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The Fundamentals of FSBO Objection Handling

Sep 24, 2019 9:00:00 AM

 

Are you nervous about your FSBO listing appointment and the objections you might encounter? Here is sound advice for how to tackle objections the new way, so you can help FSBO sellers see past their reservations and look forward to listing with you.

Let's talk about common FSBO objections and how you can overcome them. As agents, we deal with objections every day. There are certain core fundamentals that are important to know — even before knowing “scripts” to reply with — that will help you address all types of objections you might encounter with FSBOs. 

Don’t fight them on having objections. 

When a FSBO objects, don't aggressively fight back. Sometimes, you’ll have to change a FSBO’s mind to get them to list. And as you know, people don't like change. All of us like to feel in control; that's our human nature. You have to stealthily change a FSBO’s way of thinking, rather than flat-out telling them that their reservations are wrong. 

Many home sellers don't feel comfortable with the change that we, as agents, are presenting. What is that change? That they actually need HELP selling their home. That said, they may think they need more time to feel comfortable with what you're presenting.

In other words, the core objection we face is as simple as FSBOs not knowing and seeing the need for change. As agents, we must show them why that need exists. 

Show them change is less painful than staying the same. 

When presenting a new solution (hiring an agent), we need to sell home sellers on that solution by drawing the doubt that they have in their minds. This ensures that they buy into what we're presenting. This is where we have to fill in the role as a leader and guide them to a new perspective where they see our point of view. In doing so, they will also see that there is a need for change. 

We also need them to see that if they don't change, they will end up in a place they don't want to be. Maybe their home won't sell; they’ll lose money; they’ll lose time; the home they are planning to buy will no longer be available. Restate their fears to them so they can see and feel the fear of loss. Meanwhile, the new solution will ensure that their home will be successfully sold, money will be made and life will carry on! 

Make a classic solution look new. 

Sure, we may be presenting the same solution as all the other agents out there, but the fact is, if we do it differently, the sellers see it in a new light. Suddenly, it becomes an innovative idea. You're presenting it differently so they see your value and they feel the pain of not taking action. This all revolves around destroying objections, which is the key component to selling. 

Keep in mind the old way is THE OLD WAY.

Let's talk about the traditional way of overcoming objections. Any agent who's trying to persuade a home seller to list with them traditionally takes the approach of answering every objection. For example, when a home seller says, “I want to save money, and that’s the reason I’m selling on my own,” most agents will say, “Agents get more money for your home than you can as a FSBO. Here are the stats. Here's the data.”  

In that case, sure, they answered the question. The objection has been addressed with a seemingly sufficient answer. There are thousands of scripts for overcoming objections. Most of the time, the theory is to have an answer for every possible objection for every possible situation. Agents have traditionally practiced overcoming objections by beating home sellers over the head with seemingly good answers like the one we just looked at. This process worked, but the traditional method has been used so much, it’s no longer as effective as it used to be. If we're just answering objections, beating people over the head and presenting a solution, you know what? Sometimes, we leave frustrated. We leave losing the game because we did not destroy objections. We tried to just answer them.

 

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The New Way: Reframing Objections

The art of destroying objections is to reframe the position the sellers are taking. This is a more modern method — turning objections into positives for the home seller. Essentially, objection reframing is the process of taking the objection and turning the situation into a positive one in the mind of the seller. When sellers feel positive about a situation, they're more open to really making a change and listening to you. This goes back to what I call consultative selling, where we're filling the role of the advisor and not the salesperson. Whenever you're speaking with a seller, you're filling a role of either a salesperson or an advisor. An advisor focuses on the needs and the motivations of the seller, rather than on themselves or the brokerage. 

But here's the catch. You have to listen in order to understand the motivations of the home seller. Then, you have to find a way to reframe the objection so they see the situation in a positive frame instead of the current negative frame. And the only way to do that is to ask the questions and listen. Finding the solution within the cause of the problem is the key to reframing the objection. The cause of the problem for many FSBOs is that they don't think they can afford to pay a commission. When we get them to see the bigger picture — that they can't afford to go alone because it will cost them much more than our commission —  they see the value of the agent and the need for the solution.

Their lack of understanding is your lack of educating. 

Remember, home sellers are open to trying your solution. They simply don't know yet that they can list with you and save money, time, and headaches. It's our job as real estate agents to educate them so they know what's at stake. Many times when we hear the answer “no” and feel them resisting, they just need to know more. There's lack of understanding, and it really falls back on us to educate them. 

This is where we need to slow down, talk them through the situation and take the time to reframe every objection. It's not a one-sided solution, and prospects are always open when there's a positive. When they hear their fears and objections reframed in a positive way, it tears down their resistance. 

We can argue about a topic all day long because we see different sides and two different perspectives. I need to get you to look at it from my perspective, and you need to get me to look at it from your perspective. When we take the approach of reframing, we're literally bringing the sellers around to our perspective. But first, we're looking at things from their perspective to better understand their pain and frustration.

Two rules to always follow. 

Now, I want to leave you with two rules to follow. Number one is to focus on the motivation of selling the home from the seller’s perspective. Number two, figure out how you can reframe that situation in a positive light to get them to see your point of view. 

Reframing objections is not negotiating. You're simply taking the situation and reframing it so the other person can accept it. In other words, you're finding a win-win situation for both you and the home seller. Instead of being met with resistance, you'll be able to move forward with more listings, allowing you to build a pipeline, and, more importantly, raving fans. 

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Topics: FSBO

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