Real estate training emphasizes the importance of negotiating price reductions on overpriced properties. Yet many clients are often hesitant to agree to price cuts, meaning their property sits on the market untouched by buyers. This scenario is not lucrative for agent or client. So what’s the best strategy for getting price reductions? Successful agents who have enrolled in the best
real estate courses rely on a few tried and true methods.
Be honest about the current housing market and visit clients armed with evidence, such as recent comparable sales in the neighborhood. Buyer interest tends to be at its highest in the four weeks after listing a home. Therefore, it’s beneficial to get the pricing right from the start. Appeal to the client’s rational side and let them know that you’re there to help them successfully sell the property. Convince them that you work for them and have their best interest at heart, which is why you’re being truthful with them. By getting them to reduce the price before listing the property, the likelihood of a sale increases.
Set a date for a future price reduction and stick to it. If the property is overpriced initially, prepare a document in writing and have the client sign it, that sets certain criteria. For example, if the property is still on the market with little buyer interest after one month, the price will be reduced by an agreed upon percentage. Even if you’re unable to obtain a signature from the client, at least you have paved the way for future discussions.
Schedule a visit at your office with the sellers every 45 days. By meeting on your turf you will have more confidence, which in turn instills confidence in the sellers about your judgment and ability to sell the property. Be clear that these regular meetings are to discuss the price of the property and other relevant issues. Make sure that you’re prepared for each meeting with facts and figures to sway any stubborn clients. Holding meetings at your office will also save you time, because the meeting will likely be shorter and you’ll avoid a commute.
Call, send e-mails, and mail postcards educating the client on the pitfalls of overpricing a home. Launch your campaign within 30 days of listing the property.
Real estate courses teach agents that sales reflect upon their reputation and success. Therefore, you must be proactive and diligent or the home won’t sell. Send them information concerning comparable homes that have recently sold, homes currently listed, and adjustments that are necessary to pique buyers’ interest. This will give them an overview of the importance of the listing price when selling property.
If the previous steps don’t influence the client to take action, an ultimatum may be necessary. Send a letter that contains price reduction paperwork and a listing cancellation form. Inform them that unless the price is reduced, the property will not sell and you will no longer be able to continue working with them. Ask them to decide between the two options.
A realistic price appeals to the largest pool of qualified buyers. When clients understand the facts and realize the importance market-based listing prices, most will agree to cut the price and eventually sign the price reduction paperwork. Overpricing is the number one seller mistake and as an agent it’s essential to persuade clients to reduce prices or terminate the partnership. Otherwise, the process will be an unnecessary waste of time and money and add an expired listing to your portfolio. Take matters into your own hands and get the price reduction to ensure success.
Livonia Michigan Real Estate Agent
Over the past few years I have personally noticed some potential home buyers going through a very methodical process of choosing their real estate agent. I believe many now have access to more information available on the web and are taking a little more time to make a good selection for their representative. I personally had two different people come into my office this week alone to sit down and speak with me (interview) about possibly working together. This has been occurring more and more for me and I absolutely love it! Thank You to all of you who have suggested this by the way.
O.k. let’s go over what I’m talking about real quick. Let’s say you or someone you know is looking for a real estate agent or looking to buy or sell their home. Traditionally you will see many home sellers interview or sit down with possible real estate agents and make a decision if they would like to work togeter or not. Let’s focus on the potential home purchasers for just a moment. What we are starting to see is a much more formal interview process coming from home buyers right up front. This is a great idea for everyone involved. I have done this more over the past year than ever before and looking back everyone I did this with had a great experience overall. If you or anyone you know is looking for a Livonia Michigan Real Estate Agent please feel free to contact us or visit
WWW.BOBANDTEENA.COM anytime.