Special offer

Objection! How to Handle and Overcome Pricing Objections from Sellers

By
Education & Training with Accelerated Performance Coaching

House with money floating aboveIs there anyone who hasn't had to deal with a seller with an unrealistic price in mind? It's human nature – we want the most we can get for our home and we hold on to the best price we've ever heard. It doesn't matter that the market has changed, it doesn't matter that property values are down, and it doesn't matter that the price is from two years ago. We want that price!

So how do you deal with this kind of objection? I asked some of the real estate professionals I've worked with to share their experiences and help us with some techniques to handle this most common objection.

One agent tells this story, still unwinding:

Her prospective client's home is on the market due to divorce. The historic home in a suburb of Charleston, SC, is listed with her ex-husband who first priced it at $899,000 a year ago and has since reduced the price to $799,000. He has one year to sell it under the divorce decree after which she gets to choose the REALTOR®.

The agent met with her to make the listing and pricing presentation. After the client got over the shock of realizing the home is very over priced and needs updating, they talked about the list price. The owner really wanted to stay at $700,000. However, she also agreed that new countertops and some landscaping and painting will be needed. The agent expressed to her that these days, homes must be compelling in both price and condition. The comp numbers showed the price should be around $678,000 but the client really pushed for the $700k.

Then the agent asked, “If you had a buyer within the next 60-90 days willing to pay $675,000 for the house would you sell?” She said absolutely. Then the agent asked, “How would you feel if that $675,000 buyer bought another house because your house was listed at $700,000?” There was silence for about 10 seconds and she then said, “Let’s list it at $675,000.” She signed the listing agreement.

Real  estate agent on cell phone

What this smart agent did was lead the client to a conclusion, but let her make that final step on her own. In fact, that's the common thread that runs through what agents tell me about dealing with price reduction resistance. Most sellers resist setting the right price at the beginning because they have that unrealistic price in their heads. The best way to combat that is with statistics – numbers in black and white that prove that their house is priced too high. Savvy agents use statistics and market data to back up their position.

After the initial price has been in place for a while and it's time for a reduction, top agents have an approach that leads their clients to the necessary conclusion. One says,

"I schedule a meeting for every two weeks at the start of a listing. At the listing appointment I let them know that when we meet in 2-3 weeks it will be to discuss a price reduction. At that meeting, I tell them that I'm a professional, it's my job to study the market, and that based on the activity and lack of offers we need to lower the price. I go over the market stats as well as current national figures to show how things are trending.

"It's usually emotional for the seller, but once they see things in black and white, it's easier for them to "see the light". By being honest and up front, and using the information at hand to my advantage, I'm able to get them to a price that can sell, but I let them make that realization, I don't tell them that they're wrong."

Allowing sellers to reach the conclusion you want is key. Here's how another top professional deals with objections to lowering the price:

Man and woman in living room talking"I call my folks about every 10 days, and I say, "I would like to come over, sit eye to eye, see where we are and where we are going." Then I bring sold comps that show how a home sat and sat, and as soon as it was priced right there was a contract. I also bring information on their competition; sometimes just seeing that the active houses that are priced exactly like theirs and are much nicer helps.

"One thing that motivates me to work to get to the right price is my paycheck! I will not list houses that will not sell, I simply can't afford to. It costs too much money to hold a home in my inventory; I am very selective and will walk away if I can't work with the sellers.

"To get the price reduction I just really tell them how it is. But I also think that when they see I am willing to walk away from it, they start believing me and they trust me. Yes, they resist – always do! But when they surrender to the truth that is when they will sell."

Handshake These stories illustrate a basic truth about how successful real estate agents work: They are honest with their clients, they recognize that human nature is at play in every deal, and they take the time to educate their sellers and allow them to reach the conclusion that will lead to a successful sale.

I’d love to read your comments and experiences about difficult “getting listings” situations. Please leave your comments below.

And if you’re having trouble getting past seller objections, you’ll want to attend my “Getting Listings Priced Right” Teleclass happening Tuesday, July 20th. We’ll cover real world examples for getting past seller objections, including these important factors:

  • How to get past the seller's "smoke screen of excuses"…
  • The roadblocks standing in your way of getting listings priced right…
  • How to get a price reduction from the seller…
  • How to coach a seller to a successful sale through proper pricing…
  • What you can do and say to lead the seller to the right pricing strategy…
  • The best time/way to ask for a reduction…
  • The most effective things to say to get a reduction…

And MUCH more…

Visit my blog again soon to get Free access. There will be a limited number of conference lines available!

Signature

 

 

Patti Kouri, Accelerated Performance Coaching
Helping You Through Self-Made Limitations!

 

 

Comments (5)

Kim Darling
Keller Williams Westland Realty BRE# 01864461 - Fresno, CA
CRS,GRI, "Your Home Team" Fresno/Clovis Homes

Thanks Patti.  These are some great ways to present things.  I really like the first situation and how she put it back to the seller, it's so much better when they buy in to it and feel like they made the decision, not that they were pushed into it.  I do show the numbers in black and white, and somehow, that doesn't always have the impact needed.  Because people are emotionally tied to their homes, sometimes the reasonable and logical doesn't always get through to them right away.  This is an area I need improvement with.  I will look closer to doing your telecast as the date gets closer.

Jun 29, 2010 06:47 AM
Anonymous
Hassan Dabon

Great Post. Although I have a good deal of sales experience which transfer well into the real estate industry, the basics never change. Thank you for reminding me about the value of directness. I have been trying to get my first listing for a month. I finally went in strong asked the potential client to sign the listing agreement (now). I am still waiting but at least I have the burden of having to ask done away with. Yes or no is never a problem but space is limited on my to do list. You all know how the flow chart reads {yes - go to next step /no - go back to previous step. But a yes or a no leads somewhere and you no asking for the business leads to nothing. So ask away. A close mouth can't get fed.

Jun 29, 2010 08:25 AM
#2
Ty Lacroix
Envelope Real Estate Brokerage Inc - London, ON

Patti:

Some very original objection alternatives that you write about. Interesting!

Ty

Jul 01, 2010 12:12 AM
Anonymous
krystyna kaczor

please register me for  up commingg conference

love your approach

Jul 18, 2010 06:11 AM
#4
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

The best way to approach these common seller objections is: with patience and understanding. Asking back right questions to find out their true motivation to sell will increase the chances of a productive relationship and successful transaction. 

Dec 14, 2017 01:59 AM