Although the sales process starts with motivation on the part of a seller (okay, some sellers may not actually be that motivated -despite what they tell you), but there’s always a unique set of circumstances surrounding each sale. Understanding those circumstances is key to getting the property sold. And lest you be lulled into believing Mr. Seller’s motivation is the same as Mrs. Seller’s, I’ll tell you “it ain’t that simple”. 
I’m thinking of a conversation I had just last week with a friend who asked me about dropping his price to below the $1M mark. There are several answers. The quick answer in this market is that a lower price is probably always better, but how much lower is the question. I told him if he’s just dropping it to get under the $1M threshold, it probably won’t make any difference, there just aren’t many buyers right now.
He was glad I said that because he didn’t think it would make any difference either. He mentioned he and his wife were of a different opinion, so I offered to give his wife a call and tell her about our conversation. Now understand these people are not my clients, but you know friends, right? (good thing I’m not a doctor!).
So here I go ~ ring-a-ding . . . . : “Hello Mrs. Seller, I just spoke to John about dropping the price of your house just slightly to get it below the big $1 Million benchmark, but honestly I don’t really think a small drop will send a very exciting message. You know there are buyers but they’re hangin’ back still sucking their thumbs waiting for a real bargain.” And surprisingly she tells me:
“Well I think it’s John you need to talk to then, not me. You see I’m willing to drop it as low as we need to! It’s he who has had the price too high all along!”
Wow, was I surprised! Here she is willing to swallow the bitter pill so they can get on with their lives and it’s he still hanging on to the idea their house is worth what it used to be, you know a couple years ago. She totally gets it -when they move they’ll be downsizing and buying into a much lower level and likely recover much of their imagined loss. And she expounded further. They don’t have a mortgage and have just about $500,000 invested in the house, so they really can make some intelligent decisions. If they just would. Okay, this sheds a whole new light on the situation. Now that I understand the circumstances surrounding this sale my advise is very different.
I told them, you gotta knock the price so low it will be like a bucket of cold water to agents and also grab the attention of those buyers on the sidelines. You want every agent that sees the price reduction to pick up the phone and start calling clients, and you want every real buyer to call their agent to check this out. That’s the way to get this puppy sold. DO IT! Take some bold action and get ‘er done.
That’s my Tip of the Day!

Aloha, Mike
Mikie Likes It LLC
Realtor Referrals
Michelle Kerr
(Principal Broker/Owner)
Waikoloa, Hawaii
Phone: (808) 896-1943
eMail: Mike@MikeSells.com
website: MikeSells.com