Ken's Naperville Real Estate Blog : 5 Phrases I Use to Get More Price Reductions

5 Phrases I Use to Get More Price Reductions

I generally don't think of myself as a guy that likes scripts...

However, after 6 years of selling real estate, I find myself using certain phrases while communicating with my sellers regarding price reductions.

Here are 5 phrases I commonly use when dealing with price reductions:

  1. "What would you be happy to sell your home for today?"  
    The ultimate question.  How much do you want to sell your home for?

  2. "We are close." 
    This is the proverbial "carrot on the stick".  I only say it if it is true, however, it is versatile.  Can be changed to "We are getting closer."

  3. "The biggest mistake most sellers make is leaving too much room for negotiation..."
    Most sellers worry of being "lowballed", and unfortunately price themselves out of the market.  Price it in tight, negotiate less...

  4. "My listings get 2-5 showings per month.  If they don't, they are overpriced..."
    No matter the market, a home needs activity to sell.  Sellers should focus on this...

  5. "Your home will get an offer within the first 10-15 showings.  If not, it is overpriced..." 
    Buyers comparison shop.  They look at all of the available competition, and only the best sell.

I hope some of these phrases work as well for you as they do for me.

Ken

Read my post "10 PRICE REDUCTION TIPS"

Comment balloon 60 commentsKen Tracy • July 17 2011 10:22PM

Comments

Hi Ken....I too hate scrips becasue they sound phoney  but sometimes they work, you just need to find the right script and make it your own so that it sounds authentic!

Posted by Aida Pinto, Real Estate Broker (562) 884-6196 (United Associated Brokers) almost 8 years ago

It doesn't hurt to have a few key phrases and then make them your own.

Posted by Pam Dent, REALTOR® - Charlottesville Virginia Homes / Horse (Gayle Harvey Real Estate, Inc.) almost 8 years ago

Wouldn't numbers three through five be more appropriate when you're at the initial listing appointment getting the price set versus for a price reduction?

 

 

Posted by Jonathan Dalton (Realty ONE Group) almost 8 years ago

Good suggestions, I can see how they would be effective in the right time and place.  Pricing the homes correctly is the name of the game!

Posted by Janna Scharf, Coeur d'Alene Idaho Real Estate Expert (Keller Williams Realty Coeur d'Alene) almost 8 years ago

Hi Janna, Jonathan, Pam and Aida.  Thanks for stopping in...

Yes, 3-5 are used at the listing presentation.  Used again if the traffic is light...

Thanks again!

Ken

Posted by Ken Tracy, Helping clients buy and sell since 2005 (Keller Williams Realty Infinity) almost 8 years ago

I like the direct nature you use and especially #'s 1 and 5. Thanks for sharing

Posted by Craig Reeves, HIGH Information...NEVER High Pressure (Keller Williams Realty Jupiter) almost 8 years ago

Ken:  Congratulations on the Feature!!  Well done sir!  And great pieces of advice.  You prove exactly why it's important to work with an experienced and knowledgeable real estate professional.  Pricing especially in this current market needs to be spot-on right from the get-go.  You'll definitely help them accomplish that.

Congrats again! 

Gene

Posted by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience (NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656) almost 8 years ago

Ken,

I like those, very effective to get the seller to see the light.  Thanks for sharing.

Posted by Richard Weeks, REALTOR®, Broker almost 8 years ago

I like these direct phrases. I will head over to see your post " 10 Price Redution Tips". It is so important to price right these days if we want the homes sold.

Posted by Ann Nguyen, Lake Tahoe Truckee Homes For Sale (eXp Realty) almost 8 years ago

I use some one that is similar...I use 21 days or 11 showings and we should have an offer; if not...we should be lowering the price.  We typically get 3-4 showings a week so it works out pretty well.  My only problem is when you've done this three times and it still isn't sold...ugh!

Posted by Cindy Marchant, "Cindy in Indy" , Realtor, Fishers Real Estate (Keller Williams Indy NE 317-290-7775 www.marchantteam.com) almost 8 years ago

I bring along a price reduction amendment to the listing appointment and encourage the sellers to sign it then. I tell them I'll implement it only if we don't have 10 showings or an offer within the first month.

Posted by Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417, Real Service. Real Results. Real Estate (United Real Estate) almost 8 years ago

Hey thanks for the post today, I enjoyed the read.  All good comments here to mull over as well.

 

Patricia Aulson/ Seacoast NH & ME

Posted by Patricia Aulson, Realtor - Portsmouth NH Homes-Hampton NH Homes (BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate ) almost 8 years ago

Ken,

I tend to think of scripts as pages from a book. These are more just thoughts to convey.... philosophies to apply at the right time as appropriate. Thanks.

