The Stress-Free Way to Talk to Sellers About Price Reductions

Speaking with sellers about the need for a price reduction is one of the conversations agents dread the most. Consequently, they often wait far longer than they should before confronting the issue. This can have serious consequences both for the success of the sale, and the health of the client relationship.

It doesn’t have to be that way.

In fact, it can be the exact opposite.

The Tactical Empathy toolbox contains all the tools you need to address bad news as proactively and productively as possible.

By embracing these tools and honing your Tactical Empathy skills to confront sensitive issues head-on, you will immediately begin to see the benefits manifesting in much more trusting client relationships with far fewer moments of conflict.

If you’ve been reading these emails regularly, you’ll notice a familiar pattern here. The framework for this conversation is no different from the framework for any other “bad news” situation. The more you practice it, the more natural it will feel to approach tough conversations this way.

1️⃣ Prepare your Accusations Audit

As I’ve mentioned before, an Accusations Audit is just a series of labels calling out the negative things the other person might be thinking or feeling in this situation. (For more on this skill, check out chapter 4 of The Full Fee Agent.)

Focus on all of the fears, resistance, denial and potential anger that may be surfacing for your seller when they first begin to wrap their mind around the potential of lowering the price.

Remember that for you, this is a practical, strategic decision—a price adjustment to move the process forward in a positive direction.

For them, it’s emotional. It’s a loss. They will feel the loss of every dollar coming off the price as distinctly as if you were taking the money out of their pocket.

So address it in that way.

As you prepare yourself to have the conversation, think about this from their perspective. What thoughts and feelings might this conversation trigger for them?

Is this really necessary? Is this broker working as hard as they should be to sell my home? Do they really believe in my home? Do they just want to get this job over with? Are they truly on my side? Is it too early to give up on my dream price? Why is this happening? The house down the street just sold for a higher price. Should I take it off the market? Should I rent it? How am I going to afford to move and buy my next home?

Consider this list and keep digging deeper. What else might the seller be thinking based on their particular circumstances?

Why are they selling? What emotions are connected to that decision? Did they spend money getting the house ready for market? 

How did they originally price the home? What discussions did you have around pricing? What is the market like in this moment? Had you prepared them for this possibility? Was this their aspirational price that they wanted to “try?” Was this a strategic price intended to garner multiple interest? 

Are finances tight? Is the sale price essential for their next move? Are there other people in their selling committee (the other decision-makers, advisors, influencers in their inner circle)? Are they concerned about what their selling committee will think about them reducing the price? 

Who are they as negotiators? Are they Assertives for whom this will be a clear, bottom-line decision? Are they Accommodators who are in love with this property and will be offended by the idea of lowering the price? Are they Analysts who will need to sit with this possibility, review the data, and take some time to think it through?

Take the time to evaluate the situation from your seller’s perspective in as much detail as possible, and then write down your Accusations Audit.

Remember to structure your Accusations Audit using the most visceral terms you can think of. Compose your list from most potent to least potent, then reserve #1 for the end.

It might sound something like:

You’re going to think I’m the worst real estate agent on the planet.

You’re probably going to want to fire me when you hear what I have to say.

You’re going to feel like I’m stealing from you.

You’re going to feel like I don’t value your home.

You may decide you don’t even want to sell the house.

You’re probably going to wish you could reach through this phone and slap me across the face.

 2️⃣ Address the situation as quickly as possible.

Do NOT sit on this any longer than necessary—that will only make things worse. 

As soon as you’ve prepared your Accusations Audit, get on the phone OR reach out via text or email to secure a time to speak on the phone: “There is something we need to discuss that you are not going to like. Would it be impossible for us to get on the phone?”

3️⃣ Before you get on that call, empty your bucket.

You’re probably wondering what the heck that means.

It means, find someone you trust who will listen while you get all your own fear, frustration, and other negative emotions off your chest. (At the very least, rant to yourself in the mirror.) Emptying your bucket might sound like:

These people are going to freak out on me.

They’re so unrealistic about the value of their home.

I never should have agreed to this list price to begin with.

I am not going to waste the next 6 months showing this place and getting no offers.

They’re going to be so pissed off at me for advising them to pay for repairs up front.

They’re going to blame me for having them stage the house, when it didn’t bring results.

They’re going to wish they hired the other agent.

They’re going to want to take this out of my fee.

This is going to damage my reputation with my referral partner.

They’re going to wish they never hired me.

I wish I never took this f*%#&ing listing.

 Get all of your thoughts and feelings out so that when you do get on the phone with the client, you can be calm, manage your tone, and put the focus where it needs to be: 100% on them, their needs, and their concerns.

4️⃣ Deliver your Accusations Audit.

Once on the call, brace them for bad news:

We need to have a horrifying conversation.

