Script No. 3: Let’s Talk Pricing Strategy
Getting a homeowner to price their home advantageously can be a tricky conversation.
That’s why rather than telling them one price, a better approach is to give them options with reasoning behind each option, and let the homeowner reach the desired conclusion.
Here’s how that dialogue sounds:
“Most agents offer a one-size-fits-all strategy based on the data. We’ve found our most savvy clients wanted options. So we developed the ONLY 3-price strategy that’s been highly effective for our clients.
The first is what I call the ‘needle in a haystack’ approach where we price it as high as possible hoping for that one ‘unicorn’ buyer to come across your home and be willing to pay above market value.
The second approach is to price it right at fair market value according to data from the comps.
Or the third approach – the one I recommend – is to create a bidding war for your home by pricing it just below market value to create a frenzy of activity and multiple offers to give you the best return on your investment not only financially, but in timing.
I’m not attached to any of these. What I want to do is provide you options to get you what you want. So… what do you want to do?”
Script No. 4: Setting Expectations & Pricing in the High End
Getting homeowners in the high end to understand current market realities is key to helping them get their property sold.
This “old market vs. new market” comparison provides the data to hammer home what they’re facing and to naturally reach the conclusions you desire:
“We run a more intelligent, data-driven business. For example, in the old market, we would launch the most comprehensive marketing strategy in our area. And the data shows we’d get 1500+ impressions online, 27 parties through our Open House, that would produce 14 showings, six second showings, two offers, four counters, and ultimately, a closed sale and a happy seller.
In the new market, inventory is up and buyer demand is flat. Showings are flat. Offers are flat. But what’s worse, when we counter an offer, 75 percent of buyers don’t respond to our counter. They simply move on to the next home. Think about that… [Pause.] There’s so much more inventory for buyers today.
What does that tell you about the new buyer psychology?
And how should we price the home?”
Script No. 5: The Other Agent Said They Could Get Us More
There’s a real fine line on working with a homeowner who – of course – wants to get every cent they can out of their investment.
So when a competing agent tells them they can get more, it’s easy for them to get tempted to follow along.
Your role is to demonstrate the market data to make them realize that “other agent” may not be being entirely truthful… without flat-out implying the other agent is a liar.
Here’s a highly effective way of doing that:
“I could line up a thousand agents outside your door, but we’re all looking at the same data and will likely come in within one or two percent of each other. So if someone is promising you much more, you’ve gotta ask yourself what they’re up to. Are they just wanting to take your listing to generate a bunch of buyer clients? What’s their motive?”
Script No. 6: Getting Price Reductions in the High End
What to do when the clock is ticking and your high-end listing is getting no traction?
It’s time to discuss lowering the price with the homeowner.
And that’s not an easy conversation.
But it doesn’t have to be overly difficult, either.
Start by requesting a meeting to review the process.
During that meeting, walk them through all the numbers and provide a comprehensive update on the market, almost like you’re giving another listing presentation.
Show them everything you’ve done to generate exposure.
Then say this:
“So here’s what we have to decide. Right now the agents in the marketplace, the overall market, and most importantly, the buyers have rejected our price. What would you like to do?”
Then, be quiet until they talk.
If you’ve earned their trust, they’re going to ask for your recommendation. At that point, say this:
“I’m going to strongly recommend we amend the price to be in alignment with what buyers are willing to pay in this marketplace. I recommend we price it at ______.”
Script No. 7: 4 Questions to Generate More Business
One way or another, you should be asking these four questions to everyone you know or come in contact with (within reason, of course):
- Have you had ANY thoughts of selling?
- Are you living in your dream home now?
- At what price – now or in the future – would you become a seller?
- Do you know anyone who’s thinking about selling?
That’s all seven scripts! Want to download a PDF of them all? Simply click here.
I strongly recommend you role play these a few times and then begin implementing them. The stronger grasp you have on what to say, when to say it and how to say it, the more you’re going to win in this business. Also, if you enjoyed this and need more scripts for all aspects of your business, make sure to get yourself to Sales Edge in 2020!
Let me know your thoughts in the comments below, including which of these scripts will be most beneficial to your business.