PS - Originally from your part of the state - MANY years ago. Batavia - in the 60s.

Posted by Brad Rachielles, REALTOR, CDPE, Upland, CA (CENTURY 21 Peak, Ca BRE# 01489453) almost 8 years ago

Ken thanks for sharing what is working for you.  Those questions should make sellers stop and think, and go with a price reduction.

Posted by Jennifer Fivelsdal, Mid Hudson Valley real estate connection ( JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571) almost 8 years ago

These are very good phrases. I need some reductions so I going to "borrow" a couple.

Posted by Brian Madigan, LL.B., Broker (RE/MAX West Realty Inc., Brokerage (Toronto)) almost 8 years ago

Ken...All very good arguments. 

Our question is do you walk if they absolutely refuse to move on price?

Posted by Howard and Susan Meyers (The Hudson Company Winnetka and North Shore) almost 8 years ago

Thanks for the list, Ken.  I'll add this one to the folder (if I may) and keep it for future use.  I can always use some new ideas.

Posted by xxxx xxxx (xxxx) almost 8 years ago

Good list of go to reponses that help focus sellers on the task at hand. Thanks Ken.

Posted by Christian Bastian, Christian Bastian - Douglas Elliman Real Estate (Douglas Elliman Real Estate) almost 8 years ago

I Like the idea on your key phrases.. I don't usually use any scripts but as the years go by in selling home, you will notice you are saying the same thing every sale, though it is not intended. Great article!

Posted by Rob Kittle, "We Specialize, You Benefit!" -Kittle Real Estate (Kittle Real Estate) almost 8 years ago

Hi Rob, Christian, Phil, H+S, Brian, Jennifer, Brad, Patricia, Laurie, Cyndy, Ann, Richard, Gene, and Craig.  Thanks so much.

And thanks AR for the feature.  Always feels nice.

I have always been pretty good at getting price reductions.  I thought I would share a few words that come out of my mouth.  I hope it helps.

Brad, I bet Batavia has changed!

Thanks again!

Ken

Posted by Ken Tracy, Helping clients buy and sell since 2005 (Keller Williams Realty Infinity) almost 8 years ago

Ken #5 is my new favorite. Im going to try this with a few listings this week! Thanks for sharing.

Posted by Mike Wong, Realtor: Commercial, Residential, Leasing, Invest (Keller Williams Realty Southwest) almost 8 years ago

Ken, just returned from Naperville visiting family. Great tips. Congrats on the feature.

Posted by Tammie White, Broker, Franklin TN Homes for Sale (Franklin Homes Realty LLC) almost 8 years ago

Its really hard with everyone lowballing to  get sellers to price it "tight."  I think that works every time. ... but that's because I see it every day.

Posted by Ruthmarie Hicks (Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605) almost 8 years ago

Great suggestions. And these can be made to sound as if there are your own when you add your own special personality to it.

Posted by Sandy Acevedo, RE/MAX Masters, Inland Empire Homes for Sale (951-290-8588) almost 8 years ago

Thanks for the tips, Ken. I will try them out at the appropriate time.

Posted by John Juarez, ePRO, SRES, GRI, PMN (The Medford Real Estate Team) almost 8 years ago

Hi Ken,
Thanks for sharing.
I like your direct approach, especially # 2 & 5.
#2 is very effective in reminding sellers of what's really important to them about moving.
Have a wonderful week!

Posted by HGNL Digital Marketing Agency, We are a full service real estate marketing agency almost 8 years ago

Ken,  These are excellent approaches with sound reasoning which makes all the difference.  Thanks so much for sharing.

Posted by Kathleen Vetrano, Helping YOU Achieve YOUR Dreams (RE/MAX Gateway) almost 8 years ago

Ken, I really like your phrases and I'm passing them along to my team.  In Maui, we have so many sellers who are living in the not so distant past.  On some areas of the island values have plummeted 50% or more.  It can be very tough for people to face reality.

Posted by Lee Potts, The smarter we work, the luckier you get. (Aloha Group Maui) almost 8 years ago

These are some great lines. I hope you don't mind if I use some of them sometime!

Posted by Donald Reich (Prudential Centennial) almost 8 years ago

Those are some great points to bring up and speak about. I hate scripts:) They feel fake and then that comes across to the person you are scripting to as phony and untrustworthy. Katerina

Posted by Katerina Gasset, Get It Done For Me Virtual Services (Get It Done For Me Virtual Services ) almost 8 years ago

#6. How long would you like your home to stay on the market?

