How Top-Producers Get Price Reductions
by Dirk Zeller
from totalrealestatesolutions.com
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. |
