Ick, seller objections. We hate them, but we all have to deal with them. But, by being prepared for seller objections ahead of time, it easy to convert leads into clients. Here are five of the most common seller objections and how to overcome them:

1. “Another real estate agent thinks I should list my home at a higher price.”

You know this one. The homeowner may not be grounded in reality when it comes to the value of their home. After all, this is where many of their memories were made. You can’t put a price on that.

The problem is, the seller doesn’t realize the huge burden they are putting on themselves and their Realtor by refusing to price their home realistically. A good real estate agent will can use empathy and data to overcome this hurdle and sell the property faster.

Comps Are a Real Estate Agent’s Best Friend

All real estate agents use comps for home valuation, but many agents are not being transparent and clear in the way they explain how they landed on a price point. Providing valuable data about how you arrived at your price point is important. Be sure to explain the high and low ends of your range. Empathy is also important. They may have brought their babies home from the hospital to their home or installed a custom bar with their favorite baseball team’s logo. You know that buyers won’t care, but the homeowners don’t. To a seller, it’s emotional currency.

Example

Your response to one of the most common seller objections should look like this:

“This home is beautiful; I can’t imagine all of the special memories you have made here. There are a lot of other real estate agents who will tell you whatever they think you want to hear. They’ll do anything to get you to sign with them. If you check their listings, you might find they don’t have a lot of closings under their belts.”

“I can see why you would want to list at your ideal price point. But, if your home doesn’t sell, your plans could change dramatically six months down the road. The longer the home sits on the market, the worse it looks to buyers. This will eventually drive the final price of your home to an undervalued amount.”

“I want to get you the best price possible. Can I show you how I arrived at my price range? I really care about getting my clients the best value for their home.”

Ask them to shift their focus to maximum leads and offers rather than a super high price. Cash only, anyone?

2. “Can you reduce your commission?”

Most real estate agents see this one all the time, too. You know your services have value, but plenty of bargain hunters don’t. This is one of the most frustrating seller objections. Negotiating a lower commission will hurt your business in the long run, but some clients will continue to ask.

To avoid this one completely, focus on transparency and the value you provide during the listing appointment. Add a pie chart to your appointment materials with a breakdown of your commission structure. Coming in with a killer marketing strategy is great for derailing this argument, too. Highlight how you plan to market their home and how your industry knowledge sets you apart.

If the objection still comes up, help them feel heard. Let them know you understand their concerns.

Example

“I understand how my rate may seem too high at the beginning of this journey. Let me break down the commission structure into smaller pieces to show you why I can’t agree to a reduced rate.”

“Let’s say you have 20 dollars from this sale, and ten of that would be paid to the buyer’s agent, five goes to the brokerage I work for, and 5 would be left to cover my marketing costs and living expenses. I want you to receive the best market price. I will work my best to achieve that for each of us.”

Remember, sellers need a service that you offer, which they cannot do themselves. This is why highlighting your value during the listing presentation is the best way to overcome this. When homeowners feel that they are in the right hands, their objections should melt away.

You can also point out that just as you don’t negotiate on commission, you will stick to your guns when negotiating the best price possible for their home.

3. “I’m just going to sell it myself.”

It’s no secret that FSBOs are out there. A great analogy would be to compare this to a defendant representing himself in court. It may save money, but the success rate is dismal.

Again, it boils down to representing your value during the listing appointment. You have the marketing plan, the contacts, and contract knowledge to be a huge asset. Don’t be afraid to point out all of these things out. Buying/selling a home is the biggest investment most people will ever make. Don’t sellers want an expert to have their back?

You can explain that most agents prefer to work directly with other agents for the smoothest transactions possible. After an offer is accepted, they will have reams of legal documents to fill and file. This could go on for months.

Example

“Selling your home is important. You have your own lives, jobs, and families. By being a Realtor I provide value to by  _______.”

“Showing your home is only the beginning. Marketing and getting the appropriate paperwork completed, signed, and filed is a huge process. I want to ensure that your deal closes without legal problems.”

You can side with them and agree that saving money by doing an FSBO is a great idea, but only if it didn’t come with the risk of legal problems or time spent on the market.

4. “We can always lower the price, later.”

This is similar to the seller objections in #2. Sellers often want to try to list at a sky-high price and pray that they get it. However, they need to understand what a high price says to buyer agents. Again, comps are your best friend.

Example

“I understand why you want to try this. Your home is valuable and you want the most you can get. I’ve been working in this business for a long time, and I have learned that overpriced properties sit on the market for a long time. When a listing stays on the market, buyers begin to believe there is something wrong with the property. It also signals to other agents that you may be difficult to work with. But worst of all, homes that are overpriced tend to end up selling for under-value at the eventual closing.”

“I want to show you exactly how I landed on this price range. It’s not something I take lightly. My goal is to get you the best price possible.” then show a comp breakdown.

“I want other agents to seriously show your property to their clients. I don’t want them to make warnings or apologies that this could be a slow, complex transaction, that could take many months. Reducing the price later can be a poor option because agents will have moved on.”

Pricing a home at the right level from day one will motivate other agents to show your home with enthusiasm.

5. “We’re going to wait until next spring.”

This is one of the easier seller objections. Creating a sense of urgency is the key to overcoming this roadblock. This is why being a market expert is critical. At any given moment you should be ready to tell a lead why they need to sell, now.

Example

Ask clients questions first, “Do you know the benefits of selling in [insert season]? Do you have a timeframe of when you need to be moved by?” Doing recon first will help you overcome their objections.

Tailor your answer to the timing of the situation. Low inventory is a great key for winter sellers. Market saturation is a spring problem. Tell them why you think their home will sell quickly during this specific time of year. Rent-back options are also a great idea to cover.

By creating a sense of urgency, home sellers feel like they will miss out if they don’t list now.

Final Thoughts on Seller Objections

Always remember to genuinely listen to your client’s concerns. They may be coming from an emotional place, and that is precisely why they hired you. You know the ins and outs of the industry and are prepared to make the their selling process go smoothly.

The more justified and comfortable you make sellers feel in your presence, the more they will look to you for guidance and trust your judgment.

They key to overcoming seller objections is building a trusting relationship. Selling a home is a really big financial and emotional decision. People want reassurance. Imagine how a doctor reassures a patient before a big surgery. If you can respond calmly to seller concerns, you will establish yourself as a real estate authority. Building trust takes time, and as you prepare to thoughtful responses to these seller objections, the listings will follow.