Real Estate Market (Crashing)? Price Reduction Scripts & Systems

Welcome back to America's #1 Daily Podcast, featuring America's #1 Real Estate Coaches and Top EXP Realty Sponsors in the World, Tim and Julie Harris. Ready to become an EXP Realty Agent and join Tim and Julie Harris? https://whylibertas.com/harris or text Tim directly 512-758-0206

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Pricing is our hot topic this week.  We'll take a look at the factors causing price reductions, what to do from a listing agent's perspective as well as when you're representing a buyer.  We'll dive into some price reduction scripts and give you the confidence you need to navigate this changing market.

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Let's take a look at what's happening to prices right now.  (And NO, the market is not crashing, it's just normalizing!)

Facts:

Nationwide, 1 in every 15 listings had a price reduction in the last 30 days.  That's about 6.5% of active listings in the country, however, some markets have seen 50% of active listings get a price reduction in the past 30 days.

The five metro areas with the highest percentage of listings with price cuts last week were Wenatchee-East Wenatchee, Washington (53%); Idaho Falls, Idaho (52%); Carson City, Nevada (52%); Austin-Round Rock-San Marcos, Texas (52%); and Waco, Texas (51%).  

This is all happening at the same time that prices are still up by at least 3% this year, and are expected to end up averaging about 5% by year's end.  This figure shows you that we are normalizing, not crashing.  We are still suffering from a lack of supply.

Remember this:  At $52 Trillion, The total value of homes in the US is up 49% since before the pandemic.  49%!  So these price adjustments won't be catastrophic to most sellers.  We're a very long way away from short sales, so don't go thinking the sky is falling.

What should you do when you're the listing agent?  You can price it to sit, or you can price it to sell.  The average mortgage payment on a $400,000 home is now over $3000/month with taxes and insurance.  That's nearly double what it was a year ago.  Any buyer still looking is serious, motivated, qualified, and scarce!

Ready to become an EXPIRED Listing Agent? As promised, here is the discount link for the EXPIRED LISTING LEADS: https://www.redx.com/affiliate/tim-and-julie-harris/?aff_code=670699

Pricing your listings accurately in the first place will save you from having to have price reduction conversations later. (Though we'll give you price reduction scripts later this week and tons of them in Premier Coaching).  

First, It's important to STOP doing any (or all) of the following:

-Stop : Taking the last best comparable, adding 5 to 10%, and expecting to sell that listing quickly and for even more than the asking price.  There are random examples of this but they are becoming few and far between.  Stop rolling the dice and hoping for a bidding war.

-Stop : Just pricing it based on what the seller wants to get unless that number can be backed up by recent comparable sales.  This is called 'seller's pricing' and is often 'aspirational pricing', otherwise known as : an unrealistic price.

-Stop : Using any comparables older than 90 days to justify your price. 

Why must you get better at pricing immediately?

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TIME CODES

00:00 - Intro
01:37 - Price or value erosion
05:52 - Price reduction
12:21 - Price correctly
18:23 - Join Premier Coaching
22:41 - Conspiracy theory
26:54 - Losing the listing
30:52 - Tug of war
36:30 - Like and subscribe