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Swallow The Frog in Getting The Price Reduction

Jessica Hickok

Jessica Hickok

By Jessica Hickok

As in every job, there are difficult tasks that you have to take on.  One of the difficult tasks that we face as REALTORS® is telling a seller that their house is overpriced and that they need to make a reduction in order to get it sold.  However, you can make this job easier taking the following action steps:

  • Documentation. Sure, this one is easy because we’ve heard it a million times.  Do your homework and show the actual market analysis and really study the comparables. Especially the U/C’s and Solds in the last six months.  Know the data inside and out and then show your seller the facts on paper.  It’s hard for anyone to ignore the data and the facts when they are staring them in the face.
  • Don’t use the economy as an excuse. Actually, don’t use any excuse or apology when advising your seller to lower their list price.  Oftentimes people feel like they need to apologize to soften the blow.  You have nothing to apologize for, because it is what it is. Give the facts and stand firm in it.  You didn’t create the market conditions.
  • And lastly, stay in contact with your seller. Don’t let several weeks go by without being in touch with them.  When you are constantly in contact updating your seller, it will be easier to ask for the price reduction.  Keep in contact with your sellers via e-mail, text messages, Facebook and/or short phone calls just to say hello and give a quick update.

So swallow the frog while it is still a small tadpole.  Be proactive in research, make no apologies for doing your job and keep in contact.  It’s been stated that one of the big pet peeves a seller has is that their real estate practitioner doesn’t let them know what’s going on.  The bottom line is that your sellers will respect you for doing your job.

Jessica Hickok, a self-proclaimed blogging- and Twittering-fanatic, is with Dizmang Properties in Springfield, Mo. Visit Jessica’s blog: www.jessicahickok.com.

Comments
  1. I think not watching, hearing or reading the news might be in order! Today one headline proclaims improvement in the market while the same news source hypes a decline and increase in foreclosures. The public is being confused by the talking heads and reports only giving one view.

  2. I guess I am too old to comment on this network, but I’ll pretend I’m naive anyway. It may be prudent to tell your vendor they want too much for their property before you take the listing. It could save you a lot of wasted time and effort following the pretense that you actually expect to get an inflated price for property that should decline until the average American learns the meaning of the word “equity” I’m afraid most realtors will need to eat the frog a lot more than ever before, and it won’t get better any time soon

  3. I agree w/ both Larry & Roman. I have even read conflicting reports in the NAR publications- and they “should” know better than anyone. One article states that home sales are on the rise- the very next article states statistics that it’s bad and getting worse. Even Practitioners are confused. As for swallowing the Frog- Suck it up and get the reduction. If the client won’t agree- they may be misinformed by their Counselor- if that’s not the case – cut them loose and don’t waste anyone’s time.

  4. Karlene Smith

    I agree you should be doing your homework prior to the listing and tell the seller what fair market value is for their home upfront. This way you will not have to go back for a price reduction. The house will sell quickly at fair market value and you may even get a bidding war going with multiple offers, hence getting a better price then the list price. I love those agents that list above market value and have to ask for the price reduction as I use their lack of judgment/professionalism/ experience to my advantage when doing my listing presentation.

  5. I’ve only had my license since ’02 in the Dallas/Ft Worth area and this market has been a “buyer’s market” with an over saturation of pre-owned homes listed the entire 8 years. It appears there are more over priced listing taken now because of the economic climate than ever. Sellers get a worse experience because buyers are much more educated now than any other time in real estate history. Still,..agents want their sign in yard to get buyer calls and hold the listing until the seller reduces it below what it could have sold for in the initial listing phase. More professionalism.

  6. Geo. J. Donaldson Jr.

    Frogs. I have found that a good time to get those “unpleasant” items out of the way is the first thing in the morning. After that the day is much more pleasant and one will find the rest of the day much more productive. Carrying a heavy bag of rocks “frogs” around all day is very warying on ones outlook.

  7. Anne Meczywor

    We come fully prepared with detailed CMAs, years of professional expertise, and quiet determination. We present all we have to offer, sometimes in excrutiating detail, and confidently turn to our seller JUST in time to see the glaze lifting from their eyes. They smile knowingly at you, and you return the smile, confident that they fully understand, and THIS time, you feel, you will have a seller fully on board with your on-target price recommendation. you pick up the pen, ready to sign the listing agreement with the appropriate price in place.

    Then, they pat your hand and say, “Yes, but….my house is SO much better.” SIGH. Frog legs are again on the menu.

  8. Someone quoted NAR with this statement:
    If you have been listed for 14 days and no showings: your home is overpriced
    If you have been listed for a month with 10 showings but no offers: you are overpriced.
    Priced out of market:
    Telling the seller in order to be competitive priced with the Banks the seller would need to drop the price 5% today or forced to look at 10% reduction next month.
    Can you veify these facts are valid?

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