Overcoming objections is essential to sales success because, as real estate coach Tom Ferry says, "No one likes to be sold, but everyone likes to buy!" The following are three of the most common objections that real estate professionals encounter... and ways to overcome them!
FSBOs: It's easy to see why people might want to sell their home on their own, especially if they don't understand the complexities of negotiation.
Unfortunately, all they see are the numbers, and an agent's commission might seem like a hefty price to pay. Howard Brinton of REALTOR® Magazine suggests explaining to the prospect that the real challenge isn't writing up the sale—it's finding a buyer who is willing to pay a favorable price! Talented real estate professionals can negotiate in their clients' favor, and they ultimately pay for themselves. On top of that, as your clients, they will have a professional to guide them at every step, taking care of the details and keeping them out of hot water.
If you find that your prospects remain unconvinced, offer them a checklist detailing every step of the sale process. One look at a list of this magnitude, and they just might reconsider!
Asking Price Is Too Low: Overcoming this objection is pretty straightforward, assuming you're willing to do your homework. Commit to providing a Competitive Market Analysis for the potential listing if you haven't provided one already, and show your client that you have hard data to back up the asking price. If another agent is promising to sell at a higher price, this is an excellent time to stress the value you bring as a local expert who understands the market and operates with integrity. Let them know that you don't make promises you can't keep.
Your Commission Is Too High: Tom Ferry offers an excellent response to this objection. Simply acknowledge that, yes, they can probably find an agent who is willing to cut his or her commission... but if they're that desperate for work, what value do they bring to the table? Gently explain that they are hiring someone to negotiate in their favor, and an agent who is willing to cut his or her commission may not have the experience or be the best negotiator. In the end, it may cost them more to work with a less experienced agent, both in terms of the hassle and the bottom line.
It may be tempting to become defensive when faced with certain objections. Many people don't understand all the work you put into selling a home, and it may feel as though they're undervaluing your expertise. It's helpful, however, to remind yourself that this sort of back and forth is to be expected in any business transaction—especially when so much money is on the line! Instead of letting your emotions get the best of you, remain calm, respond with confidence, and trust in the level of value and expertise you bring to the table.