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STOP! Before You Reduce the Price...

Picking up from Wednesday's "If Your Listing Isn't Selling..."

So, if your listing isn't selling and you've agreed with me that perhaps price might not be the best solution, what else can you look at?

Well, it might be really simple. Have you checked access lately? Lockbox still there? Key still in it? Key still work in the lock (sticky locks kill showings)? Is the seller declining or restricting showings?

Have you previewed your listing lately? Does it still show well and smell good?

How's your MLS description? Is it dull ("3 bedroom/2 bath ranch in Woodbridge") or jazzy ("Mid-Century tri-level with modern flair!")? Do you over-promise and under-deliver? Are the photos in season? ARE there photos? Are the driving directions correct, if the property isn't a slam-dunk to find?

Here's a biggie - IS THERE A BUYER for this house? Are other similar homes selling? If so, there's something wrong with yours. If not, there may simply not be a buyer on the planet at this time and you can't manufacture one. Not all homes are sellable, contrary to popular opinion.

Take a really close look at what IS selling in the neighborhood or market area. Can you identify any common denominators among the selling listings versus the non-selling ones? Maybe all the sales are of 4-bedrooms and yours has 3. Maybe it's the 2-story models that are selling and yours is a ranch. You can't fix that, of course, but it might help you understand (and explain to your seller).

But what if the problem isn't simple, but is fixable?

Tell ya what - if you want to hear the rest of the story - click here for a 15-minute audio from a live presentation I did this spring on this very topic! Hope you enjoy!

fun

This stuff is also included in my released-just-this-week book "If You're Not Having Fun Selling Real Estate, You're Not Doing it Right!" available as an ebook at my website.

Jennifer Allan, GRI

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Posted by Jennifer Allan, Author of Sell with Soul on 06/26/2009 07:16 AM

Comments (20)

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Originally posted at: Selling Soulfully with Jennifer Allan: STOP! Before You Reduce the Price...

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20 Comments on STOP! Before You Reduce the Price...

JUN

Jennifer,

Great post! I've got one right now that isn't selling. Everything is right. It ought to be selling, but isn't Frustrating!

After reading your blog I emailed a neighbor with suggestions on what to do to make their home more appealing instead of reducig the price so much hope it works.

I feel you Bob! I have an absolute Great Listing, Price correctly, shows immaculate! Haven't Had ONe Showing!! This is a 3,000 sq ft home on 3 Acres with a 3 car garage, heated pool, 5 Bedrooms, 3 Bathrooms, storage out the Wazooo, nicely secluded but still accessable enough to get to the Interstates FAST for $300,000. I just can't figure it out. You're right --Frustrating!

Rotate in new images and remake the look to freshen up a listing that is getting stale as it lingers on the market. Climb trees, shoot from a neighbor's second floor, fly over the place with an ultra light leaning out over the site to capture the place with stills AND live, narrated video. The place sells itself when you present it correctly, fully, thoroughly. I love the owner who says "maybe my place is not selling because the price is too LOW..it's scaring people and we should hoist the price thrity or forty thousand."

Andrew - you know what? Every once in awhile that WORKS! Raising the price, that is. In fact, I recently put one of my listings U/C that I was seriously considering raising the price because it was a screaming deal - and I swear - people were ripping it to shreds over ridiculous issues. I wondered if I'd been priced higher if I'd attract a less fussy crowd - seriously. But it's under contract finally.

PMLR - OOOOOH! It's one thing when you get showings but no offers, but no showings is the worst!! That's a situation where there truly may not be a buyer at this time...

Heather - Cool! What sorts of things did you advise?

Bob - Have you ever heard of my Guardian Angel theory?

So right some are are just not going to sell for whatever reason. I still think price trumps all though because you can give it away.

Listened to the audio and I have to say I learned something thanks I am sending it out to our team and also sending them the link for your book . Which I will go on line for today

Charles - true - there is a price where probably any property will sell. But is that the best answer for your seller? Probably not.

Charlie - I'm so glad!!

Hi Jennifer, Good post. Thanks for sharing.

Best - Sash

Jennifer .. Thanks for this post and encouragement to look at listings that aren't selling and figuring out a possible fix, so that it can be sold to the right buyer. We have one such listing, and owner decision on pricing strategy is what I believe is preventing market enthusiasm.

JUN

Great post! I'll listen to the audio later, but am glad that you started the discussion that we need to re-visit our listings occasionally to see what may have changed since original list date. AND, that lowering the price is not always the only option!

Wow -- I just listened to the audio -- well worth the 15 minutes! What a great job you do thinking outside the box!!

I don't list as often as I'd like, but when I do, I work very hard preparing the property to market and get the Sellers to be on board regarding pricing accurately. It's great to listen to your presentation and realize that lowering the price is not always the answer to the problem. Thank you for taking time to share this!

JUN

Jennifer- Great audio with lots of tips! THANKS so much for reminding me not to follow the herd mentality on price reduction as the sole attempt to sell a listing. I also try to overcome the downward pressure by short sales and foreclosures in our market by being sure that my listings emphasize "immaculate", "well-maintained", "one owner", "never rented," etc. anything to distinguish. I'm also in a 2nd home market though, and would love some tips for these upper priced homes that at the moment are languishing.

Thanks so much!

An important point that wasn't mentioned is the motivation of the seller. Our office advises sellers to NOT list now unless they MUST sell.

I think one reason inventory is bloated is because there are many sellers who don't need to sell and aren't convinced that the boom is over. These are the people who say, "I don't want to give it away".

Selling a home quickly is important in a declining market in which prices are dropping, because the longer a house is on the market, the less it's worth.

I agree with many of your ideas, but respectfully disagree that some homes can't be sold. If a seller MUST sell and it's already in the best condition they can afford to make it and it's being marketed appropriately, they have to consider the price.

JUL

Great post! It is so important to think outside the box and not just reduce the price because that's the simplest thing to do. It does everyone involved a dis-service. One option I didn't see mentioned is having the home staged, to make sure its presentation is all that it can be. Yes, it's an investment, but it's a lot less money than the price reduction would be!

JUL

Jennifer - You make a very valid point about researching whether other similar homes in that area are selling. If they are, you need to know why they are, and why your listing isn't. Once you figure it out, you need to let the seller know, and hopefully they will be eager to make the necessary changes.

Troy - a few months ago, a woman approached me after I spoke on this topic and presented me with a scenario of a listing that wasn't selling. She'd done everything she could think of and was wondering if she should advise the seller to upgrade his countertops to granite and stage. She was currently priced around $100k lower than the competition. I asked her if anything had sold in the community in the last year and she said nothing had. So, to me, that's the answer. If nothing is selling, there probably aren't buyers. Time for Plan B.

Laurie - I'm a huge fan of staging, for the right properties, but it's best if it's done upfront before the listing is stale, right!?

Colleen - agreed. There probably is a price for most properties where it will sell, guaranteed. And if that's what the seller wants, dandy! I just don't run into that much - I've found that if we determine the house to be unsellable at a price acceptable to the seller, the seller will figure something else out.

You're right, Jennifer, that staging is most effective if it is done when the home is listed, but later is better than never. We staged a home that had been listed vacant for 3 months with no takers. (Everyone said it was too small.) The owner had us stage it, the realtor held a broker's open house, and the home sold a month later. Cheers all 'round!

SEP

Hi! Love your blog... just letting you know that the 15 minute audio is not working, it says "Page cannot be found"

Elizabeth

OCT

Thanks, Elizabeth - for pointing that out! It's fixed now... enjoy!

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