Every client has objections.
Objections are a gift. Really, getting an objection is a beautiful thing because it indicates the client wants to work with you and has questions, but is just uncertain about the process.
Objections are a natural part of real estate and the best agents know how to use them effectively to move their clients closer to their goal. Don’t avoid them…gain insight from your client’s concerns and tackle their questions and fears head on.
Objections provide an opportunity to become the knowledge broker for your clients and to build further trust throughout the process.
Let’s begin by understanding my patented “Tom Toole Quadratic Objection Formula.”
- Acknowledge them. It’s critical to avoid arguing with clients because it gets you nowhere. Instead, offer empathy and acknowledge their objections.
- Ask a question. Pose a followup question that allows you to dive deeper.. Ask, “Can I tell you why that makes me nervous?” or “Can I share a concern?”
- Specifically respond to the fear or concern that the client shared.
- Tie it down with a close by verifying that your response addressed the client’s objection.
Now, here are the three most common real estate objections and how to handle them.
1. “I want to wait for the market to calm down.”
This objection might come from either a buyer or a seller. You can respond with the classic, “Can I tell you why that makes me nervous?” question followed by some version of these:
For the buyer you might explain that while it’s true that competition is fierce and homes are selling quickly, more homes actually sold in 2021 than in 2020. This translates into more opportunities as there is no stale inventory sitting on the market. It’s not really a true lack of supply. So, although homes aren’t staying on the market long, there is still more inventory than people realize.
Meanwhile, rates will continue to climb. This will reduce buying power and ultimately result in higher mortgage payments. Then, consider the clients who are currently renting. Explain that they will continue to spend money paying someone else’s mortgage while they wait to buy a home.
For sellers, let them know that as rates go up, inventory will likely increase as some buyers drop out of the market. Additionally, buyers won’t be able to afford as much home as they could when rates were low, so sellers could be leaving money on the table by waiting.
2. “I have a friend who is a Realtor.”
Statistics show that new agents were licensed about every seven seconds in 2021, so it should come as no surprise that your prospect has an idiot friend who thinks they can “do real estate on the side.”
In this case, the response to this question can be something like this:
“What happens to your relationship if your friend doesn’t represent your interests well? In many cases, people who hire a friend to act as their Realtor end up losing money on the deal or missing out on a house because they don’t want to damage the friendship.”
In effect, hiring a friend often robs clients of the chance to hire the agent who will get the best result. In this competitive market, the decision to hire a friend will likely create a financial risk for the buyer or seller. These are great responses unless of course… you are that friend.
3. “I need to talk to my spouse.”
Obviously this is a legitimate concern for many of your clients, but there’s an easy response. Try to schedule the next step/conversation for a specific time where all parties are available.
It allows you to empathize with your client by explaining that (maybe) you’re married as well, and you totally understand the need to keep your spouse informed and keep the peace. This could be a good spot to use a little humor here: Something like, “I hate my spouse too, I wish I never met them.” Anyway, the goal here is to get that next point of contact scheduled so you can move the process along as quickly as possible.