¶ Real Estate Scripts and Dialogues
Hello and welcome to the Real Estate Scripts podcast , the show that helps you know what to say when you're talking to buyers and sellers so that you can close more deals and earn more money . I'm Darren Tunstall , a real estate professional coach and number one bestselling author . Let's get into this .
Before we begin today's episode , I want to clarify some important points . I am a licensed real estate agent and my DRE number is 018-53445 . It's crucial to note that this podcast operates independently of my affiliation with Keller Williams Realty and any realtor associations .
My primary goal with this podcast is to provide you , our listeners , with valuable information , insights and practical tools . As a reminder , the purpose of Scripts and Dialogues is to come , learn , practice and be prepared to fail forward . This is where we make mistakes and help each other out , but we're mostly interested in seeing how we can get better .
First we read through the script word for word and then we go back and put it into our own natural tone , style and phrasing . You won't know what to say until you go through the script . So , with that said , many people will say that's not how I sound , and I totally get it .
That's not how you sound , but that is the reason why we practice every day so that the script becomes you and in your own voice . So read it word for word first , then go back and put it into your own natural tone , style and phrasing , and I think it'll work out .
So when we're working with objections , typically the seller is going to object , so they will start out the conversation today and I'll go ahead and set this up . In this scenario , you are on a listing appointment with a potential seller and you are discussing the listing price with them .
They are wondering why a comparable market analysis , or a CMA , controls what their home is worth . The requirements are strong communication and negotiation skills , in-depth knowledge of the local real estate market , the ability to educate and address client concerns , and persuasive and empathetic demeanor .
The intention is to help the seller understand that a CMA does not control the worth of a home . It's just a tool that is used to determine the best price per the current market data . Great , so we'll go ahead and just quickly start this out .
We'll read it word for word to begin with , and then we'll go back a second time and put it in our own tone , style and phrasing , in other words , your own words . All right , frida , you know what I appreciate everything that you just said .
I love the presentation , but when it comes to pricing my home , I'm wondering why does the CMA control what my home is worth ?
Okay , no , I understand your question . So , first of all , a comparable market analysis , which we call a CMA , of course does not control what your home is worth . It is merely a tool of compiled data that real estate professionals use , based on the current market , to determine a suggested price for you to consider . Does that make sense ?
Yeah , I mean , that makes some sense um , yeah , I mean that makes some sense . However , no matter what the listing price is , a buyer will still need to get an appraisal on your home per the lender's requirements , and that's really what you should be thinking about . What will the appraiser evaluate your home to be worth ?
So what I know for sure is that an appraiser will also use the data from the multiple listing service as a tool to help them determine what your home is worth , with some adjustments . So does that make more sense now ?
Yeah , that makes sense . I agree , and that's it . You're dealing with that particular objection . And then the next line after that should and I didn't incorporate this , but we talked about this a few days ago which is doing a takeaway Other than the valuation of your home , other than a CMA , what else can I handle for you or what else can we discuss ?
So we take that away If we removed it from the table . We deal with the next objection , we deal with the next objection and then , ultimately , we're getting to . That's awesome . Go ahead and sign here Because you're in a . You're in the listing appointment , right ?
Right .
And the goal is to get that signature . So that's how it goes . Kelly , you want to give it a shot ? Sure , awesome , all right . So , frida , you're going to start the objection when you're ready .
Okay . So , Kelly , I'm really wondering why a CMA controls what my home is worth . That doesn't make a lot of sense to me .
I hear you , frida . First of all , a comparable market analysis does not control what your home is worth . It is merely a tool of compiled data that real estate professionals use , based on the current market , to determine the suggested price for you to consider .
However , no matter what the listing price is , a buyer will still need to get an appraisal on the home for the lender requirements . That's really what we should be thinking about . What will the appraiser evaluate your home to be worth ?
What I know for sure is that an appraiser will always use the data from the multiple listing service as a tool to help them determine what your home is worth . With some adjustments , does that make sense ?
Yes , that makes sense . I see what you're saying now .
Great .
Awesome . And then again , a takeaway Other than the CMA . What else can I help to understand ? And then let's go ahead and move forward . Sign here . Always get that because you're in a presentation . We want to get them to sign , all right .
So now that we've done this , let's go back and put it in our own work , kelly start the objection , frida will be the agent .
I was just wondering why the CMA controls what the home is worth . Can I add more to ?
it or no ? Yeah , yeah , absolutely Go for it .
I mean your data and the house down the street that was sold .
It was sold $150,000 more than what your data is showing me . So there are a lot of factors that come into play . Of course it depends on the condition of the home , if there were any upgrades , any remodeling that took place . So you have to consider all those things as well .
The tool , kind of is a guide for us and what we do is we pull up comparable houses on the market within a certain radius and then we go through the houses that were chosen and we can take some out that were chosen and add others in that we think are closer to value than the ones that were selected , closer to value than the ones that were selected .
And then you go through each house individually and see which ones are more accurately reflective of what your home looks like , and then use those homes to give you maybe a closer evaluation if the automated system didn't select the way we like . You understand what I'm saying . I do Okay have her sign and here is the document .
