When buyers express reluctance, they’re not necessarily telling you they don’t want to move forward, writes Luke Babbage. Sometimes they ask you to help them move forward.
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Real estate agents must wear many hats—advisor, negotiator, tour guide, presenter and salesperson. This last role can be a tricky one for some agents. Home buying is largely customer led, so the transition to active persuasion can be difficult.
When a buyer expresses reluctance, they are not necessarily telling you that they don’t want to move forward.In a way, they ask you help themmoves forward.In fact, one analysis found that customers who filed objections were 30% more likely Make final sale. It may sound counterintuitive, but buyer resistance is usually a good sign.
So, what’s the best way to overcome common objections from real estate buyers? Well, what matters is how you say it and what you say. Before we explain how to overcome the four most common buyer objections, let’s cover the right mindset to bring into these discussions.
How to handle buyer objections
Consider tone.your reflex reaction Buyer Objection It may be to get defensive and tell them in many words that they are wrong. This is not the right way to handle objections and may exacerbate their resistance.
First, let them talk—and listen to what they’re saying. You may realize that they raise one of some common objections, whether it’s anxiety about money, the market, the home search process, or the commitment of buying a home.
Make sure you hear them before addressing their specific objections. Repeat what they told you to show they were heard and understood. If you don’t quite understand their objection, ask follow-up questions until you do.
When you listen, maintain open, empathetic body language. Don’t frown or cross your arms. Verbally acknowledge what they tell you and maintain a nonjudgmental, accepting posture.
4 Most Common Objections
Now, about those buyer objections.almost All buyers object Will be divided into four categories:
- financial problem
- Time and logistics
- risk or commitment aversion
- property itself
Let’s talk about these objections and how to overcome them.
1. Financial issues
This category may include concerns about their credit rating or ability to qualify for a mortgage, as well as concerns about their financial stability, target home price, or down payment size.
Point out ways to ease their financial burden. Options like credit repair, no-money-down mortgage programs, or even a simple explanation of the costs of renting versus buying a home can often alleviate their financial woes.
They may also be so focused on the financial obligations of owning a home that they ignore the benefits. A quick review of how quickly home equity can build, the tax benefits of paying a mortgage, and how much money they can ultimately save by purchasing a home can put things in perspective and prepare people to move forward.
2. Timing and Logistics
Such objections include market concerns and lifestyle decisions that sometimes make buyers hesitant.
The number one concern related to the market is that “now is not the right time to buy a home” – meaning market conditions will be more favorable.This objection is easily overcome closure technique Just like visualization. Just show them a chart of home prices over the past few decades and they’ll see that over the long term, the market only moves in one direction.
Their objections may evaporate when they realize that the home they want is only getting more expensive every day they delay.
Other logistics-related objections might include starting a new job, getting married or having a baby soon, or having to sell your current home in order to buy a new one. While these are legitimate objections, point out that these life events will be less stressful if they get settled in their new home, whereas throwing the can down the road will cause them more stress.
3. Risk or commitment avoidance
Buyers who find the market too risky are similar to those who think they should wait. The difference is that the latter think their target home will be cheaper after the market drops, while the former fear the market will collapse after buying.
Tell them that no one knows how the market will move, but a home is one of the safest investments they can make.
To put it mildly, they are unlikely to know economic insights that the world’s leading experts don’t, and they may just be very understandably anxious about making a major financial commitment. Like buyers with financial anxiety, point out the costs of inaction—missed opportunities to build wealth, paying more as prices and interest rates rise, and the greater cost of continuing to rent.
4. Property objections
This category can be tricky because the home they are looking for may be less than ideal. This is almost certainly the case.
Teach them that perfect can be the enemy of good, and that having unrealistic standards (if you feel so) can lead to frustration and a waste of time. If, on the other hand, you think their objections are legitimate, it might be time to continue your search.
Sometimes buyers find the perfect home, but it’s hard to make it happen. This is another situation where perfectionism can be a hindrance. You probably know what they want in a house at this point, so explain how the specific qualities of the house match their preferences and reassure them they’ll be happy there. Sometimes buyer objections have more to do with a lack of confidence than anything else.
Luke Babich is smart real estate in St. Louis.contact him Facebook or Twitter.
