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How to Beat the 7 Most Common Real Estate Objections

By
Robert Rico
|
Jun 20, 2022
5 min
Learn More - Our ProgramEnroll Now

A seller objection is a concern that a prospective seller raises, which could affect whether or not they work with you. 

It is a question, excuse, or another form of hesitancy that they make out of not having enough information or fear that you cannot satisfy their needs. 

Seller objections are perhaps the most significant challenge you might face while trying to convert a potential client. They could be very discouraging, especially for new agents. 

However, suppose you ever hope to build a successful career in the real estate industry. In that case, you must know what to say and do to make a seller feel welcome and willing to work with you.

7 Most Common Seller Objections

Seller objections can range from a concern about your pricing or timing of the sales to the value you can offer them and your experience in the field. 

This article will teach you how to provide proper reassurance to the seven most common seller objections. The first on our list is - high commissions.  

"Are you willing to lower your commission?"

Many sellers will complain about your commission rates being too high or that they know someone willing to do it for less. 

Do not be deceived. The only answer to this question is a big and decisive "NO." While this response might seem a bit aggressive, you shouldn't worry about it because you are simply establishing yourself as a professional capable of doing the job. 

Your main aim is to provide value, and you cannot do this with lower pricing. So, unless you do not deem your services worthy of the rate you are offering, your only answer to the objection should be "No. Do you have any other questions?"

"It's not really a good time" / "We're going to wait."

There are times when the above statement is true, and the market for sellers is bad. However, if the market is right for them, what you should do to convince the seller is to draw on their motivation. There must have been a reason they called you to sell their property first, and you must remind them of it. 

For instance, if they want to sell so they can move closer to a relative in another part of the country, you should ask them how they plan on moving without selling. 

If they reply by saying they would buy another house, you should ask them if it is realistic or wise to bear the financial burden of two mortgages.

If they reply by saying they would rent instead, you should ask if their move is temporary or permanent. If it is permanent, why would the seller be willing to build another person's equity over their own? 

"I think I'm going to do For Sale By Owner (FSBO)."

'For Sale By Owner' is a common phrase every real estate agent will hear. One way to go about this objection is to ask the seller for their absolute bottom line. For example, you could say, "By selling FSBO, you run the risk of not achieving maximum price. Are you aware of that?" 

Suppose they say it is a risk they are willing to take. In that case, you should let the seller see that they will not only take a price reduction but also have to offer a buyer's commission. 

Ask - "Is it really worth it? Let's crunch up the numbers and see how much you are really saving here."

Additionally, many sellers willing to do FSBO believe that it is a pretty straightforward process, which it is not. So, suppose the option above doesn't work. 

In that case, you could ask if they know all the processes they need to take, how to draft up documents, handle all contingencies and protect themselves. Unfortunately, most times, they do not. 

You could then show them how much of the behind-the-scenes work you can help them with to ensure they are safer and sell for more.  

"I'm going to think about whether or not I want to work with you."

When a seller says this to you, the last thing you want to be is pushy or overtly persuasive. But, on the other hand, houses are usually the biggest assets many sellers own, so it's understandable if they are trying to be careful when picking an agent. 

You could ask them, "What is the one thing that will make you hire me on the spot today without a doubt?" 

Usually, they would say something that indicates they need some more time. 

At this point, you should understand their need for time, let them know that you will be here, and are willing to show them you can provide value. 

"I'm looking for someone with more experience."

If you are a new agent, this is an objection you will go up against many times. 

Your reply could be, "Well, I passed the state's requirements to get my requirements. I've done the education, and I'm aligned with professionals in the industry. I'm constantly learning every day, and I've got a team of supportive people around me. So what experience exactly are you looking for?"

They'd usually reply that they want someone who has sold many properties or has been in the industry for at least five years. 

You could say, "Well, someone who has been in it at least five years isn't here in front of you. But, I am here in front of you, ready, willing, and able to provide you with the best service, an excellent experience, and to accomplish your goals."

After saying this, you shouldn't try to be pushy or to fill the void. You have played your part, and now, you should sit down and let the silence do the heavy lifting. More often than not, this will produce desired results.    

"I will only settle for the full asking price, no matter what."

 When you hear a seller say this, you should try to educate them about every possible thing that can affect the sale. You should let them see that the market determines the sale, and you do not control the market. 

You merely interpret it for clients and do what you think works best, such as staging the property, highlighting upgrades, and showing it well. 

These are all things you do to get them the top asking price, but you cannot guarantee they will get the total asking price.

How to Talk to Your Client About Renovations and Updates

When presenting a CMA, many clients say, "I'm not going to do anything to my house." 

To convince them to make renovations, you should point out to them the price differences between the current features in the house and their upgraded versions.  

Let them see that a newly renovated house with all the latest models will fetch a higher price tag, and there is nothing you can do about it. 

So if they want to sell at a particular price, they must be willing to put in the upgrades that will attract that price.

Final Thoughts on Dealing with Seller Objections 

There will always be one objection or the other when dealing with sellers, and your job is to be adequately prepared for it. 

You should know how to handle objections and match their energy, but most importantly, you should communicate with them. Do your best to earn their business, trust, and referrals.

Enroll NowGraphic showing discount are available for US Realty Training's real estate post-licensing courses.

TL;DR: To overcome a real estate objection, you have to ensure that you're looking out for the prospect. The best way to get someone to work with you if you build a genuine connection and answer their concerns directly and with confidence.

By
Robert Rico
|
Jun 20, 2022
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