Thank you , I will love to be your agent and help you sell this home for the best price , okay I'll sign okay awesome , there we go .
It's always that easy , right ? Yeah , all right , let's reverse roles .
¶ Home Valuation Process and Market Trends
Kelly , you're going to put it in your own words as the agent Frida , you'll start out with the objection . You're the seller . When you're ready , OK .
So yeah , you know I was not really happy with the results that I told the CMA will give you . So I'm wondering how you decide what area or how far of a radius you use to determine what my home is worth , based on this tool Like what do you pull the houses from , how far away , and so forth .
Well , that's a great question , Frida , and thank you for asking that , for asking that the data that is being used is basically on a micro level , meaning we take your home and we go out about one mile radius , excuse me , and then we run the data within the last six months to see how many homes that are at your home's calibers and we compare that with the
sold home and get those data and then we price your home accordingly . So if there's no homes that is within six months time frame that has been sold within six months , then of course we have to go out a little further , right ? But because you live in a great community , there's a lot of data .
Your home is a five-bedroom , three-floor bath , 3,000 square feet , and we have four comparables that are like your home and has sold within the last six months . If you're looking at the data the other homes they either have a view or a larger lot compared to our homes , right , meaning they're sitting on a more premium lots and they're selling a little more .
But also keep in mind data Fida that these data , even though it's registered six months , it could be seven to eight months old , and the reason I'm saying that what we show as comms today . They are about 30 days at least 30 days older , right , because they have enter escrow 30 days prior .
So by the time they show a sold it is more than six months I would say about seven months old data , and your house sits right in line with these comps that I'm able to present you tonight . Does that make sense ?
Yes , it does Okay . Thank you for explaining that . That makes it a lot more clear for me .
Are we ready to move forward ?
Yes , I guess , so this is scary .
Okay , let's sign on the dot and let's go make you some money .
All right , let's do it .
Okay .
I love that . Let's make you some money Because , after they looked at that net sheet , there's going to be seller proceeds there , right ? One of the things that I always like to say is how is that amount going to look in your bank account at the end ?
of the proceeds because when they imagine 300 , 400 , 500 , 600 , 000 or a million , depending on their home and how long they live there , it's going to look pretty good right as a balance in my bank account , that's for sure . Yeah , I , I am . I am kind of curious .
Um , have you ever been surprised by the valuation of a property based on any of the mls data that you pulled , for example , like if you pulled a cma ? Have you ever been surprised by the valuations like up or down ? What do you think ? What is it ?
up , um , when I pull comps , I was like , wow , okay , particularly in this market , since , um , you know , maybe 10 years ago , that the value of the houses were a lot lower , but the market has changed , so now it could be double the value .
Literally , houses are double the value in a lot of places , which is like like okay , it almost seems arbitrary , but of course it's just everything to do with the economy and how the San Diego housing market works , so that's been my surprise . What about you , kelly ? What are your thoughts on that ?
Of course , through the years the value has increased . In some markets it's even more than double right . I don't know what market you are in , frida .
I'm in San Diego .
Oh , okay , so we're in the same market , but you know , compare last year to this year some of the data that I've seen some markets its pricing are still increasing and some are not , and they're dropping .
¶ Factors Influencing Home Valuations
Yeah , and you brought up a good word earlier when you were talking about micro . You know the CMA being a micro level , being a look at a micro level , and when you get down to micro communities , you can see that you can see valuations of homes going up , you can see valuations of homes going down .
What factors do we believe are influencing some of those valuations to change ?
Well , one is interest rates , and also too . For me it's just the location , right .
Yeah , real estate has been known to say location , location , location . Right , yeah , interest rates are big factors . What else can be a big factor ?
In the value of the home .
Yeah .
Maintenance and upkeep , depending on how people take care of their properties . But that would be more of a individual evaluation when you compare them , so I don't know how the system would use that . But from an automated perspective , good question new development in the area , maybe ?
yeah , how the community's growing or not and I'm posing these questions because these are things that may come up too , because you know , it's one thing to say we look at comps , they don't control . We also look at appraisal . Well , how does an appraiser going to look at things too ?
One great thing that Kelly mentioned was location , the comparables , obviously right , the size of the and the features on the home as well . Frida , you mentioned the condition of the home . You know condition is is something to be seen .
That's why I don't think that when you go into a home , when somebody asks , like what are you going to charge me on commission ?
Well , the truth is , if you haven't seen the home , you shouldn't even be talking about commission , because you might go to a home that's completely distressed and needs a ton of work and a ton of marketing and it might take a whole lot of more effort to get that home sold , which may cause your commission rate to go up .
I mean , just because 6% has been the standard , it's not uncommon for some people to go in there and say , well , my commission is anywhere between 6% and 8% . It just depends on the home itself , and I would love to see it , and then we can have that discussion , and then that's where you can say let's just split the middle , I'll do it for 7% .
The market trends , obviously . What's going on in the market ? Kelly , you mentioned over time prices of homes have gone up . Yeah , absolutely . My first home was $282,000 . That same exact home . You know what is it to ? That same exact home . I bought that in 2001 . And that same exact home in 2024 is just over 750 , you know . So it's like um , I mean .
