We all overprice a listing, occasionally. After all, this real estate thing is an inexact science.
When (and not if) it happens to you, it’s crucial that you own it, and not use one of these excuses:
- You’re too busy (chasing after new business rather than taking care of the business you already have).
- Your clients are stubborn and won’t listen to you.
- You’re terrible with confrontation.
- There’s a showing booked for Friday, and you’re hoping for a miracle.
- The market is awful, so there’s nothing you can do.
- You feel dumb for recommending the price in the first place.
- *Insert your unique (but still weak) excuse here*
An excuse is simply a challenge that you’ve decided has power over you.
– Jen Sincero, author ,’You Are a Bad Ass Every Day’
I’ll just cut to the chase right now and tell you the REAL reasons why you’ve still got an overpriced listing. Pick one:
- You’re not giving your clients ENOUGH information
- You’re not giving them the RIGHT information
- You’re not giving them ANY information
Remember this:
The better the information you provide, the more likely your clients will have the tools they need to make informed, intelligent decisions.
The name of this article, “The intelligent price reduction strategy,” is actually a misnomer. But my original title seemed a bit long:
“The easy and powerful system that consistently delivers compelling information to your clients so they can make intelligent decisions.”
Whatever you want to call it, it’s about being proactive and providing your clients with the information they need; here are the two steps:
Step 1
Set up every listing client on an auto-notification to instantly update them about every competing new listing, price reduction, pending sale, firm sale, etc. This way, they’ll always know exactly how they stack up against their competitors.
Step 2
Using the information in the first step, report to your clients once every week at a pre-determined day and time (every Monday at 10:00 a.m., for example). In your report, simply provide your expert commentary on each and every event that occurred over the previous seven days.
Here’s what I think about this new listing or this one that just lowered their price, why I think this one sold, and yours didn’t, etc.
This may sound like a lot of work, but it’s not if you set up a proper system and work it consistently. And let me be very clear about something. The purpose of this system is not to harass your clients about price reductions.
The real purpose is to maintain regular, honest communication with them so they know you are paying attention. This permanently resolves consumers’ biggest complaint about real estate agents — lack of communication.
“The agent walked out the door with the signed listing contract, and we never heard from her again until she called demanding a price reduction.”
Please, don’t be that person.
Instead, take a few minutes to learn more about this system. Price reductions are easy if you learn to communicate with your clients regularly and give them the information they need!
After Ted Greenhough’s first year as a Realtor, he earned between $590,000-$865,000 every year for 12 consecutive years, all as an individual agent, without ever once making a cold call, reciting a canned script or doing any other “salesy” stuff. Now he runs Agent Skills, an online learning program for agents across North America.
