By Jim Droz
Sometimes I feel like I’m on an episode of “Law and Order” with all the objections flying around. They’re common in that television genre but even more so, it seems, when dealing with high-strung clients. But it’s important to remember that we’re dealing with a person’s emotions and finances, so it’s best to have a few guidelines:
Listen to the objection and maintain eye contact at all times.
Respond appropriately. If it makes sense, let it stand; if not, rationally explain the reasoning why the idea won’t work.
Empathize by telling them you’ve dealt with similar situations before.
Explain how going in another direction will be in their best interest.
Ask if they understand your reasoning and if they agree. If they’re still hesitant, give them examples of experiences you’ve had in the recent past regarding similar scenarios.
Even with prices starting to rise in most areas of the country, getting sellers to realize that their home isn’t worth what they expected remains one of the trickier jobs we have.
So if that’s been happening to you lately, here are four scenarios of pricing situations and responses that might work:
Objection: Let’s list our house for $25,000 more than comparable homes to leave room to negotiate.
Response: If no one looks at your house, there won’t be any offers. Let’s not do anything to limit the amount of traffic we get. By pricing correctly from the start, more people will give it a look and then if multiple offers are made, we can maybe maximize it from there.
Objection: We want to start with a higher price. We can always come down later.
Response: A home generates the most excitement during the first few weeks on the market. If your home is overpriced during that time it will get a reputation that is hard to remove. Homeowners who price their homes over market value often end up selling for under market value. Pricing your house correctly to begin with is the smart thing to do.
Objection: You think our house is worth $280,000, but the guy at ABC Realtors said he could get $330,000 for us.
Response: Before you decide on a final asking price, give some thought to the consequences. You’ve seen the comparables and know the correct value of your home. I want you to receive the best possible price, and that’s why we should do so correctly.
Objection: I hear prices are starting to increase. Let’s wait a while before selling.
Response: I can understand your reason for wanting to wait. However, keep in mind that you’ll be buying another home as well. If the value of your home increases, so will the value of the home you’re going to purchase. By waiting, you’ll likely break even at best.