From Stale to $old: How to Sell the Stagnant Listing

1. Do a new CMA.

You now know the house better after several showings, and you’ve had feedback. Since you’ve been listed, there have been new closings, new pending sales, and new active listings to compete with. Pretend it’s a new listing. Where would you price it TODAY?

Consider the following:

• Absorption rate
• Days on Market
• List-to-sell price ratio
• The number of homes you’re competing against

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2. Review the seller’s motivation.

Why are they moving? Are they a have-to-move seller or just a want-to-move seller? Where are they going when it sells? Have they already moved out? Remember, their motivation may have changed since you first listed the home.

Note to self: This could be the issue if they’re buying with you and don’t have a good feel for where they’ll be moving. Why would they give you a better price if they don’t know where they’d move to?

Solution: Take them out for a long afternoon or even a full day to see what their options are. They need to fall in love with what’s next to let go of what’s current.

Secret: Sometimes, new construction is the answer. Be sure you know what’s being built where and at what price points. Learn the builder incentives. This may require you to go out for a day and investigate the options.

3. Is keeping the home an option for your seller?

Might they lease it? Always say YES to leasing it. You also may advertise it for lease and sale simultaneously and decide what to do based on what happens first.

Secret: Once you discuss the reality of being landlords, the amount it will probably lease for, and their net income, they may change their mind about leasing it. If you haven’t already, know how to research lease pricing.

4. Set up the “Reality Tour.”

Do your research first to know what you will show and how it impacts the subject property. Then, take your seller(s) out on a showing trip where you’ll see what they’re competing against and what’s currently pending. Don’t over-coach them. Show the properties and ask what their thoughts are.

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5. Discuss the “take it off and try again later” plan.

Explain that “taking it off and trying again next quarter/year/season” isn’t always the best plan.

• When do they have the most competition? Usually Spring.
• Many tough-to-sell listings will sell in the fourth or first quarter when there’s less competition.
• Relocating executives usually move during these quarters.

6. Ask if they plan to re-list with someone new.

What is the first thing a new agent will ask them to do?
They will ask for a new price, of course!

Why lose valuable marketing time with re-staging, new photos, videos, and media when you can do this for them now?

7. Use the NAR price reduction script.

“According to NAR, if after two weeks or ten showings, you don’t have a workable offer… you are missing the market regarding price. It’s time to reposition the property to reflect the expectations of buyers looking more accurately.”

8. When you get your price adjustment:

Get an extension to your listing agreement at the same time.
It’s easier to sign all of those documents at once rather than having to have a second tough conversation!

9. Correct all negative feedback!

You may need to assist your homeowner in actually getting this done.

• Find service providers who agree to be paid out of proceeds at closing if the seller can’t afford repairs.
• Otherwise, the price should be reduced to reflect the condition.
• This reduction is usually lower than you think.

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10. Share your new marketing plan.

Once the price has been improved and the listing extended, show your seller what’s new. They absolutely will expect this from you.

Consider adding the following to your plan:

• Call all previous showing agents and alert them of the improved price and any items in good condition.
• Announce the price improvement via your MLS digital flyer system.
• Host new open house(s) — consider holiday open houses, charity open houses, etc.
• Post new social media content, including virtual tours.
• Upgrade staging and decluttering.
• Update pictures, especially if the last ones were seasonal.
• Send a new video to your database and to previous showing agents.
• Use your color home brochures in the brochure box by your for-sale sign.

Secret: Be sure to tell the seller everything you’re doing for them as you do it. Don’t assume they believe you’re following your plan. You have to show them what you’re doing.

Regarding LEASE Listings: Consider adding some signing perks: one month free (at the end of the lease), pay the utilities for 6 months, waive the deposit for good credit, etc.  Look at what your competition is offering and meet or beat it!

Final Note to Self:

Never let a hard-to-sell listing (or a batch of them) ruin your listing mindset.
It’s your job to be good at everything discussed above — including pricing and setting your seller’s expectations.