Some relationships are easier than others. Friendships fall on the easier side of spectrum, if you disagree you can just part ways.
Unfortunately, today the concept of “the right price” is less like a friend and more like the annoying kid brother your sellers are forced to bunk with. They can’t get away and will have to make a few concessions and learn how to get along in order to survive.
What does that make you, the listing agent? You’re the family counselor who has to quickly motivate your client to grow up and accept the facts; it may be time for a price reduction.
Here are a few things you can show sellers to help them make peace with a lower price that will ultimately get them to the closing table:
Client Listing Reports – The facts about your relationship
Like kids, sellers tend to focus on all of the things they’re doing right and have a little trouble seeing why they can’t have it all go their way.
That’s where your Client Listing Reports on Trulia come in. They provide an objective look at how their property and the market are interacting. Using stats like pageviews and search results stats they show the cold hard facts on how a listing is performing.
When it comes to finding the right price Client Listing Reports are a great a tool for convincing sellers, they aren’t right as they think. Their behavior needs to change.
Show’em the Comps – Your little brother is not as weird as you think
Your family always seems bad until you watch Jerry Springer.
Comps from multiple sources are like a crowd screaming “Jerry!” Springer shows us we’ve all got a few family issues and comps are the equivalent reality check for a seller thinking they are exempt from the factors influencing the market.
The biggest thing to remember when pulling comps is, make sure they’re relevant and from multiple sources.
Survey the Competition – Join a support group
Live listings are the flip side of comps. They show sellers what they’re up against today. Seeing the competition’ s prices can be sobering and informative like a support group of sorts. It’s important for the client to see how others are working through the same issues they’re facing today.
Your sellers should complain a little less once they digest that they’re not the only ones struggling with the concept of “the right price.” One great suggestion we saw from Ken Tracy in our Facebook comments was to set your clients up with listing e-mail alerts for similar properties
Marketing Activity Report – If you’re going to get along, you have to try something new
Lay out the property marketing history, showing and call logs, and response history for all of your efforts. If things have been quiet for more than 30 to 45 days, chances are a price reduction is your best move.
At the end of the day selling in today’s market is like going through a growth spurt – it’s a little uncomfortable, requires some compromise, and takes a little time. Using these tools can help speed up the price-refining process, but remember to consider your client’s emotions while delivering these sometimes hard to swallow facts.
If you counsel the right way you’ll not only deliver a much needed dose of reality, you might win a client for a lifetime.
Thanks to our crowd on Trulia Voices for the inspiration for this post. Check out the Voices Q&A “What tools & tactics help you convince a seller that it’s time for a price reduction?” for more helpful hints on price reductions.


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Legacy Comments
You are right abount comps and your competition. It’s the friend or family memember that knows everything, who has not sold a peice of real estate in twenty years.
Nice article. While I realize I am wishing for the impossible, we would all be much better off if the majority of agents would just walk away from any seller that has unrealistic expectations instead of listing at any price and hoping to sell another home or convince the seller to “grow up” later on. The best way to get someone to grow up is to say no when no needs to be said.
Over-pricing is rampant in my area and quite honestly doesn’t do much for the integrity of our profession.
I completely agree with Robert!
FYI – Maybe we can use this with Janet.
Mary, I think you may have been trying to forward this instead of comment.
Even with comps and black-and-white proof that a property is overpriced, some sellers insist they can and will wait for their asking price. Most of those I come across that do this have added ‘sentimental value’ to their asking price. It’s a tough one at times. I politely remind them that all they are accomplishing with overpricing their home is that they are selling all their surrounding listings!
Boy is that the truth! An overpriced listing is perfect for selling others! Why is it so hard to get that concept across?
One of the worst offenders is the seller who says “I am not taking less than $X, I’m not giving it away”. But if you ask what contingency plan they have if the house doesn’t sell, they have no idea.
The ones I am amazed by are the sellers that actually get a buyer to buy their over priced property and then the appraisal comes in low, and they STILL refuse to sell at appraised value!!
