How to Handle Objections from Real Estate Clients
Are you unsure about how to handle objections from potential real estate clients? Sometimes certain questions can throw you off your game, but it’s important to deal with these situations head-on. These tactics will help you do just that.
You will find that these tips are actually quite simple but will have a lasting, positive effect on your real estate business.
Get (a Little) Scripted
Anyone in the real estate game knows that they will be faced with objections from clients. Since you know it’s coming, prepare yourself for some of the most common objections agents receive. There’s nothing wrong with getting a little scripted in your response. It’s much better than floundering in your answer and not coming across as confident when clients push back.
Take this common objection for example: I want to list the house myself and avoid paying commission fees to a seller’s agent.
Your response can be something along the lines of: “I hear you. You want to save wherever you can. However, are you prepared to do all of the legal paperwork after the sale of the home? After the home is sold, there is a slew of legal legwork that the listing agent typically handles to make sure that the sale goes through. If you decide to sell the home on your own, you have to be OK with the fact that you could potentially be sued if you don’t file the paperwork correctly — even if it is just a simple mistake. Are you willing to take that risk?”
Also mention, “Consider the fact that it may be tricky to get a buyer’s agents to work with you. Many of them won’t even consider working with the homeowner directly because of the risk it poses to their own business.”
Know Your Worth
Realtors get faced with this request often: “Can you lower your commission fee?” The short answer should be, no, but you can present your response in a way that highlights the kind of value you offer and why agreeing to a lower fee would be a detriment to both parties.
If a client asks for a commission cut, lay out the marketing plan, your negotiation skills and your track record, and don’t waver. For example: “Let me take you through a breakdown of where that number comes from. Part of what you’re paying for with that fee is the marketing strategy I will put together to sell your house as quickly as possible for the best price. You’re also paying for my expertise. Perhaps there are agents out there who will settle for a lower fee, but they don’t have the same track record as I do when it comes to selling homes. And they definitely don’t have the same level of negotiating skills as I do. If I instantly gave in when you asked me to lower my fee, what does that say about how I’ll perform when we are negotiating the sale of your home?”
State the Facts
A client may reject your offer because they have a friend who is an agent who they promised to work with. While you should let them know that their loyalty is admirable, it may not be the wisest decision to work with a friend.
Remind them: “Have you ever given a task to a friend and weren’t 100% satisfied with the outcome? Is that a risk you’re willing to take on the sale of your home?”
Then, state the facts. If you sold 80 homes in the past year, make sure they know it. If you’ve been in the business for 20 years, state that too. These are favorable attributes that should not go unnoticed.
You could even be so bold as to bring up their friend’s MLS listing and yours at the same time to compare, assuming that you know you have stronger stats than he or she does. That will really paint a lasting image in their minds!
Key Takeaways
Write yourself a rough script to answer the objections you get all the time.
Don’t waver on the commission fee — explain where it comes from.
Reiterate your track record.
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