Can you imagine buying a house without any hesitations or questions? There’s probably a thousand things swirling in a person’s mind when considering a real estate decision. It’s the source of many objections you hear. And no doubt, it’s challenging to deal with their resistance on a daily basis.
To improve your odds at converting real estate leads, we’re going to focus on one word: Commitment.
The goal isn’t to get someone to commit to a huge decision, like buying a house next week. That’s asking way too much! Instead, you want to get them to commit to something small and easy. And oftentimes, this means simply continuing the conversation – rather than letting a hard objection put a “no” in your discussion.
To get a lead committed, let’s go over a few steps to navigating tough conversations. And then I’ll share my favorite scripts for answering 11 of the most common objections in real estate.
Steps to Navigating Tough Conversations & Overcoming Objections
When handling objections and managing tough conversations, the last thing anyone wants to feel is like they’re being attacked. You’re not a battering ram beating at the castle gates.
To keep people from getting defensive, and to offer you the opportunity to persuade, use the LAER model: Listen, Acknowledge, Explore, Respond. These steps are common techniques used in debates, and are often used successfully by top salespeople in other industries.
Make your pitch and offer your services, but let your lead talk and voice their objections. Acknowledge their resistance as a valid point and then explore the underlying reasons for what they’re saying. Ask questions and dig into their mindset a bit. This also allots some time for you to gather your thoughts versus answering right away.
Then recommend a solution to their objection. Or a counterpoint. Remember, you’re not trying to “win.” You’re trying to solve their hidden pain points and make them feel confident. Show them you’re there to help, not push.
Because you listened and explored their perspective, they’re more likely to hear you out. And by that, you’ve gained a little bit of commitment from them. From there, it builds in small actions.
How to Respond to 11 Common Objections in Real Estate
Feel free to steal and use these scripts. Conversations can go a myriad ways, but these should give you a headstart at handling objections.
1“I don’t need your service. My friend (or relative) is an agent.”
A lot of people know someone in real estate, so here’s a quick to way to offer an alternative value.
“That is great to hear! Are you comfortable with sharing all of your personal information with your friend? As you know in the home buying/selling process, all of your financial data is front and center. I know I wouldn’t want my friend knowing that much about me. Are you sure you want your friend knowing your financial business?”
2“I’m okay right now. I’m renting a nice place that I like.”
This is a golden opportunity to show them a financial opportunity in owning.
“Why pay someone else’s mortgage when you can pay yours, build equity, and get more house for less monthly?”
3“I’m a couple of years out from buying.”
Everyone loves to window-shop, but it’s a good time to explore the right time to buy.
“Just out of curiosity what is the significance of that date? If we could get you approved for a loan, get you in a house today and show you how to save thousands, would that be of interest to you?”
4“This is my first time buying a home. I’m a little nervous.”
For anyone buying their first home, it can be nerve-wracking. Help put them at ease.
“Did you know that Real Estate has outperformed the stock market in the past 3 years. The wealthiest people in the world own real estate. In just the past year home prices have gone up over 3%. That means if you bought a house today for 300k in one year you would have over 9k in equity.”
5“My credit is bad, so I’m just day-dreaming right now.”
This is a great opportunity to offer financial advice that could re-shape their lives.
“Its great to day dream and I encourage you to continue looking on our site. Have you talked with a credit repair company? Many times they can make a couple of tweaks that can bump your score dramatically. Can I share your name with _______ at _________Credit Repair?”
6“I’m just looking on behalf of a friend (or family member).”
Let them know you can be an extension of help.
“That is great that you are looking out for your family, it shows you want the best for them. Fortunately for you, you came to our website. We are ranked in the top 1% of agents in the country. If you’d like, I can reach out to your friend/family and send them some helpful information that can save them thousands on purchasing a new home and why it’s so important to pick the right buyers agent.”
7“I have an agent already.”
Check to see if they already have a buyer’s agreement. If they haven’t committed to one yet, there’s an opportunity for you.
“That is great that you have an agent. Can you share their name so I can send them the properties you have been looking at?”
Nine out of ten times they really don’t have an agent. But based on their responses, you can address them like so …
- If they give you a name: Fantastic, I will send this to _____ , but it concerns me that you don’t have a written agreement and the only way for me to work for you as your real estate coach is with a signed buyer agreement. Without it, I am working as a referee in your purchase.
- If they don’t give you a name: You know they lied to you. Continue as though they don’t have an agent.
8“I’m just looking right now.”
Even though their timeline may be far out, they’ve still shown interest in real estate. See if you can gather their reasons for searching today.
“I love looking at homes too. It’s why I got into the business. What made you decide to look at homes today? I see… continue with LPMAMA.”
9“I never registered on your website!”
Be understanding that there is some confusion. It’s always good to double-check and see if another family member registered with their contact info.
“I’m sorry. Perhaps your husband/wife registered with your information. Are you looking for a home in __________?”
10“You have been contacting me way too much!”
Giving a lead the 10-days of pain can be brutal and annoying. Again, acknowledge their issues and offer a reason + solution.
“First let me apologize. We are in a very fast paced market right now and I want to make sure that you don’t miss out on any deals. How often would you like to be updated?”
11“I’m busy right now. I’ll call you back.”
Try to get a small commitment here – ask if they can answer 4 quick questions in less than 2 minutes. This will set you up for further conversations later, where you can offer more detailed help.
“I understand, if I can just ask you 4 quick questions I can have you off the phone in less than 2 minutes. Would that work?”
Walking Away with a “No Thanks”
Hearing the word “no” is never easy, and getting rejected can easily put you in a dark mood. So, it’s worth saying, “don’t give up.” Perseverance requires maintenance in real estate. If you start to feel tilted, like you’re getting more frustrated, take a break. Do something non-work related.
Acknowledge the wins you have had this week, and the hot opportunities you have in the coming days. And if you need an extra boost, these Reddit sub-channels are great motivators: 1) /r/GetMotivated! 2) /r/aww.
The post How to Handle 11 Common Objections in Real Estate (Scripts Included) appeared first on BoomTown!.