40 REAL ESTATE OBJECTIONS HANDLED Flashcards
- “If I list my home with you and buy my next home from you, will you cut your commission?”
“You know, I can appreciate that, and I want to be up front with you and say NO, I will not cut my commissions, and for one very simple reason.”
“As a professional my time has a certain value and I only work with people, like yourself, that realize the value of my service … and before you say anything, think about this … ”
“If an agent is willing to cut his or her commission, just like that, how well do you think they will hold up when it comes to negotiating the best possible price for your home?”
“I want to demonstrate, up front, how tough I am going to be for you … Therefore, cutting my commission is not an option … does that make sense?”
- “I have to keep my promise to the agent from which I originally bought the home.”
“That’s great, I can appreciate your loyalty and that is a quality that I respect in people … so, I’m curious, let me ask you this …
“Has there ever been a time when you decided to buy something or do something and a friend said, “Hey, no problem when you need help, I can do it” and in the end, because you didn’t check around, you really didn’t get what you wanted … Have you ever been there before?” (YES)
“Well, I think you might find that this time is just like that time, and with that in mind, I’m sure you can see the importance of having me over to give you a second
opinion … that wouldn’t hurt anything, would it?”
- “I have seen this marketing plan from many different agents … what makes yours different?”
I’d level shift … “You know what? You’re right! There are only a certain number of things any agent can do to get a home sold and I think the final decision is not based on what I do differently …
“I think the real issue is how you feel about the agent representing you … So tell me, what qualities are you looking for in an agent?
Did you see how I shifted from “What do you do different?”, to “What qualities are you looking for?”
Top agent alternative:
“My results!”
- “Why is your price so much lower than the other agents that we have talked to? … I mean, they have comps that show higher prices than yours?”
“It’s kind of confusing isn’t it? I mean, you interview four agents and you get four different prices … right”? (Yes, why is that?)
“You are probably thinking, why did this person come in with such a low price? Doesn’t he or she want to get our listing? Well, my answer is Yes and No.”
“You see there is a very big difference in the way that I operate and the way that most agents operate. Most agents manipulate the computer to show figures that they think you want to hear. Why?
“Well, most agents don’t do much or get much business. Getting your listing makes them feel like they are accomplishing something …
“Whereas, I, on the other hand, sell homes, non-stop, all day long. Do you want to know why?” (Sure)
“I tell nice people like you, the truth. Did you know that only ___% of the homes that are listed for sale actually sell?” (No, I didn’t know that.)
“There’s a very simple reason, do you want to hear it?” (Yes)
“Most agents do not have many listings. Therefore, convincing you to list your home with them becomes very important.”
“That’s why they’ll tell you whatever price they think you want to hear, even if they know six months from now, you will not be happy with them at all because no buyers will look at a house that is over priced … Does that make sense?”
Top Agent Alternative:
“My comps show the price I have indicated. I will take the listing if you will agree and sign an acknowledgement form tonight that you will reduce the listing to my price in 30 days. I would rather see you turn down 10 offers than never get one.”
Top Agent Alternative:
“They emphasize listed prices. All I am concerned with is what is sold and has closed escrow. You wouldn’t want to base your price on erroneous info, would you?”
Top Agent Alternative:
“There are two places you can price your home … You can list it where it sits or you can list it where it sells. Which is better for you?”
- “I’ll sell my home when the values go up!”
If a prospect has no reason to sell their house then that is a condition. You can’t overcome conditions.
- “How much advertising will you do, because I want a lot of advertising?”
“I understand that advertising is a concern … Are you familiar with the difference between passive and active marketing?” (No?)
“Passive marketing is basically sitting around with your fingers crossed waiting for a buyer to shop up and buy your home …
“Passive marketing is holding open houses, sending out flyers and advertising in the newspaper …
“You see, these methods are passive and you can’t predict if they will work or not. Yet, agents that don’t want to work at getting your home sold will insist that they have sold many homes this way … And do you know what?
“I agree, you can get a home sold that way … But, you can’t guarantee it. Do you understand what I mean by passive, basically sitting around waiting to get your home sold?
