Our Market Is Tough, but This Can Help
These three scripts will help you navigate a difficult housing market.
How can I handle seller objections in today's changing market? As many of us know, the market has changed. Luckily, in Lincoln, Nebraska, we don't see as significant a shift as we do on the coasts, and our change in the market is minimal compared to what you may see in the national media.
Still, gone are the days of placing any old property on the market and getting multiple offers above listing. Now, we have to deal with the possibility of repricing our listings. Here are three common objections to a seller repricing their listing and some ways to overcome that:
1. If your client says, “I want to keep the same price as the last listing.” This would be an instance where we're getting close to the expiration date of a listing and need to release the property, possibly at a lower price. We have to talk through this process with our clients. We need to look at how many offers we got on the home. Were those offers anywhere near our asking price? How many people have we had through the home? How many clicks are we getting on our online advertising? We use all of these processes to help determine a price that is most likely to bring in new, attractive buyers. Ultimately, the starting price is irrelevant. The finishing price is what we care about.
"Have good, genuine answers, and let your client know you’re working in your best interest."
2. If your client says, “If we reduce the price of the house, will you reduce your commission?” The short answer is yes. Most commissions are based on a percentage of the sale price of the house, not a flat fee. So as the sale price of the home comes down or goes up, the commission of the sale goes up or down as well, along with the price of the house. The beauty of this model is that the agent and the client are connected, and ultimately they are both looking to maximize profit.
3. If your client says, “I do not want to reduce the price of my house.” This one's a little tougher. When this happens, what we need to use are market statistics. We need to look at the homes that have sold in the area recently, at the traffic, and at any offers that we've received, then ultimately set that price again to attract new buyers to the area and to that home. Once again, ultimately, all that matters is the finishing price, not the starting price.
As long as you have a good, genuine answer and your client knows that you are working in your best interest, they'll take your advice. If you'd like full copies of any of these scripts or any other scripts that we offer, please call or email me. I’d love to hear from you.