How easy is it to get price reductions? Over the years, I've had to initiate every price reduction on my listings. With only one exception, sellers have never called me to ask if the price is too high or why, exactly, their home isn't selling. When getting ready to ask for a reduction, I prepare very well. I have before me the competition (other active listings), the pendings, expireds & closed sales. In this buyers' market, I also emphasize that we're competing with foreclosed properties & auctions. Sellers need to know that, even if they get a buyer who offers them the inflated price, the property will likely not appraise, killing the deal.
In my conversations with sellers, I say that we need to think like buyers--what else is out there for the money? Often, the sellers reply: "The buyers just need to make an offer & take off for the new flooring, appliances, or whatever is needed." I reply that with the huge inventory available, buyers won't make any offers on a property they have to work on. Buyers simply say "Next!" and go on to the next home. Sellers are often very surprised to learn that.
Most importantly, I remind sellers that the market is declining & that reducing the price now actually protects their equity (because the property should sell more quickly).
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