No one likes rejection. Especially when it costs you a potential paycheck.
If you’ve been a real estate agent, you’ve already felt the sting of refusal from potential clients. And in addition to hurting your ego a little, the rejection means a lost sales opportunity.
Each name on your prospecting list has different needs and must-haves for buying and selling their homes. They also have various objections to why they aren’t ready to get into the housing market or hire you as their real estate agent. You’ve probably heard a million of them.
Developing an effective plan to handle objections and manage tough conversations is vital to your success as an agent. You’ll hear “no” more than you’ll hear “yes,” so knowing how to respond quickly, respectfully, and persuasively will save you some frustration.
BE A GOOD LISTENER
You should make your pitch and offer your services, but let your prospect do most of the talking. Listen to their reasoning and recognize their resistance as valid. Then, you can ask questions, dig into their mindset, and offer some solutions.
Below, we highlight a few of the most common customer objections and a prompt or script you can use to craft a suitable response. The goal is to help you convince your potential client to reconsider their reasoning for not getting into the housing market now.
But worst-case scenario, they come away from your conversation knowing that you’re their go-to resource when they are ready to buy or sell a home.
COMMON CLIENT OBJECTIONS
Objection: “I don’t want to buy a house right now. I’m renting a nice place that I like.”
Response: “I’m glad you are having a good rental experience. And I’m sure renting has its advantages. But did you know that rent payments have been going up nationwide? If yours hasn’t gone up yet, it may soon. You could pay more in rent each month than you would in a house payment.
Renting is like paying someone else’s mortgage. I could show you how you may be able to pay the same amount of money – or less – each month for your dream home that you’ll own and build equity in.”
Objection: “This is my first time buying a home. I’m a little nervous.”
Response: “That’s understandable and very common with the first-time buyers I work with. Buying a home is a big decision, and you just want to choose correctly. I’ve helped many first-time buyers enjoy the process and handle all the complicated paperwork and uncertainty.
If you have an experienced agent and other real estate professionals in your corner, you’ll have a great home and have fun along the way. What are some of your questions and things you’re nervous about?”
Objection: “I don’t think we have good enough credit.”
Response: “Credit is essential when qualifying for a mortgage loan, but it’s not the only factor that matters. Do you know your credit score? Have you met with a mortgage lender yet?
Did you know that some lenders have more lenient credit requirements? It will be worth your time to meet with a lender to see what type of loan you can qualify for. I can recommend a lender you can talk to who can help you figure out what kind of home you can afford.”
Objection: “We want to sell our house ourselves.”
Response: You have a great house, and it could practically sell itself in this market! But I’m sure you want to get as much as you can for your home. It’s a crazy market right now, and because I’m in the thick of it, I’m able to help families like yours get the best price they can for their homes and deal with all the offers, contingencies, paperwork, and other things that can complicate a sale.
I’m happy to advocate for you during the sales process while you focus on other important things like packing, finding your next home, etc.”
SCRIPT ASKING FOR REFERRALS
Referrals are the basis for your business. Without them, it’s challenging to sell more homes. You’d have to resort to cold calls and advertisements, which don’t typically yield many clients.
It can be uncomfortable asking current clients for referrals – even if you know they were happy with their experience. But as long as you broach the topic informally and aren’t pushy, you’ll be fine.
Here is a way to approach the conversation:
“I enjoyed working with you and your family, and I think you’ll love your new home! I hope you had a great home buying (or selling) experience and that I was able to help you reach all your goals.
I’d love to help your friends and family find their dream homes, too. Do you know anyone who is considering buying or selling a home now or in the near future? I’d appreciate it if you could give them my name and contact information if they need my help.”