Article:2 ways to justify a price reduction

Bernice Ross Inman News

You thought you priced the listing right or perhaps you weren't strong enough to persuade the sellers to list their property at market value. Whatever the reason, your overpriced listing isn't selling. What can you do to persuade the sellers to lower their price?

Pricing properties correctly in a declining market is difficult because the recent comparable sales may be higher than the current market values. When it's time to have a tough conversation with your sellers about lowering their price, here are two proven ways to do it.

1. Prepare sellers for a price reduction when they sign the listing Sellers often say, "We want to test the market." Testing the market is a poor idea because most showings occur during the so-called "honeymoon" period, or the first 21 days in which the property is listed. After those first few weeks, showings drop dramatically. If the listing doesn't sell during the honeymoon period, it can end up being on the market for months. Read More