The Lesson
We have all done it, take a listing that we thought we could push the market with but then the market tells you another story. The real estate business always has a way of humbling you, just when you think you are invincible the real estate market sets you straight and now you have to figure out how to get back on track.
The ability to price a property correctly, truly is an art form onto itself, understanding the comps, looking at all the market factors and looking at the subject property can sometimes be a bit of a challenge. When we miss on the pricing and the property sits longer than we expected it to, there needs to be a plan to get it to the price that it will sell as quickly as possible, there are a few things you can do.
The first thing is to be very proactive.
If a seller is insisting on a higher price than you expect to get, let the seller know you are willing to take it at that price but if we don’t get action within a certain time frame then the price will need to be reduced to a preset price. When you are getting close to the date that you are scheduled to meet to discuss the price reduction you want. You’ll need to gather the current market data, have your company supply you with the marketing they did for the listing and the metrics. You will also want to specify that you are looking at all the social media and listing platforms data, likes, comments, # of impressions, shares, for your email you want to know how many people it went out to, how many opened it and how many clicked through to it. Most importantly, how many inquiries you received on the property, and the feedback they’ve given you.
You then want to add the marketing you did across all of your platforms and include the same data. When you put all this data together along with the current market data you will now have a good amount of data to support your reasoning for lowering the price. If you have 1,500 people that have seen the property and you don’t have any action, you now know you have an issue.
Best Practices
I always recommend to our agents that are going out for reduction to speak to the buyers/ tenants or even agents that went through the property and ask their feedback. Put all of this into a professional package and present it to your client and remind them they have already agreed to the reduction earlier and it’s time to put the new pricing plan into action.
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