Here’s a strategy to get clients to agree to a price reduction at the listing presentation.  This virtually guarantees your listings won’t sit on the market for months.

Agent Francine Hoffman created 1) a simple script that educates clients on why they need a price reduction and 2) a form that spells out the adjustment details in crystal clear terms.  This way there’s no begging, arguing or hard feelings.

You can use this price reduction script and form “as is” or modify it to fit your personality.  Either way it helps to overcome tension and allows you to get an agreement from sellers before it’s too late.

Here’s Francine’s description, script, and form below:

“I created this many years ago when I sat back in my chair one day and asked myself this question, ‘What is the worst thing I have to do in my real estate business?‘

I thought for a few minutes and this is what I came up with.  I hated calling my clients up and asking for a price reduction.  It is such a negative call and no one is happy at the end of the day.  So I came with a way to make it a more pleasant process for everyone involved…

When does the client love you?  Answer:  When they sign the listing agreement with you.  So why not stay a few minutes longer and educate the client on what will happen from that day forward.  This is how my script goes:

Next, I pull out my form that I call my ‘Price Adjustment Schedule‘.  Here’s a snapshot of what my form looks like:

click to enlarge image

Now this is signed at the same time as the listing agreement.

This way the clients know what to expect.  They have signed the agreement and now when I call them I say, ‘Folks, I have some good news and I have some bad news.  The good news is we have had ‘x’ showings.  The bad news is we do not have any offers, so we will have to put plan ‘B’ into place, the Price Adjustment Schedule.’

They already have a copy and you ask them to pull it out and you can go through it with them.  Also make sure they have a copy of your marketing plan so they know that you are not just adjusting the price of their home, you are doing other things as well.

This form and process works wonders for me and I don’t feel like I am beating people up anymore, they know what to expect.  And as a result I’m able to sell my listings faster at realistic prices, and build a base of clients who respect me and stay with me for the long-term.”

“I had a Seller client who failed to record an insurance claim on the property disclosure. Their insurance company had paid the claim. However, when the buyers went to get home owners insurance they were denied on the property because they had to present evidence of the repairs being made from the insurance claim of a ‘lightning strike.’

They knew nothing of it because it was not on the property disclosure. It turned out the claim was on a home computer and it was replaced by the sellers. They did not think it needed to be on the property disclosure because it was not the house. Sellers need to know ALL claims on their homeowners policy regardless of what they are required to disclose.

To avoid this situation, I’d suggest getting a CLUE report. A CLUE report will reveal if a claim has been made on the property. In this situation, the Sellers paid for a home inspection for the buyers and the property closed.”

“My client, the seller, was a bit “eccentric”. He had a 2nd home, vacant, within viewing distance of his newer current home. I listed the property, a charming older home, and almost immediately problems occurred…

My client had not paid property taxes in 9 years, now totaling nearly $20,000. The property was owned by his “company”, not him. Because he so distrusted our government, his “company” was originated in the Caribbean. The Court had appointed a trustee years ago because no company officers could be located.

At pre-settlement time, the issues went on and on, and the attorney’s clerk told me a court hearing to remove the Trustee’s name would take 2 months! When I asked my client where I could find the Trustee to sign the deed, my client stated the trustee was probably in the Yukon!!

After more phone calls, my client came clean and gave me the trustee’s phone number, knowing the sale would not happen otherwise. I called the attorney’s office & they scheduled the settlement for that afternoon. I drove 4 hours roundtrip to a neighboring state to meet a stranger (the Trustee) at a local bank in his neighborhood & get the document notarized. The sale went through, but that was some serious last-minute settlement stress…”

“I was searching to find a gentleman the perfect home. He loved the desolate, country scene on the side of a mountain with no neighbors. We were traveling to look at the cabin about 30 minutes away. I was told that the cabin would be left opened for us to walk in, take a look, and then leave it locked. No problem.

“We got there, walked in and started looking around. The TV was on but no one was around. I was opening doors, closets, etc. so the client could get a good look at the property. I opened a door that led to a master bedroom that was tidy as could be. Walking through with my client I opened another door (which I thought was a walk-in closet). In fact, it was a bathroom, and there was a lady wrapped in a towel brushing her teeth!

“I panicked, closed the door and told her who I was and why I was there. My client was more embarrassed than she was, and he headed straight for the basement!

“The lady came out later, fully dressed, and said her husband had given us the go-ahead to come in and she thought she had time to take a shower before leaving. What a moment!”