How to Handle the Top 7 Seller Price Objections as a Realtor

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If you’ve been to any number of meetings with sellers hoping to sell, you’ll have encountered at least one of the following objections to the list price you’re recommending. It’s the same at every meeting – you show up with your carefully crafted CMA (Comparative Market Analysis) and, once you’ve given the sellers your projected list price, they respond with “But __________”.

Even with the current record prices, many sellers are hoping for more. Here are our scripts for handling the top seven objections to pricing.

Objection 1: “Zillow says my house is worth $_______”.

I’ve already covered much of this objection in a previous post, so I’ll be brief here. We anticipate that sellers have already reviewed at least one review on the internet, so we are proactively directing this conversation before the seller has a chance to bring it up on their own. We pull AVM numbers from 4 major real estate portals (usually Zillow, Realtor.com, Redfin and Homes.com) and put them in a separate sheet that we use as part of our CMA package.

We then use the following script:

“I’m guessing you’ve had occasion to look at your home’s valuation on a site like Zillow – I anticipated this and provided you with valuations from 4 major real estate websites. As you can see, the values vary from site to site, so we cannot use an online AVM to set a realistic price for your home.

As you know, I was unable to view the interior of your home prior to visiting you in person, so I have taken the liberty of producing a comparative market analysis which shows similar properties currently on the market and comparable recent sales. This will give you an accurate idea of ​​current market values ​​and provide a range within which we might list your home for sale.

Keep a few very important details in mind: First, this is a value for today only – your home’s value may change up or down depending on market activity from here that we list your home on the market.

Second, these numbers don’t take into account the current condition of your property. Depending on your amenities and the upgrades or repairs you choose to make, your value could change significantly.

Third, we will redo this market analysis the day before we enter the market to ensure that we take into account any upgrades or repairs and the current market at the time we indicate it.

Objection 2:5

Since we know we are competing with other agents for a listing, we are preparing for that as well.

Here is the script we use if this objection arises:

“You may have asked someone else to tell you what price they think your house might sell for – to be honest, they’re guessing. Some agents will actually tell you an artificially high price at which they will sell your home to “buy” your listing, then reduce the price when there are no takers.

Personally, I think this practice is misleading and will earn you less than if you list at the right price to begin with. Neither you nor I control the price at which your home will sell. It’s determined by three things: its condition, market dynamics, and buyers who are actually looking when your home comes up for sale on the market.

Your final price will be determined by how much a potential buyer is willing to pay to ensure they get your home. Our goal is to maximize your home’s potential and do the level of marketing required to get you the absolute highest price once we are on the market. Do you agree?”

Objection 3: “Let’s start high and go down if necessary.”

Even in this overheated market, there are sellers who want to start at a ridiculously high price. Although inventory is limited, homes that are priced too high will not receive suitable offers. Buyers, who look at the price and understand that in many markets the going price is just the beginning and will go up in multiple bids, cannot imagine adding more to an already artificially high price.

When no offers appear and the seller finally admits that the list price needs to be adjusted, the damage is already done.

Here is our scenario:

“The reality is simple – you can list your house for whatever price you want. I have a simple question for you, though – do you want to sell your house or your neighbour’s?

Buyers today are extremely educated: not only do they look at all homes in their price range, but they also check AVM prices on the front page of every listing. They can tell if the price of a home is too high and will migrate to properties they believe represent the best value.

Also, if your property stays on the market longer than other comparable homes, buyers will assume that something is wrong with your home and, after lowering your price, will offer less than you might have received if you fixed it correctly.

Objection 4: “The market is HOT — let’s be aggressive.

Although close to objection #4, the idea in these sellers’ minds is that during an inventory crisis, a buyer will pay an above-market price simply to obtain a property. While that’s true in some cases, these high sale prices are usually for homes that were initially priced right and then increased in price by multiple offers.

As explained in Objection #3, if a buyer thinks a price is too high, they won’t bid. In fact, in most cases, they won’t even visit you. They will often assume that the seller is unrealistic or unreasonable and will pass on overpriced properties. Here is our scenario:

“There’s something else you need to be aware of – it’s called the golden window and it’s the first 14 days the house is on the market. You have every chance of getting your highest and best offer. during this window. Once you exit the window, your listing may become stale and buyers will no longer be willing to pay full price.”

Objection 5: “We need to add the cost of our renovation to the price. »

Some sellers have an inflated idea of ​​the value of their upgrades. I’ve met buyers who assume they can get thousands more because they’ve replaced every doorknob in the house, applied a coat of paint, or made a few other minor upgrades.

Other sellers may have made significant upgrades but they were a while ago and are now outdated or the “upgrades” are less than stellar – either way they probably won’t recover their investment. Sellers also have a wealth of life experiences from events that happened in their home and may place higher value on memorabilia that a potential buyer won’t be aware of. Here is our recommended dialogue:

“The moment you decide to put your home on the market, you have to switch hats from homeowner to homeseller. Homeowners make emotional decisions based on their memories and their long-term investment in the home. Sellers of homes release their emotions and make rational decisions based on available data and comparable properties.While your upgrades may have cost $___________, we can only add values ​​based on how your home compares to others In the region. “

Objection 6: “My neighbor’s house sold for more than the recommended price.”

This one is tricky because you will most likely have to contradict the seller in some way. They may have seen a house nearby that sold for much more, but don’t understand the reasons for the sale: maybe it was bigger, maybe the condition was better, or the amenities were lacking in the current house.

We are preemptively preparing for this scenario by uploading a full list of homes sold within walking distance or in the same development over the past year. We bring this list with us to the registration appointment and remove it if necessary.

We can quickly load the applicable property onto our phones to view listing photos and property details. We can then compare their house to the property they mentioned. Armed with this information, the script is as follows:

“While I understand that you would like to compare your house to the one you mentioned, as you can see it is different in the following ways:

___________________________

___________________________

___________________________.”

Objection 7: “We would like to test the market.

It is important to understand exactly what “testing the market” really means. Wikipedia defines it as follows: “A test market, in business and marketing, is a geographic region or demographic group used to assess the viability of a product or service in the mass market prior to roll-out to large scale.” I talked about it in a previous article, so I won’t go into details here. There are four reasons why this is a bad idea:

  • Buyers today have zero tolerance for artificially high prices.
  • All transactions (except cash) must go through an appraiser.
  • Overpriced ads miss the magic window.
  • Seasoned agents have a low tolerance for overpriced listings.

We recommend the following script:

“Testing the market” is a concept that applies to large companies testing a new product in a wide variety of markets in multiple geographic locations. They have plenty of opportunities to tweak their product and prices until they are successful. Once they decide to bring their new product to market, they will do so at a low introductory price. In contrast, selling a home in today’s market has become very similar to online dating – you only have 7-10 seconds online in which a potential buyer will decide whether or not to view your home. First impressions are everything.

While a manufacturer has multiple opportunities to tweak and test their product in multiple markets, when it comes to selling your home, you have one home, one market, one chance. I would like to make sure that you maximize this opportunity to get the best possible price and conditions.

While there are potentially more objections, these are the ones we’ve encountered the most over the years. Practice the scripts and you’ll be ready to respond whenever any of these objections are raised.

Carl Medford is the CEO of Team Medford.

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