Posted by Tamara Inzunza, Close-In Alexandria and Arlington Living (RE/MAX Executives) almost 8 years ago

Hi Ken.  Thanks for your advise. I absolutely hate scripts and refuse to use them since they do sound so fake.   Your tips are straight forward and honest.

Posted by Sherri Berry, Murfreesboro TN Homes & Real Estate (Reliant Realty, Murfreesboro) almost 8 years ago

When the showing stop or slow down, with no offer, it is time to reduce. 

I prep my sellers for that at list time. 

Then they know. 

I hate scripts too, even though some are good. 

Posted by Missy Caulk, Savvy Realtor - Ann Arbor Real Estate (Missy Caulk TEAM) almost 8 years ago

Ken, 5 good points.  How about 5 phrases you use to get buyers to make an offer. 

Posted by John Fennessey, York Maine Properties (Beangroup Real Estate) almost 8 years ago

Excellent Ken.  May I suggest for #1, if you were buying a home today, what would you be willing to pay for your home?

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) almost 8 years ago

Another testament to being specific.  I am not a Realtor, but what I see you doing here is effectively whittling away the unknown and putting the focus on the things your clients can control.  I have found it to be true that most buyers and sellers can envision what it is they want, but often not the process(es) that can get them there.  Your points above direct their attention on the steps that lead to the outcome and I think that's an especially important distinction.  Great post.

Posted by Rob Spinosa, Vice President of Mortgage Lending, Marin County (Guaranteed Rate, Marin County, CA) almost 8 years ago

Ken these are GREAT !!! I'm bookmarking them for my sales class. One of mine is "The Market has spoken(by their indifference), there's NOTHING left to prove at this price point."

Posted by Michael J. Perry, Lancaster, PA Relo Specialist (KW Elite ) almost 8 years ago

Hi Ken,

Congrats! Awesome post - thanks so much for putting it in perspective ...Short & Sweet- SCRIPTS! :)

 

Thanks,

 

Posted by Margarita Gazivoda Kocovic, Realtor, Westchester NY Luxury Homes For Sale (Keller Williams Realty Group) almost 8 years ago

Love #3.  That is a perfect one for setting the initial price too.

Posted by Leslie G. Rojohn, GRI, ABR ~ MoonDancer Realty (MoonDancer Realty) almost 8 years ago

How can anybody say scripts don't work, it's phony, etc? It depends on who is delivering the scripts, doesn't it? Just watch a great movie that stirs your emotions and explain why scripts don't work.

Posted by Kimo Jarrett, Pro Lifestyle Solutions (WikiWiki Realty) almost 8 years ago

And: "Would you BUY your house for the price you want to ask?"

tight pricing works SO well. I always have listings with me that have been sold within 97% of asking to show that buyers usually recognize CORRECT pricing. Yes, there will be the occasional low ball but the general rule is that the offers will be comparably close to asking,

Posted by Annette Sievert, Corvallis, Oregon (CB Valley Broker) almost 8 years ago

I like number 3. I generally use photos of competing homes to illustrate the point.

Posted by Michael Smith (Michael Smith (Homexpo Realty)) almost 8 years ago

Very good points you make Ken I particularly like 3 and 5 nothing like a direct and to the point statement the get the attention. 

Posted by John Green CHP / e-pro/GRI/CBR Residential Real Estate Specialest (Century 21 North Shore) almost 8 years ago

There are several "pearls" that I like to imprint upon my sellers when listing their home: "clutter eats equity", "space sells" and "price it right & negotiate less".

Posted by Judi Monday, CRS-Green Valley AZ Expert, Green Valley Arizona R (RE/MAX Valley Properties) almost 8 years ago

Well done, I agree a few key phrases that you are comfortable saying is key. Thanks

Posted by John Rucidlo, Associate Broker, HomeSmart Real Estate (8388 E. Hartford Dr. Scottsdale, AZ 85255 ) almost 8 years ago

Good post and good ideas. The main thing is that you find a way to communicate the market environment to your client so that they make a clear decision.

Posted by Juan Bassett, GRI (Long & Foster) almost 8 years ago

Hi Ken, the only one that doesn't work for me is "we are close" I said that to my seller when we received a counter and he yelled at me "Because you made me drop the price 25K! That is the only reason we are close!"  :(

Posted by Ann Grant, SFR (KELLER WILLIAMS in CT) almost 8 years ago

Hi Mike, Tammie, Ruthmarie, Sandy, John, Wandanna, Kathleen, Lee, Donald, Katerina, Tamara, Sherri, Missy, John, Gabe, Rob, Michael, Margerita, Leslie, Kimo, Annette, Michael, John, Judy, John, Juan, and Ann.  Thanks for stopping in.

