Tell them the truth with data to support it. When a seller asks why their home is not selling, they need a direct answer grounded in market evidence, not reassurance or deflection. The conversation should diagnose the specific problem (price, condition, or exposure) and present clear options for what to do next.
This is one of the most important conversations in listing management. Handle it poorly and you lose the listing, damage the relationship, or watch the home expire. Handle it well and you build trust, reset expectations, and often get the price reduction or improvement needed to generate a sale.
Sellers resist opinions. They accept evidence. Before you have this conversation, pull together the numbers that tell the story: comparable homes that sold, comparable homes that did not sell, showing activity relative to similar listings, and feedback themes from buyer agents.
When you lead with "I think we need to reduce the price," the seller hears your opinion and prepares to argue. When you lead with "Here is what the market is telling us," the conversation shifts from debate to diagnosis.
Pull these before the conversation:
This information turns "your home is overpriced" into "similar homes are selling at $X per square foot, and we are listed at $Y per square foot."
Every home that is not selling has one of three problems. Sometimes two. Rarely all three.
Price: Buyers are seeing the home but not making offers. Showing activity is normal, feedback is positive, but no one pulls the trigger. This usually means the home is priced above what buyers are willing to pay for its actual condition and location.
Condition: Buyers are seeing the home and passing. Feedback mentions specific issues: dated finishes, deferred maintenance, smell, clutter, layout concerns. The home is losing to the competition that shows better.
Exposure: Buyers are not seeing the home at all. Showing activity is low relative to competition. This could be a marketing problem, but more often it is a price problem disguised as an exposure problem. Buyers skip listings that look overpriced online.
Diagnose before you prescribe. If you recommend a price reduction when the real problem is the condition, you will reduce the price, still not sell, and lose credibility.
Price conversations are emotional for sellers. They hear "your home is overpriced" as "you made a bad decision" or "your home is not as nice as you think." Depersonalize the conversation by making the market the authority, not you.
"The market is giving us feedback through the showing activity. We have had [X] showings in [Y] weeks. Typically, a well-priced home in this area generates [benchmark number]. That gap tells us buyers are interested but see a disconnect between the price and what they are finding when they walk through."
"Here is what sold in the last 30 days in this price range. These are our competition. When buyers compare, they are choosing these homes over ours. Let me show you why."
"I know this is not what you want to hear, but my job is to give you accurate information so you can make good decisions. The data suggests we are priced above where buyers are willing to transact."
"I told you the price was too high." (Adversarial) "We need to drop the price." (Directive without context) "The market is slow." (Deflects responsibility from the pricing decision) "Buyers are just not seeing the value." (Makes buyers the problem)
Condition conversations are harder than price conversations because they feel personal. You are essentially telling someone their home is not as nice as they think it is.
Instead of "the carpet needs to be replaced," say "we have had three showing agents mention the flooring in their feedback. Buyers are comparing this home to others in the price range that have updated flooring, and it is coming up consistently."
The feedback is doing the work. You are the messenger, not the critic.
Not every condition issue matters equally. Identify the one or two changes that would have the biggest impact on buyer perception and focus the conversation there. A seller who feels overwhelmed by a list of improvements will do nothing. A seller who sees one clear action step might actually do it.
If the seller refuses to address condition issues, the conversation returns to price. "If we are not going to update the flooring, we need to price the home to reflect that buyers will do it themselves. That means we are competing with homes at [lower price point] rather than [current price point]."
True exposure problems are rare but real. Before concluding that marketing is the issue, eliminate price and condition first.
Signs that exposure might actually be the problem:
Is the home categorized correctly in the MLS? Is the photo order optimized with the strongest images first? Does the listing description highlight the features buyers in this price range care about? Is the home being promoted through channels beyond the MLS?
If you find a genuine exposure issue, fix it and give the market two weeks to respond before revisiting price.
Sellers resist being told what to do. They respond better to choosing from options you present. Frame the conversation around their goals, then show pathways to get there.
"Based on what we are seeing, I see three paths forward:
Option one: Reduce the price to [amount] to align with where buyers are transacting. Based on comparable sales, I expect this would generate offers within [timeframe].
Option two: Make the improvements we discussed (specifically [items]) and relaunch the listing with new photos and marketing. This keeps the price where it is but improves how we compete.
Option three: Stay the course and give it another [timeframe] to see if market conditions change. I want to be honest that the risk here is additional days on market, which affects buyer perception.
Which of these feels right to you, or would you like to talk through the tradeoffs?"
This approach respects the seller's autonomy while making clear that staying the course has consequences.
After the conversation, send an email summarizing what you discussed and what was decided. This accomplishes three things.
First, it gives the seller time to process without the pressure of a live conversation. Many sellers need to sit with information before they can accept it.
Second, it documents your recommendation. If the listing expires or the seller later claims you never advised them, you have a record.
Third, it creates an opening for them to respond with questions or decisions they were not ready to make in person.
The timeline depends on your market's average days on market. If the average is 30 days and you are at day 21 with no offers and declining showing activity, it is time to talk. Do not wait until the listing is stale. The conversation should happen when the data indicates a problem, not on an arbitrary calendar date.
Acknowledge their frustration, then redirect to the data. "I understand you are frustrated. Let me show you what we have done to market the home and what the market is telling us in response." Defensiveness makes the conversation worse. Transparency and evidence make it better.
You should recommend it. That is your job. Sellers hired you for market expertise. Waiting for them to suggest a price reduction is avoiding the hard part of your role. Present the data, make your recommendation, and let them decide.
Reductions should be meaningful enough to reach a new buyer pool. A 1% reduction does nothing. A reduction that moves the home into a lower search bracket (under $500K instead of over, for example) or aligns price per square foot with sold comparables creates new activity. Generally, reductions of 3-5% or more generate response.
Document your recommendation in writing and set a follow-up date. Some sellers need time. Others will not budge until the listing expires and they relist with another agent at the price you recommended. You cannot force a decision, but you can ensure you have given accurate advice.
Pull all relevant data before the meeting: comparable sales, showing feedback, online metrics, and days on market comparisons. Anticipate objections and prepare responses grounded in evidence. Practice stating your recommendation clearly without over-explaining or apologizing.
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