In my recent articles I’ve talked about generating listing leads, qualifying and going on the appointment, and servicing the listing. I want to talk about properly educating the seller to price it right.
If you haven’t already, please take a moment to read my partner, Scott Friedman’s most recent article about the importance of pricing properly. It’s not always easy to tell the client the truth about price. It’s much easier to tell them what they want to hear, take the listing and hope and pray it sells.
What we need to realize is that the seller is looking to us for professional advice. They interview us to educate them on what it’s going to take to get their home sold. Why would you allow them to set the price?
So many agents make this mistake, then later the seller is wondering why the home hasn’t sold. They call and ask you, what are you doing to sell my home? How come you haven’t shown my home? When will you do an open house? And on and on with an endless stream of objections as a result of you not properly educating them up front on the right price to actually cause the home to sell, vs sit on the market month after month like the other thousands of homes that are not selling.
Sellers have two choices; price it to sell, or price it to sit. Ask them which side they want to be on and share the market statistics that reveal the right price.
Do you go to the doctor so you can tell him how to properly treat you or do you go looking for professional advice? My guess would be the latter. So, my question is, what causes you to believe the sellers aren’t looking to us for that same level of advice?
Agents seem to have an unwarranted fear about asking the seller to list at the price they know it needs to be listed for. This is because they don’t know what to say or how to say it. In many cases agents lack confidence due to simply not knowing what to say in order for it to make sense to the client.
Here are some objection handlers that may help you with price:
Seller says, I want to start out high to leave room to negotiate.
Mr./Mrs. Seller, I can appreciate your thought process and what I’m afraid of based on the market statistics, is that we are pricing ourselves out of the market. This can cause buyers to not even look at ours. I’d rather see us be firm at a price that brings interest and offers rather than being overpriced and lose buyers, wouldn’t you?
Seller says, another agent said they could get more.
Of course they did. Because that agent really needs your listing or specializes in overpriced listings that produce buyer leads for them. Imagine the buyer calls they’ll get on your home. Mr/Mrs Seller, I’m not interested in just taking your listing. I’m interested in helping you to actually get it sold. I have the courage to tell you the truth up front, and that’s not easy. Let’s look to see how we can convince a buyer to pay more than the market value, or should we just price it right and get it sold?
Seller says, I’m not going to give it away.
I totally get your position and you’re not going to give it away. What I hear you saying is you want to make sure you don’t leave any possible profits on the table, is that right? Great, I don’t want you to either. In fact, I want you to make the most money possible. After all, the more you make the more I make as well.
My concern is that if we don’t price it within market value, you may never see a profit because the home may never sell. As a buyer, would you pay the price you want to ask after reviewing the comparables? Be honest. And then there’s the appraiser to convince. They’re getting tougher and tougher on price now than ever before.
Shouldn’t we just price it at X and get it sold, or did you want to take the chance of other sellers using us to sell their home? Because undoubtedly you realize buyers will look at ours and then look at these others and see they’re getting more for the money down the street, or a lower price for the same thing. We can either sell or help our competition sell, which do we want to do?
Business and sales is 90% communication. Learn to powerfully communicate and automatically your business will increase. If you haven’t already visited our website to see products and coaching that we offer around communication, objection handling, building rapport, generating more business and what to say and how to say it we invite you to learn more about us at www.yourethedifference.com
“Christy Crouch is an active agent in Roanoke, Virginia and sells an average of 100 homes a year. She is the co author of the highly acclaimed real estate objection handler book, Now What Do I Say, the co founder of You’re The Difference Sales and Life Coaching where she teaches agents across the United States exactly what she does and helps them to dramatically increase their production. If you’re interested in a free coaching call or more information on products, coaching, and courses please email firstname.lastname@example.org or call 609-601-1296.”