Make Objection Handling Look Like A Breeze

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Not too long ago, we were in a speed market. As soon as homes were listed, they were sold, with seemingly little concern for price or even condition. But things have changed. We’re now in a skill market. In other words, the abilities we have or we lack in bringing a home transaction seamlessly across the finish line are totally exposed.
More than likely, you’re hearing more objections from both buyers and sellers than you did a few months back. Luckily, San Antonio’s Scott Malouff and Denver’s Brendan Bartic have shared some expert advice on handling the most common objections that you can apply to your own businesses. Read on below for their insight.
Common Buyer Objections
  • Mortgage rates are too high.
Buyers see the current interest rates and compare them to what they were in the not-too-distant past. They wonder if they can wait out the current mortgage rates and jump back into the house hunt when mortgage rates return to the levels of a couple of years back.
Overcome this objection: Scott and Brendan both agree, it’s important to be knowledgeable about the market so that you can have an accurate discussion about both the long-term average of mortgage rates as well as the artificial lows we’ve experienced. For instance, did you know that according to Freddie Mac, the historical average for annual mortgage rates between 1990 and 2020 was 5.97%? Or that between 1972 and 2020 the historical average for annual mortgage rates was 7.81%? When you have the right facts at-hand in your discussions with buyers, you’re able to show them that, while rates are higher now than they’ve been over the last couple of years, those mortgage rates were artificially low and likely to never be experienced again. And in comparison to the average rates of the past several decades, today’s mortgage rates really aren’t that scary.
  • Right now isn’t a good time to buy.
Purchasing a home is likely the largest expense a buyer has ever experienced. It’s only natural that they may experience some version of sticker shock when looking at home prices and wonder if now is really the right time to buy. They hope that by waiting, they’ll find a bargain if the market takes a plunge.
Overcome this objection: Understanding the buyer’s motivation behind buying is extremely important in any market. But it takes an added meaning today, when it’s essential to see what’s driving their desire to buy a home. Scott and Brendan recommend doing a needs analysis to determine what they want in a home, a neighborhood, and a lifestyle. When you can dig into why they are looking to buy, you can find a way to satisfy their needs by tapping into the emotion versus the logic of real estate. In other words, figure out what’s important to them and find it for them.
Common Seller Objections
  • I want to get the price I think my home is worth.
Potential sellers look at those who sold their homes not too long ago and want the same market that their neighbors experienced: homes selling as soon as they hit the market for tens of thousands of dollars over the list price. They want to pick an arbitrary sale price and see a buyer frenzy over the house. But the market has changed.
Overcome this objection: This is where agents can shine by showing their local market expertise. Use an active market analysis to show potential sellers how they can competitively position themselves right now to create buyer urgency. After all, pricing correctly for the current market matters more than what their neighbors sold their homes for several months ago. Agents should be prepared to discuss price adjustments and how they are used. For instance, it’s important to explain to sellers how much they risk losing by pricing a home incorrectly so that it sits on the market for a week, two weeks, or even longer. Because price adjustments haven’t been necessary until recently, it’s important that the possible use of this technique doesn’t come out of left field for the seller.
  • Maybe I’ll wait to sell.
For sellers who are thinking about selling their home, this market can be a little unnerving. They think that putting their plans on hold will net them a better deal down the road.
Overcome this objection: Just like with buyers, it’s important to dig deep to determine the seller’s motivation to sell. Whether they are looking to move on to the next phase of their life or sell their home for some other reason entirely, it’s important to know their reasoning so that you can figure out how to best solve the issue for them.
No matter what your buyers’ and sellers’ hesitations or fears may be, you can best address them when you take the time to truly listen. When you are prepared to discuss the most common objections potential clients may have, you are better able to listen in-depth to what they share because you are not trying to think of your responses. Real estate is not just a transactional business. Rather, it is the relationships that are created and nurtured through the conversations you have that will serve your buyers, sellers, and you best. What objections are you having to address most frequently in your market?
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