Overcoming Objections - What to Say and How To Say It

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Post on 23-Aug-2014



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<ul><li> Overcoming Objections 101 What to Say and How to Say It </li> <li> Thank You! </li> <li> Objections are Opportunities! </li> <li> When a buyer or seller gives you an objection, he is presenting you with an opportunity to close. </li> <li> Make sure that you hear clearly what the person is saying. If you interpret the objection wrong, the answer you give, no matter how eloquent, will not be sufficient to overcome their area of concern. </li> <li> Confirm what their objection is to ensure you understand it. </li> <li> Avoid the mistake of trying to answer the objection before the buyer or seller gets the objection completely out of his mouth. The objection is legitimate to that person, no matter how ridiculous it may sound. Interrupting can cause the seller or buyer to become irritated with you. It may not matter how well you handle the objection if you interrupt him. </li> <li> Your mental approach to an objection will determine your success or failure. Most agents dread hearing an objection, but most objections result from one of two situations. </li> <li> One: The seller or buyer has legitimate concerns regarding the property and/or your skill set to sell his home. </li> <li> Two: The occurrence of objections is because your presentation was not good enough. You did not convey the confidence that you are the person for the seller to hire for the sale of his home. </li> <li> The clients desire to work with you is a natural ending to a good presentation. If the presentation is weak, the objections will flow like a river. </li> <li> Get good with your presentation AND get great at overcoming objections and you will have mastered a great deal of this business! </li> <li> Too many Agents adopt the position of a deer looking in the headlights when an objection comes their way. These agents have a negative mental attitude towards objections. They view objections as a big wall between them and the sale. Join the ranks of the highly-skilled and highly-paid professional Realtors. Change your mental approach to objections through practice and you will always look forward to the opportunity to receive them. </li> <li> Lets Get Started! </li> <li> If I list and sell with you will you cut your commission? </li> <li> I can appreciate the question but as a full time real estate professional, for the sake of my business and my family, I need to be compensated fairly for my time. I know there are some agents that would say yes to your request, but consider thisif an agent is willing to cut his or her commission, how well do you think they will do when it comes to negotiating the best possible price for your home? </li> <li> Or So, this other agent is willing to do the sale for 1% less than I am. That amounts to about $2,500, correct. Let me ask you this, if that agent was so quick to give away $2,500 of his own money so quickly, how quick is he going to give away thousands of your money when it comes to negotiating with another party on the sale of your home? </li> <li> Or I know this isnt going to happen, but lets say youre going to need to have brain surgery done. Now understand money is important. But you look in the paper and you see an ad like this: This weeks special- brain surgery: 20% off! Would you call this doctor and has that done? Probably, not, right. Some things are too important to discount. Im assuming that selling your house and moving to where you want to move its one of the biggest investments and financial things youre managing in your life, right? Trust me, you dont want to leave this in the hands of a discounted service agent. </li> <li> Why is your price so much lower than that of other agents we have talked to? </li> <li> I know that its confusing when different agents come in with different pricing options. In fact, it is not difficult to work the MLS data to come up with a large range of numbers. There are many agents out there that dont have a lot of listings, and they will sometimes tell a seller what they want to hear simply to get the listing. They will worry about price reductions down the road. </li> <li> I take my job very seriously. With a 13 month supply of inventory on the market right now, I make it a point to tell my clients the truth about the value of their property. In a difficult market like we are in, there are many agents happy to get the listing. I on the other hand only want to spend my time and energy on listings that will sell. There are two places you can list your property. You can list it where it sits or list it where it sells. Which would you prefer? </li> <li> You have so many listings, how can you give our listing the attention it deserves? </li> <li> Three weeks from now I think youll be looking back and thinking that one of the biggest advantages I bring to the table is my other inventory. You see, the more signs I have on the street, the more calls I get from buyers and most of those buyers dont buy the house they call about. In fact, if they are not interested in the home they are calling on, I look first within my inventory to find them a different one. Now can you see the advantage of listing with an agent that has a strong inventory of other homes available? Benjamin Franklin had a quote that said If you need something done, ask a busy person. </li> <li> I want to find a house to buy before I put mine on the market. </li> <li> I agree, finding your new home is important and the unfortunate thing is that it could 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." </li> <li> OR Ok, lets sign the paperwork tonight on your home, subject to finding suitable housing, and then I will make an appointment with you to meet with a lender to see if you would qualify for two