“Active marketing on the other hand is much more aggressive and very predictable.”
“I will be on the phone every single day and call 10, 25, 50 even 100 people asking them if they would like to buy your home, if they know someone who would like to buy your home or if they would like to sell their house …
“Do you know why I ask them if they would like me to sell their house?” (Why?)
“You see, the more signs I have out in the community, the more buyers that will call on those signs. The more buyer calls I get, the more people I can show your house to …
“Now, which way, passive or active do you think gets more homes sold?
“Would you like me to spend all my time and effort doing what is proven to get your home sold or would you like me to sit around with my fingers crossed hoping a buyer happens to call?”
Top Agent Alternative:
“I advertise to the brokerage community; it has the qualified buyers for which we are looking.” (Passive vs. active, etc.)
- “You’re too busy, you have so many listings, we want someone that can give us the attention we deserve.”
I’d level shift this one, I’d say…
“I can appreciate that and you probably haven’t had a chance to think about the advantage I have over my fellow agents in town…
“You see, the more listings I have, the more signs I have on the street. The more signs I have on the street, the more calls I get from buyers … and, of course, most of those buyers don’t buy the house they call about and many of them will be very interested in our house.”
“Can you see the advantage of listing with an agent that has 20-30 signs on the street working for you?”
Top Agent Alternative:
“It’s funny you should say that … Benjamin Franklin said, “If you need something done, ask a busy person.”
- “I want to find a house before I put mine on the market.”
“I agree, finding your new home is important and the unfortunate thing is … it may take as long as three months for your home to sell. Then it will take another two months to get all of the paper work done and, by that time, any home that you would have found, would already be sold.”
“Let’s get the listing agreement signed right now and get to work on getting your home sold tonight, so you don’t have to wait any longer than is necessary to get moved into your new home … sound good?”
Top Agent Alternative:
“I understand your concern about your new home. I’ve brought you a list of current listings that fit your needs. Check these out and we will start looking. Once this house goes under contract, we will put a contract on your #1 choice
– Close both homes the same day – One move for you! You are in good hands. I will take care of you.”
Top Agent Alternative:
“Terrific! Have you seen a home or are you ready to make an offer on one?” (No) “Great, let me go ahead and schedule a time with my lender and buyer/showing agent. They can handle that for you. Let’s go ahead and write up the contract now.”
- “You don’t handle homes in our price range.”
I’d level shift …
“You’re right, I don’t sell a lot of homes in your price range and that’s exactly why I’m here tonight …
“I usually sell homes in lower price ranges and what I find is … after I sell my client’s homes, a great many of them move up to your price range, therefore, it only makes sense … that the next logical step for me is to start to sell your price range as well, considering I already have a relationship with many of the buyers that will be interested in your home … does that make sense?”
- “I need to net this amount in order to move, I have to be at my new job in 90 days, but I can’t afford to buy a new home if I take a loss.”
“I can appreciate the position that you are in. Many people in our area are in the same position and you know … I’m curious. Has there ever been a time when you knew you were going to have to make a sacrifice?”
“I mean, you knew it was going to be tough and in the end, after analyzing all of your options, you realized that there was only one thing to do … Put our head down, grit your teeth and go for it …
“But you found that in the end, it all worked out. You made it through the tough times and life went on, maybe even better than before …
“Have you ever been there before?” (Well, yes)
“This time is just like that time … as you can see, the competitive market analysis shows that there is no way anyone is going to give you what you need to make this move …
“My question is this. Is it more important to get out from under this house, take the new job and work through the tough times or are you in a position to keep making mortgage payments on this house for a couple of years until property values go back up?” … Help your prospects to see that they have probably been in tough places before and made it through … and this time is no different.
- “If I have to sell at that price, then I will sell it myself.”
“I can appreciate your frustration with the marketplace and I was wondering, what specifically causes you to believe that you can sell this home yourself, when less than ___% of the home listed for sale with real estate agents are selling?” (I don’t know … but, I can’t afford to sell at that price.)
