How do you get a seller to agree to a price reduction?
When we meet with sellers, we show them a circular pricing chart that you can see at 0:22 in the video above.
The target price, or bullseye, is where you want to be because that will generate the most exposure for your home, attract the most offers, and capture the highest sale price. The bullseye is surrounded by three outer rings, each one representing a different degree of mispricing:
- 4% to 6% off: Showings but no offers
- 6% to 12% off: Drive-bys only and a low number of showings
- +12% off: Drive-bys only
So when you sit down with one of your sellers, show them this chart and explain to them that due to the market activity you’ve been observing, buyers’ response to their home, and conversations you’ve had with other agents, you believe their home is inside one of the mispriced rings. Then, advise them to allow you to make a market adjustment and reduce their home’s price.
“The target price, or bullseye, is where you want to be.”
It’s important to be specific when reducing the price. Either give the seller a range to go by or name an exact number. There are two ways in which to give them a clear direction. First, propose the reduction in writing and include all the market comps, research, and other data. Second, follow up with a phone call after your meeting, and make sure you schedule this call in advance. It usually helps them if they’ve had some time to think about what you discussed.
If you’d like to talk more about this or any real estate topic, don’t hesitate to reach out to me. I’m here to help.