Overcoming Objections

Originally posted by Rev Real Estate Academy

As a real estate agent, it is inevitable that you will come across objections daily. How you deal with those objections will make all the difference in your career – they will either hold you back or propel you forward. In order to make the latter a reality, it’s critical to develop a deeper understanding of the objection and get to the root of the problem.

Before we get into the specifics for commonly heard objections, let’s review the steps you can take regardless of the opposition:

STEPS FOR HANDLING OBJECTIONS

1. Validate– You always want to validate the other person’s feelings. Handling an objection does not mean you are telling the other person they are wrong; it is acknowledging how they feel and empathizing with their concerns.
2. Take the Pressure Off– After you validate the concern of the other party, take the pressure off of the situation. Let them know that whatever they choose, you are here to support them.
3. Inform– The other party will become more receptive to what you have to say once you have taken the pressure off the situation. Inform them of what makes you different, your value proposition, and how you can help them.
4. Call to Action– You always want to end by asking a question and creating a call to action for the other person to respond to. You want to ensure you addressed exactly what their concerns are and that they are comfortable moving forward in the process with you.

In this article we will highlight common objections and review tactics to help you delve deeper into the protestations you are experiencing. By developing an innate awareness towards your client’s experience you will be able to increase conversion rates and in turn get that much closer to your goals.  Let’s look at several objections and how to overcome them.

GENERAL NEW AGENT OBJECTIONS #

“How many years of experience? Aren’t you brand new?” #

– Be very confident here. This is an opportunity for you

*Never say 3 months, say I’m in my first year and doing very well* – Re-establish confidence and control.

Come back to why you are in real estate. Example – I was very successful in XYZ with sales and with negotiations so I had to get into real estate and it’s paying off for my clients!

Co-Brand and use Stats (with your broker/team/brokerage). Example – “I’m new but my tenacious sales skills and hard work are really paying off. I also have a broker/team member/etc that sells X number of homes in a year and can deal with any situation.”

“The major benefit is that I have an experienced team behind me plus your awesome listing gets more attention. It’s frustrating when your listing doesn’t get the attention it deserves and some agents sometimes just don’t have the time to give you this much dedication.”

“I’m not sure that you are qualified to sell my house.” #

You need to dig deeper into this objection by saying: ‘“Thanks for bringing this up. Can I ask if there is something specific that I making you say this?”

[Years of experience] “Can I bounce a few ideas off you?” Answer with objection handler above (How many years of experience)

[Have not sold any homes in the area] “Can I bounce a few ideas off you?” Answer with objection handler below (This other Realtor sold more homes in the area OR you haven’t sold any homes in my area)

REAL ESTATE BUYER OBJECTIONS #

Meet with a positive approach and finish with a question

“I have a few places already picked out on MLS. Can we have a look at these before the meeting?” #

You have started the process? That’s awesome. I’ll tell you what why don’t we meet for half an hour before our first showings and then we can head to your selected properties from there?

You have started the process? That’s awesome. I know the thought of a meeting can be boring but this is a super exciting meeting where I get to know your criteria in detail so I can best be of service to you. Does that make sense?

“Why do I have to sign a buyer brokerage agreement right now? When we purchased last time we didn’t have to sign anything.”  #

“I understand where you are coming from on this. Buyer Brokerage Agreements are put in place to help us clearly define our relationship. We have the contract to simply protect all of us. How about we make the agreement for only two weeks to see if we are the right fit? After that, we can go our separate ways if it isn’t the right fit or we can extend the agreement if it is. Does that work for you? “

“No I’m not pre-approved but financing won’t be an issue.” #

“That’s great! I’m glad you’re in a good position here. One of the main reasons for a pre-approval is your official pre-approval letter is required by some sellers. The other thing is attaching it to your purchase contract can greatly improve your negotiating power. Does this make sense?”

