How Do You Negotiate a Price Reduction Without Losing the Seller's Trust?

By David Brough

From a young age, real estate captured David's interest, and that passion has remained throughout his life. Over the past 15 years as a Realtor.

Are you nervous about discussing price reductions with your seller? I know that this is one of the most uncomfortable conversations to have in real estate. You don’t want to lose their trust, appear to have misjudged the market, or risk losing the listing. But in 2025, staying silent can cost you more than having the tough conversation.

To help you guide that conversation, it helps to start with the facts. The July 2025 housing report has been released, and the numbers are positive. New listings are up 14% compared to July 2020. Pending sales have also increased by 14%, offering more opportunities to help clients. Closed sales rose 12%, and the median sale price went up by 5%.

This indicates strong buyer demand and rising activity. However, while listings and sales have seen double-digit increases, prices have not kept the same pace. The 5% increase, down from past growth of 8% to 12%, is a clear signal. Buyers are active but highly sensitive to price due to reduced affordability compared to three years ago.

Pricing is key. Pricing in today’s market has to be right from the very start. Let me share an example that illustrates this well. An agent on my team had a listing with strong marketing, professional photos, and a great location. But after three weeks on the market, it had only a few showings and no serious interest. The problem wasn’t the way the home was presented. The issue was the price.

The agent hesitated to bring it up at first. It’s not easy to tell a seller that their price isn’t connecting with buyers. But eventually, she brought updated data to the conversation and helped the sellers see where their listing stood in the market. They agreed to adjust the price, and within days, the listing saw immediate activity and quickly went under contract.

This result didn’t happen by chance. It happened because the agent took the proper steps. Here’s how you can do it too with these simple strategies:

1. Show the facts. When it’s time to talk pricing, don’t rely on opinions. Use local inventory data, market trends, days on market, and competition. Bring a fresh CMA and neighborhood-specific stats whenever possible. If the neighborhood data is too limited, expand to the zip code level. Your job is to turn unclear situations into clear decisions using real numbers.

2. Speak with clarity & confidence. The words you use matter, but so does your tone. Avoid saying “price cut” or “drop.” Instead, frame it as a repositioning or a realignment based on buyer response. Say things like, “The market is giving us feedback,” or “Let’s adjust based on how buyers are reacting.” Calm, direct language builds trust and makes sellers feel more comfortable.

3. Set expectations early. The best time to prepare a seller for a pricing conversation is before the home even hits the market. Let sellers know that pricing will be reviewed every two to three weeks. If the house isn’t getting attention, they will be prepared for the next steps. Setting this expectation early makes future decisions easier.

4. Framing is everything. Reframe the conversation from loss to opportunity. You’re not slashing the price, but you’re aligning the home with current buyer behavior to increase visibility and activity. Your role is to market the property, negotiate effectively, and deliver the strongest result possible under current market conditions.

Pricing conversations don’t have to be painful. When you lead with facts, speak with clarity, and manage expectations from the start, you earn trust and keep control. If you want tools, coaching, or support to help you do it better, just reach out. You can call me at 260-750-2818 or send an email to david@anthonyrealtors.com. I’m happy to help.