Client objections are often times simply a way of them saying “I need to understand more,” or “I don’t have enough information to make a decision.” By learning and perfecting the Triple A Method: Agree, Ask, Answer, you can elevate the effectiveness of your communication and overcoming objections.
Watch all about the Agree, Ask, Answer method at http://rmxp.tv/b29e7FkGo5o
Here are some examples on how to handle the Top 3 Objections in Real Estate Sales.
Objection #1: “I’m going to work with whichever Realtor finds me the home.”
Agree: “I can understand why you would want to do it that way.”
Ask: “Can I share with you how it works to your disadvantage?”
Answer: “You see, in real estate, we can work with a prospective buyer in two ways. One way is as a Customer, the other is as a Client.
“As a Customer I owe you honesty and fair dealings. As a Client, I go above and beyond by working for you and actually creating opportunities. What I’m finding in this market is that home buyers need more than simple customer representation. They need an experienced professional.
Ask: “Would you like to know about some of the ways that I create opportunities for my clients?”
[Your prospective client will most likely be interested at this point]
Answer: “One way is that, for my clients, I actually solicit off market properties.
“An off market property is one that is not in MLS. It could be a for sale by owner, or better yet someone who hasn’t listed their property. For my clients I will send letters and knock on doors to find those kinds of opportunities.
“Now, you can understand why I wouldn’t commit to that level of service for someone working with multiple realtors right? So, do you think you deserve that level of service, being this is one of the largest purchases you’ll make?”
*Bonus* In this scenario, you can also discuss the fact that with multiple offers, they really need someone who has the experience to get them the property they want and that happens when they hiring someone to represent them and all their needs.
Objection #2: “We like the property, but we want to get a good deal! I think we should go $10,000 under the asking price.”
Agree: “I can certainly understand wanting to get a good deal. Let’s put ourselves in the Seller’s shoes for a minute and look at things another way, would that be okay?
Ask: “If you were selling would purchase price matter?”
[You client will most likely agree with you]
Answer: “One of the problems with putting in a low offer is it often times gives the seller a tremendous advantage against you. Would you like to know how?”
[Of course your client will respond yes]
“Once the Seller has any offer they will likely give their Realtor permission to tell all prospective buyers that they have an offer. In this market, multiple offers are common, especially at this price point.
“Would you be frustrated if you didn’t get the property and drove the price higher for the seller?
“Is there another way we can make up the difference? Perhaps we can talk with the lender and see if we can make it up in the rates, or find out exactly how much $10,000 affects the monthly payment. This way we are putting your best foot forward to actually purchase this home not, just make an offer.
“Now, if this isn’t the right home we should keep looking and find the one that you wouldn’t care about the small impact in mortgage payment per month.
“What would you like to do at this point?”
[Listen very carefully] This is their decision and let them conclude what is right!
Objection #3: “Prices are so outrageous, I’m going to wait for them to come down.”
Agree: “Yes, I’ve had many people tell me that.”
Ask: “Can I ask you something? Have you considered the cost in waiting?”
[The cost of waiting probably hasn’t crossed the prospect’s mind]
Ask: “How much are you paying for rent?”
[Let’s say they are paying $2,500 month]
“Wow, that would be about $30,000 a year.”
[Wait, for them to agree]
“Do you think home will come down $30,000?”
[They will probably say yes]
Agree: “That is very true! It could drop $30,000.”
Ask: “What do you think will happen to drive prices down?”
[Your prospect probably won’t know the answer]
Answer: “My guess is that interest rates would be on the rise, which could cause a change in home prices. Of course, we don’t know that for certain. However, let’s assume prices do go down. Do you know what the cost is for a 1% increase in interest rates over 30 years?”
[Your prospect probably won’t know the answer]
“On a $525,000 loan, a 1% increase over the life of the loan would be roughly $100,000 dollars. Now, I’m not a fortune teller and I may be an optimist, but I don’t see prices going down $100,000 any time soon.
Ask: “Does it really make sense to wait knowing how waiting could cost you more?”
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