But then again there are other areas where I could have bought a home for 280 and they're up like 900 grand . So again , on a micro level , completely different um , the other things that can affect , other factors that can affect the valuation of a home .
Well , I don't want to say valuation , I want to say the sales price , because it could be the seller's motivation as well , also buyer's motivation . But what I mean by the seller's motivation is they just might need to move quickly for some reason .
Whatever that reason is , even though we cannot divulge that motivation to the other party , unless that other party has price reduction just to go right , then that can also be a factor that might influence the price of the home .
It doesn't mean that it's not valued at this , because the appraiser might value it at 950 , but the seller's like I don't care , I got to go 875 , sell it fast , right ? So there's something like that .
That and you as the listing agent know , that , but it's not our job to let everybody else know that either , because then everybody's going to use that as a negotiation strategy against you . Um , is there anything else with this particular script or another way that you would handle it , kelly or frida ?
I think for me is I . What I do see is in a master plan community or a community where one home is selling for $200,000 more and they're selling it for full cash buyer , and then you see another home in the same community that is still active and it's not moving at all , so or some that are selling at the market price .
That can really screw your CMA right , your data , and you have to wonder why . I mean that home that is selling for $200,000 more for cash . They just have to have a lot of good stuff in there in order for the desirability so the buyer would want it to buy .
That's right . Like , like I mentioned earlier about features there's there can be some amazing features in that home that can also add value as well . Typically , you know , I don't want to say it doesn't add value , but there are certain things that can't that it will . I think it's more of a personal preference .
Like if a buyer goes in there and they see certain things and they're like , oh my gosh , this is everything I wanted ever . You know all marble , all crown , molding , all you know . Just it's just done exactly the way that I want it . They might see the value in that and say , you know what ?
I'm willing to pay an extra hundred grand so that I don't ever have to go back and do that again .
And I will tell you as a previous homeowner of what three different homes now there are certain things that I used to do in my first home that I would never , ever want to do ever again and it's worth it to me just to pay for it and have it done so I just don't have to do that yard work , that hardscaping , that , whatever the flooring or painting or
whatever it's . Just it means it's value to me and that's what I'm willing to pay so you're paying for convenience for me ?
yeah , absolutely but when it comes to the appraiser that is going in to um price another home in that community , I mean that sale was a great sale , right For the rest of the home . But now the other homeowners just think , oh , my home is worth $200,000 more .
So when you're going in as a listing , trying to be a listing agent on that home , you know now you're like , okay , you have to justify yourself there are anomalies , right there's .
Think about back . So you're , you've been licensed long enough to think about uh , back about 2005 , six and seven , right , when when short sales were a big deal and foreclosures started to really happen .
So when somebody , or just in general , even today , when somebody has to go through a foreclosure and a home price , the price of a home is sold for significantly less than the rest of the homes on the market or a distressed property .
Now you're dealing with something that's dragging down the market and you have to determine or help the client understand why their home might be worth a little bit more . And that's just an anomaly .
And that's where , looking at tax records and pulling the CMAs and you know , looking at them , when an appraiser does , checking out the inspections and just seeing how many of these properties have sold at this particular price too , you can look at it from the last 30 days , last 60 days . Let's see what went on for the last year .
Okay , that was just an exception , so we're just not going to even account that property because they were obviously in a situation where they had to sell . It's a tough conversation , especially if you go the other way , right , when somebody sees the other way , like something sold for so much more . Yeah , I get it .
I mean , you know it's sold for a hundred or $200,000 or more , but that's that's not what's going on consistently over time .
Yeah .
It's a tough conversation because they do . And then that's when the other agents will come in and they'll say , yeah , I'll take your listing , we'll , we'll sell it at 200 grand more . And then you'll see , you'll find out later on .
You know , two months later they're dropping the price by a hundred grand and , because they weren't fully honest with their client either , they're just trying to get the listing . And I would rather lead with integrity and honesty . In my opinion , good conversation . This is the last of the seller objections for the quarter Next week .
I do want to point out that we are moving to internet leads and social media calls . So what I mean by that is there are people you're placing an ad , they're calling in , you're posting on Facebook they're , they're messaging you or they're calling you .
Um , there's , uh , there's multiple uh internet lead type sources that we're coming to and those are unveiling your dream homes your ad caught my eye answering the social call and what's driving your home search . And then on Monday we're practicing the seller presentation . So , great job this week and looking forward to next
¶ Real Estate Scripts Practice Podcast
week . And thank you , kelly , for joining us today . I hope you come back .
I will Thank you , Yep absolutely . Nice to meet you , Frida . Hopefully I'll see you in person . I know Take care . Thank you , Darren .
Thank you .
All right . So that's the script . I hope that you found it useful . Just head over to realestatescriptspracticecom for more resources and downloads . This podcast is for the purpose of education only and it does not make any guarantees . We suggest you seek out the help of your broker , coach , mentor , cpa or attorney .
Brought to you by Darren Tunstall , california DRE number 018-53445 .