Last Updated on April 9, 2017

Well, take just a couple minutes to review the steps (and sample scripts) on how to have a successful price reduction meeting with your seller-clients. The best time to “set-up” a price reduction is when you take the listing (you already knew that, right?).  But if for some reason you’ve taken an overpriced listing and need to get a reduction, you can use this process to correct the situation – and save yourself months of carrying expenses. Here’s how to do it step-by-step… Your price reduction meeting with sellers will be similar to your original listing presentation, except you now have accurate, historic information about the seller’s home.  In my program 3 Steps Ultimate I give you a “cheat sheet” for this important meeting with questions and responses to establish control. STEP 1:  Present an Updated Market Analysis Before the price reduction meeting, you’ll need to prepare an analysis similar to your original CMA (or “Maximum Home Value Audit™”).  During the meeting, compare your seller’s home with all of the other listings, pendings, and sales in the area. Analyze other statistics such as average time on the market, price ranges, list price to sales price reduction percentage, and the percentage or number of listed homes sold during the same period as the seller’s listing.  After presenting the market analysis, ask your clients 2 questions: STEP 2:  Present Your Completed List of Marketing Tasks Go through your original marketing plan, and discuss every action you’ve taken to market their home.  Explain the impact or exposure of each action on generating prospective buyers. You can also explain the historic impact each task has had on selling other homes you’ve listed, or homes sold in the area.  Your objective is to reinforce the seller’s confidence in your ability to market their home.  At this point you want to ask another 2 questions: Some sellers value open houses, others want to see more agent showings — everyone makes their own expectations, logical or not.  Listen carefully here.  You can adjust your marketing plan to better fit their expectations if it’s warranted.  Nevertheless, the sale issue will always come back to pricing the home — the seller’s responsibility. After the sellers finish sharing their thoughts on the marketing of their home you can move on to the feedback you’ve received… STEP 3:  Present Feedback and Areas For Improvement Take out the comments you have from touring agents, showings, and open houses.  Review the comments relating to price and showing condition of the home. These comments are very important because they are honest, third-party opinions about their home.  Sellers may get a little upset at this point, but it’s important they hear feedback that will better motivate them to sell their home.  At this point, you want to ask the following question: If some of the comments made require physical improvements to the home, you need to open that discussion and start making plans for improvements.  But, don’t get the issue confused — there’s still a price issue to be discussed… STEP 4:  Ask For The Price Reduction The first thing you want to tell sellers at this point is you’re doing everything possible to promote the home, as shown from the activity and marketing plan.  Second, tell them that your efforts will be fruitless unless “we” adjust the price to get closer to buyers expectations.  Then tell them the following: IMPORTANT TIP:  Notice I used a percentage, not a dollar figure?  Percentages are more relevant and palatable when making adjustments.  Clients will probably want to know how much that means in dollars, and you should tell them, but present it first as a percentage. Then ask the following question: At this point, they’ll either say “OK”, or they’ll have common objections.  Remember, objections are just unanswered questions revisited.  Handle each objection keeping in mind that seller’s have many emotional attachments to their homes, which can compromise their rationality. And one final thing…don’t forget to complete and sign the agreements for the price adjustment AHEAD OF TIME.  Keep the “price” field empty, but complete the rest of the agreement.  You’d be surprised how many agents forget at the end of this long (but now much easier!) process. [Ed note:  If you’d like proven answers to price-reduction objections, learn more about our new program 3 Steps Ultimate by clicking here…]