10 Scripts to use with Overpriced Sellers
Most sellers have unrealistic expectations about what they can get for their house. They almost always want a little more than what the market will bear.
Let’s say your seller wants to price their house at $450,000 and you know that the market points to a price of $400,000 tops.
Here are ten of my most successful pricing scripts for sellers who want to overprice.
You: “Susan… getting your house sold is all about creating value in the mind of the buyer. Do you believe that $450,000 will create value in the mind of the buyer?”
You: “Susan – what’s the lowest price you are willing to go?”
Hand the prospect a calculator and let them do the math.
You: “So, Susan – what is the average price per square-foot that houses in your subdivision are selling for?”
Prospect: “$158 per square foot.”
You: “I see. Go ahead and punch in 158… and what is your square footage?”
Prospect: “My house is 2527 square feet.”
You: “Go ahead and times the 158 by 2527. What are you coming up with?”
You: “Susan, it looks like you want to get top dollar for your house! That’s great. I also want to get you the most money possible because I’m on commission – and the more you make the more I make. We’re in this together. Let’s get you the top market price for your house. Based on the data, what is the most a person has gotten for a house like yours?”
You: “You know, Susan – in order to get you the most money possible, I’m going to have to sell the value of your house to a prospective buyer – and I’ll have to use this market data to do it. Based on the data – how can we show a buyer that your house is worth $50,000 more than the market?”
For this script you will have to pull out your comprehensive multi-page CMA which shows photos of the comparable properties and more details. You can also use your laptop, tablet or smartphone to pull up the houses that are most comparable and review the photos of these houses with the seller.
You: “Susan – let’s take a closer look at the comparables so we can get you top market price. I brought with me a more comprehensive market analysis which has photos and more details. Let’s take a look at this one.”
Now go through the details of each comparable, asking the seller specific questions like, “How many bedrooms does this one have? What about bathrooms? How many living spaces? What’s the square footage? Great. Now let’s take a look at the photos…”
You: “Susan – based on the data that we’ve reviewed on this comparable house, would you say it is nicer, not as nice or about the same as yours?”
Prospect: “It’s about the same I think.”
You: “I see. And how much did it sell for? I see.”
Now you can follow this script by letting the seller do the math (from Script 3).
You: “Susan – it is important to understand that most buyers will be using some form of financing when they purchase your house. This means that the buyer’s lender will order an appraisal on your property. If your house does not appraise for at least the amount of the sale price, the buyer’s loan will be rejected. This is often true even if the buyer is putting a large amount of cash down on the property. This is one of the major reasons why you will want to set the right price now.”
For this script you want to show the seller the pricing pyramid graph (above).
You: “Susan, are you familiar with how pricing affects showings? Research has proven that price drives traffic through a listing and that pricing a property correctly at the beginning of the listing process will attract the most potential buyers to your property. Fewer viewings results in fewer opportunities to receive a contract.”
If the sellers are still being extremely stubborn about pricing their house correctly, then it’s time to interject.
For this exercise you need to draw a horizontal line. In the middle of the line you will write down what you believe is a fair market price. On the left side of the line you will put a price that is below market (low) and on the right side of the line you will write in a price that is above market (high).
You: “Susan – the market seems to be pointing to a price of $158 per square foot. Are you aware of the message that our price sends to a potential buyer?
“For example: on the left side here, we have $375,000. This says to a buyer, ‘I need it sold yesterday!’ Such a message could make you appear desperate and we don’t want that.
“Now let’s look at this number on the right side – $450,000. Do you know what message this sends to potential buyers? This price says, ‘Look – I don’t care if I ever sell it!’
“Susan – we want to send the right message now by setting the right price.”
This script is reserved for those who just won’t crack. If you absolutely have to take an overpriced listing, do it for a trial period.
You: “Susan – Let’s go ahead and try your price for 14 days. If we don’t get it under contract in that time we’ll adjust the price to what the market is saying.”
In the Listing Agreement you will have the seller initial off on the 14–day price adjustment (this way you get their commitment up front)!
I encourage you to use these scripts at your next listing appointment. Getting the home priced right at the beginning of the listing is critical to a successful outcome for all parties!
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