How to get a price reduction? - Ep 198
On this episode of the Real Estate Fight Club, Jenn, and Monica are addressing the topic of, “How to get a price reduction?” When do you consider a price reduction? In what situation do you think this is necessary?
Tune in and find out!
Episode Highlights:
- The last time Jennifer had a price reduction, was during an online bidding.
- Monica thinks that we should bring the talk about marketing strategies and techniques back to the surface.
- Jennifer gives us a tip. She says to get the seller to sit and talk to you about the price in the beginning.
- When you get a bunch of showings and no offers, that is going to be a price subject, a pricing issue.
- Eliminating the probability that it’s because of the pictures (the reason why you get rejected online), is why you should always hire a professional photographer.
- Monica says that if you're not getting the pricing conversation done during the consultation, then you're setting yourself up for failure.
- The other thing that can happen is when you get a ton of showings and a ton of offers and they're going to be overpriced. And that does not mean you’ve underpriced it that means you’ve priced it perfectly.
- Make price adjustment in 7-14 days
- Jennifer says you should set the stage in the beginning. Ask the buyer’s agent questions that would clear up and put all the expectations.
- It is logical for sellers to think that if they price high, they’ll have more room to negotiate, but the reality is that when your house sits on the market, buyers will start to think that there’s something wrong with your house.
- Reverse offers by the seller are an option when negotiating the price
3 Key Points:
- When you get a bunch of showings and no offers, that is going to be a price subject, that's a pricing issue.
- The price analysis and negotiation with your seller are done ahead of the listing.
- If you find yourself in a point of doing price reduction you must come from data and understanding of supply and demand facts.
Tweetable Quotes:
- “So if you're not changing the condition, you have to change the price right? In order to create more value.” - Jennifer Murtland
- “If you're not getting the pricing conversation done during the consultation, then I think you're setting yourself up for failure.” - Monica Weakley
- “Be students of supply and demand and understand that and man will you impress upon the seller.” - Monica Weakley
Resources Mentioned:
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