It is going to break your heart. / This is going to piss you off. / You are going to be shocked. (choose what fits best for your buyer’s personality type)

Then, deliver your Accusations Audit in a slow, even, calm tone, just as you learned last week. Let each statement stand on its own. Don’t stack them together with “and.” Don’t negate what you’ve said with “but.” Don’t explain what you’ve said with “because.” All those additional words ERASE the intended effect.

Deliver each statement, and then let it sit for 2-3 seconds, giving your client time to absorb it. A great measure of time is to take one, slow, deep breath before you proceed to the next. 

Deliver these statements while paying very close attention to your client’s reactions, both verbal and physical. Keep delivering them until your client stops you with something definitive like, “Enough already, get to the point!” or “It can’t be that bad, just tell me. You’re making me nervous!”  At the same time be mindful not to go beyond this point just because YOU have more to say. If you have additional accusations audits that have not been used by the time your client definitively signals for you to move on, keep them in your back pocket to utilize later in the conversation if and when appropriate.

5️⃣ Deliver the news.

“You’ve been on the market for 23 days. You’ve had 12 viewers and no offers. Given this market response, it seems that you have reached the point where, in order to sell your property, the price will need to be adjusted.”

Stop talking and let them respond.

Whatever reaction they have—from immediate, resigned agreement to a dramatic, emotional reaction—listen, and respond with the trusted tools of Mirrors, Labels, and Dynamic Silence. If appropriate, present any other accusations audits that you have not yet shared.

Your entire job here is to make them feel understood.

It could sound something like:

Client: But you agreed that this was the right price. 

Agent: You’re going to think I’m horrible at my job. I was dead wrong. (silence)

Client: So now what? How much do we have to reduce?

Agent: Do I have your permission to be brutally honest?

Client: I guess so.

Agent: You guess so?

Client: Yes, you do.

Agent: Are you sitting down? This is going to feel like a punch in the gut. In order to really get a response it needs to go down to X (anchor them to a lower number than you think is even necessary).

Client: No way. You’re kidding. Can’t we just try Y? (a small reduction from the current price)

Agent: Again, do I have your permission to be brutally honest?

Client: Yes.

Agent: That’s not going to move the needle.

(Silence)

Client: Ouch. Ok. But I really can’t go all the way down to X. What about X+? (a meaningful reduction from the current price)

Agent: X+?

Client: Yes.

Agent: Are you sure?

Client: I think so.

Agent: You think so?

Client: Yes, I am sure.

Agent: Do you want to sleep on it?

Client: No. Let’s do it. Change the price to X+ and we’ll see what happens.

How this conversation flows will depend on a number of things, particularly your original pricing conversation, and how well you prepared the seller for the various potential outcomes.

The more diligent you were about making sure that the seller chose their list price (rather than you setting the price), the more thorough you were in laying out the landscape in terms of market response and expectations, and the more detailed you were in outlining your on-market communication plan, the smoother this discussion will proceed.

➡️ Things to be mindful of throughout this conversation:

You’re anchoring them to a low price intentionally. 

This brings that negative out into the open and defuses its power. You’re then allowing the seller to name a price that they can live with.

Tone of voice is crucial. 

Your default should be the Accommodator tone: friendly and relaxed. When you need to say something that’s particularly important or tough to hear, use the Analyst tone: calm, low, and extra slow. Do NOT allow yourself to slip into the Assertive tone (aggressive, fast, loud) at all. 

Guide them, but don’t drag them.

Employing Tactical Empathy does not mean that we don’t confidently guide our clients when guidance is warranted.

Exactly the opposite is true.

We don’t deny our clients the value of our knowledge and expertise, we just don’t use it to drag them where we think they should go. We guide them in their best interests, and we don’t allow ourselves to focus on the outcome as it pertains to ourselves.

We use Tactical Empathy to get to the bottom of what they want, need and fear…we demonstrate that understanding…and by doing so, we gain trust-based influence so we can guide them where they want and need to go in these important and sensitive moments.

In the case of a price-change, your past experience and the information you’ve gathered from the property’s time on the market are hugely valuable.

Resist the urge to use those facts and data points as ammunition to convince your client to take a specific course of action.

Resist the urge to show how smart you are.

Resist the urge to be right and to make them wrong.

Instead, use your knowledge to inform the way you lay out the landscape for your client and the questions you ask them to consider as they work to arrive at their own decision.

This is a very different—and much more impactful—approach to “demonstrating your value.”

The only value you need to demonstrate is your understanding of the landscape, and most importantly, your understanding of your client.

Have a great weekend,

Laurie

PS - If you want to truly master these conversations, join us in the Daily Accountability Calls, where we role play them live every day. You can test drive the program for FREE for 14 days—click here to start your trial.