SCRIPTS FOR SUCCESS
PRICING OBJECTIONS- I want to Overprice
Seller- I know the home like ours down the street sold for $275 last month but I understand we are in a hot market where home prices are going up and up. How about we price it at $300,000?
Agent- I certainly agree that we are in a hot market, but values are not going up that much, that fast. You know most Buyers today have agents that are searching for homes for them and they can pull up very quickly on their phones and laptops the most recent sales on your street and in your neighborhood. Pricing is so critical to our marketing strategy that we don’t want to overprice your home and have it sit on the market because Buyers realize it is overpriced compared to the other homes that have sold here.
Seller- But with the lack of homes for sale according to the news, wouldn’t they pay just about any thing to get into a home? Or wouldn’t they at least make an offer?
Agent- That seems logical for us to think that but actually, No. If you were buying your house, would you pay more than what the appraised value or the comparable homes sold here in your neighborhood, especially if there were other homes to choose from in other desirable neighborhoods?
Seller- Well I guess that does make sense. But couldn’t we go a little bit higher?
Agent- We could go up a little, like maybe $1500 to $2500 but before we decide to that, what if we priced with the last recent sale of $275,000 or even a bit below and possibly start a bidding war which could net you more. You won’t lose money and you will have a more loyal buyer since they had to fight to win your home?
Seller- Let’s do it!!
PRICING OBJECTION- I am interviewing 3 agents
Seller- We are interviewing 3 agents from different companies. So we would like to know where you would price our home?
Agent- Thank you I appreciate the opportunity to be able to speak to you about this. May I be honest with you? Please Don’t make the mistake of basing the decision to select an agent based on price and let me tell you why. We agents are all privy to the same information using MLS which is our very best source of researching your home’s value. I am assuming you are interviewing experienced agents and so because they are good at pricing homes, we should all come in at about the same price. What is more important is to access the value they bring to the table in their marketing strategies, staging services, professional photography, communication and negotiation skills. Pricing correctly is a critical piece of course and it will end up being 85% of your marketing but it will not carry you through the transaction if the other parts are missing. It is important for you to feel trust and a rapport with your agent as they will be dealing with confidential information about you and your finances. So let me tell you my points of difference and how I plan to get your home sold.
PRICING OBJECTION- I just need more money out of my home.
Seller- I know you have shown me the comparables to price at $250,000 but we are buying a new home for $400,000 and we can’t afford it if we don’t get more money.
Agent- I can certainly see that this is a dilemma and the only solution I can offer is for you to spend money to upgrade your home. You could tile all the bathrooms, get new carpet, replace the lighting fixtures and install granite countertops in the kitchen. It might raise the price $15,000 but you will most likely have to spend that much to get those upgrades done.
Seller- Well we don’t have the money to do that. We put all our savings down on the new home we are having built.
Agent- So did you qualify for that home based on selling this one?
Seller- Well yes and no. We just have to get the maximum amount of money out of our home in order to put more down on the new one so our payment is lower.
Agent- Oh, I see. Well I can tell you this. I promise to get the maximum amount of money possible out of your home but it will still have to be priced correctly.
Seller- Well what about your marketing. Won’t the marketing make a difference?
Agent- Our marketing is designed to attract the right buyers to your home. I can guarantee your home will be beautifully presented to the buying public and advertised to get the greatest bang for your buck, but remember, Buyers today are very savvy, and because they have agents as well, using the same MLS as we do, they will quickly be able to tell if your home is overpriced.
Seller- I guess trying to get more might not be an option for us.
POINTS TO REMEMBER WHEN NEGOTIATING PRICING.
- Never Never Never argue with your client. Instead, offer understanding and a different solution to the problem. Think of ways to help them accomplish their goal but stick by the basics you know to be true such as in this case the pitfalls of overpricing a listing. And while we are on that subject, what are the pitfalls?
A .Longer days on the market causing continued price reductions.
B. Buyers questioning what is wrong with the property since homes are selling so quickly nowadays.
C. Missing out on buying opportunities for the Seller who will be a Buyer as well.
D. Actually losing money since you are chasing the market down and will have to reduce substantially to “catch up” to where the market really lives.
E. Disappointment and let down, so emotional distress.
Seller- XYZ company said they will sell my house for 5%. We will list with you but you must do it for 5%.
Agent- May I ask, what services was that company willing to give up to reduce their fee.
Seller- Well they were just going to put it in MLS and of course help facilitate the closing.
Agent- (pause and contemplate for a moment before answering) So first of all my fee for service is 6% of the agreed upon sales price minus any closing costs you might decide to pay on behalf of the buyer, but even more importantly, I would like to explain to you that I am a full service Realtor with a full range of services that I can offer you. May I share with you what I provide so you may see the points of difference with the other agent.
Seller- Of Course!
Agent- (put this in sentence form but here are your points of difference)
- A comprehensive and detailed market analysis using my research via MLS real time on my laptop or Ipad so you can see exactly what homes we are comparing your home to offering detailed information such as days on market, closed sale prices, active listings and full color photos of the interior and exterior of each home.
- A comprehensive marketing strategy using all social media, and print ads if that is what you offer
- Free staging service by a professional stager
- Professional photography including drone photography and walk thru videos
- A home website address specific to that property giving information and a still photo tour via Agent Marketing
- Homesnap and Instagram videos and stories advertising the home
- Complete online presence including all the major websites such as Realtor.com and Zillow
- 3 D full color brochures featuring floor plans if new construction.
- List Reports offering neighborhood, school, shopping and nearby restaurants availability as well as walkability features of the area.
- Financing Feature sheets offering payment options and information pertinent to getting a loan for the Buyer.
OTHER IMPORTANT POINTS-
- We completely facilitate the the transaction from start to finish.
- We communicate with you during the entire process so you are not left wondering what is going on
- We negotiate the offers, handle multiple offers and follow up with interested buyers and coop agents
- We communicate with the lenders involved, the Buyers agent on a continual basis and the title company to make sure all title is clean and ready to transfer ownership at closing.
- We arrange to meet with the appraiser and follow up with anything they need to complete the appraisal to get the value needed.
- We negotiate on your behalf with regards to inspections and offer vendors for repairs if needed.
- We keep a watchful eye throughout to make sure the transaction is moving forward and details are being taken care of to ensure a smooth closing.
- We schedule closing with you and the title company.