One of the most challenging conversations to have as a real estate agent is when you need to tell your client that it’s time for a price reduction. It’s crucial to handle this type of discussion carefully so you maintain client trust and still make them feel valued and respected for their opinions.
Here are some tips to ensure the conversation goes smoothly and sets both you and the client up for success going forward.
Set expectations early
When working with a new client, it’s best to set their expectations at a realistic level as soon as possible. When you first meet with them, educate them about how pricing works. Make listing their home a joint decision, where they can decide how aggressively to price it. Ensure they understand that if the house doesn’t sell at their desired price within a specified timeframe, price adjustments will likely be necessary to secure a sale. That way, if the time comes to have this discussion, your buyers are aware of the possibility and mentally prepared.
Time the price drop discussion carefully
It’s best not to mention a price drop too early in the process. Instead, give the home at least a week or two to get feedback from potential buyers and other real estate agents. Use that data to justify any potential price drop, if warranted. By giving the home enough time to sell on its original list price, reducing the price can seem more proactive than a setback.
Use market data
The housing market is dynamic. Multiple listings could go up on the same day that are similar to your clients’ home. What your sellers hope to receive might not come to fruition due to factors beyond your control. If comparable houses in the area have sold for less than your listing price since it went live, present that data to your client. When the evidence comes in the form of numbers, it’s easier to show clients that the decision is a result of the market rather than a lack of preparation.
Present buyer feedback
Chances are, many open-house attendees will provide feedback as they walk through your client’s home. These buyers are also touring similarly priced homes in the area. They have other homes to compare against your client’s home. So, if a potential homebuyer mentions that a lower-priced home has a more updated kitchen, for example, convey that feedback to your clients as a way to show them how other agents priced comparable homes in the market.
Remind clients of their goals
When discussing with clients the possibility of lowering the price of their home, remind them of their ultimate goal. Typically, clients want to sell their home because they have already purchased another house, or they want to move quickly. Sometimes, that means having to lower the price of a house to sell it within a reasonable timeframe. By reminding your clients of their broader goals, you can help them be more agreeable to doing what it takes to get there.
Be supportive and empathetic
Often, your client won’t be happy about the prospect of lowering the list price of their home. They likely had visions of what they would do if the house sold for the price they wanted, especially after years of a hot real estate market. For that reason, expect them to be upset and meet that feeling with support and empathy. It’s far more important to have these conversations openly, as it helps preserve trust and shows that you’re willing to be transparent with them, even when it’s challenging.
Explain the cost of waiting
Another critical fact to consider is that waiting to sell also comes with carrying costs. Show your clients the numbers of how much it will cost them to make mortgage payments, utility payments, property tax payments, and insurance costs. For every month that they don’t sell their house, remind them of the expenses they’ll incur. Dropping a home price by $10,000, for example, might be a better financial move than holding on to their home for another two months.
Remind your client that aggressive pricing is proactive
Ensure your clients understand that you are not suggesting a price reduction out of desperation or hopelessness. Rather, characterize it as a proactive move to lead and take control of the sales process. Explain how reducing the price of a listing refreshes the listing and can rekindle interest in the property.
Many listing platforms alert other agents when there’s been a price change. Anyone who has saved the listing may receive a notification of a price change. This will also help buyers who were interested in the property but not fully committed to feel like they might miss out if they don’t take action.
Give your clients options
When you discuss a price reduction with your clients, offering them options helps make them feel more involved in the process. For example, you can ask if they would like a 1%, 3%, or 5% price reduction. Present them with their varying choices, along with several pros and cons of each, and ask them to make a decision. You can always make a recommendation to them. Ultimately, providing them with options will help maintain transparency and trust.
Consider add-ons
If you know that your clients will consider a price drop a setback, there are a few things you can do to offer additional value. For example, if you haven’t yet created a video for their listing, consider offering to include a professional video to help generate more interest when you drop the price. If you know that your clients will benefit from home staging, consider offering to include it as part of your listing package. Again, if you believe that a price drop will help the home to sell, offering some complementary add-ons can help to reduce the sting they’ll feel when you recommend a price reduction.
Final thoughts
Overall, 43% of Americans who sold between early 2024 and early 2025 also say they had to lower their asking price, a stark difference from the 77% of future sellers who are confident they won’t have to do this, according to research from Clever Offers. Discussing a price reduction with your clients is never an easy conversation. There’s bound to be some disappointment, and it’s disappointing for you too when you realize that the price you initially suggested isn’t getting the results you expected.
However, by professionally handling the conversation and maintaining trust with your clients, you can ensure that broaching the idea of a price reduction can go smoothly and hopefully will result in the sale that your clients (and you!) are hoping for.
Luke Babich is CEO of Clever Real Estate.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the editor responsible for this piece: tracey@hwmedia.com
