Learn How to Get Property Price Reductions

Managing to have clients reduce prices on a property is deliberate, not magical work. Resourceful agents use a system to achieve price reductions. This system is followed step by step to ensure a proper price reduction. Top agents are thought on a number of real estate courses to follow a five step process to manage price reductions from clients.

First Step:

Properties must be listed at proper price to begin. Honestly informing the seller of their properties worth will allow the seller to understand their price point. Inform the seller that you are looking to complete the sale efficiently and for the right price. Top agents guarantee sellers know that their main objective is a satisfied client and a sale at the right price for the market and area.

Second Step:

Sellers that are determined to overprice their home should be made to sign an agreement stating a specific price reduction on a specific date. A commitment from the seller to reduce a price in 30 days if the property is not sold will allow for proper pricing of the property. This contract with the seller avoids future price reduction issues and has established future dealings regarding price with the seller.

Third Step:

Initiate an agreement with the sellers to meet with you every 45 days to discuss the pricing of the home if it has not sold. Having a set meeting will allow discussion with the sellers to communicate the need of a price reduction to ensure the property is sold. Meeting in your environment will allow you to control the meeting. Short meeting times are essential to keep the agents time free for more clients and minimal drive time.

Fourth Step:

Institute an onslaught of phone calls and letters that encourage price reduction. Start the onslaught at the 30 day mark. Providing the sellers with concrete evidence of the dangers of overpricing will allow them the opportunity to reduce their price point. Agents are evaluated on their closing of a sale, so it is essential for all agents to get the price right and the property sold. Sellers who are refusing to properly reduce a property sales price may need to be let go, so that you as an agent may be successful.

Fifth Step:

Unsuccessful campaigns for a proper price reduction will necessitate a final letter. Include in the final letter an outline stating why a price reduction is necessary, include both a recommended price reduction form and a cancel listing form. Ask the sellers to make a decision regarding the listing and to sign and send back the proper form.

As a real estate agent, I averaged a 65 percent price reduction. The rest of the sellers chose to cancel the listing. My 65 percent clients reduced their price and experienced a sale. The 35 percent who cancelled only had an expired home listing. Sellers perceived home values and actual values have no impact when achieving a sale. Proper pricing is essential in getting a property sold. Your job as an agent is to push the seller to objectively price their property. Price is always the most important factor in any sale. Reduced pricing on properties allows for a sale and achieves the goal of both the seller and the agent.

Share |