Are You Closer to a Sale or a Price Reduction?

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Education & Training with The Lones Group, Inc.

The Lones Group, Inc.

Are You Closer to a Sale or a Price Reduction?

One of the most discussed topics between real estate brokers and their peers is pricing. Pricing a home to sell is both an art and a science.

Why do so many homes sit on the market gaining days on market dust and creating nothing more than frustrated sellers and real estate brokers? The answer is quite simple: The property is not priced where it needs to be to get sold.

Perhaps it was priced right initially, but the market changed. Maybe the buyer pool shrank and you got caught in that bad timing. Perhaps there was a situation in which a lot of similar product came on the market at once.

Regardless as to why you have gotten where you are the truth of the matter is this:

Your listing is ALWAYS either getting closer to a sale or it is getting closer to a price reduction.

That is the bitter truth. If you have a home listed and it is not selling you need to stop thinking that another day might be the answer to getting the home sold. In fact what the home probably needs is a price reduction.

Every day you have a home on the market, that day must represent either forward momentum towards a sale or forward momentum towards getting the seller to see they are overpriced and need a price reduction.

When a broker asks me to evaluate their listing because it isn't selling, I can usually see quickly that they have been ignoring the glaring signs that the home is overpriced. Here are some of those signs:

  • The traffic was initially good but it has slowed down significantly
  • Other homes in the area are newly pending or selling
  • Open house traffic is either very slow OR it is very good, but no one is making an offer and no one is following up
  • Showings have declined dramatically
  • Any offers you have received are super low and buyers don't see the value to pay more

If the home isn't selling it is professional negligence to let it just sit on the market and go stale. Racking up days on market numbers does nothing positive for your seller.

Instead, you need to learn how to speak to your sellers and be able to convey MOMENT OF THE MARKET facts to them. Sellers need weekly updates on all changes to the market as real estate markets change DAILY. In fact, having a discussion with the seller during your listing appointment regarding the importance of adjusting the price either after a certain time or after certain clues are left will set the stage for a successful price reduction.

Stop thinking that you can get your listings sold by waiting another day. Another day of non-communication with your seller about the truth of the market is damaging to their sale.

So, are you closer to a sale or a price reduction on your listings? Today is the day to buck up and have that conversation that you need to have.

 

By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings nearly three decades of experience in the real estate industry. With agent/broker coaching, expertise in branding, lead generation, strategic marketing, business analysis, new home project planning, product development, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

The Lones Group, Inc.
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Topic:
Real Estate Best Practices
Location:
Washington
Tags:
listings
pricing
changing market
communication
price reduction
pricing strategy
real estate
sellers
denise lones
property pricing
the lones group
zebra report
professional negligence

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Show All Comments
Rainmaker
983,648
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

No price reduction yet. Get it right first time and you are done.

 

May 03, 2019 09:42 AM #1
Rainmaker
1,152,689
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

HI Denise Lones - You make very cogent points with which I agree. This can be very frustrating when you have a seller who does not want to or can't afford to make a price reduction. 

May 03, 2019 09:44 AM #2
Rainmaker
3,237,942
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Denise- - -it's a path whether it be a real estate listing or a personal journey. Communication. Information.  Connection. 

May 03, 2019 12:26 PM #3
Rainmaker
366,989
M.C. Dwyer
Century 21 Showcase REALTORs - Felton, CA
Santa Cruz Mountains Property Specialist

Congrats on the feature - often it's time for the sellers to face the bitter truth.    Best to lay the groundwork up front by telling them the facts around activity, competition and price adjustments during the original listing appointment.

May 04, 2019 03:45 PM #4
Ambassador
3,772,004
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Denise - I love the points that you make. My former boss always said that life is like a river...you either go forward or backwards, never standing still. Years ago an agent held an open house every Sunday for at least 6 months or so. No sales. When I spoke with him and suggested staging, he shrugged and said he'd just get the seller to lower his price. 

May 04, 2019 04:04 PM #5
Ambassador
3,772,004
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

                                

                                            Thank you, Denise. 

May 04, 2019 07:19 PM #6
Rainmaker
4,864,131
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Denise Lones you hit the nail on the head with this one... and the most important statement for all agents to read is: it is professional negligence to let it just sit on the market and go stale.

May 05, 2019 04:10 AM #7
Rainmaker
1,524,571
Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Denise, you described our market in a nutshell in paragraph three. One of the challenges we run into is owners who can't bring themselves to the realization that their house isn't worth what they want. Even with detailed comps, they still can't see it. 

May 05, 2019 08:14 AM #8
Rainer
470,908
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Ideally, priced competitively, a property should sell, yet, when agents list properties based upon the sellers listing price, the property will almost always sell for less than the competitive market price for that neighborhood or area. Professional negligence is avoided when the property being sold is listed at a competitive price and specific marketing strategy.

May 06, 2019 12:44 AM #9
Rainmaker
2,093,229
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

Pricing realistically from the beginning is so important and doesn't always happen. Price reduction is unfortunately a reality for many sellers!

May 06, 2019 09:02 AM #10
Rainmaker
495,829
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

I'm going thru this exact situation right now.  Priced home a bit high as it's sellers market, had offer for full price right away--then those buyers walked. So now we are chasing the market with a price reduction; still offers coming in lower than expected

May 06, 2019 12:26 PM #11
Rainmaker
441,931
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

I am dealing with a seller who thinks he knows more about the market than anyone else.  You described our market to the T! I am tempted to show this Q&A to Mr Seller so he can see these well thought out answers from agents all over the country.

May 07, 2019 08:07 AM #12
Rainmaker
378,823
Marney Kirk
Cummings & Co. Realtors - Towson, MD
Towson, Maryland Real Estate

Gosh, Denise, you have hit the nail on the head here! "Your listing is ALWAYS either getting closer to a sale or it is getting closer to a price reduction." YES!

Jun 05, 2019 12:05 PM #13
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CSP, MIRM, CDEI - Real Estate Coaching & Branding
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