Get Price Reductions and Sell More Houses
Getting clients to reduce their price is not a mystical
happening, and is often critical to making the sale. It
must be done methodically. Top-selling agents have a set
system to get price reductions. They follow their system
to the letter no matter the price of the property, economic
conditions of the market place, or the client.
There are five steps to set up a good price reduction
system. Step one: Price it right when you list the property.
Make sure the seller understands the how important the
right price is to the sale. Be sure you tell them the
truth about how their property’s price compares
to others in the area. Be compelling and convincing in
your conviction about the price. Setting an artificially
high price just to get a listing will not help you to
sell the house, and you need to be sure the owner understands
that. Make the seller understands that the other agents
want the listing and will beat them up on price later.
They merely want their sign in the ground. You want a
sale and a satisfied client and you are willing to tell
them the truth up front to get that.
Step two: If you decide to list the home with a price
that is overpriced initially, then get a price reduction
signed for a future price and date. Get the commitment
that if in 30 days the home hasn’t sold, they are
willing to drop the price to a new price. It is important
to get them to agree to these terms up-front when you
list. This commitment will avoid discussion later. If
you can’t get a signature up-front, at least discuss
the price reduction issue. You will have at least laid
down the foundation for a discussion regarding reducing
the price at a later date.
Step three: Get the sellers to agree to meet with you
at your office every 45 days to discuss the price of their
property and showings. This meeting will give you an opportunity
to meet with them in your environment to get the price
needed to sell the home. By having the meeting at your
office, you have control and will invest less time. Time
is your most precious resource. By meeting at your office,
the meeting will be shorter and you will save 30 to 90
minutes in round-trip drive time.
Step four: Create a specific price reduction campaign
using letters and phone calls. This campaign should start
no later than 30 days after the listing is taken. The
clients should receive information and guidance about
the dangers of over-pricing their home. They need to know
the importance of price in the sales process, even if
you clearly explained this during the listing appointment.
Remember, you are judged by results, and selling the home
is the only result that counts. If the price is hindering
your success, your client needs to change.
Step five: This is the final step. If the clients have
not been cooperative with getting the price down, even
after they have met with you and received a few steps
of your price reduction campaign, it is time to send them
a final letter. The letter should once again state your
reasons for reducing the price, and include a price reduction
form with your recommended price and a form to cancel
the listing. Ask them (nicely) to sign one of the forms
and send it back.
Active agents will typically see about 65% that signed
the price reduction. About 35% will want to cancel their
listing. The 65% will usually sell at the reduced price
when they would not have before. The 35% who refuse to
reduce the price will likely never sell at their price.
If the house never sells, then it has no value to you.
Clearly, over-priced listings have no value. Yours will
only cost you money and, more importantly time, and emotional
energy. Don’t allow clients to dictate the conditions
and success of your business by their refusal to look
at the facts objectively. Reduce your expired listings
by reducing the price. Price will always dictate all the
other factors in the sale. Control the price today.
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