Ah-ha! The real objection comes out! Now dig more, find out the true motivation and handle the objection the way I have already taught you.
Top Agent Alternative:
“No matter what you ask for, the homeowners are trying to save money by selling their homes themselves. I can create more competition through the brokerage community.” Here’s a derivative of the same one …
- “If we have to sell that low we will sell it ourselves and pay 3% to the agent that sells it.”
“I completely understand your point of view Mr. And Mrs. Seller and it sounds like you haven’t been involved in this kind of transaction in a while … can I tell you why?” (Sure!)
“Agents work with buyers because it is easy. You show the house, the agent writes an offer, and the agent on the listing side handles the next three months of legal paperwork trying to get the deal closed … Does that make sense?” (Yes)
“If you list it for sale yourself, who will follow up with the three months worth of legal paperwork … you? If so, what agent will want to risk the fact that you have never done it before?”
“Let me ask you this … If you were an agent, would you rather show homes that were listed with professional agents that worked to get deals closed?”
“Would you rather show a home and keep your fingers crossed, hoping that you don’t get sued by the buyers because some legal aspect was overlooked by the homeowners and the transaction didn’t get done … Which would you rather do?”
“Do you see my point?” (Yes)
“Your idea sounds valid. It just doesn’t fit into today’s “lawsuit-happy” reality … I’m sorry. Are there any other questions I can answer before you sign the listing agreement?”
Top Agent Alternative:
“That may sound good, but then nobody is pushing your property. If nobody pushes it, nobody shows it. If nobody shows it, then I guess it won’t sell.”
- “We don’t want to list at a price that will get it sold in one week.”
First of all, why would you tell them that it was going to sell in a week, unless they told you they needed to be gone in a week?
The only reason you would get that objection is if you were getting overly egotistical and ambitious and bragging … I’ll sell your home in a week …
It is more important to listen to when they want to be gone and tell them that your price will get them there on time and maybe even a week or two sooner!
You created that objection yourself, so I’m not going to handle it.
Top Agent Alternative:
“I’d rather turn down 10 offers than never get one … I’ll work with you to get the right price for your home.”
What about this one …
- “We can always come down in price later.”
“You’re right, and I think you need to take into account how homes get sold.”
“You see, if we come out of the shoot with your home overpriced all of the agents that show properties will instantly write you off as non-motivated sellers … Can I explain what that means from an agent’s perspective?” (Sure)
“The higher a price is on a property, the less a seller needs to sell it … at least that’s what the agents believe … purely from their past experience …
“Now, a non-motivated seller means, that even if you come down in price later, two things will happen.”
“Most agents won’t even realize your home has been reduced. Now, you might say, can’t we send them a flyer telling them that it’s been reduced?”
“Yes, we could send everyone a flyer telling them that the prices has been reduced, but agents get 500 flyers a week and there is a good chance it will go unnoticed.”
“If they see that you had the home priced real high in the beginning, that will tell them that you were kind of unrealistic when we listed the property, meaning that you didn’t believe that what I was saying was true … all agents interpret this as trouble when it comes to getting the deal closed.”
“Do you understand why? If we price it to sell right from the beginning, our odds of getting agents to show it is much higher.”
Top Agent Alternative:
“By that time the buyer for your home will have bought another. Do you want to lose that buyer?”
- “We aren’t quite ready yet, we need to finish a couple of projects around the house before we put it on the market.”
I would say … “I agree that making sure the house is up to par is important and you probably didn’t realize how little effect it will have on getting your home sold …
“Let’s get your home listed for sale, get some of the top brokers in town to show the house to prospective buyers and get their feedback …
“The good news is, you’ll find that maybe only one or two of your projects actually need to get done … if any at all …”
“It sure would be nice to not have to spend a dime to get out of this place … wouldn’t it?” (Yes)
“Great, which would be better for you, tonight at six or 7:30?”
Top Agent Alternative:
“Great! Why don’t we complete the paperwork now and while you are doing your projects I’ll get the flyer done and paperwork processed so when you are ready I will be ready too! We’ll show it in 2 weeks.”
