Q: Denise, I am the listing agent for an overpriced property. Unfortunately, I allowed it to be priced optimistically when I listed it a few months ago and my client is only allowing a minimal price reduction instead of the larger price reduction needed to bring it in line with the market. I told her if we didn’t have traffic or calls in the next ten days that we would need to reduce it to a significantly lower price. I am 90% sure she isn’t going to agree to this. What should I do?
A: The solution to this problem and to all your future price reduction challenges can be solved via having a rule around price reductions in your business.
In my business, I used to utilize the following system:
- I would track the traffic each week and report to my sellers as outlined in last week’s Ask Denise.
- After 21 days, depending on the traffic, we would need to do a 3, 4, or 5% price reduction.
- Continue with price reductions until the home was sold.
- This was a requirement and helped my sellers stay consistent with the market.
If your seller isn’t willing to price the home at the market, then it may be time to consider releasing the listing. By keeping it on the market you are aging the listing and directing your time and energy (and money) to it. My recommendation is to either reduce … or release. And determine your rules and system for next time.