When your listing hasn't sold, what's the first thing you look at? All together now: PRICE! Right? Not always. Not even most of the time.*

Many real estate agents claim that price cures all. And in a way, they're right. If you have a listing that shows poorly, is difficult to show or smells funny, there probably is a price that will inspire buyers to overlook the clutter, access issues or eau du Chef Boyardee.

But is price the right answer? Again, not always. Not even most of the time.* Why on earth not? Three reasons.

First, when we real estate agents price our listings, we're hopefully pretty proud of that price. If I've put a price on a property, unless the market has declined, I'm pretty sure I'm in the ballpark. And the thing is, in today's market, buyers are well aware that they can "make an offer," so a minimal price reduction, say, $229,000 to $224,000, probably isn't going to make much of an impression on the market.

In order for a price reduction to be meaningful, it's going to have to take that listing into a different pricing tier, thus introducing it to a whole new set of buyers who weren't looking at it before. And, depending on the price range of the property, that might mean a price reduction of $20,000 or more.

Now, think about what we could do with that $20,000.

Second, automatically resorting to the solution of reducing the price is really not what a seller wants to hear, and in that mindset, he's likely to question his agent’s professionalism and commitment. Let's face it, a price reduction is an awfully easy solution to offer and often abused by the real estate community. We all know agents who "buy" listings at a too-high price and then, as part of their game plan, beat up the seller later for a price reduction. And this isn't a secret to the general public--a lot of sellers are aware this happens, too. So, when your first and only solution is a price reduction, it can really damage your credibility, especially if you recommended or agreed to the price in the first place.

But the main reason not to automatically ask for a price reduction is that it's rarely the best solution for the seller.

The thing is, there are plenty of solvable problems, some simple, some not-so, that can keep an otherwise marketable home from moving. Our job is to play detective with our non-selling listings to determine if there's a problem we and/or our seller can solve, outside of a price reduction.

Stay tuned. I'll pick this up next time!

*Unless you're overpriced to begin with, of course.

Published: December 7, 2009

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Jennifer Allan-Hagedorn was a top producing real estate broker in Denver, Colorado before writing her first book in 2007. Since then, she has written several more books about the business of selling real estate including her flagship book: Sell with Soul: Creating an Extraordinary Career in Real Estate without Losing Your Friends, Your Principles or Your Self-Respect, the sequel, If You're Not Having Fun Selling Real Estate, You're Not Doing it Right and her latest, to be released in Spring 2011, Prospect with Soul for Real Estate Agents. Jennifer believes that the secret of success for real estate agents is not in aggressive marketing techniques or hard-core sales pitches, but rather in being competent in one's craft. Competence begets Confidence. And in today's world of increasingly suspicious and ad-weary consumers, having an air of self-assurance and enthusiasm will be far more effective than a slick sales campaign. Jennifer writes and speaks with this philosophy in mind. She preaches that salespeople should follow the Golden Rule in their day-to-day practice of business - treating clients and prospects respectfully, as the salesperson him or herself would like to be treated. Being competent, reliable and fair, and motivated by a true desire to earn a paycheck, not just show up at closing with hand outstretched. She is a regular contributor to several real estate newsletters and magazines, a member of the RE/MAX Hall of Fame and one of the industry's most popular bloggers. You can learn more about Jennifer's "soulful" philosophies at www.SellWithSoul.com. Subscribe Below to Enroll in the Daily Seduction Newsletter Mini-Clinic - Tips and Strategies to Generate Business and Referrals From Your Sphere of Influence! Your Full Name Your Email Address