Before I get into some objection handlers for this market, I’d like to say that the word “crappy” is from the perception of the buyers and sellers.
As you know from reading my blog, I’ve been saying that no matter what you’ve been hearing, as a real estate agent, homes are selling every day. And, while that’s true, I didn’t just drink the happy juice, I know times have been tough. However, no matter what I want you, the real estate agent, to think about in terms of your mindset, the buyers and sellers all seem to think the market is bad.
So, let’s do some objection handlers to help with some of the most common real estate objections you may be getting today (and, by the way, if you want an extensive study on objection handling, be sure to click here for our Now What Do I Say? product line featuring our book, book on 3 CD set and live role play CD).
Objection handling is really easy. You only need to do a few things.
First, realize that people only object if they’re considering doing business with you. If they didn’t care at all, they’d hang up, or show you the door with a, “Thanks, we’ll get back to you.”
Second, practice, practice, practice. Buy our book, Now What Do I Say?, featuring over 425 real estate objection handlers, or make up your own. Either way, practice the hell out of them and memorize them, so you feel confident using them.
Third, know your stats. Know the board stats, office stats, competition stats and your personal stats.
Fourth, you need to believe in yourself and your industry. For instance, when I sold, I knew without a shadow of a doubt that if I let a seller over price their house it either wouldn’t sell, or it would take a much longer time to sell and do so for less money than if they listed at the price I gave them in the first place.
I also knew that a For Sale By Owner, statistically, has a very slim chance of selling, and of those that did sell they would make far less money than if listed, even when paying a commission. Yet, many realtors don’t know, or don’t believe that. They think, “I can’t net them what they’re asking after commission, so why bother?” Others even list their own homes FSBO!!! What the hell does that say about belief in self and industry?
Anyway, let’s do some handlers. Feel free to use these, or make up your own.
We’re going to wait until the market gets better – Okay, that makes sense. So are you saying that you’ll be okay waiting 3 to 5 years to sell your home? (What do you mean?) Well, I don’t have a crystal ball, yet everything points to it being another 12 months of downturn. So, by the time prices hit bottom, go past where they are now, and actually start to come up, it’s going to be more than 3 years away. Do you want to wait that long to sell? (no) Good, let’s meet. I’ve got 5 or 6 tonight, which works better for you?
**This works on motivated sellers. If they don’t have to move, they’ll be content to wait.
We’re going to wait until after the election / We’re going to wait until the first of the year – I understand what you’re thinking, and don’t you think everyone thinks like you? I mean, no one’s happy, and everyone’s unsure of the market, right? (well, yeah, I guess) So, if everyone waits to put their property on the market, naturally you’ll have more competition, which will drive your price down even further. Do you want more competition or less? (less of course). Great, let’s get together so we can get you on the market and sold before others just start to list theirs, okay? (well, okay) What time works for you, today at 4 or tomorrow at 5?
We’re going to rent it out – Really? Do you really want to be a landlord, chasing people around for rent, getting repair calls at midnight, and hoping the people pay on time…or, don’t you just want to get the house sold? (I want it sold) Great, so let’s do that for you. What’s the best time for me to come over tonight?
**As with any sale, if the seller literally cannot sell due to pricing, and renting is their only option, this won’t work.
I can wait. If prices go up or down, it’s relative to what we want to buy – You’re absolutely right, and can I tell you what concerns me? (okay) The one thing that’s being forgotten is that interest rates are near a 30 year low. Eventually they have to go up, especially with the bailout. The government wants their money back, right? (well, yeah) So, when rates go up, even if the price of the house stays the same, you end up paying more money out of pocket every month for 30 years. Essentially you get less house for more money. Is that what you want? (of course not) Great, let’s set an appointment, so we can get you sold. How is 6pm tonight, or would 5 be better?
We want to wait, the market could go down some more – (** this is the same premise as the seller who said they can wait. Interest rates could be their worst enemy)
It sure could go down some more, and yet we never know when it really hits bottom, do we? (I guess not) In fact, often times we don’t know it’s bottomed out until it starts coming back up, right? (that’s true). In the meantime, interest rates have probably gone up, which means you’ll pay more money for the same or less house than you could have right now. Is that what you want? (no) Okay, great! Let’s make an offer now, shouldn’t you?
We want to make a lowball offer – You can do that if you’re truly okay with losing this house, can I explain? (yes) Today’s sellers are already frustrated. I don’t have to tell you, they’re at wit’s end with these low prices, and houses taking forever to sell, you know that, right? (of course) Well, worse than having no offers is them feeling abused by a clearly low fishing for a deal offer. Sellers won’t even deal with those type of offers, is that what you want? (no, i want the house at a good price) Okay, so let’s make a market fair offer and see if they’ll negotiate, sound good?
**This doesn’t work if your buyer just wants a deal. If they like the house, then they may not want to risk losing it by insulting the seller. You need to find out their motivation first.
We want to see all the houses available – (Sorry, if you get this, I’m just going to pray for you! Just kidding!)
Excellent, and so I can be sure as to what houses are available for what you want, I need you to answer these questions in detail okay? Don’t leave anything out.
**Then you get every stinking thing they ever wanted in a house and neighborhood down on paper, so you can efficiently show them the best 4 homes on the market according to what they say they want. The average buyer sees over 50 homes with more than 12 different agents before buying. Undoubtedly that’s because most agents don’t bother to ask the right questions, and just let the buyer see everything the buyer finds on the internet. Unfortunately, that’s like turning a kid loose in a candy store and saying pick one piece of candy. You need to be the professional and help them find the right house for them.
If you have any objections you’re getting in this market that aren’t in our book, or that I didn’t cover in this post, post a comment below, or email me and I’ll handle them on another post.