As a real estate agent, you’ve most likely dealt with an unrealistic home seller but may not have known what to say to shift their thinking.  In some cases, the seller may think their home is worth more than the price you’ve come up with.  They may try to convince you that they know their house is nicer than others and should draw more attention and a higher price.  Whatever the reason, many home sellers have unrealistic expectations when it comes to selling their houses.  As an experienced real estate agent, figuring out what to say to them to ensure their house sells quickly is key.  Let’s look at some scripts which will help you successfully communicate with unrealistic home sellers. 

• A Price the Seller Can’t Accept 

• Maybe This Isn’t a Good Time to Sell

• Seller Wants to Try a Higher Price Temporarily

A Price the Seller Can’t Accept 

Scenario:  After researching sales in the neighborhood, you come up with a realistic price for the home but the seller isn’t convinced.  The home seller feels that their home is worth more because it’s one of the nicest in the area. 

Agent:  I understand where you’re coming from regarding the condition of your home and the price.  Let’s compare your house to others that have recently sold in your neighborhood and houses currently on the market. 1 home sold in your area within the last 6 months.  It’s similar in size, age, and condition.  The house was originally priced at $550,000 but went through 3 significant price drops and was on the market for nearly a year before it sold. It eventually sold for $475,000, well below asking price.  What that tells me is it was initially priced too high for the current market, for what buyers are willing to pay.  If it had been priced according to what the market demanded, it would have sold in less time but the final sales price would have been similar.  In addition, it was up against dozens of homes for sale in the area so buyers have a lot of choices.  When there are a lot of homes on the market and they’re overpriced, do you think there will be more or less sales?

Seller:  Fewer sales.

Agent:  Let’s price your house based on the current market, what buyers are willing to pay, so it doesn’t sit on the market for nearly a year. You’re ready to move forward right?

Seller:  Yes, of course.  We want to move closer to our grandkids and we need to sell this house in order to do that.

Agent:  Let’s find a price you’re happy with based on what a buyer will actually want to pay in today’s market.    

Maybe This Isn’t a Good Time to Sell

Scenario:  You’ve been working with a seller for quite some time and, after numerous meetings, you’re sure they’re ready to put their house on the market.  Then, the seller says they have doubts about this being the best time to sell.

Seller:  I’m not sure this is a good time to sell.  We want to sell our home, but the CMA shows the price of houses in our area is much lower than we expected them to be.  

Agent:  I understand what you’re feeling.  You want to get the best possible price for your house.  Is that right?

Seller:  Of course.

Agent:  As we look at the properties which have sold recently, you’ll notice that the sold price is quite a bit lower than the list price.  In addition, there are a lot of homes on the market right now.  Would you agree?

Seller:  Yes.

Agent:  When we look at the sold houses, we’re looking at homes that were priced to sell.  In other words, buyers were willing to pay those prices but not the price of other, more expensive homes.  Would you agree that pricing your home correctly, gives it a better chance of selling quickly?

Seller:  Yes, but I don’t want to sell at a low price.

Agent:  Let’s take another look at the market comparisons and find the highest price for your home that the market will support. With my market expertise, I can help you interpret the market and find a price that will satisfy your needs as well as the needs of the buyer.  Let’s find a price that will stimulate buyer interest and get it sold.  How does that sound?

Seller:  That sounds great!

Seller Wants to Try a Higher Price Temporarily

Scenario:  You’ve reviewed comps with your sellers and have come up with a price that reflects the current market and what buyers are willing to spend.  The sellers comprehend how you came up with the price but want to see if they can get more, even if it’s only listed at the higher price for a couple of months.

Seller:  I understand why you want to price our home at $399,900, but we would like to start at $425,000 for a few months just to see if we can get it.  We’ll have you reduce the price if it doesn’t sell after a couple of months.

Agent:  How would you feel if your house sold quickly?

Seller:  I would be thrilled, especially even if it sold close to $425,000.  We want to move into a new subdivision and can’t do that until this house sells.

Agent:  I understand.  Now how would you feel if you received a lot of negative feedback on the price after putting it on the market and few showings?

Seller:  Well, I definitely wouldn’t want to get negative feedback but we would reduce the price eventually, and then we would get more favorable feedback and more visitors. 

Agent: That negative feedback would mostly come from real estate agents who know it’s overpriced because they’ve researched the market value.  As they educate their buyers, there’s a chance their clients might not want to waste their time looking at an overpriced home.  Which would feel better, getting an offer in the first few weeks or having to wait months?

Seller:  I would be crushed if we had to wait months.

Agent:  Let’s increase the likelihood of your house selling quickly by pricing it right and generating more interest from real estate agents and their clients.  Does that sound like a good plan?

Seller:  Yes.

Conclusion

By helping unrealistic home sellers understand the current state of the housing market, you can make it easier for them to make realistic decisions about selling their houses.  Your expertise will shed light on why pricing their home right leads to more buyer interest and likely fewer days on market. Bring your clients into the conversation by asking the right questions vs. defaulting to talking and not listening.  With this type of approach, your client becomes an active part of the solution and they feel confident they picked the best possible real estate agent to sell their home.

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