- Episode 30 -
You knew the day would come. Where do you start? What do you say? How do you discuss this sensitive subject without embarrassing or insulting anyone? It’s time for…the TALK!
Oh wait, not that TALK! But it is still just as awkward.
It’s the “talk” with your sellers about a price reduction!
You listed the property and have done all that you can to market it to potential buyers. The Open Houses were successful, the flyers looked great and the email blasts were followed up with showing requests to see the property. But the house still sits with no offers. It’s in an awesome location, close to everything. The schools are A+ and the neighborhood looks like something out of a 1950s sitcom with perfect tree lined streets and manicured lawns. And still no contract. There’s only one solution – the price is too high.
There are two different scenarios that a listing agent comes across. The one where they took the listing and knew it was overpriced from the start, yet “played the game” with their sellers, allowing the home to be listed higher than they wanted, knowing that it would need to be reduced in order to sell. The other scenario is when the market analysis is completed and the home was priced right – yet it still isn’t getting the offers you thought would be lined up by now.
The first scenario is actually the easier of the two to overcome. A lot of times agents take the listing, knowing that a price reduction would be in the property’s future. Properties get stale when they sit around too long, so it’s always best to hit the market with the right price from the beginning – yet that is easier said than done.
Once faced with these “frozen assets”, it’s now time to show the sellers that they hired a professional from the start, and what you told them in the first listing appointment you are still standing by now. You know your area and the listing history of competing properties. You understand the market conditions and what may have changed since the listing was taken. And you start “the talk” by using “price repositioning” instead of “price reduction”. It’s all in the delivery, and building back the seller’s assurance that, with the new price, you will once again do everything you can to now position the home correctly “by your rules” in the market to sell by.
The second scenario is trickier to get the seller’s buy-in.
Even when a property is priced right from the start, and all the marketing is geared towards the correct audience, sometimes there are just things that don’t allow for a quick sale. Perhaps it’s time to do some work in the home – maybe the yellow bedroom wall would appeal to more buyers if it was a neutral color? Perhaps bring in a stager to help de-clutter what is not readily seen to yourself or the sellers. Again, knowing the development and what other properties are experiencing will help when asking for these things to be done and will assist with justifying why the price needs to be changed.
I remember earlier on when my color-coded files showed that I had more “green” seller files than “red” buyer files for the first time. I was thrilled as I called my Broker to explain that the colors shifted and I now felt like I had made it as a seller’s agent. As he chuckled, happy for me, he commented: “be careful what you wish for”
As I prepare to have “the talk” with my sellers this week, I now understand what he meant!
Kay Conageski is a professional Realtor® with The Keyes Company based in Plantation, Florida. Check out her RESAAS profile ›