How to Overcome Objections

Scrips, tips, and other helpful resources for handling objects with clients.

Objections - Some Fundamentals

  • Buy Signs - What do you do?
  • Smoke Screens - How to Handle
  • Observation versus Objection
  • Objections as Opportunities
  •  Paraphrasing, Clarifying and Disclosure Importance of Listening

Professional Communication Skills

  • Agree to Disagree
  • Validate Concerns
  • Open-ended Questions
  • Closed-ended Questions
  • Tie-down, talk past sale, ask closing question

“I want to think it over.”

  • Listen, Pause then Paraphrase
  • Isolate (is this the only...)
  • Conditional - (if we fix it, then...)
  • Solution - (Why don’t we...)
  • Check Acceptance (Does it work?)
  • Close (let me note that...)

“I’ll call you back.”

  • Differences in your goal
  • Addressing it and ignoring
  • “In & out of the office...”
  • Avoid - Ask rapport questions...
  • “How long have you been looking?”
  • “Have you seen anything you liked?”

“I would rather add on.”

  • Sometimes, an expired objection (given up on getting their price)
  • Possible financing objection - I have to have $x
  • Might think remodeling is a good investment
  • What is your goal?
  • Where are you - phone or home?

“I would rather add on.” - Considerations

  • Feel, felt, found - then try for appointment
  • Do not try to talk them out of this on the phone
  • Financial considerations
  • Home as investment
  • Comparison to purchasing

“I would rather add on.” - Responses

  • “You may move anyway”
  • Pitfalls of second mortgages
  • Cost versus appreciation
  • Over improvement
  • Remodeled before?
  • Functional obsolescence

“Interest rates are too high.”

  • Validate - “I can understand your concern..... I really appreciate you bringing that up.”
  • Financing - “There are creative forms of financing that I would like to sit down and go over with you.”
  • Tax Advantage - “Another thing we have to remember is interest can be written off of your taxes.”
  • Pricing - “The pricing of houses is a direct reflection of the interest rate.

“Why Buy Now?”

  • Great selection
  • Fantastic prices
  • Interest rates
  • High cost of renting -payment stability
  • Tax advantages
  • Principal reduction

“Why Sell Now?”

  • Upgrade and capitalize on pricing
  • Market could worsen
  • Interest rates
  • Cost of maintaining vacant property
  • If upgrading, increased tax advantages
  • Rare Opportunity

“We’re going to fix it up.”

  • In most cases, no, they are not.
  • Your goal - list the house and adjust price
  • No showings until...list repairs to be done in the MLS
  • Recommend contractors & help stage
  • “Top dollar” - maybe that person is looking now - everything to gain - nothing to lose
  • Bugs, foundations and water seepage

“I’ve Got An Agent Working For Me.” (Buyer Objection)

  • Satisfied with the service?
  • Financing Alternatives
  • Second Opinion
  • Part of the Job

“We Have To Find a House Before We Sell Ours.”

  • Sellers who thinks they are purchasers
  • Weak Negotiating Position
  • Double and triple payments
  • Did you want to sell your own home before you purchased another?
  • Cash in hand buyer - best negotiating position
  • Strong negotiating position - both ends

“Low Offer”

  • Serious risk of alienating the seller
  • Difference between asking and selling price in area
  • Just start writing offer and wait for them ask you what you think....
  • Already adjusted - prices have already been changed to reflect new market realities
  • Comparables
  • Reverse the situation
  • Anger - “what do you want me to do when they yell at me?”
  • Give the listing agent comparables
  • Working with other agents:
    • Be friendly and cooperative
    • Constantly state your common goal
    • Tell listing agent you need quick response
    • Write down your negotiating points
    • Respond quickly to counters
    • Condition issues and bids

“Not much equity, we’re going to stay.”

  • How much is “not much”
  • Is it “not enough” - more expensive homes - better savings
  • Advantages of an upgrade move in today’s market
  • Treat as financing and down payment objection
  • Treat as financing and down payment objection
  • Demonstrate profit in upgrade move

“I want a great house for half price.”

  • You are not the “patron saint of real estate.”
  • “There aren’t any.” - use a laptop
  • On the phone - “That’s great, let’s get together.”
  • The dream house graph
  • If they’re nuts - run, TAPS for normals

“Dreamer versus Buyer” Presentation

How to Fire a Buyer

  • Review - “You haven’t seen anything appealing”
  • Apologize - “Perhaps I missed something...”
  • Thoughts - “What are your thoughts...”
  • The arrow graph - Want to pay...Want to buy
  • No confidence - “Don’t think I can do it.”

How to Fire a Buyer- Arrow Graph

Landlord Objections

  • “I don’t want the tenants to know it’s for sale”
  • Extend their lease
  • Reduce their rents for showing access
  • Owner set showings with 24 hour notice
  • “The rents are too low.”
  • Have to be raised to get fair price
  • Or accept a lower price

Pricing Objections - Two step them

  • “Promise that I can keep”
  • “Better part of the afternoon”
  • “It won’t appraise out”
  • Price and “percentage of buyers” graph
  • Overpriced homes sell other people’s houses
  • After 90 days, there are two kinds of houses, the ones that are sold & ones that are overpriced

Pricing Objections

  • Reverse the process
  • Hard ball
  • “I have to have” - financing objection
  • “Beauty contest and a price war - have to win both”
  • Use the data, use the data - Monthly CMA profile
  • Situation - Another CMA
  • “Bob from A.B.C. Realty said he could get me $50,000” or “Well we had it appraised for a second mortgage and they said it was worth $65,000.”
  • Another Agent - I can understand how you would feel better, about going with an agent, who thinks your home is worth more money. I’d sure like to check my numbers,may I see the Competitive Market Analysis they prepared for you?

