How to Obtain Price Reductions Easily, Keep Your Sellers Happy, and Sell More of Your Listings

If you’ve ever listed a house, then you might have had an angry seller. People seem to get these wacky ideas in their head about why their house didn’t sell.

Their home is overpriced and isn’t selling. Why isn’t it selling? It’s obvious, because a buyer can buy the same (or nicer) home for less money.

But, the seller thinks it isn’t selling because the flyers have one picture that isn’t perfect. Today, I want to show you how to avoid having angry sellers in the first place.

Here is the most basic thing you must do to keep your home sellers happy: Call them regularly.

You have to demonstrate that you’re doing something. I remember a title company that had some automatic e-mail closing software. Every single time anything happened and the closer put a note into the computer, the computer would e-mail me an update.

The note might say, “I just talked to Tom the Mortgage Broker, and he said we have underwriting conditions.”

Contrast that with the closer who never contacts or updates you. If something goes bad, who are you going to fire first? The one that never updated you, right?

Here is the other great thing that happens when you do this. It’s easy to get price reductions and bring the seller to reality on their home’s value. Also, you can suggest they fix up the house and do repairs.

Here is a story from another realtor that illustrates this point:

“I recently represented a buyer on a purchase. The sellers had listed the home because the wife had a job transfer.

They received an offer from my buyer 4-5 months after putting their home on the market. Unfortunately, their motivation had declined because the wife’s job offer was gone, and therefore they didn’t need to move anymore.)

The house was listed at $499,000, and my buyers offered $460,000. The seller wouldn’t reduce his price one bit. The buyers increased the offer to $480,000, but wouldn’t increase it any more.

The listing agent had worked on this listing for 4 months. He told me that he didn’t think they would re-list when the listing expired in 2 months. In addition, the property had already been on the market for 2 years without selling.

Bottom Line: This was his only opportunity to get a commission on this property.

The listing agent finally reduced his commission by $3,000 and told the seller that he would probably never get another offer for the next 1-2 years.

After that, the seller agreed to take the $480,000. But, the seller would have accepted the offer a lot faster IF the listing agent had taken the time to develop a better relationship with the seller.

The seller was frustrated because he hadn’t heard from the agent for 2-3 months. Therefore he saw this situation as just a desperate agent who knew this was his only shot at a commission.”

This illustrates the important of staying in communication with all of your listings. Make an attempt to communicate with them regularly and let them know what specific activities you are doing to sell their home.

Regular communication shows the seller that you are someone they can trust. This makes pricing and price reductions so much easier. It reduces problems and makes the real estate business fun again.

Do this and you’ll be miles ahead of everyone else.

Thanks for reading this,

Linda Reynolds

Linda handles career development at Reynolds Realty of Manatee, Inc.

Phone: 941-737-6562. linda@reynoldsrealty.com

How to Solve a Tight Inventory Problem

Many of us are having problems with a lack of good, saleable homes to sell to our buyers. Here is a simple way that you can expand your inventory. Let me explain.

If you have a buyer that is looking in a specific area and you can’t find them a house, then look elsewhere. Most agents just look at the available homes on the MLS.

Dig a little bit deeper. Go thru all of the listings that have expired or been withdrawn in the last six months. A lot of those sellers may still want to sell.

You can also contact vacant homes and absentee owners. You would be surprised at how many will consider selling.

If your buyer is looking at new construction, then ask the builders if they have any lots they haven’t started construction on yet.

Here is a final thing you can do. We all know that most people move every 5-7 years. That means that 3-5% of all homes may come on the market in the next 3-6 months.

I put together a simple letter you can send out to people who own homes in neighborhoods your buyer would consider.

It worked great. An agent friend of mine mailed it out several times for his buyers.

A minimum of 4-5 homeowners replied every single time. The mailings did result in one sale to a buyer.

However, over the next year he listed 3 homes from sellers who had received his letter. One of those resulted in his most expensive sale ever.

Another agent did this and a seller replied with 5 homes that he wanted to sell. Would you like a copy of this letter? Please email me at linda@reynoldsrealty.com to request a copy.

I hope this helps you “expand your inventory” and find more potential homes for your buyers.

Let me know if you have any questions on how this works.

Thanks for reading this,

Linda Reynolds.

Linda handles career development at Reynolds Realty of Manatee, Inc.

Phone: 941-737-6562. linda@reynoldsrealty.com