What Do You Sell?

Price, listing price, selling price, pricing is everywhere. What do you sell? If a prospective client says the price you want to list my house for is too low what do you do? If a prospective buyer says the price is too high what do you say? How many times have you heard that your commission price is too high? The price objection is the quickest way for a client to get rid of a sales person.

Do we cave in on the listing price and raise the price even though our comparatives and research indicate that the price we have chosen is correct? When the buyer says the price is too high do we agree and try to beat down the listing people? Do you "cut" your commission price because the client doesn't think you are worth it?

Do you want to list and sell more homes and keep your commission rates where they should be?  Great value, not price, will lead to more sales. If you continually hear the price objections you probably have a value problem, not a pricing problem.

David Rothfeld, a sales, service and management consultant, and founder of Creative Sales+Management Inc., says "buying studies have been telling us for many years that price is seldom the primary issue in purchasing decisions. It usually ranks fifth or sixth, but seems to be the most important in the minds of a lot of salespeople." So what is value and why do we ignore it when working with clients?

Value is a combination of the clients need, price, perceived quality and anticipated service. When determining a listing price we consider the sq. ft, number of rooms, location, upgrades, market area, etc. We do a thorough job of determining the value of the home and then come to the listing price conclusion. When the seller says the price is too low do we painstakingly explain the value of their home or do we get caught up in their emotion and raise the price, only to have the home languish on the market for months. When the buyer says the price is too high do we explain the value of the home to them in comparison to others in the market. Now, don't misunderstand, I'm all for getting the best price possible for a buyer or seller. However, we have an ethical and moral responsibility to the client and ourselves to deal fairly with all involved in the transaction.

Value is a critical component of what we as Realtors. Do you provide your clients with information about your value in the whole process? Do you deliver the value you promise? In the end, price has to be justified in the clients mind. However, as a sales professional it is your job to give the client the required information and rationale so they can make that informed decision in their mind.

In the end it is up to you which path the client goes down. You can explain value up front or you can continually deal with the price issue every day for the rest of your sales career.