Having the Price Reduction Talk

– Crystal Vagnier – Select Group – Writer/Editor

Engaging in a price adjustment conversation with your seller should never be a surprise as long as you’ve established upfront the proper expectations. Discussing the breakdown with your seller is best. The first month is often deemed the “magic month;” if the property doesn’t sell within the first 30 days on the market, then assessing the current market conditions and adjusting the price is normal, expected, and typical. It is always helpful to remain proactive and consistently contact your seller with any updates. Once your seller is aware of the work you’re putting in and how many showings with interested parties have been conducted, chances are the seller will be more receptive to a price change. They’ll understand how pricing can affect offers and interest. As with any situation, it is best to use positive terms and utilize teambuilding words like “we” and “us.”

Other terms to use during your discussion are:

*   Price adjustment

*   Price improvement

*   More competitive pricing

*   The market has turned against us

*   The market has told us we’re wrong

*   Today’s market won’t support the listing price

 

Here are four sample scripts you can use when having the price reduction talk with your seller:

 

Script ONE:

“Hi, Mr. & Mrs. _______, I have been reviewing the current market trends and today’s market is not supporting our current listing price. When we initially looked over the comps we thought we had priced your home correctly however after _________ days the market is telling us we need to consider a price reduction.”

 

Script TWO:

“I am sorry to have to make this call. It is one of the most difficult parts of my business. But if I didn’t make the call, I wouldn’t be performing my duties, and I wouldn’t be serving you properly. I made the initial listing price recommendation based on how much you said you wanted to get out of your home, but the market is telling us that it’s not the correct price. When can we get together to discuss what adjustments we need to set a new price and get your home sold.”

 

Script THREE:

“It appears that the marketing has turned against us, and is rejecting our price. We need to get together to discuss a new price so you can achieve your goal of ________________. (Moving up, Relocating, Downsizing, etc.).”

 

Script FOUR:

“Remember that I work for you, so this is your decision. I don’t want you to think I am suggesting that you “give your home away”. I am recommending we make a price adjustment that will be supported in today’s market and will enable your home to sell now to avoid the risk of having to make a larger reduction 60 or 90 days down the road.”