How to Reduce the Listing Price of a Property
Follow this procedure whenever a seller wants to reduce the listing price of a property. Learn when written authorization is required, how to use the Price Reduction Authorization Form, and what documentation must be retained in the transaction file.
Overview
Before changing the listing price of a property, agents must obtain the seller's written authorization and retain documentation supporting theseller's instructions.
Easy Realty has adopted the Price Reduction Authorization Form to provide a standardized method of documenting seller-authorized pricechanges and to help protect the seller, the agent, and the brokerage in the event of a dispute.
When to Use This Form
Use the Price Reduction Authorization Form whenever a seller wants to:
- Reduce the listing price one time
- Authorize a series of future price reductions
- Establish a recurring price reduction schedule
- Provide other written instructions regarding listing price changes
Why Written Authorization Is Required
The listing price of a property may not be changed without the seller's authorization.
Verbal conversations, text messages, and screenshots may not provide adequate documentation if a dispute later arises regarding whetherthe seller authorized the price reduction.
The Price Reduction Authorization Form creates a clear written record of the seller's instructions and should be retained in the transactionfile.
Procedure
Step 1: Discuss the proposed price adjustment with the seller.
Step 2: Complete the Listing Price Reduction Authorization form.
Step 3: Obtain all required signatures from the seller.
Step 4: Retain the completed form in the transaction file.
Step 5: Update the MLS and any applicable marketing materials after seller authorization has been obtained.
Important Notes
- Do not rely solely on verbal instructions.
- Do not rely solely on text messages or screenshots.
- Maintain all supporting communications related to the price reduction.
- Retain the signed form in the transaction file.
- The MLS price should not be changed until the seller's authorization has been documented.
Download
Click to download: Price Reduction Authorization Form
Frequently Asked Questions
Can I reduce the price based on a phone conversation with the seller?
No. Obtain written authorization using the Price Reduction Authorization Form before changing the listing price.
Can I use text messages as proof that the seller approved the reduction?
Text messages may not provide adequate documentation on their own. The Price Reduction Authorization Form should be used todocument the seller's authorization.
Do I need to keep the completed form?
Yes. The completed form should be retained in the transaction file along with any related communications.
Can the form be used for multiple future price reductions?
Yes. The form includes options for one-time, scheduled, recurring, and other seller-authorized pricing instructions.