Here’s a strategy to get clients to agree to a price reduction at the listing presentation. This virtually guarantees your listings won’t sit on the market for months.
Agent Francine Hoffman created 1) a simple script that educates clients on why they need a price reduction and 2) a form that spells out the adjustment details in crystal clear terms. This way there’s no begging, arguing or hard feelings.
You can use this price reduction script and form “as is” or modify it to fit your personality. Either way it helps to overcome tension and allows you to get an agreement from sellers before it’s too late.
Here’s Francine’s description, script, and form below:
“I created this many years ago when I sat back in my chair one day and asked myself this question, ‘What is the worst thing I have to do in my real estate business?‘
I thought for a few minutes and this is what I came up with. I hated calling my clients up and asking for a price reduction. It is such a negative call and no one is happy at the end of the day. So I came with a way to make it a more pleasant process for everyone involved…
When does the client love you? Answer: When they sign the listing agreement with you. So why not stay a few minutes longer and educate the client on what will happen from that day forward. This is how my script goes:
Mr. & Mrs. homeowner let me share something very important with you. The first 10 days that your listing is on the market are the strongest days of your listing and what I mean by that is if the marketplace feels that your house is priced right, you should have between ‘x’ and ‘y’ showings and/or an offer in those first 10 days. But if they feel that your house is not priced right, you won’t have that many showings or any offers. Now on the 11th day, I am going to recommend that we adjust the price on the 11th day by ‘x’% or $’x’.
Next, I pull out my form that I call my ‘Price Adjustment Schedule‘. Here’s a snapshot of what my form looks like:
click to enlarge image
Now this is signed at the same time as the listing agreement.
This way the clients know what to expect. They have signed the agreement and now when I call them I say, ‘Folks, I have some good news and I have some bad news. The good news is we have had ‘x’ showings. The bad news is we do not have any offers, so we will have to put plan ‘B’ into place, the Price Adjustment Schedule.’
They already have a copy and you ask them to pull it out and you can go through it with them. Also make sure they have a copy of your marketing plan so they know that you are not just adjusting the price of their home, you are doing other things as well.
This form and process works wonders for me and I don’t feel like I am beating people up anymore, they know what to expect. And as a result I’m able to sell my listings faster at realistic prices, and build a base of clients who respect me and stay with me for the long-term.”
