It is hard to convince most clients to reduce the price of a home. But if a home is still on the market after the usual Days on Market in your area, it’s time for you to be bluntly honest with them.
An simple way of showing them that it’s better to make a price reduction sooner than later is to show them how much it will cost them NOT to sell their home.
First, calculate how much they are spending each month on their mortgage, taxes, utilities, maintenance, and traveling to and from the home if they’ve relocated or are traveling father for a job.
Next, calculate this monthly expense so they can see how much they will lose for every month they don’t sell the home. For example, let’s say for a home it costs $2500 a month for the seller to pay all of the expenses. In two months, this is $5000, in three months, $7500, in four months $10,000, and in five months $15,000. If they let their home sit on the market for six months at the current price, they will lose $20,000.
Many sellers do not look at the huge picture. By showing them they are losing money by NOT dropping the price, it gives them a different perspective and often is enough to convince them to reduce the price by $5,000 or $10,000 at least.
