How to navigate a price drop with your client
If your property is failing to get the attention that you’ve been hoping for, it may be time to drop the selling price. This can be difficult for some clients to face, especially if they have their heart set on a certain price. Here’s how to negotiate a price drop with your client.
Conversations at the first listing
Most clients will have lofty expectations for the sale of their home. Part of your job as a realtor is to help create realistic expectations of what your clients can expect once their property enters the market. If they insist on starting at a high price, have a conversation before listing to agree on when (for example, two weeks after listing) they’ll consider dropping the price and to what amount. Having this discussion ahead of time can help lay the groundwork for a price drop later down the road.
Get feedback from other agents
If a home has received many viewings but no offers, it can be helpful to ask the buying agents for feedback from their clients. If “it’s too expensive” is a frequent comment that you’re hearing, this is good feedback to pass along to your client to help them rule out any other reasons why your home may not be selling.
Find recent comparable properties
Another way to help gauge the market is to look at similar properties. Gather some recent listings of comparable homes in the same market and present them to your client. Don’t forget to highlight other properties that also dropped their prices and how quickly they sold after the price drop as this could also help further entice a client to lower the listing price.
Calm fears of underpricing
Sellers may be worried that a price drop will underprice their property. But a good way to navigate these worries is to explain that underpriced properties usually “correct” themselves based on the current market. With bidding wars a common occurrence in the housing market these days, lower-priced homes are likely to receive multiple offers at, or above, the current market value. Presenting previous examples of underpriced properties and their sold prices can also help alleviate client concerns here.