Selling Soulfully with Jennifer Allan


READ THIS Before Your Next Price Reduction Recommendation!


I have a friend who listed her house with one of the top agents in her area. They went on the market about two months ago, at the exact price the agent recommended and supported with his market analysis. Showings were brisk at first, then trickled off, as typically happens. Feedback has been generally positive, although the home is rather unique and simply not practical for many buyers, and the feedback has reflected that.

A few weeks ago, out of the blue, the agent recommended a $50,000 price reduction. This caught my seller friend by surprise since the feedback she'd received never mentioned that pricing was an issue; most of the negative feedback centered on the unique features of the home that made it "not work" for the buyer. But no one, to her knowledge, had mentioned price as an obstacle. My friend asked the agent for an explanation of his recommendation, but no explanation cometh, the agent simply reiterated his recommendation that she reduce her price.

My friend came to me for advice. I suggested she ask him the following questions as to the WHY of his recommendation:

  1. Has there been consistent feedback that we are overpriced? (If so, it has not been shared with us.) 
  2. How is the overall market right now? Is anything in our price range selling? Is the market typically slower this time of year?
  3. If the market is not interested in our home at the current price, would your recommended price reduction change that? 
  4. Will reducing the price by $50,000 overcome buyer's objections to the unique character of the home, or will buyers still expect a more traditional home?
  5. Are homes in your recommended price range getting more activity than homes in our current range?

and the kicker...

6. Has the market changed significantly since you recommended the price we listed at? 

My friend is not categorically opposed to reducing her price if that's the right answer, or to withdraw the home from the market and wait for a better time to sell. But she wants (and deserves) information. A coherent explanation. Some evidence that her agent (who is supposed to be looking out for her best interests) put a little effort and thought into her situation -- and his recommendation.

Contrary to what we like to believe, our sellers are not stupid and they aren't unreasonably stubborn. But when we recommend a list price, back it up with data, and then, like clockwork, push for a reduction to that price six weeks later without explanation or exploration of other solutions, home-sellers have every right to be frustrated with us and to question our credibility. To doubt our commitment to their best interests. Or perhaps, to reach the conclusion that we're just lazy.

(My friend is thinking all these things about her agent and I can't blame her).

The moral of the story... before you recommend a price reduction, make sure you have answers to all the questions YOU would ask if it were YOUR home on the market and your agent advised you to give up a chunk of your equity. DO your homework, not just to pacify the seller, but also to determine if, indeed, a price reduction is the right solution. Maybe it is, maybe it's not. But be a PROFESSIONAL real estate agent and find out.

Oh, and it wouldn't hurt to price it right in the first place.

When Your Listing Isn't Selling, What's the First Thing to Fix - All together now...
STOP! Before You Reduce the Price!
If Price is All That Matters, What Do They Need Us For?



It's Here!


The More Fun You Have Selling Real Estate, the More Real Estate You Will Sell! 
(True Story)
Order Your Here!









Comment balloon 173 commentsJennifer Allan-Hagedorn • October 21 2011 08:22AM
READ THIS Before Your Next Price Reduction Recommendation!
I have a friend who listed her house with one of the top agents in her area. They went on the market about two months ago, at the exact price the agent recommended and supported with his market analysis. Showings were brisk at first, then… more
Contact Management with Soul - The Favorit-est Tips!
I believe that every real estate agent who wants to be the best thing to happen to their clients (thus generating a steady supply of new clients throughout their careers) should invest in and commit to a real estate-specific contact… more
Surviving the Home Inspection - You are NOT Powerless! A Free SWS…
REGISTER FOR THE SHOW HERE It used to be that the inspection period of a real estate transaction was biggest hurdle to overcome once your buyer (or listing) were under contract. Get through the inspection and sigh with relief - you're… more
An Easy Way to Double Your Real Estate Business Every Year
So… whatcha' thinking I might be thinking here? More lunch dates? More blogs? More Facebook, Twittering or Linking In? Or, egads, more cold-calling, door-knocking or referral-begging? Nope. Here's a reeeeal easy way to double your… more
I'm a Tire-Kicker - Should I Register at Your Site?
My husband and I plan to move to a lakefront property here in the Florida Panhandle… someday. Definitely not today or tomorrow, probably not next year or even the next (although you never know ).. but… someday. Well, it's Sunday morning… more
Aspiring Real Estate Agents - NO! You Do NOT Need a Website (yet)!
I recently released two newsletter mini-clinics especially for aspiring real estate agents - that is - real estate agent wannabe's who are not yet licensed, but hope to be someday. The first is called " So You Wanna Be a Real Estate Agent "… more
The Proper Care & Feeding of Buyers From Contract to Closing - a…
Especially for Rookie Agents (but everyone is welcome)! Our next SWS teleseminar show is about what happens during that mysterious period between writing an offer… and receiving your commission check. While rookie agents sometimes receive… more
Thank You, Considerate Door-Knocker (no, that's not sarcasm)
Imagine the scene… A real estate writer is sitting at the computer in her beach house (yeah, life's rough). Out of the corner of her eye, she sees movement outside her front door. It appears to be two adults, one carrying a clipboard… more
REal Estate Consulting in the REal World - A Free SWS Teleseminar
"Real estate consulting - sounds great, BUT… " We hear this every time we talk about real estate consulting - "It sounds great, BUT.. " So, let's deal with the BUT's you may have about REal Estate Consulting in the… more
When’s The Best Time to Plant a Tree?
Have you ever heard the little ditty about the “What's the Best Time to Plant a Tree ” 25 years ago. What’s the next best time to plant a tree? Today. Put another way – What, one year from now, will you wish you’d done today… more