’t be surprised when you discuss a price reduction.
4. Subscribe them to a weekly market update for their area. This way, you can compare their home’s performance with others that are going under contract or seeing price increases.
Asking for a price reduction can be challenging, but by following these tips, you can handle the situation more effectively when the need arises. If you need more help dealing with price reductions, call or email me. I’m always happy to hear from you.