Woo hoo.  It has been awhile since I have had a featured post!  Forgot how busy it can be keeping up.:)

Hmmm.  So much to comment on.  I bring up pricing early and often.  I keep at it...

Tammie, I hope you had a great time up here in Naperville!

Thanks again everyone.

Ken

Posted by Ken Tracy, Helping clients buy and sell since 2005 (Keller Williams Realty Infinity) almost 8 years ago

Very good points Ken.

However, what happens if you are the person who priced the property. We recently priced a property only to find out that there was a very similar property (in escrow at the time) that sold for a lot less than we had priced our listing. Do you have Any suggestions?

Posted by Michael HassanPour, Esq. Beverly Hills Properties, Brentwood, Bel Air (Beverly Hills-Coldwell Banker Beverly Hills North) almost 8 years ago

Hi Ken:

 

Thanks for the post.  These are all good comments to get a seller to evaluate or re-evaluate their pricing.

Posted by Jennifer Manchester, GRI, ePRO, ASP - Broker/Home Stager (Suburban Properties of Charlotte, LLC ) almost 8 years ago

Great list of tools for your tool box.  Thanks for sharing, I think I may just "borrow" a couple.

Posted by Tracy McPeek almost 8 years ago

Here's my matter-of-fact line if a house needs a price reduction: "Mr. Seller, your house is overpriced. If you don't drop the price and/or make some repairs, it'll never sell. What would you like to do?"

I always suggest pricing 3-5% below market value to generate the most interest and hopefully multiple offers. I recently sold a home that I thought was worth $124-125k as I had great comps. I bracketed the price at $119-129k. The seller wanted to price at $129k. I suggested $119k and they decided to go with my recommendation. Guess what? Multiple offers and a final selling price of $124k! Made me look like a genuis! I also write a reduction after 30 days into the listing contract.

Posted by Dan Pinson, Broker,ABR,GRI,RSPS,SFR,TRC (International Realty Partners) almost 8 years ago

Great post! Thanks for the tips!  I have been using the phrasing "Re-position the house ........". This can be a price change, staging, adjust pictures, examine creative financing, etc.

Posted by Suzy Echols (Avenue Real Estate) almost 8 years ago

Ken,

Great quotes I need to use some of these on my listings.............. thanks for posting them.  I love all the help we get here on ar. best wishes,

kim 

 

Posted by Kim Boekholder Utah Real Estate, Broker, Results Real Estate (Results Real Estate 801.580.5624) almost 8 years ago

 

Key Phrases... or discussion starters are good to have in your back pocket. Overpriced listings are a common discussion these days.

Posted by Scott Petersen (Client First, Realtors - Canton, MI) almost 8 years ago

Good post and good approach.  The way you ask the questions gets people to think.  Thanks for the info.

Posted by Gene Riemenschneider, Turning Houses into Homes (Home Point Real Estate) almost 8 years ago

Great phrases to remember! I find out during the interview how much room they have to negotiate. When I come in on an initial interview, I have done a CMA and know what it should be listed for and then find out where the sellers stand when presented with the facts!

Posted by Gerard Gilbers, Your Marketing Master (Higher Authority Markeing) almost 8 years ago

Hi Gerard, Gene, Scott, Kim, Suzy, Dan, Tracy, Jennifer, and Michael.  Thanks so much for reading.

Dan, that certainly is more matter of fact.  You are more aggressive in the original pricing. 

I generally ask my clients what they would sell there house for today, and then price it in as close to that number as I can...

Different approaches for sure...

Michael, even if you priced it, you still may be wrong.  We are never perfect.  Markets change.  Prices need to as well...

Thanks again everyone,

Ken

 

Posted by Ken Tracy, Helping clients buy and sell since 2005 (Keller Williams Realty Infinity) almost 8 years ago

I don't like scripts either, but things that you say over and over and that make sense are actually scripts whether we like them or not...you are 'practiced' at that script because it works.  Scripts aren't good when they aren't genuine or pertinent to the conversation at hand.

Posted by Kasey & John Boles, Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties (Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com) almost 8 years ago

All of those are great, and I use them as well, or a slight variation.  I find that my greatest success just comes by building a really strong relationship with the seller, so I don't have to beat around the bush.  "Hey Mr. Seller, it's not getting any activity at this price so it's overpriced.  We need to drop it."

Posted by Matt Robinson, www.professionalinvestorsguild.com (Professional Investors Guild) over 7 years ago

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