Question

"I can appreciate your frustration with the marketplace and I was wondering, what specifically causes you to believe that you can sell this home yourself when less than ___% of the homes listed for sale with real estate agents are selling?" (I don't know... but, I can't afford to sell at that price.)

Ah-ha! The real objection comes out! Now dig more, find out the true motivation and handle the objection the way I have already taught you.
Top Agent Alternative:
"No matter what you ask for, the homeowners are trying to save money by selling their homes themselves. I can create more competition through the brokerage community." Here's a derivative of the same one...
A) Uncovering the underlying objection to selling without an agent.
B) Challenging the client's belief in successful self-selling.
C) Offering a solution through increased competition.
D) Encouraging the client to reconsider the affordability of agent services.

Answer 1

Imperfect information leads buyers to use price as an indicator of quality, making it hard for buyers and sellers to agree on a price and challenging to reach market equilibrium.

Step-by-step explanation:

It might be difficult for a buyer and seller to agree on a price when imperfect information exists because the perceived value of a product can be significantly influenced by its listed market price. In cases where a car dealer lowers prices to move inventory, buyers might infer that the cars are of low quality and steer away, thus not helping in increasing sales. Conversely, higher prices can lead to the assumption of higher quality and potentially boost sales. This phenomenon occurs because, in markets with imperfect information, price becomes a heuristic for quality, making it challenging to achieve equilibrium price and quantity.