“I’ve been out on a few showings with another Realtor.” “I’m receiving properties from a few Realtors in town.” #

“That’s great I’m glad you have started the process already! I know the industry can be a little confusing with compensation so let me quickly explain how I am paid. In almost all cases, the seller is responsible for both their Realtor and the buyer’s Realtor’s commission; therefore, we actually don’t get paid until the transaction closes. For that reason we request our buyers remain loyal to us and we will remain loyal to you. I’ll tell you what, go through all of the information we went over today and let me know if you would like to work together. This has to be a win-win relationship for everyone. How does that sound? “

“I’ve been through a few new showhomes recently.” #

“That’s great I’m glad you have started the process already! Dealing with new homes is a slightly different process than re-sale. I can definitely help you work with builders as well. The tricky thing about their model is they require me to be there the first time you go through the sales center. So, I’ll tell you what, can we touch base with the builders you have met and let them know you will be represented. If not, I do understand, and I will not be able to advise you as you work through that transaction. Are you ok with us all having a quick conversation OR WOULD YOU PREFER TO GO AT IT ALONE? (Powerful statement)

“My friend might be selling me their house.” #

“That’s great! I’m glad you have started the process already! Private deals can work well. There are two approaches here that you can choose from:

I can still help advise, negotiate, and bring the transaction to a close. I would just request that I am compensated by the seller (don’t say friend).

Or you could handle it ALONE.

Do you have a preference?”

“You Have Been Through A Number of Homes.” #

Ask: “How is the process working out for you?” — They will likely respond by saying they are frustrated they can’t find what they are looking for.

Set up a quick meeting/phone call to review their criteria. Discuss criteria and move back to the Magical Wording (85% Home, 3 Things). Let them know that everyone wants what is slightly out of their budget. This happens at all price points.

“If we could just pick this house up and put it down there.” #

“I totally understand what you mean. That is one of the challenging aspects of buying a home. Remember the 3 things we discussed in the meeting: Home, Price, Location? This is exactly what is coming to light here. Usually, when I chat with buyers like yourself about this, I ask them if there are 2 of the 3 things that are really important. What are the 2 non-negotiable in the 2 of 3 items. “

“I don’t care if they are offended I’m just going to submit the lowest price.” #

For sure! You should be focused on getting the best price. Offending the seller is no problem at all but one just must be prepared to lose the property or end up paying more than you may have originally. Let me explain. Offending a seller can cause them to not respond at all. If you start coming up on your price until you receive a response your negotiation position is weakened. As they begin to see your interest they will hold out and you will likely pay more for the property. It’s not a standard back and forth on price negotiations as terms, conditions, the market, and motivation all play into the final price. In these cases, we usually recommend coming in on the lower side but still at a reasonable price. This usually results in the best price for you. What are your thoughts?”

“All I want in a home is the best price/deal out there.” #

“I’m glad you are focused on finding great value. I can certainly help you on this front. There are 2 ways to get a great deal on a property:

You know the market and jump on one that comes on ASAP to avoid anyone else tying it up OR

You focus on properties that have high days on market that NO OTHER BUYERS WANTED (the reject properties) and consider writing low offers. Now there is no right or wrong. Is there one of those two approaches that jump out at you?”

“I’m not ready to buy for at least another 6 months so no need for us to sit down yet.” #

“If you’re 6 months out I would recommend starting to get a handle on the market. Most buyers find a ton of value in receiving properties that are coming on the market even when they are 6 + months out. Would you be interested in getting a handle on the market before starting the shopping process? I can happily set up a quick auto search for you.”

“If I already have the property I would like picked out, will you provide me with commission back since you don’t have to work as hard?” #

“That’s great you have a property in mind. If we don’t have to tour through as many homes that does cut down on time but the true value in a trusted Realtor is advising, negotiating, and bringing the deal to completion. As a rule, we never do commission kickback. I’ll tell you what, if this goes quickly I’ll make sure we go out to a nice restaurant and celebrate.”

“We aren’t in any rush we will just wait for the right property to come up.” #

“That’s great you aren’t in a rush. This puts you in a great position when it comes time to negotiate. In moving through the process, we find buyers are in one of four stages: Curiosity, Interest, Desire, Commitment. For the curiosity and interest stage, buyers are very focused online and eliminating properties. Once they move to desire we need to be looking at properties. Where would you put yourself in the four stages?”

