Keller Williams Realty’s MAPS Coaching & Mastermind’s Real Estate Agent

 Tip of The Week:

 Handling Pricing Objections

To have a thriving and successful real estate practice it is necessary to master two key elements; scripts and objection handling.  Those two skills are the foundation of the interpersonal contact you have with clients and prospects.  Once you have overcome all of the objections you have removed the barriers to entry and if there is true motivation, the client will sign an agreement. 

Here are some tips to help you with your objection handling skills and some objection handlers you can use with your next listing appointment.

1. Don’t confuse objections with conditions.  A condition is a statement of fact that you can’t do anything about.  If you are short, that is a condition—you can’t change the outcome. 

2. An objection is a question in the mind of a customer and by answering the objection you can change the outcome. 

3. When your presentation is strong, you will get very few objections, so practice your presentation so your confidence shows through. 

4. If you continue to get the same objection over and over, then change your presentation to address the objection up front. 

5. Have two or three responses for the most common objections and you will be fully prepared. 

6. Logic makes them think and emotion makes them act, so use both when handling objections. 

7. Go back to motivation often, to bring up emotions. 

8. When someone wants to work with you is when you will hear objections.  Otherwise they would just have you leave.  Answer their objections and get the listing. 

9. Don’t argue with them. 

10. Always agree with them.  Don’t go on the defense when they give you an objection.  Approve of what they say.  Great, fantastic, wonderful, I understand, etc.   

11. Ask a lot of questions to make certain you understand exactly what they are saying. 

12. Listen to their answers.  Don’t be thinking about what you are going to say.  Really listen. 

13. Isolate the objection.  Other than _____, is there any other reason we shouldn’t move forward tonight? 

14. Handle the objection and then ask for the order.

Objections 

Seller: I’d list with you but I have other agents to interview. 

Since you have other appointments, let me call them.  Most sellers go through with appointments because they feel obligated to have the Realtor over.  Let me save you time as well as starting the process tomorrow to find you a buyer.  After all, while you are waiting to be polite, there may be a buyer out there that has to buy tomorrow.  We want them to know about your home.  Let me do this, I don’t mind, I’ll call the other agents and tell them you were looking forward to meeting with them but I convinced you to … list with me … and if they have a buyer we would love for them to bring them by. This way I can save them the time of preparing, time away from their family, etc.  I’ll make the call from here if you prefer. 

Seller: We were thinking about listing with XYZ company since we’ve never heard of your company. 

I can appreciate that.  In fact I’m very happy you brought that up.  As we think about who really sells a house, it is the agent, not the company, right?  In fact, at Keller Williams Realty, we are partners so every agent in our company wants to help me get your home sold because everyone benefits through Profit Share.  At other companies the agents don’t have any financial benefit, so they compete against each other for the plaque of the month. Wouldn’t you rather have an agent that had the support of the entire company and all the agents?   

Seller: The other agent stated they would sell it for less commission. 

I can appreciate the fact you want to save money, we all do.  What I believe you want is to put the most money in your pocket, isn’t that correct?  See many people think that they will get the same price regardless of who is conducting the negotiations, which we already know isn’t true otherwise top companies wouldn’t pay hundreds of thousands of dollars to hire the best negotiators.  The other agent has already shown you their negotiation skills by giving up their own money.  What will happen when you ask them to take care of your money?  Won’t they give it away faster than they gave their own away? 

or 

I understand your hope to save money and it sounds like you are interested in putting the most money in your pocket, is that right?  See, Mr. and Mrs. Seller, the Multiple Listing Service shows the average agent in (your city) today is negotiating (example 95 percent) ____percent of the list price and the same Multiple Listing Service shows me at (99.2 percent) ___ percent so you can see that I get sellers more money than the average agent.  So if you are interested in placing more money in your pocket then … hire me … to negotiate for you. 

Seller: Another agent said they could get me more money. 

WOW.  Are they going to buy the home?  The reason I ask is in today’s market the buyer determines the price they want to offer and you determine if you’ll accept it.  I could put your home on the market at the price they want to but you would have the same problem.  Agents in our town know what a home is worth and when they have a buyer they sit down at the computer and find homes in the price range their buyer is willing to pay. They show the homes that are the best value.  Based on what I showed you this evening, does it make sense that they would show your home with a higher price than the others? 

Of course they would show it if they wanted to sell their home because your home and the price on your home would make theirs look like a great value.  In essence, you would help other homes to sell.See, many agents will take an overpriced listing because they want the buyers that call off the sign.  They don’t care if your home sells, they just care about making a sale—period.  Buyers are hard to come by in today’s market so frankly they would love to place their sign in your yard.  I want to get you where you want to be in the time you want to be there and that is my goal—not buyers from your sign.  You do want an agent that cares about your home and your goals, don’t you?

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This entry was posted on Saturday, March 1st, 2008 at 3:18 pm and is filed under Keller Williams Real Estate Agent Career Training, Education & Support, MAPS: Coaching & Masterminds. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.