Price Reductions
I'm convinced that price reductions in your real estate business come naturally with strong processes in place. When I was at my best, on my game, and fully engaged in my own real estate business, I just didn't struggle with price reductions very often. Do you?
Sure, you will encounter more than a handful of stubborn sellers along the way that will challenge you, but proven and repeatable processes will help you here too.
Marketing
Always remember, a seller really needs to feel you are really working for them!Consistently! Part of my process was to send out a comprehensive email with EVERYTHING I had done in the first 10 days. From the calls I made, to the sign, the flyer, xyz websites, raw data, etc. etc. It should be impressive and make your seller realize that they have SUBSTANTIAL exposure in the marketplace.
Without educating your seller on marketing exposure, they will assume you aren't doing a dang thing! Bet me!
Market Updates
When listings aren't selling like hotcakes and price reductions are common, I always strived to send out a market update every 2 weeks. Specifically addressing their immediate market. Price reductions are far easier when the seller sees their neighbors reducing prices or the sales since listing are lower than expected. While the market is heating up right now, it's still important to keep you seller updated and priced competitively.
In declining market environments and the lack of market updates, you can end up in a real mess where you are simply trailing the market with price reductions. That almost always leads to poor results and a volatile seller/agent relationships. No thanks!
Feedback
Let you peers do some heavy lifting. Showing feedback from broker open houses and actual showings is powerful. If your seller continually hears that their house is overpriced, eventually it will sink in and logic will trump emotion. At the very least, it will help you persuade them to make an adjustment. I had my assistant work on showing feedback consistently.
Expectations
In a softer market, it's OK to let a seller know initially that price reductions may be needed to move their home. The market tends to be all over the place in many sub-markets and that can make pricing a challenge. Plant the seed early or even have them agree to price reductions initially at specific milestones. Many agents have them sign change orders with the listing agreement. I never did, but it's a viable strategy, certainly.
Motivators
Sometimes you need to remind your seller of their goals and motivations. "Mr. Seller, you mentioned initially that you desired to be in South Dakota by Spring. Is that still the case? With the time it takes to close an escrow, we are getting a bit tight on time. My gut tells me that it may be in your best interest to make an adjustment now to achieve your goal. What do you think?"
Close
The bottom line is that it really comes down to great communication. If your seller is calling you all the time, you probably aren't communicating on the level required. If your seller feels like their home has great exposure, they understand the market, they have valuable feedback, and they are focused on their predetermined goals, it was common for a seller to request a price reduction without me asking! Why? They KNOW you are doing your part!