If you’ve been in real estate for a while, you’ve probably been here. You’re working with a homeowner to sell their home…and they’re just determined to set an unrealistic price. No matter what you say, they just don’t seem to want to set a price that YOU know will work.
You know that the overpriced house will just sit on the market and cost you tons of time and money while you nurture this client for 6-12 months only to end up with an expired listing on your hands. And it’s not going to do any favors for the client either!
But this kind of thing happens all the time…so what can you do to help your client understand that they need to reduce their listing price to something more reasonable? Here are three scripts for overpriced sellers that you can use to get started.
Script #1: Temporary Pricing
If you know your seller is setting an unrealistic price but they won’t listen to your objections, you can encourage them to set a temporary price. Here’s what you’ll say:
“Joe, are you open to going with this price for 2 weeks and then, if needed, adjusting to something more in line with what the market is telling us?”
This script for an overpriced seller is one that is gentle and reasonable. You show that you respect your seller’s wishes and experience but want them to do the same for you. That way, when your fears are realized and no one buys the home, your seller is more willing to hear what you have to suggest.
Script #2: Brutal Honesty
In some cases, you simply have to share the truth with your seller even if you know it’s going to be upsetting. Do it in a respectful manner that shows you care, but make it very clear what difficulty your seller will be facing. Here’s how you can say it:
“Joe, at your suggested price, I don’t believe we’ll get many offers. In addition, I’m concerned that on the small chance we do get an offer, your home will not appraise and the financed buyer will cancel the contract.
Are you willing to go back onto the market for even LESS than we’re talking about as fair market value right now?”
This script allows you to lay out the issues exactly as you see them. You’re showing that you respect your seller’s wishes but that your market experience (one of the main reasons they hired a real estate agent in the first place) is telling you the price is wrong.
With this script, you should be able to encourage the seller to try for a lower price so they can ensure that the selling process goes smoothly and doesn’t leave them scrapping for a quick and cheap deal in the end.
Script #3: Bring In the Competition
Sometimes, you just need to put the blame elsewhere. If you’re convinced that the market won’t support the price your seller is asking for, explain that to them by bringing in other homes already on the market. Here’s an example:
“Joe, I’m concerned that with a price of $400,000, our neighbors will be stealing our buyers before they even get a look at our house. Our competition (i.e. the neighbors around you) are priced at $350,000—and with that cheaper price in their sight, potential buyers won’t even schedule the time to see our home.
The fewer showings we have, the less money we’ll end up selling for. So, ultimately, starting out with a lower price is what will get us the money we deserve.”
With this script, you aren’t discounting your seller’s concerns or desires. You’re simply showing them that if they want to remain competitive with other sellers, they’ll have to do things differently. They can blame the other sellers all they want, but at least they’ll end up with a home priced correctly.
Navigating Hard Conversations with Overpriced Sellers
It’s challenging to talk to overpriced sellers about bringing down their selling price. There’s no question that getting into that type of conversation is incredibly difficult and painful on both sides. Thankfully, though, there are ways it can be done that make it easier.
Just remember, whatever script you use, to speak with respect. Your seller does know a lot, even if they don’t know a lot about pricing a house. They love their home and probably see it as more valuable than potential buyers might see it. Keep their feelings and experience at the top of your mind as you navigate the pricing conversation.
If you remember that your seller is a person with lots of knowledge and experience in other areas, it will be easier to treat them respectfully. And with the right amount of respect and careful negotiation, you can get an overpriced seller to reprice their home without a hitch.