In this volatile market, things are moving fast. Due to short supply, high interest rates, and limited demand, home price trends can change in the blink of an eye. In a market like this, sellers need to price their homes based on where the market will be down the road, not where it is now. However, not all sellers take this advice. If prices trend down in your market, you might have to do something every real estate agent hates: ask for a price reduction. This conversation can be incredibly awkward if you do not know what to do. Fortunately, I have three expert tips you can follow to make price reductions as smooth as possible:
1. Prep your client about prices before heading to market. No matter what type of market you are in, it always pays to have a conversation with your client about where the market is at and where it might be heading. During your initial listing presentation, let them know about your preferred pricing strategy. If they insist on pricing their home above what you think is reasonable, let them know that a price reduction might be necessary, and have them sign a plan that lays out a price reduction if you do not see any activity after a certain amount of time on market. Having this easier conversation upfront will make a future price reduction talk much simpler.
2. Listen to them and treat them with respect. Here is the truth: price reductions are not fun. No one wants to feel dumb or like they made a mistake, so even if you let them know their initial price was too high, do not rub it in their face or insist they were wrong and you were right. Instead, ask them how they feel about their current price. After hearing what they have to say, let them know they were right to test the market, but now it is time to try another strategy. This way, you can give them an emotional off-ramp to help them make a tough decision.
3. Ask the seller why they want to move. Most people do not decide to move solely to make a huge profit off their home sale. Remind them what is motivating them to sell their house in the first place. Maybe they want to be closer to family. Maybe they want to downsize and enjoy their retirement. Whatever their reason is, reminding them of it will help motivate them to make a tough decision and follow through with their home sale.
Price reduction conversations are never easy, but if you draw on the experience of expert agents, you can get through it. Surrounding yourself with productive people is crucial if you want to improve your skills and grow your business. Just call or email me if you are interested in what my team has to offer. I look forward to hearing from you!