“We had an Appraisal for $150,000.”

  • Another Agent - “I can understand how you would feel better, about going with an agent who thinks your home is worth more money. I’d sure like to check my numbers. May I see the Competitive Market Analysis they prepared for you.”

“I want to wait until the spring.”

  • “First - you have to find out if they want to put their house up for sale in the spring, or do they want to move in the spring
  • If they plan on moving in the spring, this is not an objection.
    • Average time on the market
    • Loan processing time, (presently 6 to 8 wks.)
    • Possession time also be made negotiable
    • Closing time can be extended
  • “Serious buyer” close
  • “Driver’s seat” presentation

“I only want to list for 3 months”

  • We have two listing periods, 9 + 12 months
  • Better Than Even Chance
  • “Easy-exit” marketing agreement
  • 50% chance of getting paid
  • Average time on the market

"I Couldn't Get It Sold With ABC Realty"(What makes you any different?)

  • Good ones and Bad ones
  • Website & Virtual Tours
  • Specialist in your area
  • Two reasons why homes don’t sell

"I Have a Friend In Real Estate"

  • “Part time - Oh, perhaps I know him, is he full time or part time?
  • Confidentiality
  • Can you fire your friend & stay friends?
  • Second Opinion - two friends
  • Based On The Facts

"Let's Reduce the Commission."

  • Would you go with the cheapest doctor?
  • No
  • Best Bargain of all - good service & follow-up
  • Foreclosure history - now they offer bonuses
  • Bonuses - attract, neutral, avoid
  • Full co-broke - what it means
  • 184 Things REALTORS Do for Sellers (PDF  |  WORD  DOWNLOAD)

"We're Going To List With X, But you'll Still be Able To Sell It.”

  • Primary Objective - I service the people who have their property listed with me, because my primary obligation is to them
  • Personal Attention - If you decide to work with me you would receive the personal attention that you are entitled to.
  • Appraisal- Have you had your home appraised?
  • What you are looking for?
  • Based on the Facts

"I Don't Like Large Companies. They’re Too Impersonal.”

  • More Listings - means more buyers.
  • More Buyers - means more sellers, means more buyers.
  • Listing With Me - “When you list your home with me, you are listing your home with me.”

"Why Didn't You Show My House When It Was In the MLS?"

  • Wasn't My Job - "John, at the time I didn't have any buyers for your home. It wasn't my primary responsibility, that was the job of your listing agent."
  • Specialize - "John, what I do primarily for a living is specialize in marketing homes for sellers, a significant percentage of my showings are the homes that I have listed."

“I want open houses.”

  • Real Reason - “The real reason agents hold open house is to get buyers”
  • 1% - less than 1% of all houses are sold by open house
  • Personal and property security issues
  • Research shows that only a small percentage of houses are sold as a direct result of open houses. In spite of that, I'm willing to make that commitment to you.

"How Long Have You Been In Real Estate?"

  • Count your training time - Training is fresh - still excited
  • Have more time to devote to individual clients
  • Have had the most recent training, familiar with the newest forms of financing
  • Be positive, if you act like you think it's a problem they'll think it's a problem.
  • Time- I also have much more time to devote to individual needs of people, and you will have my undivided attention

"I Overpaid and I have no equity, So I’m Just Going To Stay."

  • Appreciation and Instant Equity -If someone waits 2 or 3 years to make their upgrade move, the house you are going after is going to go up in value as well. What is going to be different?
  • Possibilities - “Well that's terrific, what I would like to do for you is sit down and discuss all the possibilities you have.”
  • (The money they overpaid is lost and not coming back. In three years, the property may go up to what they paid for it, but, they're still losing out on a bad investment.

"We'll Just Rent It Out For Now”

  • May I ask you if it was your original intention to rent your house out?
  • The rental market has been stressed by recent market conditions as well
  • Have you ever been a landlord before?
  • Go for appointment - using free CMA, etc. If in the home, talk about the possibility of waste and damage, evictions, loss in value to the home, etc.

 "There's No Big Hurry, We Have 90 Days" (FSBO Objection)

  • Marketing time - “It's not unusual for someone to go through all of the time that is necessary to get the absolute most out of the home and then list it. The clock has not even started on a normal marketing period at this point.”
  • Right Period of Time – “We need the right period of time to get your home sold for top dollar.”
  • Average time on the market - Average time on the market for a home right now is 6 to 8 months, if I could make a suggestion, this home needs to be on the market with an agent right now.

"There's No Big Hurry, We Have 90 Days" (FSBO Objection)

  • Bad Experience
  • Turn around
  • I don't like them either
  • Doctors, Lawyers, and Plumbers

 "I'm Very Busy This Week" ("I can't give you a definite time")

  • Tentative
  • The Unscheduled Appointment
  • Thank you note and follow-up

"I Have One More Realtor To Talk To Before I Make a Decision”

  • Cancel the Appointment - offer to do it for them.
  • Top dollar - If you are comfortable that I am going to get you top dollar for your home....
  • The Sandwich