Today we are going to cover the top 5 objection handers you must master in order to take profitable listings. Now, notice I didn’t just say take listings, I said take PROFITABLE listings. You often hear coaches as well as real estate agents saying listings is the name of the game. This is true. In order to be a top agent, you need to have a steady supply of your own listings. However, our goal is to make our business net as much money as possible. In order to achieve this, we not only need listings, we need to make sure they are profitable.
When I first started in real estate, I hired a coach through the Mike Ferry Organization. MFO has some of the top coaches in the country, and through them, I was able to grasp a strong understanding of the selling process. Part of the training included handling objections, both for getting the appointment, as well as securing the listing. The Mike Ferry Organization website is packed with free resources including the scripts to use for objection handling. You can click this link to see a full copy of the objection handling script. I am going to take the top 5, in my opinion, and discuss their applications. Let’s get started:
1. We want to only give you a 30/90 day listing.
“I’m sorry … I won’t do that … ___ months is our company policy … therefore … all we need to do now is simply … sign the contract … so I can help you get what you want … in the time you want … won’t that be great? Sign the contract …”
The issue with taking a listing with too short of a time period is the market may be in the beginning of a shift, the particular neighborhood the listing is in may have longer days on market than average, or the home is a higher price point, or unique in some way. Thus, you have to give it enough time to be able to sell. We typically take a 1 year contract. Sometimes we will give a 6 month contract, depending on the circumstances. The key here is to ask WHY they want to give a shorter listing. Listen to their reason(s) and make sure you are confident you will be able to show them the result you both want…getting the home sold.
2. What do you do to sell homes?
“That’s a valid concern … and let me ask you … are you aware … that there are two kinds of real estate agents? There are passive and active … I am an active agent … meaning … when you … sign the contract tonight … I will spend all of my time actively marketing your home … and … to the other active agents in town … isn’t that what you want? You want someone … who will work actively … and aggressively … to get your home sold … right? Terrific! All we need to do now is simply … sign the contract … so I can help you get what you want … in the time you want … won’t that be great? Sign the contract.”
This objection comes up a lot with both FSBO’s and expired listings. Most agents say the same thing, and show the same results. You truly have to be an active agent in this market in order to succeed. I go into detail on my morning prospecting routine at this point. I explain I spend 3-4 hours each day actively looking for buyers for my sellers, and sellers for the team’s buyers. This has a bonus affect as well…it allows me to set the standards that my morning routine is for generating business, not working on business. This way my clients don’t expect to hear from me until after noon for any pending communications.
3. You haven’t sold any homes in my area.
“That’s a valid concern … the obvious reason you’ll … choose me now … is that my company has homes for sale all over the community … Meaning … when you … sign the contract tonight … we can expose your property to potential buyers from all over the area … do you realize how important that kind of exposure is? Now … isn’t that what you want … of course it is … Therefore … all we need to do now is simply … sign the contract … so I can help you get what you want … in the time you want … won’t that be great? Sign the contract.”
I follow this up by saying “I don’t need to be an expert on your area, I need to be an expert in the home selling process. That is one of the reasons you are hiring me, is because I have become an expert in selling homes, no matter the area.” You see, the location of the home really doesn’t matter. If you have priced it correctly, and done your job marketing the home, you will get it sold, and ultimately, that is what the seller wants.
4. Another agent said they could get me more money.
“I can appreciate that … and what you probably don’t understand is this … An agent that will … list your property … overpriced … assumes they can take the listing now … and then start beating you up on the price … week after week after week after week … is that what you want … Who would! They’re afraid to tell you the truth … up front … __________ … do you want the truth? Of course you do? Let’s do the right thing … and simply … sign the contract … so I can help you get what you want … in the time you want … won’t that be great? Sign the contract.”
Do not fall into the trap of taking overpriced listings! It is the death of a good agent. Some agents think it is a good idea to take any listing. After all, having a sign in the yard will result in sign calls, which can result in home sales, even if it is not the home they called on from the start. However, you need to realize your sign is advertisement for your brand. If you take an overpriced listing that you can’t sell, all you are advertising to the neighborhood is you aren’t fulfilling your obligation. How does that make your brand look?
5-A. We want you to cut your commission.
“No … any other questions? Sign the contract.”
This response has “driver” personality written all over it. Guess what? It works. Most sellers feel the need to ask. Most sellers also won’t push back after you respond, politely, yet authoritatively, with the response above. They want to know they are hiring a strong agent. Someone who won’t back down to co-op agents that are trying to bully the negotiations for the buyers.
However, there are a few sellers who will take this one step further by saying…
5-B. The other agent said he/she would.
“I can appreciate that … can I tell you why that makes me nervous? If other agents do not have the courage … to stand up to you … regarding their own worth … how strong could they possibly be … defending you … and the price we set for your home … _________ I have that courage … do you feel I can sell your home? (YES) Terrific! All we need to do now is simply … sign the contract … so I can help you get what you want … in the time you want … won’t that be great? Sign the contract.”
Do not sell yourself short as a discount agent, unless that is what you are. If that is the case, sorry you wasted a lot of time reading up until this point. Our goal is to make each and every listing appointment count. By taking listings that are priced correctly and at what you determine to be your true worth as far as commission, you are setting yourself up to be the go to agent in your market. Plus, unlike many agents out there, you will actually be profitable…what a concept!
Are there any other common objections that you hear in which you would like to learn how to handle? If so, I can help. Simply send me an email, and we can discuss further.