Asking your seller for a price change is one of the most uncomfortable conversations you can have, leaving you feeling like you’ve got to bob and weave to avoid a punch in the face. But when showings are down and there’s not much else you can do to generate buzz, it’s something that has to be done. On this episode of The Hustling Agent, I’m going to show you exactly how you can ask your seller for a price change without getting beat up in the process. By setting the proper expectations up front and laying out a pre-planned pricing strategy, you’ll avoid discomfort and ensure that price changes don’t surprise your seller. It’s surprisingly easier than you think!
Set Your Expectations From Day One With A Pre-Planned Pricing Strategy
The first two weeks of a property’s listing is the best time to sell; after that brief, golden window, showings and interest will start to decline. As showings slow, the chances that you’ll get the price your seller initially wanted will go down also—and that means an adjustment in price. While you and I know this is completely normal, an uninformed seller does not. We all know that most—if not all—sellers will value their house above what it’s actually worth and want to list their home at a price above its true value. It’s important for you to make sure you implement a pre-planned pricing strategy upfront, so your seller knows what to expect if the initial price doesn’t receive enough traction.
Your pre-planned pricing strategy should eliminate all future price change objections from your seller, laying out a timeline for them of when price adjustments may be necessary. Of course, if you price the home right from the beginning you won’t need to make adjustments; you want to convey this to your seller, but may need to compromise where you can so you don’t lose their business.
For example, let’s take a home that is worth $400,000. The seller wants to list the house at $425,000. What do you do?
If your seller is adamant about their starting price, this is where you can negotiate and implement your pre-planned pricing strategy. Instead of arguing your point, offer to list the house at their price for a period of no longer than 2 weeks if the home does not receive x number of showings by that time (this will vary depending on the market). In order for them to understand this strategy, you’ll need to explain market time to them. Your job as an agent is to educate sellers on how market time impacts a listing, so explain to them how demand decreases over time and will affect the price. Your pre-planned pricing strategy should include pricing changes reflective of the number of showings and time on the market, allowing the seller to understand exactly what to expect.
Have A REAL Marketing Plan In Place
A typical seller reaction to a request in price change will be the assertion that you’re not marketing the property well enough. Avoid this conversation altogether by going above and beyond to put a solid marketing plan in place, and make sure to share it with your seller. You want to do more than stick a sign in the yard and list their home on the MLS, because sellers will blame your marketing if showings aren’t happening.
Send all of your marketing materials to your seller upfront, and showcase everything you’re doing to get their home sold. If the time comes for a price change, they won’t be blindsided or tempted to blame your lack of marketing. Remind them that the market itself will dictate how a house needs to be priced. And of course, you’ll want to back this up with facts. Gather all of your statistics from the MLS, including showings and feedback on the property. Login into Zillow, Realtor.com, Trulia, and Homes.com to get search traffic results and stats that will give concrete facts to back up your request. Facebook Ads are a great marketing asset to use and will allow you to show your seller how much traffic the listing has gotten. Your main goal is to give your seller a reason to trust you that’s concrete, not just based on your credentials as a realtor. Showing them cold, hard facts will not only garner trust but will also earn you’re their respect.
It’s always the hope that price changes won’t need to be made and you’ll get the seller’s home sold in less than 2 weeks’ time, but you can never be 100% on how the market will behave in a particular listing. By preparing your marketing plan and implanting a pre-planned pricing strategy, you’ll make sure your seller is ready and onboard for any pricing changes that may need to be made. All of your hard work and preparation will not only help the seller to make the best decisions, but you’ll have a much easier time asking for price changes when the need arises. It may be a tough part of the business, but doing it smoothly will help build your brand and help you stand apart from the competition.
If you need any more advice or information, don’t hesitate to contact me and I’ll be happy to hear from you!
