Real estate agents: Here's how to ask for a price reduction (scripts included)
Grab a coffee and a comfy chair. It's time to tackle one of the toughest parts of selling real estate - asking for price reductions...
There are no bad houses. There are just different houses. And every home would sell tomorrow at a certain price level.
Therefore, every listing is a good listing, at the right price.
But how do you transition from 'owner that wants too much' to a well-priced listing?
First, we need to put ourselves in their shoes.
Audio version:
Every owner wants as much as possible
It's human nature to desire the best possible result. That owner has been paying the mortgage all these years and probably has most of their personal net worth tied up in their home. The final sale price could potentially have a major influence on their quality of life moving forward.
So it's understandable if they are hoping for the very best possible price at the start of the process.
It's your job to establish the market value of their property by finding the best buyer(s) who are prepared to pay the most. Essentially, to bridge the gap between the owner's expectations and what the market is prepared to pay.
Before you can find the market value level that attracts offers though, you need to fight for your owners and exhaust every avenue to secure the best price.
In other words, rather than fighting an owner's price expectations from the start, you need to show you are in their corner. Be a champion of their home. Be a voice of positivity and employ a solution focus at all times.
Exhaust all other options first
Before you go anywhere near talking about a price reduction, you need to show your owners you are on their side.
Check out our listing refresh checklist and work through the ideas on that list first, so you can earn the right to ask your owners for a price adjustment.
The list includes:
Changing the main advertising photo, changing the advert headline, adjusting your script to target a different demographic, improving the online presence, suggesting more marketing options, and/or running a boosted advert on social media.
Read: How to write compelling adverts.
Price reduction scripts
If, after a few weeks on the market, your listing isn't moving, it's time to talk about price.
Rule 1. Never ask for a price reduction by email if you can avoid it. Always do this at a face-to-face meeting, or over a video call if your vendor is out of town.
Start by establishing what you have learned so far.
Here's an example: