Lower The Price, Let's Go To Closing

   I am sitting on an airplane when the guy next to me ask me if I am in real estate. " Yes", I replied.  "How did you know?"  "You are reading a real estate book".  He went on to tell me his house in Atlanta was for sale listed with a Realtor.  He ask me if I knew why it was not SOLD. 

   You know why it is not sold.  I know why it is not sold.  His Realtor in Atlanta knows why it is not sold.  Why doesn't he know why it is not sold? 

   Why are we not as blunt with our clients as I was with him.  I told him the truth. I told him the gospel. I leveled with him. I did not sugar coat it. I told him in no uncertain words, "Your house is overpriced."

   "Oh No" , he protested. Blah blah blah blah blah blah blah blah blah.  I told him I was positive his house was overpriced.  If it were not, it would be sold.  I ask him" Do you want me to prove it to you?" He said"Yes".

   I reached in my shirt pocket and took out a five dollar bill.  I ask him," Will you buy this from me for six dollars?".  He said"no".  I ask did he think I could sell it to anyone else on the plane for $6 or $5.50 or $5.10.  We agreed I could not.  "Would you buy it for $4.90?", I asked. "Of course" he replied.  When it is priced right, it sells.  When it is not priced right, a full page advertisement in the Wall Street Journal will not get it sold. It is overpriced. 

   You know what he said next.  " The Realtor priced it" I tried not to laugh but I could not help it.  I told him to give the Realtor total control of the price and it will sell this week. He got the point. The Realtor did not price it.  He did. Should I say overpriced it? 

   I ask if someone offered him twenty thousand less than his asking price, would he take it?  He said yes.  My reply to that " Call the Realtor right now and lower the price by twenty thousand dollars. He did.

   Why don't you talk to your clients as bluntly as I talked to that guy on the plane. You need to.  As soon as the ink is dry on the listing contract, you need to start working on lowering the price.  When I see a house in MLS for two hundred days, anyone with a brain knows it is overpriced. Do something about it.

   Talk to the seller.  Admit you were over zealous when you listed it. Admit that you were smitten by their new carpet and other gizmoes that apparently no one but you and the seller are impressed with. The market is shouting at us.  Let's listen. 

   Should we paint?  No, lower the price.

   Should we advertise more?  No, lower the price.

   Should we pray? No, lower the price.

   Should we raise the commission?  That is a good idea but let's also lower the price.

   Be honest.  Be sincere.  Be an expert.  The only reason the house is not selling is IT IS OVERPRICED.  Convince the seller to lower the price.  Remind the seller they will be buying in a distressed market.  If the house is empty, remind them they have carrying costs.  They forget about : empty interest, empty HOA dues, empty taxes, empty insurance, empty pool care.

   Do not wait for them to call you. Call them.  Lower the price.  There is a recession going on.  Don't tell the buyers but shout it to the sellers.  Lower the price.  Let's go to closing