Americans don’t like salespeople.
Salespeople are perceived as being liars or those who “grossly exaggerate, often,” according to Ken Lambert at SMPSBoston.org. He goes on to claim that “When people believe that they are trying to be sold something they instinctively get uncomfortable and often times defensive or even combative.”
Think about it: The salesperson that descends on you the minute you step foot on a car lot. “Just looking,” you say, hoping that will get rid of him. That dread you feel when confronted by the salesperson, even if your every intent is to buy, is exactly what Lambert is referring to.
When it comes to purchasing certain items, however, a salesperson is often required. Cars are one and homes are too.
You are then, a necessary “evil.” Don’t be surprised if, at least in the beginning of your relationship with new clients, you’re treated as one.
And part of that treatment is the “No thanks, just looking,” mentality.
It’s a big barrier to every agent’s intent to build trust and rapport quickly. But one that must be scaled.
It may not be the only objection you face with some clients. Even after you’ve won them over, there are plenty of things they may object to. Here are two of the biggies you may have, or will, encounter.
The commission whittler
Listing presentations offer plenty of opportunities for a potential client to take issue. Agent commissions, however, are the most common.
First, most consumers know that, by law, commissions are negotiable.
What they don’t typically know is that you don’t pocket the entire commission. Objection buster number one is to educate them. Use numbers they can relate to in your example.
“Joe, suppose I earned $20 in commission. Half of that, $10, right off the top goes to the broker whose agent brought in the buyer for your home. The other $10 goes to my broker who then pays me my share, $5.”
If all else fails, fall back on a time-tested commission objection handling technique:
“Sure, Joe, you may well find another agent who is willing to cut her commission. But, ask yourself: If she can’t negotiate with you over keeping her earnings, how can you expect her to negotiate with the buyer when it comes to you getting the highest price possible? If she can’t convince you she is worth her full commission, she can’t very well convince anyone of anything”
The math-challenged
“We’d love to sell and buy another home, but prices are too high right now.” In the current housing market, you may be hearing this objection frequently. The alternative to this one is
“We’ve decided to wait until the market gets better.”
Either way, if the market truly is conducive to selling and/or buying, crunch the numbers for them.
In the current market, most sellers will get what they want for their home, if not more. It’s the buy-side they’re concerned about.
What they’re overlooking are two very important factors:
- They have loads of equity right now
- Mortgage rates are at all-time lows
Combine the equity with the savings from low mortgage rates and you most likely have a situation where they can afford to buy a replacement home.
Objection busting requires a delicate balance – one that can be achieved through empathy. Dan Lok, entrepreneur, author and founder of Closers.com, uses what he calls the “3 Fs,” Feel, Felt, Found.
- I understand how you feel
- Others felt the same way
- Here’s what I found
“I understand that you’re frightened you won’t be able to afford a replacement home. Others feel the same way. But this is what I’ve found . . .”
Order or download the Think it Over brochure from the Objection Handling Series. Add it to your listing presentation, provide it as a leave-behind, and have it available at your Open Houses.
Need help targeting the perfect niche of buyers or sellers? Use our mailing list tool to create the ideal list (it’s easy) or call our support team for assistance at 866.405.3638!
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