When a house on the market isn't getting any offers, the price is usually the issue. According to the National Association of Realtors, if a home is shown 10 times without an offer, it's a sign to reduce the price. In fact, research shows that 41% of homes listed for sale undergo a price reduction before receiving an accepted offer. Convincing homeowners to agree to a price decrease can be a challenge, but it's essential to not only craft a home price reduction announcement but also market it effectively. In this article, we will explore tips on how to do just that.
3 Tips to Write a Compelling Home Price Reduction Announcement
The primary challenge in writing a home price reduction announcement is framing it positively. When people see signs that read "price reduced," they often assume the owner is desperate to sell or that there's something wrong with the house or neighborhood. It's crucial to avoid giving the impression that the property is less valuable. Additionally, agents sometimes make price reductions for publicity without generating genuine interest from buyers. To avoid these pitfalls, here are some tips to craft an effective home price reduction announcement:
1. Use Positive Language
The words you use in your price reduction announcement matter. Instead of emphasizing the reduction, use terms that signal change and improvement. For example, use phrases like "price adjustment" or "price improvement" to maintain a positive tone. Real estate agents like Kasey Prince of The Prince Group recommend using these terms to ensure that clients don't feel like they undervalued their property.
You can also enhance your listings by incorporating specific words that catch homebuyers' eyes. Research by Zillow found that home ads using words like "luxurious," "captivating," and "impeccable" were associated with higher sales. Carefully wording your home price reduction announcement is crucial, but how you promote the deal in your posts or ads is equally important.
2. Frame the Price Reduction as a Discount
Rather than simply lowering the price, emphasize the amount of money being discounted. Specify a dollar amount for the price reduction, such as offering a "$20,000 discount if under contract within 30 days" or a "$25,000 discount on all offers." This framing technique, as demonstrated by a case study, can be more effective in attracting buyers. Positive language and the right framework for your home price reduction announcement put you on the right track, but you also need to consider search engine optimization (SEO) for maximum visibility.
3. Write with SEO in Mind
Many homebuyers start their search online through search engines, making it crucial to optimize your home price reduction announcements for SEO. By optimizing your website and listings, you can attract organic traffic from search engines like Google. SEO practices include using relevant keywords, optimizing meta tags, and creating high-quality content. If you're new to SEO, there are comprehensive guides available to help you get started.
3 Tips to Market a Home Price Reduction
Lowering the price of a home opens up the property to budget-conscious buyers who initially dismissed it when the price was higher. To reach these potential buyers, here are three effective marketing tactics for promoting your price reduction:
1. Tap Into Your Sphere of Influence
As a real estate agent, you have a unique network of family, friends, neighbors, fellow agents, and business associates. While these individuals may not be in the market for a home, they often know someone who is. Utilize word-of-mouth marketing by informing your network about the property's price reduction. Email agents, share organic social media posts, and participate in community events to spread the word.
2. Use Social Media Ads
Social media ads are a powerful tool for promoting your property's price reduction. They allow you to target specific demographics based on location, age, gender, and interests. By utilizing social media platforms like Facebook, Instagram, and LinkedIn, you can reach potential buyers who match your ideal profile. Including videos of the property in your ads can further boost engagement and interest.
3. Don't Overlook the Power of Print
Contrary to popular belief, print marketing still holds value in the real estate industry. Many households still read direct mail, making it an effective way to reach potential buyers. Consider running a print campaign with brochures, flyers, postcards, and newspaper ads to generate awareness for your price reduction. Templates are available to help you design compelling print materials for your home price reduction announcements.
Developing a Winning Home Price Reduction Strategy
The longer a house stays on the market, the lower its chances of selling at the original list price. Therefore, it's crucial to employ a price reduction strategy if a property isn't garnering interest or offers. The timing of the reduction depends on market conditions. By monitoring how quickly homes are selling in your area, you can strategically time your home price reduction. Remember, an effective strategy involves a well-crafted announcement and targeted marketing efforts to reach the right buyers.