The Altman Close

Chapter 21PRICE DROPS ARE NOT ALWAYS DOWNERS

You know how this goes to start. Sellers are often unrealistic about the price of their home. And we get it. They want to make money, not lose it. But markets change. They fluctuate. Homes depreciate from what they once cost or what someone first paid.

I already prepared you during Part I to arrive at an initial listing price. Now we need to discuss the continued price drops you may have to face with your client throughout the selling process. Remember, a price drop doesn’t have to be a downer. It could be the strategic momentum needed to close – a positive rather than a negative move.

Sellers, as we know, often insist on overpricing. They want a larger return and they usually have deep attachments to a house. So we developed a “script” you can use to navigate the price-lowering negotiations with sellers during the work phase. Letting go of a fantasy price is tough, but the looming threat of double mortgages can make a client jump off the roof. Seriously.

Part of your job is to be reality checker who reminds sellers that the house will sell when it is priced right for the market. Again, Redfin says houses in the United States are for sale an average of 70 days, and realtor.com put the number at 65. In some of my territory, if a house gets listed at all it’s considered a loser. You’re always on the shot clock. You have to move fast. You have to sell. You have to close. Or the property dies and rots on the battlefield.

Not only does ...