Getting clients to reduce their price is not a mystical happening. It must
be done methodically. Top-gun agents have a set system to get price
reductions. It is followed 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: Get it priced right when you list the property. Tell the
seller the truth about the price. Be compelling and convincing in your
conviction about the price. Make the seller understand 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 take the home 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 dropping the price to a new
price. Push to get it signed and done. This commitment will avoid discussion
later. If you do discuss this but don’t get a signature, 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 in your environment to get the price
needed to sell the home. By getting them to your office, you have control and
invest less time, which is your most precious resource. When they come to your
office the meeting will be shorter and you will save at least 30 minutes in
drive time.
Step four: Create a specific price reduction campaign of 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 we are judged by the results of getting the home
sold. If the price is hindering your success, your client needs to change.
Step five: This is the final step. The clients have not been
cooperative with getting the price down. They have met with you and received a
few steps of your price reduction campaign. Send them the final letter. The
letter should state that you have included a price reduction form with your
recommended price and a form to cancel the listing, and ask them to please sign
one of the forms and send it back.
When I was an agent, we used to get about 65% that signed the price
reduction. We had about 35% that wanted to cancel their listing. The 65% sold
at the reduced price when they would not have before. The 35% we saw on the
expired list months later. Clearly, our over-priced listings had 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.
Published: August 2, 1999
Use of this article without permission is a violation of federal copyright laws.
 Dirk Zeller is an Agent, an Investor, and the President & CEO of Real Estate Champions. His company trains more than 350,000 Agents worldwide each year through live events, online training, self-study programs, and newsletters. He's the widely published author of Your First Year in Real Estate, Success as a Real Estate Agent for Dummies®, The Champion Real Estate Agent, Telephone Sales for Dummies®, and over 300 articles in print. You can get more information by visiting RealEstateChampions.com. |