“…. Take all the time your need to find the right home. You shouldn’t be rushed. I just don’t want you to miss out on a great property.”

“I don’t mind the busy, loud road, smell, bad street, etc.” #

“That’s awesome! Just so you know this may affect you when it comes time to sell. If you are buying a property with a potential negative you just want to make sure you are getting a discount as you will likely have to sell for less than the comparable down the road. Are you comfortable with this trade-off?”

“That’s awesome! When people ask if certain things are a deterrent or not I let them know that there are still buyers out there but the pool of buyers shrinks (use hand gestures). Does this make sense?”

“What should I be looking for when I go through a house” #

“Great question! Although that can depend on the buyer I recommend looking for things you can’t change and picture your life in the home. I’ll be pointing out important drawbacks or positives that may affect you on the resale market. Also, I can answer any questions you have as we go through. Of most importance is picturing your life in the home and determining if the layout works for you.

 REAL ESTATE SELLER OBJECTIONS #

Meet with a positive approach and finish with a question

*Most problems stem from flawed systems, not flawed people.

“You’re the expert. You tell me what it should be listed at.” #

“The market speaks and we listen. Based on the info we will go over the current market range is _______ to __________. Is this within your expectations?”

“That price is too low.” #

“I understand and can appreciate you were expecting more. The market ultimately determines the value of a property. We always recommend staying one step of the market”

Buying too? — “You can make up the difference on the purchase”

“We can try with a higher price as long as we are ready to move the price should we not see the action. Are you comfortable lowering the price after 1 week on the market if we do not get the traction required to sell?”

“I won’t sell it that low.” #

“I understand that this number is below your expectations. Can you let me know the range you were expecting? Can you walk me through how you arrived at this value? Let’s look at the comparables again and see where that number would put us in relation to other properties.” (This should be approached in a collaborative manner. It’s best to seek to understand their position and cross-reference with the comparables. Remember, you are on the same team!)

“We want to start higher and test the market.” #

“The choice is always yours to make and we will 100% back you up. We just do not want to see you chase the market down and end up with a lower price than anticipated based on this evaluation. The major challenge when listing high is when buyers come once, they don’t come back. Is this okay with you?”

“No problem, let’s do it and let’s also keep a very close eye on the market’s response. We will let you know right away if we are helping sell other listings. It will be our duty and obligation to recommend a reduction if this is the case. Would you be willing to reduce in 2 weeks’ time if this is the case?”

“Your fees are too high.” #

“I agree that normal fees are too high for the value and the resulting amount left in your pocket (NET). That is why we demand a higher standard of listing when we list a property. We believe the old way of listing a property is dead and it’s time for a higher standard and an ACTIVE process to sell your home. I can appreciate the investment is no small amount and neither is your home. We strive for fairness and honesty. There are a lot of agents out there that will drop their fees but is this the person you want fighting for you when they are negotiating with buyers?”

“Will you reduce your commission.” #

“I fully understand your desire to want to lower commissions. Correct me if I’m wrong in saying that ultimately what you would like is more in your pocket at the end of the day. If you select a team that will do it for less, this should make you nervous. Let me explain. Someone who just swipes their commission will likely be the same person that won’t fight for you when an offer comes in or pay particular attention to your listing. Nor will they be advertising your property and getting it in front of as many people as they could. In my experience agents that just swipe off their commission are the same agents that are out there for a quick, easy sale. It’s like saving $1 on commission but potentially losing $2 in the process and negotiations. Is that a risk you are comfortable with?”

“More intense and risky: This is the investment for this level of service. What service offerings would you like removed?”

“If you represent the buyer as well what will your commission be?” #

“That’s a great question. It is very rare that this occurs as most buyers have/want their own representation since my duties are fully to you. If it is our buyer that we have been working with then we cannot alter the commission; however, if the buyer comes from simply a “sign call” then we will discuss a fair commission adjustment for our team to handle both sides. We believe everything about the process should be FAIR AND HONEST.”

