How do you normalize a price reduction?
People don't wanna feel like they're the only ones reducing their price. And some sellers may not be in tune with the market like we are. They may be assuming that the market's like it was six months ago. And they're the only person that's not selling right now.
Of course, we know that's not true. We know the market's changing. We know there's more inventory hitting the market than we've seen in a long time. We know interest rates are impacting the marketplace.
So how do we normalize a price reduction?
The way you do it is to show others in your market that are also reducing their price at the same time. So here's how you do it.
When you're talking to a seller, you can say:
"Hey, Mr. And Mrs. Seller, you know, we haven't had a lot of showings and that's probably directly to related to our price. We're seeing more competition. Interest rates are definitely eroding buyers' buying power. But I wanna share something with you that I think is really important. It's what every other seller's doing in the market.
You see in the last seven days, I just tracked it, we've had—and I'm gonna give you my real numbers—we've had 120 price reductions. 120 sellers just like you changed their price to meet the market. They did a reposition in the marketplace. And now they're in a better position to attract showings and get some offers. And I don't want us to see us get left behind. Where are you at? Where are you thinking? Because I'm feeling like, you know, we're not having an activity I would want to have on your house. So I'm gonna recommend that we really consider—like those other 120 people last week—repositioning our listing as well."
So now you've normalized it and they're gonna be much more likely to accept that conversation in.
You can also go further than that and actually do a little market snapshot report where you research how many listings actually went pending in your price range in the last 30 days. This is a great thing to do.
I just did this with an agent in my office last week, where he had a million dollar plus property, we were able to show the sellers that there's only been five properties in our market that have sold or went pending in the last 30 days for over a million dollars. And there's been 24 new listings that have hit the market at that same price point. So tons of competition.
Sellers get this and want to immediately reduce their price. Get it down to the next major price point. And now they're starting to attract some showings, which is exactly what we all need.
You'll know your property's overpriced when you don't have any showings or very few showings. That's the litmus desk guys hope that helps you today.
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