It is a saying sellers ideally never want to hear, “The price needs to be adjusted on your home”.
When a home has been on the market for awhile, price adjustments are a strategy most use to
bring new eyes to the listing. A property may be lowered because the initial asking price was
too high or the sellers are extremely motivated to sell and want the property to move fast. It isn’t
unusual for a seller to start pointing fingers at their agent when this happens, so its good to use
a few techniques to keep communication open from the start so your seller is on the same page
with you no matter what you suggest.
The economy is always changing which results in a market that is great or one that could be
better. It shouldn’t ever be a reason thats told to a seller as to why a home is not selling. It is
the agents job to communicate from the very first listing appointment the expectations of the
market and their plan on overcoming any of those challenges. An agent should come prepared
with local comps to educate the seller on the market and how their home compares. In a
comparable report, the agent should have 2-3 examples of properties that currently for sale
within your building or subdivision, properties that recently sold in your building or subdivision,
properties that are currently active within 3-4 miles of your property, properties that are in-
contract 3-4 miles within your property, and properties that recently sold 3-4 miles within your
property. Your agent should also be breaking down for you what the price per square foot is for
these figures as well.
For the seller who is left brained, have these numbers written out in an excel spreadsheet where
they can see how their home would compare. For the seller who is right brained and very
visual, you can represent a number chart to show where prices fall within their area. This can
be very beneficial for a seller who is emotionally tied to their property and really doesn't want to
budge on a lower price point. Visually seeing what the market is saying helps them keep
The overall goal of a listing presentation is to set the expectation to the seller so the price of the
home is listed well to begin with. In the cases where a home is just not selling but the numbers
are right, a great way to get the home sold is to adjust the price based on a process called
bridge pricing. Lowering a home from 350,000 to 320,000, isn’t going to attract many new eye
balls because most people do a search on rounded numbers in increments of 50. If you want
new eyeballs, educate the seller that the best price to lower it to is 297,500. This new price
point will loop in all the buyers who initially never saw the 350,00 listing because their price point
ended at 300,000.
Agents, keep these little tools and mind, and sellers be aware of what your agents should really
be doing at your listing presentation. Try to keep your emotions out of the deal and listen to the
numbers of the market, as they don’t lie. Be aware of the agents who try anything to keep you
happy so they get the listing. A great agent has your best interest at heart so they will want to
educate you to ensure your home sells quickly and for the best price.