What is the best way to get price reductions?
The short answer is, yes – but you have to know how to do it. As we are all aware, the real estate market had (and is still having) a slow year. You may think it’s impossible to get price reductions during a market slowdown, but that isn’t the case! Depending on how you market yourself and your company (in addition to your communication skills, of course) there is always an opportunity to negotiate price. Just make sure you are still being reasonable!
Most importantly, it is crucial to make sure that price isn’t the only factor of selling a home. Yes, clients will always want to make as much money as they can, while also spending as little money as they can. But sometimes, it is simply unrealistic. In a slow market, a seller would not be wise to sell their home at top dollar. Perhaps they can find a real estate agent that can promise them they can – but those would be unfair expectations to be set, since there is almost no way they could be reached. It is more important to be honest with your client from the beginning, by saying something along the lines of,
“I know other agents may tell you that they can sell your home for ___________, but I am telling you realistically that I don’t believe it could be sold for more than ____________ by your expected deadline. If you want to keep your home on the market for longer, then you may be able to go as high as ________. But I can help you get the best amount for the allotted amount of time we have.”
If a client wants to sell a home for more than your suggested amount, you can always compromise by suggesting that perhaps they make some renovations in order to accommodate for the heightened rate during a slow market time. Either way, always stress that you can sell their home for the best possible price at this specific market time, and within a certain time frame. If they don’t agree to price reductions after that, then there is nothing else you can do.