We recently took a training where we talked about getting to a client’s true objection. We wanted to pass along some of the top objections being heard in today’s market, how to be sure it’s the true objection, and then maybe some creative ways to find a solution.
EXAMPLE OBJECTION: “I want to wait until the Spring season to buy/sell.”
Uncovering a True Objection in 4 Steps
1. WELCOME IT AND REPHRASE IT: So glad you brought that up, what you’re saying is you want to be on the market in April or May, is that correct?
2. OPEN DIGGING – at least 2-3 more questions: use their word in your next questions
– What about X is important to you? What about waiting until spring is important to you?
– What makes you think/believe (_________)? What makes you think that waiting until spring will _____? (whatever their reason was that make it important)
3. SUMMARIZE: So what you’re saying is you want to wait until spring because _______(reasons)?
4. CONDITIONAL CLOSE: If I can show you a way (solve it) would you be open to talking about it?
– If they say no, then they probably have additional objections – find out/repeat 1-4.
Top Objections We’re Hearing
1. Interest Rates
– Does that really mean interest rates? Often times it actually means they are worried about their monthly payment and not necessarily their rate (do the 4-step process)
Conversations around this topic:
- There are options out there, like doing a 2-1 buydown or refinance. The goal is to get them with a lender. You don’t need to have all the knowledge or answers, you just need to be able to let them know there’s more information that could help them. An objection oftentimes is a lack of education.
- Will it solve other issues in your life/home/kids fighting, etc?
- If you find your dream home and rates go up you’ll be disappointed – if they go down and you can afford to, you can refinance.
– The projections aren’t expecting prices to go way up or down –
2. Will I overpay for the house?
- Experts are split on if they’ll go up 5% (high end) or down 5% (low end). Of course, we can’t predict or promise, but the overall average is that they’ll go up by just .1%.
- AND it’s possible we’ve already hit this adjustment of sales prices in August 2022.
3. I’m afraid of the market
- 11,000 homes are selling every day
- 160 homes have sold in the last 20 mins (across the country)
- Over the last year we’ve had 4 million homes sell
- Divide over 365 days – 11,205 sell every day
- 8 every minute (national averages – know your local numbers)
4. Is the market about to crash?
That is not what the projections are saying 😀
- The data says that that home value will change -5% to +5%
- Look at when did they buy their home? 2 years before the pandemic house prices increased 12% on average and DURING the pandemic they increased by approximately 38%! So depending on when your client bought they could take a hit this year, yet still, have a large amount of equity.
The good news! Overall, if they have an objection and they’re motivated, then USUALLY it’s education. Sometimes it’s legit – they are motivated and educated, but their objection is legitimate (just filed for bankruptcy, etc. types of situations)