You expect that if you list a property well it will sell equally well, but what if the market changes? In my Coaching Tip this week we’ll be discussing price reductions – those things you need to get but are afraid to ask for.
In every negotiation you have bargaining power, but it can quickly change from low to high depending on a variety of circumstances. What’s important is that you understand the leverage you have for your owner, and know how to talk with them about positioning the property when that leverage evaporates.
The reality is that the owner already knows they have to make a change, but it’s what you do as their agent that determines whether they’ll do it. The key to justifying a price reduction is for you to go out and get an offer on the property. Do that and the owner has to make a decision.
You should be having a daily phone conversation with your owners. Tell them about new properties coming to market and properties that have just sold, and how that affects buyer demand. Then have a face-to-face conversation with them about their expectations, how many people should be looking at the property, and what needs to happen to get those buyers to make an offer.
Understand that suggesting price reductions seems like you’re saying No to the owner’s ability to achieve their objectives. But you don’t want to take their dreams away – you want to be the dream maker. You do that by explaining to them how you will get their property sold by always knowing what’s currently happening in the market and adjusting to those new market circumstances.
I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.