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After15 years of selling financial products, I am very comfortable talking numbers with people...
Pricing is the key to selling homes.
Yes, you want the home staged correctly...
And yes, the home needs to be marketed properly...
But if it isn't priced right, you have no chance.
With that in mind...
10 TIPS FOR GETTING MORE PRICE REDUCTIONS:
Have a pricing reduction system and explain it to your clients up front. It is best to price homes correctly from the beginning. Nevertheless, many clients will want to test the market. I understand. So you need to have a price reduction system and explain it up front. My system: My listings will have at least 2-5 showings per month. They will also have a contract within the first 10-15 showings. If they do not, they are overpriced. That is my pricing system. You better have one too...
Bring a listing modification form on your first appointment. I want my clients to understand the process up front. Part of that is being comfortable with the paperwork. I show the listing modification form at our first meeting, so they will feel comfortable with the paperwork and the process.
Set your clients up with an email search of their neighborhood. Keep them educated. Using the local Multiple Listing System(MLS), agents can easily provide clients with detailed information from their neighborhood or subdivision. With this information in front of them, your clients will usually understand the realities of their own market.
Keep your clients focused on the buy side. In this type of market, the selling of a home can be a difficult time. There are less showings, contracts, and offers than there were 5 years ago... Keep them motivated by looking at some homes. Set them up with an internet search of homes that match their needs/wants. If they find something they really like, they may be motivated to price their home to sell even sooner.
Show them the internet traffic. I send my clients weekly reports fromTrulia and Realtor.com that show the on-line traffic their homes are generating. They see their homes are being "seen" even if they are not being seen.
Let the client have final say on pricing. I try to act as an advisor for my clients. An advisor who educates. Who consults... But the ultimate decision is theirs. Let them know that. They will make the proper decision. Eventually...
Stay on top of the subdivision/immediate competition. Become the expert for the neighborhoods you are market in. Being the "local expert" will give you confidence that will lead to better pricing...
Give them what they want. Host open houses. Most clients appreciate their agents hosting open houses. They will know you are working for them on that day. They will adjust their prices quickly when they know you are working hard for them.
Don't ask for price reductions. I use a "passive aggressive" approach to sales. I don't ask for price reductions. I want my clients asking me to reduce the price.
Post your thoughts on pricing. This post will probably be read more than 1000 times. Some of those readers will become clients. They will already understand my "system". These are great clients to work with. They called me.
I hope some of my tips work as well for you as they do for me.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.