Ask Denise: Price Reductions | The Zebra Blog

Ask Denise: Price Reductions

Q:   Denise, two of the five sellers I’m working with are absolutely unwilling to reduce the price on their listings.  One has been on the market for almost a year.  I am at my wits end and need help to know what to say to them.

A:   I don’t know how you set the stage for price reductions when you took the listing, but I’m guessing that wasn’t part of your presentation or you wouldn’t be in the pickle you are today.  So let’s assume you didn’t set up a plan for when and how to adjust price during the listing period.  If you know that your sellers need to reduce the price, don’t beg and don’t fight – simply provide them data that supports your request.  Key information will include an analysis of days-on-market (this listing as compared to the market), price per square foot analyses for the neighborhood and for the style of home, a competitive analysis (you should be sharing new active, pending, and solds with your sellers every week), and information on absorption rates and ratios.  If you don’t know how to calculate these last two pieces of information, take a peek at my “Pricing System” for more help.

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