Don't Beg For The Price Reductions....Get Them When You List The Home!

By
Real Estate Agent with Keller Williams Realty

Wow...life sure has become so much easier when I figured out that it's so much easier to get price reductions on the front end, as opposed to trying it a few months into a listing contract.

In the beginning, you're definitely the expert and the sellers cling to every word you say.  If a couple of months go by and you don't have many showings, they forget all about the discussion of "price" that you had with them at the beginning of the contract.  They simply translate "no showings" = "agent doesn't know squat".

To help avoid this is to simply get the price reductions up front.  We simply start with our list price and (depending on what the trends are in your specific area) we say that if we don't have an offer within ___ weeks, we will drop to __________.  If we go another ____ weeks and still have no offer, we then drop to __________ and so on.

When we insert the price reductions, we also make sure that the reduction will be significant enough to get us down into the next pricing tier.  For example, if your starting price is $100,000 it doesn't make any sense to reduce to $97,000 because you're not entertaining any new buyers.  You're still going to be found by all of the people that are looking up to $100,000. 

We need to catch the next group of buyers, the ones that are only looking up to $95,000.  I don't know why it is, but people are never looking up to "96,000" or "97,500".  They use flat numbers and they seem to search in increments of $5,000 or $10,000 in lower price ranges...$25,000 or $50,000 or even $100,000 in higher price ranges. 

People, including your sellers, are searching homes online all the time, and this is something they can understand.  It's almost like you can see the light bulb turn on in their head when you explain that this is how you're going to do it.  It's makes sense to them.  They get it!

If you haven't tried this strategy before, you might give it a whirl.  It sure does beat those dreaded "it's time to start thinking about a price reduction" phone calls.  Click here to see if it's something you might be able to tweak and use for your business!

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Indiana Johnson County Greenwood
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Tags:
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Rainmaker
111,108
Steven Wright
Home Real Estate - Aurora, CO
CRS - Home Real Estate - 720-989-5283

There is always more than one way to skin a cat, right.

Dec 19, 2008 12:34 PM #1
Rainmaker
12,417
Shawna Ebersole
Keller Williams Realty - Greenwood, IN
Greenwood, IN Real Estate

Absolutely....whatever it takes!!! :)

Dec 19, 2008 12:37 PM #2
Rainmaker
468,350
Marcy Moyer
eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales - Mountain View, CA
Probate, Trust, and Investment Specialist

Great idea. I will definately try it on my next listing.

Marcy Moyer Intero Real Estate Menlo Park Ca

Dec 19, 2008 12:48 PM #3
Rainmaker
1,079,273
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Thanks for sharing the form, Shawna! I was just looking back at Mirela Monte's blog a month or so ago with great listing tips and one of them was getting price reductions up front. It makes sense and you are so right...in the beginning we are experts...no showings and the sellers become frustrated. Thanks to rampant news coverage, many of them know what we're up against but still, it would be nice to have showings:)

Dec 19, 2008 02:02 PM #4
Rainmaker
655,832
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

Right -- get the price reductions built in -- it makes it easier , less stressful  and more likely the house will sell.

Dec 19, 2008 03:08 PM #5
Rainmaker
12,417
Shawna Ebersole
Keller Williams Realty - Greenwood, IN
Greenwood, IN Real Estate

Amen!  It's so much easier to call or email and let them know you remembered to make their pre-set price reduction in the computer.  It's another way to show you're staying on top of things and keeping their listing at the forefront of your mind.

Dec 19, 2008 03:14 PM #6
Rainmaker
193,804
Mary Strang
Viroqua, WI

Sounds easies said than done with many sellers I have lately...

Dec 19, 2008 11:46 PM #7
Rainmaker
12,417
Shawna Ebersole
Keller Williams Realty - Greenwood, IN
Greenwood, IN Real Estate

Like a lot of things, it's something that you have to bring into your comfort zone until you get to the point where you're confident and comfortable doing it.  But once you get there, it will make your life much easier down the road.

Dec 20, 2008 01:44 AM #8
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Rainmaker
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Shawna Ebersole

Greenwood, IN Real Estate
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