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|  | Answering Objections Sometimes “no” really does mean “no,” but other times it can just mean “I’m not sure,” or “I’m worried.” Looking for the motive behind the “no” is a big part of successfully overcoming objections. Objections usually fall into three categories, says trainer Floyd Wickman of Wickman Seminars in Troy, Mich.
Objection #1: The house is too small. Your response: You can’t make it bigger, so point out a benefit of size. “The room layout is so good that you get a sense of much more space than the square footage indicates.” Or “With energy costs so high, a slightly smaller home will mean lower heating and cooling bills.” Objection #2: This house doesn’t have a (fenced yard), and I told you I wanted a house with one. Your response: List all the features the house does have that were requested by the prospect. “You said you wanted a three-bedroom house in Hilldale with an established garden and within walking distance of the elementary school. This house has all that; adding a fence will not be that difficult.” Objection #3: I don’t like the (living room) in the house. Your response: Ask, "Why?" Then respond to the specific difficulty. For example, if the prospect doesn’t like the color of the room, say, “We could put a clause in the offer that it is contingent on the sellers repainting the room off-white before closing.” If the prospect doesn’t like the number of windows in the room, mention how easy it will be to place larger pieces of furniture in the open wall areas. Objection #4: I don’t like the location. Your response: You can’t change the location, but you can try to dispel the idea that it’s not desirable. “There are some great people on this street; your neighbor on the left is a teacher and the blue house is a young doctor and his family. The street has a great block party every year. Or point out that a house in this location is less expensive by a certain amount to one in the neighborhood the prospect requested. Objection #5: The price is too high. Your response: Again, ask, “Why?” Then respond to the real objection. If prospects only have a certain amount for a downpayment, suggest that their offer include a request that the sellers take back a small purchase money mortgage. Or, if the prospects simply want to get a bargain, say, “You know real estate prices have gone up X percent in the last five years in this area. If you keep looking long enough, you might eventually run across a bargain, but in the mean time, you’re losing money to rising prices. Objection #6: I’m worried about losing my job in this economy. Your response: Reassurance is needed here. “Of course, it’s only natural when there have been layoffs, but you can’t live your life in fear of what might happen. If you do, you’ll never do anything you really want to do.” Or, remind the prospects that homes often retain their value or appreciate; the home could be sold or rented if the need arises. Objection #7: I want to sell my current home before I make an offer. Your response: “You’ll be under pressure to buy quickly if you wait. You may not get what you want, and you might have to pay more.” Source: Portions excerpted from "Power Real Estate Selling," by William Pivar ( Longman, 1988) More Tips for Overcoming Objections 1. Compile some statistics that support your responses to frequently heard objections. For example, know how much home prices have risen in your neighborhood and how much energy prices can vary by home size. 2. "When you hear an objection, smile," says sales trainer Tom Hopkins of Tom Hopkins International, Scottsdale, Ariz. "It means you're getting somewhere." Why would buyers care about a faulty water heater unless they were thinking of buying the house? Why would sellers quibble about a 30- or 60-day listing unless they were thinking of listing with you? 3. If the house is $10,000 more than the prospects want to offer, point out that if they live in the house for 30 years, that $10,000 adds up to only about $30 more a month. Top Closing Techniques Top producers recognize that closing techniques have to be tailored to the personalities of the buyers. Some require a more aggressive approach, but most buyers need emotional support and a softer sell. Sum-It-All-Up Close. If you're working with a buyer, restate the features of the home, sellers’ asking price, and any terms or contingencies, services you will provide during the transaction, and other details. Then close with a direct question: "Should I go ahead and draw up a purchase offer?" Pros-and-Cons Close. If buyers are having trouble making a decision or there are many details to consider, draw up a list of reasons for and against. Start with the pros to create a positive flow. Analyze the downside and move toward the close with a upbeat statement: "It looks like the pros outweigh the cons. Why don't we go ahead and make an offer?" The Guilt Close. Appeal to the buyers’s sense of family obligation by pointing out how much “everyone” will love the house. — Gail Sonkin, Illinois REALTOR® I-Own-This-Product-Myself Close. Buyers will be reassured that you as a professional own a home similar to the one they are considering. Single-Issue Close. Get agreement on other issues; then zero in on a key concern. "So the price is right and the house is right. The only issue is the schools in the area." Work toward a solution for that concern. Why-Wait Close. Point out that cost of most items has gone up, not down, over the years. Assumptive Close. Just act as if the decision is already made. “Should I come over with the contract now, or would this evening be better?” Alternate-Choices Close. "Which home do you like more—this one or the one on Pine Street." You can't use this approach too early in the process or the buyer will feel pressured. —North Carolina REALTOR® Institute’s materials for GRI 104 Empathy Close. "I understand how you feel. I felt the same way when I bought my home. But it turned out to be a smart move." —North Carolina REALTOR® Institute’s materials for GRI 104 Source: Several of the closing techniques above were adapted from "Selling the Danielle Kennedy Way," by Danielle Kennedy (Prentice Hall, 1991) Selling in the New Millenium > | Keep It Ethical Present options, but don’t exaggerate or misrepresent the home’s potential value or marketability. Article 2 Keep It Ethical For the protection of all parties, all agreements should be signed and distributed to all parties. Article 9 |
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