I have the talk about price reductions right up front when I take a listing. I tell my seller's that a competitive price will bring the quickest and highest sale, I'm not always able to predict that exact price. If we don't get some good action in the first 30 days, then we need to look at what's happening in their price range and find a range where we do get some action.
That's when my face gets all kooky, because I find this talk VERY STRESSFUL!
It's probably a mistake to post a photo like this of myself, but really I think I look worse sometimes when I get in this situation!
I know in my heart that it's my job to do the research and give the seller the best info and advice out there, but I always brace myself for their objections. Some of the most common:
- I'm not gonna give my house away
- If I go down any lower I won't have the money to do what I want
- The neighbors house sold 2 years ago for way more than I'm asking, and my house is just as good as theirs
- You haven't showed my house
Let's face it (another pun with the pic here don't you think?) if the price we're listed at is not getting any action, either everyone has stopped buying, or the price is too high! In Billings Montana we have a fairly balanced market in the under $250,000 range, even though we are down in total sale volume numbers from a couple of years ago by about 30%.
Price reductions are working in our market! I used to think price reductions were just a lame effort to get some attention for a stale listing. But right now, if you make a serious price reduction, you will sell your house!
The Quilting Realtor
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Many Dream Of Living In Montana I'm One of the Lucky One's That Already Do! Wanda Thomas Call or Text 406-698-8640 for help with all things Montana. |
Hi Wanda~ It can be very challenging to get them to do a serious price reduction! Unfortunately they tend to get the most lookers in the first thirty days!
I'm pretty sure that I get the same look on my face. But it's still a talk you have to have.
I am actually working on "the talk" right now. I've been watching RE/MAX training videos and others advice so I can get better at it. My listing inventory is higher than it's ever been, and they need to get moving....fast! If you find a great way to do it, please let us in on your secret!
Wanda I like this simple form like this when I take the listing
List price _____________________
Recent sold comparable____________________
Suggested list price_________________________
Most likely sale price_________________________
Agent______________________________
Seller______________________________
Seller______________________________
I love the face! Open the conversation by covering their reason for selling in the first place (job transfer, change in family status, etc), and demonstrate how a price reduction is the method for getting them there.
Hi Vickie-I agree with the serious part of the price reductions, need to do enough to get some attention!
Julia-I hope I look a little better when I'm in action, but boy it feels pretty kooky inside!
Lina-I did have the catching as opposed to fishing talk with a client a couple weeks ago, it worked! Home sold!
National--I like the sign here part!
Doug-You're exactly right, and I do feel more confident about price reductions, since I see they're working pretty well!
It is a tough talk, but think of the pot of gold at the end of the talk/rainbow.
Wanda, In this type of market your face probably is that way more often than not. Time with no showings does eventually back up what you advised your clients to do weeks and months earlier, unfortunately.
All the best, Gloria