Afraid of Price Reductions?
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Will Rogers once said, “Don’t let yesterday use up too much of today.” Think about it. Yesterday we weathered the financial storms of the mortgage meltdown and the Great Recession. That’s behind us. Today, we face a new day and a new era in real estate. Let’s look forward and seize the day!
From my years of experience, here’s what I’ve discovered; most agents struggle with listings because they don’t know how to get a price reduction.
Today, you may have a few listings that aren’t selling. With our current inventory shortage, if a listing is not selling, it is most likely priced above market value. I want to help you focus on your current listings and offer a few tips to help you get a price reduction.
1. Stay in Weekly Contact; Real Estate Is a Contact Sport!
I realize that weekly contact with your clients can be challenging, but it’s a must! Weekly contact is an emotional deposit into your seller’s relational bank account. If you eventually have to ask them for that price reduction, you’ll be happy you have the “weekly” relational reserves in place.
2. Arrange a Face-to-Face Appointment
Getting a face-to face meeting with a seller is one of the most productive steps in the price reduction process. You’ll find many sellers are somewhat reluctant to meet. Here’s a dialogue to weave into your conversations; it will help get you back to that kitchen table. Notice how the dialogue offers a benefit to the seller…
“Mr. Jones, every 21 days the real estate market renews and readjusts itself. Therefore, I’ve prepared an updated market analysis in order to keep you well informed. When is the best time for us to get-together, review this information and talk about getting your home sold?”
Using this dialogue almost ensures you the appointment.
3. Use “Words that Work”
No two sellers are alike, and no one dialogue will cover all situations. However, there are definitely situations common to the selling process. So, be equipped with words and phrases that address common selling situations so you’re able to best convey your main point. “Words that Work” will equip you with real-world flexibility, allowing you to address different sellers and situations. Below are a few quick examples.
| DON’T SAY | DO SAY |
| Price reduction | Price adjustment |
| Guaranteed it will sell | Step in the right direction |
| Over-priced | Priced on the higher side |
Here’s how I would weave these phrases into the conversation…
“Mr. Jones, I just wanted to give you an update on your home. I want you to know getting your home sold is a high priority for me and we’re doing everything possible to get it sold.
“At this point in time, the market is telling us we’re priced a little on the high side. I believe if we adjust the price downward, we’ll be taking a major step in the right direction and will dramatically increase our chances of getting your home sold.
“What would you like to do as we move forward?”
Using effective lingo with weekly contact and face-to-face conversations will help you get those needed price adjustments and position current listings to sell.
We are in a new era of real estate. From yesterday, let’s take the good and leave the rest behind us. Remember, “Don’t let yesterday use up too much of today.” Good advice! Let’s not focus on what is past; let’s focus on what’s ahead. Focus on your current listing inventory and get those needed price adjustments. You’ll be taking a major step in the right direction to becoming more productive and earning more money!
Joe