“How much money will you spend on those? You’ll probably not make that money back. Let’s just sell as is and save you the time and money okay?”
- “Will you cut your commissions, other agents will?”
“You know, you’re right, there are a lot of desperate agents out there and I’m a little concerned … can I tell you why?” (Yes)
“Do you own anything more valuable than this home?” (No)
“Could you say that it is your most valuable possession?” (Yes)
“If an agent is so desperate that they are willing to broadcast the fact that they don’t think they have any value as a Realtor, then I’m confused.”
“Is that the type of person you want sitting across from the negotiating table trying to negotiate you a better price?”
“We are talking about a person who has already admitted that he or she doesn’t even see value in himself or herself … ”
“Is that the type of person you want to represent you in the most valuable transaction of your life?” (No)
“Good. If that was the case then I should not have even come over, considering I work 14 hours a day and my assistant works 8 hours a day to get your home sold and that’s very valuable … don’t you think?”
Here’s one for the top producers and I have to say something before I give it to you. The more conviction you have the less you will get objections like this.
In fact, this objection is purely a function of a weak presentation … If you sound hesitant, your prospect will begin looking for ways to exploit your weakness.
I would interpret this objection as your prospect telling you … ”I don’t think you have any value … so you better prove it to me.”
Top Agent Alternative:
“They may feel they are worthless. If they will reduce their price at the listing table, what will they do at the negotiating table? I will be tough and professional on both my fee and your price, particularly at the negotiating table.”
Top Agent Alternative:
“Commissions aren’t negotiable with agents that sell homes daily. They are only negotiable with realtors who don’t believe in the services that they offer. Now you told me you had to be gone in 90 days, right? You need a strong service agent that sells homes, right?”
Here it is …
- “It seems like 7% should be enough to cover your expenses without paying an additional $250 transaction fee.”
I would level shift from money to peace of mind … I’d say …
“I can understand your concern. It is a lot of money … so, I want you to look at it this way … Don’t look at the money. It’s really the peace of mind you will experience when you use my service …
“Unfortunately, most agents don’t run their business like a business.”
“That means they don’t have all the support necessary to guarantee your home will sell … and what is even more important than that is having staff necessary to get the deal closed.”
“Did you know that only ____% of the homes listed for sale actually sell?” (No)
“Well, even worse is this, did you know that only ____% of the homes that get offers actually end up closing?” (No)
“The reason you are going to pay me more is simple. Every house I list for sale sells, and my staff gets them closed so you walk away with a nice big check in your hand … I mean, that’s what you want isn’t it?”
Top Agent Alternative:
“I have a licensed specialist who does nothing but track your transaction on a daily basis. You can lose more than $250 by not having someone watching your deal daily. One agent can’t do it all, it’s impossible.”
Top Agent Alternative:
“I understand. Remember I get 3% of the 7%, which I split with my company – then I take off for my expenses. The transaction coordinator is an insurance policy that your home will close escrow, but if you’d rather take a chance … ”
Top Agent Alternative:
“When you get a loan you pay points and a processing fee. It’s the same thing. Isn’t it worth $250 to have me and my six assistants working for you?”
Here’s one on the list that is pretty hard …
- “Why don’t you advertise? Everyone else we talk to says they do the same things as you plus they advertise.”
I’d say … “Obviously that is a valid concern and I’m glad you brought it up … You see, I want you to realize that if an agent tells you that he or she does the things that I say I’m going to do, which is to …
“Actively prospect daily every single day to get your home sold …
“Then he or she is more than likely stretching the truth a little. Can I tell you why I think that?” (Sure)
“Agents that advertise a lot don’t want to work. So, what these individuals will tell you is that they actively prospect every day to impress you …
“But, let me ask you a question … If you could sell a home without spending 50% of your money … would you?” (Yes)
“I mean, all smart business people would … wouldn’t they?” (Yes)
“Either they are not smart, or they aren’t telling you the whole truth … does that make sense?”
Here’s another one on the list …
- “You don’t hold open houses … Why?”
