Welcome to another episode of “What’s Working Now!”
I’m recording live from our new listing at 4550 Klingle St. NW at Wesley Heights.
I also want to discuss one of the smartest things a seller can do: price reductions.
How do you know if you need a price reduction? There are two main things to look for.
First of all, let’s say you have a brand-new listing in a hot market. If no one calls and there are no showings, what’s wrong? Is the market bad? Is the market slow? No. Buyers respond to price, condition, and location. If the price of your home isn’t right for its condition or location, then the phone isn’t going to ring.
So, one of the signs that you may need a price reduction is when no one calls or asks questions about your brand-new listing.
On the other hand, you may have 20 or 25 people come in for a showing. They look at your house, say that it looks great, but no one makes an offer. This tells you that there is no urgency to make an offer on this product in this location at the current price.
So what do you do?
It usually falls to the agent to recommend a price reduction. Go to the computer to take some notes. Pay attention to what has sold over the last two weeks while your house has been sitting on the market.
Then, call your seller to let them know what you’ve found. Show that no one is looking at the home even though four listings in the area have sold in the last two weeks. Use the statistics to make the case that they need to have the price reduction.
If the seller doesn’t believe you, look to a partner, manager, or someone else in the office to back you up. Find a CEO or president—someone who will understand that the price needs to be reduced. Give them the statistics and have them write a letter for you to pass along to your client.
I’ve done this with my partner, and it’s been very effective. In fact, I just did this a week ago. My partner wrote a letter to the seller backing up my recommendation for a price reduction. The sellers agreed. Soon after the price reduction, they got two offers and sold the house. The inspection went through and they are heading to the closing table next week.
If you would like to learn more about selling your home in the current market, click here to sign up for the Seller Half Hour Seminar online. I’ll cover everything you need to know in less than 30 minutes.
If you are interested in my listing at 4550 Klingle St. NW at Wesley Heights, take a virtual tour here.
Thank you for watching “What’s Working Now!” Stay tuned for our next video, where I’ll discuss one of the latest market strategies that can make a big difference for both buyers and sellers.
In the meantime, if you have any other questions about real estate, just give me a call or send me an email. I look forward to speaking with you!