How to Get Action Into Your Property

After speaking with other listing agents recently about how they propose moving properties in a buyer’s market like today’s, the overwhelming answer is this strategy which is being promoted by most companies’ top agents.

1. After the 6th showing OR 30 days of no showings, lower the price 2% but lower to the nearest $5,000 price range and lower to big round numbers. For example, if you were lowering to $298,000.00 lower to either $295,000.00 or raise to $300,000.00

2. Make the property in like new condition – new carpet, paint, and appliances. Neutral colors - no whites. The house has to be toothbrush clean from top to bottom inside and out.

3. Trim the landscaping and add red mulch.

4. Add a virtual tour and have the owner stage the property.

5. After 45 days on the market with no offer, lower the price 10%.

6. At the 90-day mark and every 30 days after that, lower the price 5%.

7. In talking about the commission structure, they offer 3.5% to the buyer’s agent.

8. Have the owner agree to these terms in writing.

These agents will not take a house that does not meet these conditions, as they are full time agents who are making a living only when a property sells.

If this is a strategy that you would like to put in place, please ask us here for comps so that you can determine the lowest sales price in your neighborhood and start there with a price reduction of at least 4% to 10%.

You know, I have sold many overpriced properties in my day – even in this market - and it could be that yours will the next one sold. However, to be fair to all of my clients with motives that supercede making profit, I feel that I need to share with you what I have learned about today’s market. What I did not research is whether these tactics have really sold these houses as some of these are hard to research because they are the buyer’s motives that ultimately make the property sell. However, several of our investor clients operate this way and have had great, consistent success.

What prompted me to look into this further is that in investigating clients who have transferred to other agents, 7 out of 12 of them transferred and then took a major price reduction of at least 10% and sometimes more at the time of transfer. This reduction combined with them paying a higher commission does not make much sense to me. So, that’s when I started calling my friends in the business here in Atlanta and talking to them about their strategies. I talked to 6 agents who are the top agents in their companies and the companies span across the city.

In closing, I certainly don’t want you to lower your price if you don’t want to do so. No pressure on this side as we will carry your listing as long as it takes for it to sell this is just something for you to think about and put into action if you want.

Thank you for your business,

Rhonda Duffy