Getting clients to reduce their offering price is not going to happen by share luck! We have all witnessed at some point in our career conversations on overpriced listings. Some would go as far to say, “They would rather have an overpriced listing than no listing at all.”
There are many reasons for an overpriced listing to occur. The seller feels their home is worth the price, or the agent needed to bring in a listing and lightly touched on getting a priced reduction at some point later on. Whatever the reason, the uphill battle begins to get the seller to reduce their price.
Take the time to pre-qualify the seller, if you are going to represent them, have a clear understanding as to why their selling, how they derived at that price, and when are they looking to close. If you find yourself with an overpriced listing, here are five steps to help set-up for a price reduction.
1. Inform your clients about the dangers of over-pricing their home.
2. If you decide to take the overpriced listing, have a plan of action prepared with a date that you will have them reduce the price. Get a commitment within 30 days from the seller if the home has no activity to reduce the price.
3. Your seller insists on price and having a Broker open house. Discuss with your seller the feedback provided to get your seller to reduce their price.
4. Your local MLS is a great tool to establish price reductions. Make sure your seller receives price changes, etc.
5. If your seller has no activity and no desire to cooperate with a price reduction, you have a decision to make. Having a discussion with your Broker to step in may help or the possibility of releasing the property. If it expires, some other Brokerage will relist it at a lower price. We have experienced this at some point in our career.
Clearly, over-priced listings have no value. In the end, it will cost money and time, along with emotional energy. Do not allow a seller to dictate their terms or conditions, to your success if they refuse to look at the facts objectively. Listing price in any market will always dictate all the factors in the sale.
