List Price Objections and How to Over Come Them

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This morning I read this great article on Inman. It gave real estate agents scrips on how to overcome objections when sellers bring up the list price. Many times, it doesn’t matter how much data we have to back up the price we suggest the homeowners should list at, they have a number in their head that they want, and they believe we as real estate agents should work to get them that. They may even tell you they met with another agent who is willing to list their home at the higher price. If you’re at a listing appointment and you run into this road block, here are a few ways to overcome the objections.  

The Stock Market Method 
The housing market is very similar to the stock market. As real estate agents we don’t set the price of the homes, the buyers do. Explain to the sellers that if they want to potentially get the higher price for their listing, they may need to wait until the real estate market shifts.  

The Appraisal Method  
Not only do the buyers have to qualify for a loan, but the home must qualify as well. If the home doesn’t appraise for the higher price, and the buyers don’t have the funds to cover the additional amount, then their home is going back on the market and the appraisal will become public information. In the long run, this could make it even harder to sell the home.  

Days on the Market Method 
Explaining to the sellers the average days on market a home is sitting could potentially help them understand the benefit of pricing a home right. The longer a home sits on the market, the harder it can be to find a buyer. I also recommend explaining to them the percentage of homes that are selling in a given time. For example, if there are four months of inventory currently on the market, the probability of the seller securing a buyer in the first 30 days is only 25 percent.