With pricing the key to selling homes... how do you advise clients about reductions?

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With pricing the key to selling homes... how do you advise clients about reductions?

Pricing is the key to selling homes. A recent blog post on Active Rain from a Keller Williams agent in Illinois names 10 tips for getting price reductions. What would you add to the list?


5 Tips for Getting More Price Reductions: (for the full list, go here)


1. Have a pricing reduction system and explain it to your clients up front. It is best to price homes correctly from the beginning. Nevertheless, many clients will want to test the market. I understand. So you need to have a price reduction system and explain it up front.

My system: My listings will have at least 2-5 showings per month. They will also have a contract within the first 10-15 showings. If they do not, they are overpriced.


That is my pricing system. You better have one too...

2. Bring a listing modification form on your first appointment. I want my clients to understand the process up front. Part of that is being comfortable with the paperwork. I show the listing modification form at our first meeting, so they will feel comfortable with the paperwork and the process.

3. Set your clients up with an e-mail search of their neighborhood. Keep them educated. Using the local Multiple Listing System (MLS), agents can easily provide clients with detailed information from their neighborhood or subdivision. With this information in front of them, your clients will usually understand the realities of their own market.

4. Keep your clients focused on the buy side. In this type of market, the selling of a home can be adifficult time. There are less showings, contracts, and offers than there were 5 years ago... Keep them motivated by looking at some homes. Set them up with an internet search of homes that match their needs/wants. If they find something they really like, they maybe motivated to price their home to sell even sooner.

5. Show them the internet traffic. I send my clients weekly reports from Trulia and Realtor.com that show the online traffic their homes are generating. They see their homes are being "seen" even if they are not being seen.

 

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2 comments (Add your own)

1. Jacquline Buso wrote:
I do three different things to keep my sellers motivated. One, I always set up a search for potential homes that meet their criteria for them. When they see something they like we preview. This will keep them motivated on moving. Two, I send out weekly reports that show what their internet views were so they can see that they are truly having traffic on their home even if they are not physically coming there. Third, I do a monthly CMA on their property. If at that time I see that we are not competitive I will move forward with a price reduction. Your sellers have got to be informed from day one. Even though at times it may be unpleasant for them to see the reality you still have to keep them in the loop as to what the market is doing!

Sun, July 18, 2010 @ 8:21 AM

2. wrote:
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Tue, December 7, 2010 @ 5:06 AM

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