We get a lead, we follow up effectively and set an appointment. We prequalify. Then we go out and do the best job we can do (whether it be a buyer or seller) to present to them the property they’re trying to buy and why they should list with us. We’re very passionate about it. You feel good, you’ve made a good presentation, and then they give you two or three objections (which is like a slap in the face sometimes and even the best agents are caught off guard). I want to spend a little time on handling objections that I think can help you when these things come up.
First of all, the most important thing I can say to you if you sit down and take the last 12-18 months of your career (or if you’re new to the business find two or three agents that have been successful in the last 12-18 months of their career) and I want you to make a list with buyer on one side and seller on the other. I want you to make a list of the common objections you receive when you’re out showing property to a buyer, or common objections when you’re out working with a potential seller. The truth is there are just a handful of common objections.
A Decades Old Story
I’ve shared this very brief short story for 43 years.
My broker, Pat McVay, an incredible guy, passed away last year unfortunately, walks into my office my first week in the business, takes a piece of paper and hands it to me. He said, “Look at this paper.” It said common objections from a seller and he had listed 7-8 common objections (I want to think it over, I’ve got a friend in the business, I want to compare companies, I want a higher price, I want you to cut your commission, I want to give you a shorter listing).
I said thank you. He wanted me to memorize an answer between now and next week, then I asked him where I get the answers. He told me to find out from people in the office or make one up. I went around the office and I asked for them to give me an answer to the objections. They all looked at me, they had that blank stare. They were nice people, good agents, but blank stares so I started making up my own answers to these objections. This was 45 years ago.
Next week…
Pat walks in the next week and I handed him the list and then he said, “Alright, I want you to cut the commission.” I said, “no, any other questions?” He told me no, so I said, “sign the contract please.” He said, “Okay.”
Next objection Pat said, “Alright Mike, I have an objection. I have a friend in the business.” I replied, “You know almost everyone does. May I ask why did you not list with your friend and why am I here? I assume it’s because you want to get the home sold. Is that correct?” He replied, “Yes I do.” I responded, “Sign the contract so I can start.”
So, I made up answers, they weren’t the best answers. There are certainly better trainers with better answers, but my answers were direct, understandable, simple, to the point and common sense. So the first thing I want you to do when it comes to handling objections is making the two lists, buyer and seller common objections and inside the MFO network, inside our website, we have all the answers printed for you to download and read, role-play and practice.
Learn the answers, memorize, make them part of who you are because the catch is in handling objections so much of it is the confidence you display. They look at you and say, “Well we like what you’ve had to say today and we think you’re a pretty good agent, but the agent last night said they would do it for less money. Will you cut your commission?” And without hesitation I said, “No, any other questions?” They said, “Why won’t you do it?” My response was that I don’t do that, any other questions? They said, “No.” and I replied, “sign the contract.”
Preparation Builds Confidence
And what’s interesting, the confidence I display gets them to sign the contracts. So the most important thing I can say is learn the objection. Learn the answers, the confidence goes up and you will get more contracts signed, and some of you will say it can’t be that easy. And you’re right if you say to yourself that it’s not going to be easy, I can guarantee it’s not going to be that easy.
I’ve lasted 43 and a half years training real estate people how to sell real estate because I make things simple, direct, to the point and as common sense. And my competitors will give you pages of answers. Simple objection: I want to cut the commission, they will give you 7 paragraphs to repeat back when the truth is, do you want to cut your commission and the answer is no then them tell them, “No, any other questions.” You see, if you don’t have the confidence in your response, you can’t handle the problem so I wrote a couple thoughts:
Objections are Unanswered Questions
An objection is a question in the mind of the customer that remains unanswered. Answer the question.
- Client: I want you to cut your commission
Agent: No, any other questions?
Client: We asked the agent last night and they said they would.
Agent: May I ask you why you didn’t list with them since they were here?
Client: Well we wanted to compare what you’re doing to what they do.
Agent: Let me ask this question. Is there any comparison between what they offer and what I offer?
Client: No, yours is much better.
Agent: Great, can I make you a great deal?
Client: What’s that?
Agent: I am willing to work for free for the next 30-60-90-180 days. How would you like it if I work for free on the sale of your property?
Client: Well how does that work?
Agent: How much commission do you pay me when we start?
Client: Well I don’t pay you anything.
Agent: So I’m going to work for free and take all of the risk in this transaction by working for free, but I’d like to ask this favor. When it sells, would you pay me the commission I’ve earned?
Client: Well of course.
Agent: Sign the contract, let’s start.
Know When to Move On
A condition is a statement of fact that you cannot do anything about so move on. If they want a million dollars for their house, you showed them all the comps and they’re all at $750K. Doesn’t matter, they want a million. They tell you if they can’t get a million, they won’t sell. Well guess what, you’re not going to sell. That’s a statement of fact you can’t change. Why do they want a million? Because they owe $975K. They owe $975K on a home that’s only worth $650K. They tell you they kind of got over mortgaged. Kind of over mortgaged? Tell them, “I can’t help you, thank you,” and leave.
Here’s what we have to get clear in our minds. There’s a direct correlation between the amount of objections you receive and the strength and quality of the confidence you show in your presentation. You show confidence, if you’ve been to my seminars in the past often people in the audience will challenge me with objections and I allow that and I like the participation. People go, “Gosh, Mike is so great. They brought an objection and they slammed them right back and he got the contract signed.” Well I had the confidence to do the job because I know what needs to be said and asked next.
Strengthen the Presentation
Keep working on strengthening the presentation as a method of not only bringing the seller to your side but eliminating objections. People want to pay less because they don’t see value. The higher the value in what you say, the more they’re willing to pay. You buy things and pay this price because you see value. You see something else, you only want to pay this price, why? Because you don’t see the value. People will pay for the value they see. Provide the highest value and they pay you the commission you want.
Objections Don’t Have to Happen
You don’t have to get objections on a regular basis if you prequalify and you follow the scripts we give you. Objections don’t have to happen. You get them because we’re not sure of the motivation, what they’re trying to accomplish. We haven’t asked what they want for the property and how much they owe. We haven’t asked where they’re moving to and how soon they have to be there, but you ask those questions and then you find out the motivation the problem that you can solve.
Mind Over Matter
Handling objections is primarily mind over matter. When we remove the fears we have about learning the answers and practicing them daily our mindset gets strong and we can go out and deal with the public virtually every day
I’m excited about what you can do November through December. I’m excited about the questions that you forward throughout the course of the week. Keep up that good communication, but I’m most excited about the fact that you can build within yourself a strong, confident, productive, profitable, professional real estate sales agent. We’re here to help, let us help.
By the way, coming up in January is our annual Production Retreat. You won’t want to miss it! I’m going to spend 1 ½ days on listing property and 1 ½ days on working with buyers. We’ll go take through all the techniques you need to know in 2019.
Thanks for today.
Mike Ferry is the global leader in real estate coaching and training. Watch Mike each week as he discusses a variety of topics to help real estate agents and brokers. Grow your real estate business by improving your mindset, developing your skills and creating a plan of action to increase your production!
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