A large number of your prospects are going to make excuses to why they don't want to list with you.
If you counter with such a convincing argument, you will win their listing.
Having a pre-scripted answer to the most common objections will make it easy for you. Being able to overcome objections is a skill set all realtors should be versed and proficient in. Here are some strategies and responses to objections.
"Another agent said he can sell it for more."
What to tell them:
It's not about what another agent says. It's about the market. They don't decide what it sells for, the market does.
The MLS data is the same for everyone, some agents are just going to tell you whatever they think you want to hear. Take a look at the houses on the market compared to yours.
Do you want an agent who will say anything to land business, or one who will get the job done in a timely way?
"Zillow has my home priced higher."
What to tell them:
Their Zestimate just takes statistics from the deeds of the houses in that area to get that price. They don't include the condition of the home or any upgrades.
They are almost always too high or too low. My CMA is from a number of factors from the MLS and the exterior and interior of the home. I can show you the recent sales in the area that appraisers will look at when they’re determining the value of your house from the buyer’s mortgage company.
"We can list it for a higher price than that, then reduce the price if it doesn't sell later."
What to tell them:
This could create a bunch of problems. The original listing price is a vital part of selling your home.
No one looking to buy a house is going to look at overpriced listings. This is going to lead to fewer showings, prospects and offers.
The best opportunity to sell your house for the highest and best price is in the first two weeks that it’s on the market. So by pricing the home for what you think it will sell for from the start, you will end up with more offers.
If you have more than one offer, they can start driving up the price of each other.
Use these responses to overcome real estate owner's excuses.
"Reduce your commission and we will list with you."
What to say:
The difference between 1 or 2 percent less for me is fine, but my commission also covers the buyer's agent. Then if he has an office (or if you do) half of that goes there.
So if you offer this there will naturally be fewer showings and a lot less qualified buyers. The difference may end up being bigger than you think. Most, if not all agents, are motivated by dollars.
Buyer's agents are going to show homes to their clients that offer the greatest commission. I'm not opposed to this, but with the perceived savings even be worth it?
"We would like someone with more experience in my area."
What to say:
I may not have sold any houses in your exact area but I have been working in this city for years and know the market extremely well. Not only that, but I am using houses that have sold recently in your area to factor in your CMA.
When you sign the contract with me, I promise to bring in buyers from all over the area. That is the most important factor.
Overcoming when an owner says, "I have a friend who's an agent."
This is one of the most common answers agents hear. Here are some ways to overcome this.
Ask if they want to mix business and friendship.
It's never the best idea to do this. So just make sure they are ready to do this in case things go south.
Offer a referral fee to their friend.
This can let the owner hire you and feel good about not working with their friend.
When you offer this and remind them that business and friendship can go wrong, it works a lot of the time.
Ask if they want a second opinion.
It's really rare they turn down a second opinion on pricing and marketing ideas.
Then when your foot is in the door, you have a chance to blow them away with your listing presentation.
Dealing with the, "I'll think about it excuse."
1. Do Not Overreact
Allow yourself time to process the objection. Pause and think about what exactly is being communicated.
Use this time to wisely assess the situation so that you don’t appear too hasty or judgmental. Sometimes speaking too quickly can make a realtor seem desperate and defensive. Listening is key in any sales situation.
2. Acknowledge the Objection
Make sure you acknowledge the objection. Reiterate to the client what you understand as the issue, and ask them to confirm you have interpreted the issue correctly. Be empathetic; let your client know their objection is valid and that together you can work out a solution.
REALTOR: “So if I’m hearing you correctly you feel like you may not qualify for a mortgage at this time?
“Do you feel you could get a better offer elsewhere?”
“Is it that you like this house, but feel the price is out of your budget range?”
3. Isolate the Issue
By isolating the issue you can start formulating ideas for a viable solution. Ask probing, open-‐ended questions that will force the client to have to speak to the real issue at hand.
The “I’ll think about it,” statement is merely a mask hiding the core issue. It is up to you, the realtor and professional to find out the real problem without being too pushy or overbearing. Questions starting with the words what and why will always yield a more detailed and in-depth answer.
REALTOR:
“What do you think we can do to get you qualified for a mortgage?”
“Why do you feel you wouldn’t qualify for a mortgage at this time?”
“What else worries you about this sales transaction?”
“What other concerns do you have that would prevent you from buying this house?”
4. Clarify
Now that you have isolated the issue you must seek clarification from your client. Sometimes what the client has identified as an issue really isn’t.
This also requires the use of keen questioning to help yourself, as well as the client, to understand the full nature of the problem. What is deemed an issue could be misinformation or lack of information. For example:
REALTOR: “Have you applied for a mortgage already?”
CLIENT: “No, but I just don’t think I would qualify.”
REALTOR: “Are you willing to move forward and see if you do in fact qualify for a mortgage?”
In the above scenario the client has not been declined a mortgage so therefore this is hardly an objection, without knowing for sure they would not qualify for the mortgage.
5. Offer a Solution
As a realtor or any salesperson for that matter, you cannot overcome an objective without being able to provide a solution or suitable workaround option.
The client is using your services because you are the expert; so there is an expectation you should be able to solve any issues posing a threat to the transaction.
REALTOR: “Well I do happen to know a mortgage banker, let’s give him a call to see if he can get you approved.”
“I would be more than happy to negotiate a price reduction with the sellers on your behalf.”
The key to overcoming objections is simply uncovering the real reason behind the objection.
More often than not, the “I’ll think about it,” statement is simply a cover up for a bigger or possibly even lesser issue – depending on how you look at it. Either way, it is the responsibility of the realtor to carefully probe and ask relevant questions to discover these hidden truths and provide the appropriate solution.
Use your expertise as a real estate professional to evaluate and uncover ‘timing’ as another true reason for the “I’ll think about it,” statement.
The best way to overcome objections is to blow the owner away with your listing presentation. We already have one buit out for you. It’s completely built out and will convince owners you are the right agent for the job.
You can get this entire presentation for $97. You can customize it to how you do business… and your marketplace.
If you’d like to get your own copy of my listing presentation, then click here:
Joe Nickelson is a real estate professional dedicated to helping home buyers and sellers achieve their dreams of owning property, and helping real estate agents stop using the sometimes-vicious tactics that weigh on their consciences. He believes that the Smart Agents books will, quite literally, change people’s lives for the better. Check out his full bio here!
