Mastering the Price Reduction Conversation – How to Keep Listings Moving

In a shifting market, listings that used to sell in a few days are now sitting for weeks or even months. Sellers start panicking, agents feel pressure, and suddenly, you’re having the dreaded price reduction conversation.

But what if you set it up from the beginning and made price adjustments a normal part of the listing process instead of a battle?

Let’s break down how to win the price reduction conversation and get listings sold without the stress.

Step 1: Never Take Ownership of the Price

One of the biggest mistakes agents make is owning the price.

🚫 “I think your home is worth $500,000.”
✅ “Based on market data, homes like yours are selling between $475,000 and $500,000. Where do you feel comfortable pricing it?”

Why is this important? Because if you pick the price, they’ll blame you when the home doesn’t sell. Instead, position the market as the decision-maker and let them choose from a range of pricing strategies.

Step 2: Set the Expectation Early

A price reduction shouldn’t be a surprise.

When you take the listing, let the seller know:

📅 “I always evaluate listings every 21 days. If we’re not getting strong activity, we’ll discuss adjustments to make sure we’re competitive.”

By setting this up early, you’ve earned the right to ask for a price adjustment later.

Step 3: Give, Give, Give… THEN Ask

Sellers won’t lower the price unless they feel you’ve earned the right to ask.

Here’s the formula:
✅ Week 1: Send a marketing report showing where the home is being promoted (MLS, Zillow, Realtor.com, social media, etc.).
✅ Week 2: Send a showing report with feedback from buyers and highlight a recently sold home in the area.
✅ Week 3: Send an updated CMA with pricing trends in the neighborhood.
✅ Week 4: Call and have the price reduction conversation.

Give, give, give… then ask. This builds trust and shows the seller you’re actively working to sell their home, not just waiting for them to drop the price.

Step 4: How to Have the Price Reduction Conversation

📞 Agent: “I wanted to check in since it’s been 21 days, just like we discussed when we listed your home. I’ve sent you updates on marketing, showings, and recent sales. Based on everything we’re seeing, I’d like to discuss some adjustments that could help generate more interest.”

💡 Key Phrases to Use:
✅ “The market is telling us…” (Not “I think…” – this removes personal blame.)
✅ “Homes that are selling are priced between X and Y.” (Use data, not opinions.)
✅ “We can adjust to $X, or $Y to get ahead of the market. What do you feel comfortable with?” (Give them options.)

Remember: You’re the messenger, not the bad guy. The market determines the price, and you’re just helping them respond to it.

Step 5: Handling Seller Objections

🚫 “Why didn’t you tell me this before?”
✅ “Pricing is a snapshot in time. When we listed, this was a strong strategy. But the market has changed, and we need to adjust.”

🚫 “I won’t lower my price unless you lower your commission.”
✅ “Actually, when the price comes down, so does my commission because it’s a percentage. We’re in this together.”

🚫 “Let’s just wait and see.”
✅ “I completely understand, but waiting often leads to even bigger reductions later. The best time to adjust is before buyers overlook the listing.”

Final Thoughts: Take Control of Your Listings

Agents who proactively handle price adjustments keep their listings moving, maintain control, and protect their reputation.

📌 Set price reduction expectations upfront.
📌 Give consistent updates before asking for a price adjustment.
📌 Use the market as the messenger, not your opinion.
📌 Position yourself as the solution—not the problem.

With the right approach, price reductions become a natural conversation, not a fight.

🔥 Have you had to ask for a price reduction recently? Drop a comment and let me know how it went!

– Ray @ AgentBeat