mortgages at the same time. </li> <li> OR Lets talk for a minute about your home being listed. We have talked some about the challenges of todays market. How would you feel if an offer came in on your home right now, and that offer was subject to the buyer selling his home that is not yet sold? </li> <li> OR The problem with finding the house you want to buy first is that you could end up losing a lot of money. Either youre going to have to end up paying top dollar for your new home or youre going to have to sell this one for less. Lets say we go out and look at some houses, and you find a house you like. You go to the sellers and you want to negotiate them down . You havent sold your house yet, so are the sellers for the new one going to be at some risk, since you havent sold yours? So what are the sellers going to do? They may sell it to you under some tough conditions. Do you think theyll be flexible on their price? Or do you think theyll stay firm, since theyre taking risk?.... </li> <li> Lets say you even do negotiate with the seller and work out a good deal. Youre now under contract to buy that house. Now, what do you have to do with your house? You have to sell it quickly! A quick sale means a discounted sale in this market. The worst part about all of this is that youre not in the drivers seat. Youre not in a good position because you need the money quickly to pay for the other house. But heres the worst part. Whether its contingent or not, if you dont sell your house in time and you have to drop the whole thing, you lose all around. Lets look at the flip side. Right now were in the drivers seat, meaning you dont have any specific commitment to buying a particular house, right? . </li> <li> Thats beautiful, because heres what we do. We put your house on the market for the price that we want. We wait until we find a buyer. When one comes, we sell it no pressure, were in the drivers seat. We find a buyer and this person is willing to give us our price. Now we go and find the sellers of another house and say, Look, I want to buy your home, and Ive got $105K cash. Do you think that the sellers would be willing to listen to you? And they might even do better on the price. Or maybe you can negotiate and say when youd like to close based on your buyer. My point is that by selling your home first, youre in the drivers seat. If you go out and buy a house first, youre locked in because youve made a commitment. Youre no longer in the drivers seat. </li> <li> You dont seem to sell a lot of homes in our price range. </li> <li> Thats true. In fact I sell a lot of homes in lower price ranges and what I find is that after I sell my clients homes, 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. </li> <li> I need to net this amount in order to move, I have to be at my new job in 90 days, but I cant afford to buy a new home if I take a loss. </li> <li> I hear you! There are a lot of people in your position in this market. Has there ever been a time when you knew you were going to have to make a sacrifice? Where, 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 dojust go for it was only one thing to do. 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 </li> <li> This time is just like that time. The market analysis shows that it is unlikely anyone is going to give you what you need to make this move 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? </li> <li> Or Lets pretend that I give you 100 one-dollar bills and I say, Go to the mall and sell each one for 95 cents. This is hypothetical, obviously. For 95 cents, do you think youd sell them? How quickly would they sell if we marked them at 85 cents? How about if we marked them at $1.20..how fast would they sell? What Im saying is by taking a house thats worth $200k and trying to get more for it than its worth, it may take extremely long time. </li> <li> If we have to go that low we will probably just list it ourselves and offer to pay 3% to any agents that want to sell it. </li> <li> I can see your point of view but there is a lot of legal paperwork/disclosures that a listing agent would handle once the property is under agreement. Who will handle that paperwork for you? As well, do you think many buyer agents will feel comfortable selling the property knowing that there is not an agent on the listing side to handle the paperwork/disclosures etc? In other words, buyer agents may be subjected to greater risk by selling a house that is not listed by a real estate agent. Can you see how that would affect the salability of your home </li> <li> We can always come down in price later. </li> <li> Youre right, but Im afraid by that point youd have to deeply discount your price. You see, if we come out of the gate with your home overpriced many of the buyer agents will instantly write you off as non-motivated sellers . Let me explain what that means from an agents perspective. The higher a price is on a property, the less a seller needs to sell it at least thats what the agents believe, from their past experience. To agents, a non-motivated seller means, that even if you come down in price later, two things will happen." </li> <li> Most agents wont even realize your home has been reduced. Now, you might say, cant we send them a flyer telling them that its 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 didnt 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. </li> <li> We arent quite ready yet, we need to finish a couple of projects around the house before we put it on the market. </li> <li> Awesome! Why dont we complete the paperwork now and while you are doing your projects Ill get the flyer done and paperwork processed so when you are ready I will be too! Well write in to the contract no showings for two weeks! </li> <li> Will you cut your commission? There are other agents...</li></ul>


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