I had the opposite problem once. I had a listing that was a large, unique property and there was great interest in it, but it was in very poor condition. The appraisal came in at $250,000, which was way too high. Nevertheless, I got three separate contracts at or above $250,000, but the lenders all balked even when the price was reduced to the appraised value. At that point, I told the sellers that the only way they were going to sell it was cash only. Incredibly, we received a fourth offer, cash only just under $200,000 with closing guaranteed in seven days. The Sellers all balked at selling it at that price because the appraisal had come in at $250,000. INCREDIBLE!!!!
Thanks for the simple, straight forward information. It is a challenge in any market, but especially when a lot of the sellers are so close to having to short sale.
I like the article, I’ve been doing this for 11 years and alot of seasoned Realtors response is lets lower the price, let’s lower the price and it upsets the sellers and me too.
We forget that most properties need market time. Their are always new buyers everyday. I think the seller needs to re-adjust there thinking too but it takes time.
I find the best way is to bring them to the competition every 2-3 weeks and make sure they know what is selling.
Great article.
It’s hard for us Realtors to do the hard work and stay calm in these crazy times.
Thanks,
Pat
Thanks great article,
I’ve been doing this for 11 years and alot of seasoned Realtors response is lets lower the price, let’s lower the price and it upsets the sellers and me too.
We forget that most properties need market time. Their are always new buyers everyday. I think the seller needs to re-adjust there thinking too but it takes time.
I find the best way is to bring them to the competition every 2-3 weeks and make sure they know what is selling.
Great article.
It’s hard for us Realtors to do the hard work and stay calm in these crazy times.
Thanks,
Pat
I’ve been doing real estate for five years now. When a Seller wants to over price their home, I simply walk away because #1 it’s not doing them or me any good. The difference between a real estate and a REALTOR is that a real estate agent will take business any shape, form or fashion they can get it. A REALTOR, who is SUPPOSE to be a true professional will walk away from it. When I have a listing that needs to be reduced and the Selllers refuse not to, I let it sit in MLS. I do not spend my advertising dollars on Sellers who can’t come to grip with reality. I am only as motivated to advertise their home as they are to sell it. Sometimes its difficult to give them a reality check, but it MUST be done.
I’ve been doing real estate for five years. When I come across a Seller that wants to over price their home, I simply do NOT take the listing because #1 It’s not doing them or me any good. #2 It’s against REALTOR code of ethics to over price a property. When I have a listing that needs to be reduced I simply confront the Seller(s) to let them know the market has changed. If they decide not reduce it, I simply let it sit in MLS and stop advertising. I can only be as motivated to spend my and my Brokers hard earned dollar to advertise. A lot of REALTORS will simply over price the listing just to have it and hope they can obtain buyers from it. I do not and will not do that. I learned when I got in the business that there is a difference between a real estate and a REALTOR, the difference….A real estate agent will take any kind of business they can get any shape, form or fashion. A REALTOR (who is SUPPOSE to be a true professional) will simply walk away.
I totally agree with you Ronnie. As Realtors, if we truly did our jobs as professionals, there should never be any need to go back to the seller to ask for a price reduction.
Great article! Would you sell in this market if you didn’t have to? Thank God that in this business, we can still choose who we represent. I’ve seen people “steal” homes and I’ve seen sellers “hit the lottery” in any market. All back to Location-Condition- and oh ya, a touch of reality. It it’s a good offer, take it, before they change their mind. Anyone seen my crystal ball?
Really great article, very insightful!
I respectfully have to disagree with turning down a listing simple because the seller wants to list high. I would estimate that 1/3 of the new listings are very much overpriced at first! No matter what comps or logic you use, often th seller will not budge when you first take the listing. But, most of these sellers will eventually reduce the price once they see the light, and the property will sell. If I were to have turned down overpriced listings, I would have been out of the Realtor business in 1983. So, if you do not want those overpriced listings, please send em my way.
By the way…nice article!
I respectfully have to disagree with turning down a listing simple because the seller wants to list high. I would estimate that 1/3 of the new listings are very much overpriced at first! No matter what comps or logic you use, often the seller will not budge when you first take the listing. But, most of these sellers will eventually reduce the price once they see the light, and the property will sell. If I were to have turned down overpriced listings, I would have been out of the Realtor business in 1983. So, if you do not want those overpriced listings, please send em my way.
By the way…nice article!
After a house sits on the market for a while, many Sellers question your marketing efforts. All the marketing in the world will not sell an overpriced home.