Sellers, let’s play the Price Reduction Game.
September 26, 2007
Sell your house - let’s play the Price Reduction Game
Once you start, you cannot stop playing it…. It’s a game that all home/condo sellers can play.
It’s so addictive, all nearby home sellers will want to join in…. there are some real estate agents that enjoy the game also.
How do you play?
- All players start out with their initial asking price. (Work with your real estate agent to make sure that the price is high enough, otherwise they may not take the listing, and you will have to find another agent. Make sure that you choose an agent that tells you that your home is ready to sell, as the way you live in your home is the way that buyers will want to live there also. Green carpet is an added benefit.)
- And at regular intervals, say 2 months, reduce the asking price of their home. (Your agent can help you here, they know the market and can advise you on the best strategy. You may be hesitant at first, but once you see the other players dropping their price and your agent continues to repeat this like a mantra, you will also. Being the first is hard, it is easier to follow suit. You may even be the first at the next round of price reductions.)
- Until one of the properties is sold - thats the winner
- The lower the price, the better chance of a winner - a home being sold, (Then again, you knew that from the start).
- Once you start playing the game, you cannot stop, you have to continue.
Most common strategies for winning the Price Reduction Game.
- Start your home for sale at a really high price so that you can stay in the game longer. Pick your agent wisely, make sure that you hire an agent that needs a listing, or is unable to tell you the market reality for fear of not getting the listing. Look at the agents previous sales, you can tell an experienced Price Reduction Game player from their past sales.
- Be prepared to reduce your asking price more than the other players
- Be ready to convince yourself that the market is to blame. Your chosen agent can be very helpful here, and may even start the game early once you’ve signed the listing agreement.
- And there was no other game in town.
Psssst.. want to know a little known winning strategy.
- You win by selling your property, so price it right in the first place? Price your property ahead of the market, it will take the other players in the game a little while to catch up with you. Choose an agent that demonstrates knowledge of the market, and can validate their suggested listing price with facts. Make sure that your chosen agent understands the Price Reduction Game and knows that there is a different strategy to be applied. An agent that is prepared to walk from a highly priced listing, is probably the agent that you should be most interested in talking more with.
- Make the necessary repairs/improvements, and have the property professionally home staged so that it stands out from the competition. A real estate agent that understands the value of making an investment in preparing your home for sale, and isn’t afraid to tell you that you need to do so, is an agent that understands the winning strategy, and is only prepared to play to WIN. There are not many of them out there, you may have to spend some time to find them.
- Your sale price will still be higher than if you had joined in the Price Reduction Game in the begining. As the agent understands the Price Reduction Game, they can clearly articulate this fact using an absorption analysis and current inventory review, to show you that their strategy is the best availble strategy to get your home sold, and for more money than if you play the Price Reduction Game like all the other players.
- No home stands out if all sellers play the Price Reduction Game. There are many Price Reduction Games started on any given day, and as each game drags on, everyone gets disinterested and find another game to play. You can tell when this phase starts as communication between team members starts to go silent.
Winning allows you to sell your property before the other players, and allows you to move straight onto the ‘It’s a Buyer’s Market Game” to buy your next home. Chose an agent wisely as they can be the first critical playing move you can make.
If you are a south Florida real estate agent that knows the winning strategy? Let us know who you are, and how you play the game to win.
Copyright 2007 © Open Door Staging Inc.. All rights reserved
Comments
One Response to “Sellers, let’s play the Price Reduction Game.”
Got something to say?
Some Of Our past Stagings.
Lived in/Occupied Property
Town Home Staging
Beach Front Condo
Single Family Villa
Very clever post! I enjoyed your analogy.
It is all so true.
09/25/2007 12:43 PM by Julie Dana
——————————————————————————–
I agree with your analogy. I still find sellers believing they will get more for their homes than the market will bare; who knows, by the time they “get it” the market may be on the upswing again. I am a big beleiver in staging a home, with the market being so tight the seller needs every gimick they can get, and staging gives them the “first impression” advantage.
09/25/2007 01:01 PM by Lois Davies
——————————————————————————–
Cute game…one that is played by so many. The nice thing, there is always room at the table for another player! Nice post.
09/25/2007 01:04 PM by Gary Waters
——————————————————————————–
Love it! I always wonder though, why play the price reduction game when you can have it staged and sell for what you ask instead of what your competitors are setting the bar at? Still not sure why people hesitate to stage. Anyone out there know the answer?
09/25/2007 01:26 PM by Terry Haugen
——————————————————————————–
Yes it is all a game and how you want to play it. I do not have an answer but I do think if there was a way of them paying at closing they would be more willing to have the home staged.. People just don’t get it. Especially here in my area Myrtle Beach because they think the area sells it.
09/25/2007 01:57 PM by Kathy Halpin
——————————————————————————–
Great post! I really like the way you got your point across!
09/25/2007 05:11 PM by Kathy Passarette
——————————————————————————–
Very creative way of getting your point across! Very enjoyable post!
10/06/2007 10:14 PM by Judy
——————————————————————————–
Great post! You touched on some good points. Wonderful website by the way.
09/26/2007 05:35 PM by Tanya Venable
——————————————————————————–
This is a very clever way of pointing out the advantages of getting in front of a falling market as opposed to chasing it down.
09/26/2007 07:08 PM by Susan Peters
——————————————————————————–
You know, I didn’t do very well in Econ 1 when I was at Cal, but I think most people realize how supply and demand works, and consequently if you price something low, you will create demands. It just doesn’t make sense to me when people price high on purpose. I think this is a brilliant post.
Cheers,
Cindy
09/26/2007 10:52 PM by Cindy Lin
——————————————————————————–
I am just reading this series of articles - WOW! This is very good, very smartly written. I’m cerrying on to the next………..
Have a great weekend!
09/28/2007 04:52 PM by Deborah Pearce
——————————————————————————–
Thank you for your comments - the number of comments in response to this email is quite telling, or should I say, the lack of response from the real estate agent community. The post was submitted to several of the more active real estate agent groups, and yet, the majority of responses were from fellow home stagers.
Could it be that real estate agents still do not believe in home staging?
As a home stager, I respond to many for sale by owners, and informed sellers that want to stage their home before calling a real estate agent (so that the home looks it’s best), and often ask me for a real estate agent referral.
I know that their best interest is served when the agent understands how to market their home in this market, though staging, good photographs and an online marketing campaign.
-Open Door Staging.