In every market, buyers will offer objections at some point during the appointment. Even in a seller’s market, the fear of making the wrong decision, spending too much money and just moving forward can be intimidating for some buyers.
As a professional real estate agent, it’s important to realize that most buyer objections are really just a hesitation to move forward based on the fear of making the wrong decision. When the buyer is fearful, for whatever reason, they will offer objections to the agent. In my new video, “Top 3 Buyer Objection Handlers” I discusses the most common buyer objections and how to overcome them and help your client move forward.
Your success or failure as a real estate agent will largely depend on how you handle objections. You cannot rely on a buyer walking into the right home and then asking you to write a great offer. Even if they eventually buy that home, if you do not learn the skills necessary to guide your client to the offer, it’s likely they will buy the home using another agent. Shon emphasizes that each meeting with a client is either an opportunity for you to convince them they should work with you or an opportunity for them to convince themselves that they should not. So let’s talk about buyer objections and how to overcome them.
“I need to talk to my wife/husband”
Of course the best way to avoid this situation is to have both spouses present at all home showings and meetings, but sometimes that isn’t possible. With such busy schedules, often you will only have access to one spouse who spends time prescreening properties for the family. Relocations clients are another example of a time when you might only have access to one spouse during showings. When only one spouse has seen a property, it’s perfectly reasonable to request time to discuss the home with their better half. As a professional real estate agent, your job now is to determine if this is really a cover for deeper reservations or an attempt to delay a decision.
In our video we describe this tactic as the “good-guy, bad-guy” approach. The buyer (good-guy) would be happy to move forward, but they are unsure that their spouse (bad-guy) would agree. Rather than attempt to pressure your client into making a decision which could be contrary to their spouse’s wishes, start by assuring them that you completely understand. This is a reasonable request and you are happy to accommodate. Your goal now is two-fold: 1) ensure there are no other objections you have yet to uncover and 2) turn your buyer into your advocate with their spouse.
My suggestion? The first question you should ask is, “If your spouse is ok with the home/property/deal, are you ok?” This does a couple of things. First, it is designed to discover any other objections and second, asks your buyer to take ownership of the decision as your advocate. If there are other objections, you can now address them directly and if not, it’s time to close the next appointment with the missing spouse.
“When is a good time to get together with your spouse? Are weekdays or weekends better for them?”
Then close on the next appointment and move forward.
“I only work with listing agents”
In almost all cases, the buyer’s agent commission is paid for as part of the listing agreement and comes from the seller’s proceeds. This means that there is no reason why a buyer would want to enter such a serious transaction unrepresented by their own agent. Wanting to work with the listing agent is therefore based on the belief that they will save money by obtaining part of the listing agent’s commission either as a reduction of price or rebate.
This is the time to educate your client on listing agreements and the fiduciary duty the listing agent has to their seller. First he suggests reminding the buyer that the list price is chosen by the seller in consultation with their agent. They chose the price together and typically the list price is higher than they really expect to receive. A buyer’s agent will pull comparable property sales and can uncover an over-priced home.
Even when writing an offer for the buyer, the listing agent’s first duty is to the seller and they might or might not provide all the comps of the area. They have a contractual obligation to sell the home for the highest possible price; will they show the buyer all the available data or just the homes which support their list price?
Discuss the value of being represented by their own agent. Would they appear in court without their own representation? Buying a home is typically the largest financial transaction of their lifetime; don’t they want to have their own advocate? Remind them that saving 1% of the commission on a home that could be over-priced by 5% is not really saving anything. Add to this the on-going need for negotiations after the offer acceptance, repair requests or appraisal issues and you can help your buyer understand that they could be losing thousands of dollars by working with the listing agent who is only working for the benefit of their seller.
“I have a friend/relative who is an agent and I really should use them.”
Ironically, the fact that the buyer is already out looking at homes with you probably means they do not trust the friend or relative’s experience. They don’t want to offend their friend, but they don’t fully trust that they will get the best service or information from them. They plan to find the right home and then have their friend/relative write the offer. In this video, “Top 3 Buyer Objection Handlers,” we discusses how to handle this objection. The fact is that the reason the buyer wants to use their friend/relative is because they are worried that if they do no, it will affect their relationship. Our video emphasizes that you have to move them away from this belief into one which associates a negative impact on the relationship if they work with their friend/relative.
“I can understand why you are concerned about offending your friend/relative. Have you ever been in the position to loan money to a friend/relative and it ended up ruining your relationship? Real estate is a complicated transaction, regardless of how straightforward things appear, there is always the chance that something could go wrong. In my case, I would expect you to sue me if I did something wrong…but would you be able to sue your friend/relative?”
I suggest suggest that you close by offering a 25% referral fee to the friend/relative. That way the buyer can feel good about giving their friend/relative something for doing nothing, and also work with an agent they trust…you.
Overcoming objections is a part of a successful career in real estate. Preparing to handle objections in advance is the best way to manage them when presented. Icon coaching gives you the tools in which allow you to be prepared and successfully handle objections and move your client forward.
I’m Shon Kokoska founder of ICON COACHING an elite training program for real estate agents. It is my goal to help Real Estate professionals reach their career goals, and find success. The only way to do this is with hard work and proven practices. For more life changing tools you can use to accelerate your business, register for the Icon of the Month Webinar now. Seats fill up quickly so do not hesitate. Change your life today.- Register Here.