Here are five scripts to help navigate seller objections in the most professional, knowledgeable, and value-packed manner possible.
I want to price my home higher now because I can always lower it later.
Scott Malouff, an agent at Malouff International Group: I understand that, but there is a difference between being in the market and on the market. What that means is that we’re looking at the data. The average day in your neighborhood is X. Let’s say we list it at the price that you’re saying. We are overpriced at that moment. I understand we can get offers and we have a little bit of wiggle room. Let’s say we wait for day 21, we don’t have any offers, and we do a price drop. Then we wait until day 45 and we do another price drop. Now, we’re at the market value. What do you think are the odds of getting a full price offer on day 45? What do you think people are going to think about your home?
Actually, by overpricing your home, you’re going to lose money in the long run because when you’re on day 45, the odds of getting a full price offer are very slim, as well as people are going to think something is wrong with the property. So, let’s do the right thing, list it at the right price, so you can make the most amount of money and get your home sold in the next 14 days.
You’re great, but we need an agent with a bit more experience to sell our home.
Jason Abrams, VP of Industry at KWRI: Truthfully, experience breaks down to truly understanding your needs. You see, I need to know why you want to move. That’s most important. Next, I need to understand why you think certain parts of it are most important to you. This is to say that maybe the price is the most important, or maybe having the easiest way of showing it is the most important. Maybe it’s having the smoothest closing or the fastest closing. You’re going to tell me these things. The next thing that I’m going to do is present you with a plan and how I think we can accomplish those things. You see when you tell me that you’re not 100% sure if I have enough experience, I think what you’re saying is ‘I don’t really feel comfortable yet that you’re the right person to shepherd me through this process.’ And that’s fair. What I’d like to do is spend the next 20 minutes convincing you otherwise, because after all, this isn’t about my experience. It’s about yours.
I know that inventory is low, and regardless of what you think this property is worth, I want $X for it, and that’s what I will be getting.
Stephanie Vitacco, an agent at Keller Williams Realty Encino – Sherman Oaks: Yes, that would be nice, but we do not control the market. It is the comps that are going to support the market, and the comps show that your house is worth $X. So, let’s talk a little bit about pricing. You can overprice it, but you can’t underprice it. If you’re too high, you’re going to sit and you’re going to miss the market. If the market perceives us as a good value or priced really well, you’re going to capture the broadest audience and the market is going to bid up to where we want it to be. It’s just like how water seeks its level. It’ll just pop right up.
The way that we get the best price is by pricing it close to or at the market where we think it is, or even slightly below. So when the buyer walks through that door, they’re going to feel the urgency and urgency is what causes them to put pen to paper. And that’s what’s going to give you the leverage, because the more people will walk in and say, ‘Oh my gosh, this house is not going to last, we better hurry up.’ Right then, they’re going to write offers, and we’ll have multiple offers and get to call the terms. That’s how we create urgency. And that’s why you don’t want to overprice your property.
Why do I have to sign a listing agreement? I really want to keep my options open.
Sven Andersen, president and CEO of Andersen Group Realty: <Seller>, I completely appreciate that you may not want to sign a contract. However, you know that almost every seasoned professional signs a contract with you. From attorneys to accountants, they all have a contract in place. That’s extremely important because it allows us to be able to support you and actually allocates our time and effort to be able to serve our clients the best we can. Without a contract, it doesn’t mean much. There are other clients that have asked me to work in this fashion, but I’ve declined it because my value proposition to them is so strong with our consistent communication process, as well as our proven process for listing and getting houses sold. So, whether you’re considering trying to do this on your own or without a contract, I would advise you to try not to think that way, because with the right professional in the field that you’re looking in, whether you pay for it now or you’ll pay for it later, you’re going to pay for it.
I love your marketing plan and the way that you want to price my home. I’m willing to sign a contract, but why can’t we do it at 3 or 4%?
Emily Baker, an agent at Keller Williams Realty Greater Springfield and KW MAPS Mastery Coach: <Seller>, I can appreciate that you’re looking to walk away with the most amount of money, and that’s obviously my goal for you as well. See, the more money you make, the more money we all make. Honestly, the agent who is representing the buyer is going to receive 3% of the commission, which leaves us with the remaining 3%. Now, most people don’t know this. However, 1% of the commission goes to the broker. So, whether someone is a broker, owns a brokerage, or is a part of a brokerage, they have negotiated fees for office licensing and so on. Then, I personally spend 1% of marketing on your home, because we both know that the strategic marketing plan is what’s needed to find the one buyer who’s willing to pay the most amount of money. That then leaves 1% for my business profit, and family.
Now, if someone cuts their commission, what do you think that they’re cutting? Yes, the marketing. And, can we agree that the right marketing plan is key to finding the one buyer willing to pay the most amount of money, which ultimately would lead to that money in your pocket? Let’s go ahead and sign the paperwork so we can get you the most amount of money.
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