“My home is worth more… we did XYZ.” #

“I hear you and fully understand. We absolutely must account for this added value and I know this helps differentiate your home in the market. We also have to fully analyze what a buyer will be willing to pay. We call this analyzing from the buyer’s eyes. Does that make sense?”

“How are you going to sell my home?” #

“We have a long list but let’s jump into three very important elements

Marketing like no other! It is all about getting the most number of eyes on your listing.

 

Advanced and continuous market and price analysis. The market is a moving target and most agents will just want to secure the listing. We are committed to selling your home on your terms.

 

We have the experience and skill to bring an accepted offer to close. Many deals fall apart and return to the market. Also, there can be complications with closing. We excel post-offer to complete the deal. The offer is only first base.”

“Can I exclude a few people from the listing contract? – I am already talking to them and they might be interested in my home.” #

“Absolutely! We completely stand behind having our marketing leading to the buyer. We are willing to do an X-week exclusion with just having you cover the initial marketing costs. From there, you are free to go through the whole process on your own. Or we can represent you in the transaction, charging you only the listing side of the commission. OR WOULD YOU PREFER TO GO AT IT ALONE (Powerful statement)”

“I’ll tell you what – I’ll pay you the full amount if you get my asking price but your commission will go down with my return going down.” #

“You’re like me, you are a tough negotiator we will work well together (humor). The tricky thing here is the hard costs to get your listing in front of the most people will not change. Removing any further investment is food off my family’s table (feeling). Actually, commissions are a percentage of the sale price so as your accepted amount goes down so do the commissions. Therefore, this strategy is already built-in (logic).

“My basement doesn’t have permits but I don’t want to disclose this.” #

“I can fully appreciate and understand your desire to not have this affect your bottom line. We simply disclose this to avoid you getting sued down the road when you are moved into your new place. There have been recent cases where buyers have taken the seller to court for not disclosing permitting. It’s actually a legal requirement. I’ll tell you what, we will just put it in the private remarks so agents will know but it won’t be visible on public MLS. Does that work?” (Check rules with your board and jurisdiction)

“This other Realtor sold more homes in the area OR you haven’t sold any homes in my area.” #

“While I can’t argue the number of homes I have sold in your area I wouldn’t confuse selling the most number of homes in an area with whether a team can get you the most money. While I understand we have not sold as many homes in your price range we do represent a number of move-up buyers that are looking in this area. We also have proven new strategies that exceed most agent’s in our market.”

“That number is way too low…I’m not going to counter.” #

“I agree it’s low and we will definitely have to get them up closer to us. It’s not uncommon for buyers to come in lower to feel a seller out. The tricky thing is if we don’t counter we might be missing out on an opportunity here. I’ve seen these situations before and it’s worked many times in the seller’s favour we just have to give them something to work with. How about a conservative counter to see if we can get some movement out of them?”

“I know we are only $5K apart but I said I wasn’t going below X, they can come up $5K or walk away.” #

“I’m with you in wanting the most for your place. These situations come down to “risk tolerance”. We could work with this one or we wait for the next one. Waiting is just a larger risk.” (This helps sellers put the offer into perspective)

“Let’s try and get another couple grand out of them.” #

“We definitely can. It’s also really powerful to enter into the conditional period on good terms. I’ve seen countless deals fall apart because of frustration and both the seller and buyer lose. Sometimes it works best to do everything we can to stay on the best terms as we move into conditions. Know that I’m behind you 100% either way.“

“This is only the first offer. Let’s see if we get another one before we accept anything.” #

*Avoid this off the bat by letting them know in the listing presentation that your first offer is usually your best*

“I’m with you in wanting the most for your place but oftentimes these situations come down to “risk tolerance”. We could work with this one or we wait for the next one. Waiting is just a larger risk.”

“We aren’t in any rush. If it sells it sells. If not we will just take it off the market” #

This client may not be interested in selling. It’s best to determine their reasons for selling. Understand them and if they truly don’t have an interest in selling, you can always decline the listing. There is also potential they are using this to establish power. It’s important to understand their motivation and price expectations.