It's hard to go into a listing presentation and tell your potential clients that the price they believe they can get for their home is unrealistic in today's market.  You get your clients to agree to a little lower price but they are still chasing the market, not ahead of the market.  Before you know it your listing agreement is about to expire and you have not sold the home.  Now What?

Setting realistic expectations up front will help you when you advise your clients to lower the price, paint the interior or exterior, and manicure the landscape or whatever else the home may need.  In our area in today's market we use an 8-8 rule.  The rule is very simple, if after 8 weeks or 8 showings (whichever comes first) if there have been no offers you will need to "Reposition the home". 

If you set the expectations during the listing appointment it will make it much easier to use updated market statistics, including absorption rates and a CMA, to position the home ahead of the market.   Also have all of the feedback from showings to get your sellers to make necessary improvements to get the home sold during the contract listing timeframe.

A quick note:  The 8-8 rule may not apply when listings have absorption rates of 9 months or more.  You may need to do some research in your area and modify the rule for your particular market.

 

4 Comments on When Should You "Reposition" Your Listings?

FEB
07
2010
215,099 Points 2 Featured Posts Hit Router Called Shot Master

Thanks for the reminder: I have a lisitng that is in a difficult situation. The home is priced well however across the street is a eyesore site which is making my home sale very difficult. the homeowner is very understanding, but I'm not sure if I should drop the price again after being on the market for over 8 weeks.

My new approach is to get that area clean up by the owner or try to do it myself  I have to see what will happen after it's clean up that's if I can get that done...

If not I'm really lost.. I'm not sure what approach to take....
6:14pm • #1
392,434 Points 12 Featured Posts Localism Sponsor Hit Router Called Shot Master

8-8 - I like that.  It's easy to remember.  In your experience, what if you get to that 8-week point and the seller does not want to reposition?  Do you cancel, or keep carrying the listing?  Just curious.
6:31pm • #2
FEB
09
2010
374,842 Points 2 Featured Posts Localism Sponsor Outside Blog

I like your 8-8 rule; it gives the seller something definate to go by.
9:00pm • #3
FEB
11
2010
Outside Blog

In our market, 8-8 would be a bit long.  But, discussing the plan for reducing "up front" is definitely a great idea!
7:25am • #4


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Yvette & Dennis Gardner

Spartanburg, SC

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Keller Williams Realty, Spartanburg, SC

Address: 245 E. Blackstock Road, Spartanburg, SC, 29301

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