I would say exactly the same thing I said about advertising and talk about passive versus active marketing.
Here’s one … you were guaranteed the last interview and after all is said and done they say …
- “We still need to interview one more agent.” (Even after they promised you would be last)
Okay? First of all … that is not the real objection … they are just saying to you …
“We don’t see why we should pay you money to sell our home … that’s why you should leave.”
So, what we need to do is flush out the real objection.
Use the “What specifically causes you to believe” but, only if you are in good rapport, otherwise it might be a little too strong …
For a less direct version that will still flush out the real objection try something like this …
“You know … I can appreciate the fact that you want another opinion, and the fact that I was told that I would be the last agent interviewed only tells me one thing …
“Do you want to know what it is?” (Yes)
“Somewhere, somehow, I have not completely convinced you that I can sell your home. So tell me …
“What is it, specifically, that is stopping you from signing the listing contract with me tonight?”
Now, you’re going to get the real objection and you can use one of the patterns I taught you to handle it …
Top Agent Alternative:
“I can appreciate that before we met today that you set up another appointment with another realtor. I’m sure you will agree that my qualifications will be tough to beat. I’ll be happy to call the other agent, cancel your appointment and it will be one less delay in getting your home sold.”
Top Agent Alternative:
“Agents work together. I will call __________ and tell him/her your home is listed and they can bring their buyers anytime.”
Here’s another objection for those of you trying to convert your real estate business into a real business. Which means you are asking your prospects to come into the office for appointments.
What if the person says …
- “It is important to us that you see our home, even though you don’t think it will make a difference in price. We want you to see it. We will only meet with you at our home.”
The only time you get this one is if you are using the Mike Ferry “Appointments in the Office” strategy. Here’s how I would handle it.
“I understand that seeing your home is important to you and that’s why I’m willing to make an exception for you … under one condition …
“If I decide to come over to your house and I present something that makes sense to you and you understand exactly how I’m going to get your home sold, and you feel comfortable with it … are you going to list your home for sales with me at that point?”
If the answer is yes, go!
If the answer is maybe, then you need to decide what you want to do.
Top Agent Alternative:
“Why don’t I come by on my way to the office tomorrow morning, I’ll look at it then, and see you here at 5:00 p.m. tomorrow night. That way I can show you our office set-up?”
Top Agent Alternative:
“I will see your home once it’s listed. You see I spend all my time out in the field looking for buyers to sell my listings. So, when your home is listed, I will be doing the same thing.”
What if they say this one …
- “We want to have an exclusion in the listing contract in case our company, friend or neighbor wants to buy it.”
I’d say …
“I agree that it’s important to be thorough when we are filling out this contract and let me ask you this …
“Why haven’t you already sold the home to your company, friend or neighbor?” (No one has made us an offer)
“Your personal marketing hasn’t worked and that’s why you’re hiring me … is that right?” (That’s right)
“So, I’m curious as to why I should waive my commission. If my marketing works well enough to convince your company, friend or neighbor to buy it … isn’t that what you are paying me for in the first place?
“Aren’t you hiring me to let the public know your home is for sale and convince people that they should buy it?
“So, why would I cut my commission if my marketing works?”
Top Agent Alternative:
“You have 24 hours to let them know you’re listed. Call them. They do or they don’t.”
Here’s one …
- “We want to compare what you are saying to other Realtors.”
“Great! I think that is one of the best things that you could do and before I go … Tell me, what is it specifically that is stopping you from picking up that pen and signing your home with me?” (We’re just a little shocked by the price)
“Hey, I understand and let me ask you this … If I can help you to realize that your home will not sell for a dollar more than what I have told you … If you felt completely satisfied that it was true … would you still want to waste your valuable time talking to another Realtor or would you just list we me tonight?” (Well, I guess if we felt comfortable, we would list with you tonight) “Great!”
Then simply go back through the CMA and convince them.
Next one on the list …
- “Why should we choose you?”
The only way to answer this one is to know what makes you different from other agents. Since that is different with every agent … I’ll leave that one up to you.
Next one on the list…
