Two Common Real Estate Objections and How You Can Overcome Them

Sep 8, 2021

Don’t be surprised if, at least at the beginning of a new client relationship, you’re treated with skepticism and mistrust.

This is specifically true during uncertain times.

Building trust is a barrier that must be scaled for every agent when developing a new client relationship.

And, even after you’ve won them over, there are plenty of new objections you may have to overcome.

Objection Handling Brochure, *Pitfalls of Overpricing*

The following are two of the biggies you might encounter that prevent consumers from moving forward, specifically during a pandemic.

The commission negotiator

Agent commissions are the most common area of negotiation, specifically during a time when market stability is uncertain.

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. So your first objective 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 right now. 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 market challenged

Objection Handling Brochure, *Timing is Everything*

Then there are the consumers who have a misunderstanding of what’s happening in the market and how it might affect them. “We’d love to sell and buy another home, but prices are too unstable 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 still get what they want for their homes. It’s the buy-side they’re concerned about.

What they’re often 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.

The bottom line

Objection Handling Brochures, *Think It Over*

Objection handling 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

An example of this is the following statement, “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.”

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Now that you’re armed with an Objection Handling Brochure, it’s the ideal time to launch a marketing campaign.

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Powerful Closing Techniques To Try

Presentation Skills

Oct 18, 2017

The Right Dialogue is the Key!

As we head into the holiday’s, now is the perfect time to sharpen your negotiating skills and polish your pricing techniques, the following are 3 powerful closing techniques to try. You know that old Floyd Wickman saying, “Worse than no listing is a listing that won’t sell.” Make sure yours are priced to move and you’ll not only be a hero to your sellers, you’ll set yourself up as the agent to call in your marketplace.

3 Powerful Closing Techniques to Try:

1. Don’t Help the Competition:

Overpricing your home in today’s market can actually help sell other listings. Explain to your seller to put themselves in the shoes of the buyer. They’ve got an agent and they’re looking at listings that are priced at market value, show well and have motivated sellers.

If they look at your home and a comparable home and all things being relatively equal, in other words, both are 4 bedroom, 3 bath, 2600 sq. ft. homes and both show well but yours is $50,000+ above market value, which home is going to look more attractive to them when it comes to a bottom line decision for their family?

In fact, when it comes to choosing their property, if your home is overpriced, you’ve just made the lesser priced home look perfect by comparison. They can feel good about their decision of getting the same sized home for less! You can also pull comparables from your MLS to show real world applications of this.

If the seller overprices their home today and it goes online via the MLS and your multiple web listing portals, their home won’t even have the benefit of SHOWING up when consumers search by price.

They’ve just priced themselves right off the internet search – eliminating the possibility of that 85+% of consumers who start their search there.

2. The Four Sales:

A great Floyd Wickman strategy is to use the following dialogue: You know we’ve covered the comparables – the research that I showed you with the prices of the other homes like yours that have sold recently in this area and I know you want to list it at the higher price. I’ve put a lot of thought into it, and you know if we went ahead and put it on the market at your price – and I was the only one that had to be sold on that price – well I guess that would be fine. But in reality, there are actually four sales that have to be made in order to sell your home at that price.

First…I have to be sold and I’ve gotta tell you – all I can go by is the CMA facts and figures that I showed you.

Secondly…the other agents have to be sold on showing your property at that price – otherwise they’re simply not going to show it to their buyers. Unfortunately, they get their numbers the same way I do – from what’s recently sold in the area and those same CMA numbers.

Thirdly…and this is a big one – the buyers. Let’s just pretend we sold the agents on it. Now we’ve got to convince the buyers to pay a higher price for a property when there are other homes like it that are selling
for less.

Unfortunately in today’s world and with the internet, buyers have access to the same information that we have here. They know what homes are going for in this area. So that’s going to be a tough sale, don’t you think?

Now let’s just say everything lines up and somehow we even sell a buyer on paying more for your property than we know its worth in this market. We still have one more sale.

Fourth…there’s the lender. Lenders use exactly the same formulas we do to determine Fair Market Value for a property before they’ll write a loan. Are you familiar with Fall-Throughs? Yeah, fall-throughs are what happens when people are thinking just the way you were thinking about pricing higher and the sale can’t go through because the property won’t appraise for what you’re asking for it. And that’s not what you want right?

3. Empathy vs. Reality Close:

This dialogue comes from our friend, Coach Gord Gerrie. I understand how you feel Mr. and Mrs. Seller and there is no doubt, many others have felt exactly the same way you do right now. However, what they found was that once they had sold their house and focused their attention on their new home, they understood that the reality of accepting the offered price really only amounted to a few dollars more per month on their next home.

Again in reality, by accepting this offer today, you will know that your house is sold and that the difference between what you had hoped for and what you will receive will amount to less than $X per day in your new home. Would you let $X per day stand between you and the home of your dreams?

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