How to Handle "Your Competitor is Cheaper" in Real Estate & Property Management Sales
Expert framework for overcoming the "Your Competitor is Cheaper" objection in Real Estate sales. Proven 3-step method with industry-specific examples.
ScriptFly AI Team
Expert Sales Trainers
How to Handle "Your Competitor is Cheaper" in Real Estate & Property Management Sales
Every top-performing real estate sales rep knows the moment: Your pitch is sailing smoothly, you're building rapport, and then BAM—the price objection drops like a lead balloon. "Your competitor offers this for less" becomes the verbal kryptonite that threatens to derail your entire sale.
Why Real Estate Prospects Say "Your Competitor is Cheaper"
Price comparison is the default defense mechanism for prospects feeling uncertain. In real estate and property management, where deals often involve significant investments, clients become hyper-sensitive about getting the best value. They're not just buying a service—they're protecting their most valuable financial assets.
The Real Reasons Behind This Objection:
- Fear of overpaying in a volatile market
- Lack of clear understanding of your unique value proposition
- Comfort in choosing the lowest-risk, lowest-cost option
- Limited understanding of total cost vs. upfront cost
The Wrong Way to Respond (That Most Reps Do)
Most sales reps panic when they hear the price objection. They immediately start defending their price, offering discounts, or worse—apologizing for their pricing.
Don't:
- ❌ Immediately discount your service
- ❌ Get defensive or argumentative
- ❌ Start comparing feature-by-feature with competitors
- ❌ Sound desperate or uncertain
The 3-Step Framework That Actually Works
Step 1: Acknowledge Without Agreeing
Validate their research while maintaining your value positioning. Show you understand their perspective without conceding ground.Example Response:
"I appreciate that you've done your homework and are comparing prices. Smart move. Let me ask you something—when you're managing a multi-unit property portfolio, what matters most: the lowest price or the highest return?"
Step 2: Reframe the Conversation
Shift from price to value. In real estate, ROI trumps initial cost every time.Example Response:
"Our solution isn't just about the monthly fee. We're talking about maximizing your property's revenue potential, reducing vacancy rates, and streamlining management. Would you be interested in seeing how that translates to actual dollars?"
Step 3: Ask a Diagnostic Question
Questions reveal underlying concerns and put the prospect in a reflective mode.Power Questions to Ask:
- "What specific features are most critical to your property management success?"
- "Beyond price, what performance metrics matter most to you?"
- "If you could design the perfect property management solution, what would it look like?"
Real-World Example: Summit Properties Group
When Summit Properties Group encountered a price objection from a potential client managing 50+ residential units, their sales rep didn't flinch.
What Happened: The rep walked the prospect through a detailed ROI analysis showing how their slightly higher-priced service would generate an additional $48,000 in annual revenue through advanced tenant screening and maintenance optimization.
Key Takeaway: Price is negotiable. Value is non-negotiable.
Industry-Specific Considerations for Real Estate & Property Management
Real estate sales aren't just transactions—they're strategic investments. Understanding market nuances is crucial when handling pricing objections.
- Market Volatility: Clients want reliability more than rock-bottom prices
- Average Deal Size ($35,000): Significant enough to warrant thorough evaluation
- Typical Objection Triggers: Market uncertainty, recent economic fluctuations
5 Variations You Can Use Tomorrow
Variation 1: The Empathy Reframe "I completely get wanting the best deal. Let's look at what 'best' really means for your portfolio."
Variation 2: The Social Proof Angle "Our clients who initially chose cheaper options are now switching to us after experiencing limited results."
Variation 3: The Risk Reversal "We're so confident in our approach, we'll demonstrate our value before you commit fully."
Variation 4: The Future-Pace "Imagine your property performance 12 months from now when you've partnered with a true strategic ally."
Variation 5: The Direct Challenge "Are you looking for the cheapest solution, or the most effective one?"
Common Follow-Up Objections
"But their price is still lower" → Redirect to total value and long-term performance metrics.
"I need to reduce immediate costs" → Discuss flexible payment structures and immediate efficiency gains.
"I'm not convinced" → Offer a pilot program or detailed ROI projection.
The Bottom Line
Handling the "cheaper competitor" objection isn't about winning an argument—it's about demonstrating unquestionable value. Your confidence, strategic approach, and ability to reframe the conversation separate top performers from average sales reps.
Quick Win: Create a one-page ROI comparison sheet highlighting your unique value propositions.
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Common Questions About This Objection
When is the best time to use this objection response?
Use this response immediately when you hear the objection. The key is to acknowledge their concern authentically before reframing it. Timing matters—respond too quickly and you seem dismissive, wait too long and you lose momentum.
What if this script doesn't work for my specific situation?
Every prospect is different. Use these scripts as frameworks, not word-for-word responses. Adapt the language to match your industry, product, and the prospect's communication style. The underlying psychology remains the same.
How do I practice these responses effectively?
Role-play with a colleague or record yourself. Focus on tone and delivery—confidence matters as much as the words. Practice until it feels natural, not scripted. The goal is to internalize the framework, not memorize lines.
Can I combine this with other objection handling techniques?
Absolutely. These responses work well with techniques like the "Feel, Felt, Found" method or the "Boomerang" technique. Layer multiple approaches for complex objections, but keep it conversational—never sound like you're running through a checklist.
How many times should I try before moving on?
If you've addressed the same objection 2-3 times using different angles and they're still not budging, it's likely not a real objection—it's a polite way of saying no. Know when to pivot or disqualify the prospect to focus on better opportunities.
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