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Article
How Top
Real Estate Producers Get Price Reductions
Getting clients to reduce their
home price is not a
mystical happening. It must
be done methodically. Top-gun real estate agents have a set system to get price
reductions. It is followed to the letter no matter the price of the
property, economic conditions of the market place, or the client. There
are five steps to set-up a good price reduction system.
Step one: Get the home priced right when you list the property. Tell the
seller
the truth about the price. Be compelling and convincing in your
conviction about the price. Make the seller understand that the other
REALTORS® want the listing and will beat them up on price later. They
merely
want their sign in the ground. You want a sale and a satisfied client
and
you are willing to tell them the truth up front to get that.
Step two: If you decide to take the home overpriced initially, then get
a
price reduction signed for a future price and date. Get the commitment
that if in 30 days the home hasn’t sold, they are dropping the price to
a
new price. Push to get it signed and done. This commitment will avoid
discussion later. If you do discuss this but don’t get a signature, you
will have at least laid down the foundation for a discussion regarding
reducing the price at a later date.
Step three: Get the sellers to agree to meet with you at your office
every
45 days to discuss the price of their property and showings. This
meeting
will give you an opportunity in your environment to get the price needed
to sell the home. By getting them to your office, you have control and
invest less time, which is your most precious resource. When they come
to
your office the meeting will be shorter and you will save at least 30
minutes in drive time.
Step four: Create a specific price reduction campaign of letters and
phone
calls. This campaign should start no later than 30 days after the
listing
is taken. The clients should receive information and guidance about the
dangers of over-pricing their home. They need to know the importance of
price in the sales process, even if you clearly explained this during
the
listing appointment. Remember we are judged by the results of getting
the
home sold. If the price is hindering your success, your client needs to
change.
Step five: This is the final step. The clients have not been cooperative
with getting the home price down. They have met with you and received a few
steps of your price reduction campaign. Send them the final letter. The
letter should state that you have included a price reduction form with
your recommended price and a form to cancel the listing, and ask them to
please sign one of the forms and send it back.
When I was an real estate agent, we used to get about 65% that signed the price
reduction. We had about 35% that wanted to cancel their listing. The 65%
sold at the reduced price when they would not have before. The 35% we
saw
on the expired list months later. Clearly, our over-priced listings had
no
value. Yours will only cost you money and, more importantly time, and
emotional energy. Don’t allow clients to dictate the conditions and
success of your business by their refusal to look at the facts
objectively.
Reduce your expired listings by reducing the price. Price will always
dictate all the other factors in the sale. Control the listing price today.
Dirk
Zeller is recognized as the premier coach for the real estate industry.
He is one of the most sought after speakers and authors for high volume
production while attaining life balance in the real estate industry.
Dirk is the President of Real Estate Champions. Real Estate Champions
provides exceptional business and developmental training to real estate
agents and managers through cutting edge coaching programs and seminars
including the “Four Day Work Week System Program™.” You can contact
Real Estate Champions at 1-877-732-4676 or e-mail them at
info@realestatechampions.com or visit their
web site at
http://www.realestatechampions.com.
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