Tuesday at our Agent First Summit, we had as our guest David Hill to share with us how to overcome common objections real estate agents face. David has been calling people professionally in different industries for 36 years, but has been working in real estate for nearly 20 years.
Our Agent First Summits happen every Tuesday morning! It’s a perk for all our real estate team members and any of their guests who want to join us. To get an invitation, RSVP here: Save Your Seat!
At this Summit, David shared with us how to overcome objections real estate agents face in the process of finding and keeping clients.
Prepare Through Extensive Pre-qualification
It can be challenging to find clients who are ready to commit to working with you. If that sounds like you, you may need to focus more on the pre-qualification process.
On your first call, ask them some important questions to get an idea of what they actually need. Ask if they’re seeing other REALTORS®, what they want in a REALTOR®, what they need in a home, and other questions that you may see as probing.
However, this pre-qualification is critical if you want to last in the real estate business. You will ultimately save so much time and energy getting to the root of every issue. Then consider and explain how you can meet those needs as their REALTOR®.
These are some great questions to go through with your potential clients.
- What are your expectations?
- My expectations are… Is that okay?
- Do you plan to hire me if you like what you hear?
- If not, why not?
- Are you interviewing more than one agent?
- Where are you moving to and how soon do you need to move?
- How much do you owe on the property?
- Have you thought about selling the property yourself?
These are a few questions to get started. Consider any other information you may need to know before you decide if a client is a good fit for you or not. If they don’t pass the pre-qualification test and you know they aren’t ready or aren’t going to work well with you, accept that you aren’t going to work with them and delete them from your list.
Master Calls With Clients
You don’t want to be attached to a specific outcome on every call. If you’re desperate to keep every client you call, you’re likely to end up with some problems. To truly overcome objections real estate agents face, you need to have an open mind. Come at each call with a measured approach.
There are three categories each prospect could fall into. You can remember it by the acronym AFD:
- Appointment
- Follow Up
- Delete
You’ll either make an appointment with a prospect and start working now, consider them for follow-up if they aren’t quite ready, or delete them and let them go.
Knowing this, approach each call calmly and with that clarity. And as you’re on the phone, keep prospects calm as well. Be straightforward but kind. Speak at a slow pace. Don’t leave prospects feeling stressed about making a decision as soon as possible. Don’t be committed to any specific outcome that’s going to make you impatient, irritable, or desperate. Avoid “commission breath” at all costs!
Don’t panic if people are mean, either. If someone swears at you (because that does happen), keep your cool. Tell them that you won’t accept them talking to you like that, then kindly say that you’ll delete them from your list and you hope they have a good day. Then, move on. You don’t need to be stuck thinking about people who won’t enter your life again.
Commonly Asked Questions
- What do I say to an unresponsive FSBO (For Sale by Owner)?
If you call an FSBO and they insist they don’t need a REALTOR®, ask them how long they’ll go before they decide they want to hire one. If they say a month, follow up a couple weeks later, just kindly checking in. Don’t pressure them, just ask if things are going well and if they need help. Keep following up until you get a response, one way or another.
- What do I say when clients ask: If I sell now where will I go?
Encourage your clients by letting them know they have some options. They could try short-term rentals, extended closings (not guaranteed), family to stay with if absolutely necessary, etc. Make sure they know that you are there to help them find the best solution for their situation. Show up as a consultant for your clients who will do all you can to get their problems solved. Your goal is to provide options…it’s the client’s role to decide which option fits them best.
- What do I say when clients ask: How can you get me the most amount of money?
Let your prospect know that you can only guarantee you’ll get the offers you get. Explain that you’ll bring them every offer until they get exactly what they are looking for. Then emphasize how you will work to get the best deal for them.
Show them that you’ll market and negotiate. But show them through your personality that you will do your best. Prospects can tell when you’re serious and when you’re just feeding them lines. Start out by being intentional about everything.
When you first meet them, treat it as an interview for the job of selling their house. Thank them for the opportunity. Make sure the prospects know that you are going to go all-in for them. Explain that you know what they need and have ideas for how to get it. You can offer them a 28-day guarantee that if they don’t like your work after that time, the contract can be ended. Show statistics of past sales.
For example, if you’re a seller’s agent, a great way to foster competition so your clients see the best results is to bring potential buyers in at the same time to let them see each other. By building competition, you’re increasing the chances of a good sale over market price.
When your prospects see how hard you’re willing to work, you have a much higher chance of turning them into loyal clients.
- How do you deal with commission rate objections?
Some clients are desperate to know your commission before anything else. However, sharing that off the bat without establishing your value proposition first is a great way to make the conversation only about price.
It is clear that homeowners want to know how much they will have to pay for your real estate services. However, you as a real estate professional are responsible for educating the client that what’s MORE important than the commission amount is what the take-home amount is. Meaning, the homeowner is actually asking “how much will I net” once everything is paid out. They don’t really care how much you charge. However, if they’re insistent, give them a number.
So you must remind clients that a low commission doesn’t necessarily mean they will make more money. If they list a house for $500,000 with a commission of 5%, the commission is about $25,000. In this case, they may think they must have at least that $475,000 to be content with the sale. However, what if with your services you could have gotten them $525,000 at a 6% commission? That nets out to $493,500!
- Do you send a listing presentation beforehand or give it in real time?
Send a pre-listing packet in advance so their research is already done when you make that first connection. Then, while talking to them, ask if they want to see the paperwork first or tour the house first. If they want to see the paperwork, great–that means they’re ready for business. If they still want to tour, that’s okay too. Just make sure they have the information they need to make the final decision in advance.
Winning Prospects
It’s challenging to win prospects over in a day and age where thousands of REALTORS® are competing for the same clients. But you can do it if you take the steps to be intentional with every client.
Don’t grasp for everyone you talk to. Make sure you go through that pre-qualification process and build a connection with people. Then, when you know they’re ready, go above and beyond to give them the best real estate experience as your client.
If you stick to these principles, you’re sure to succeed at your prospecting game and overcome objections real estate agents are facing daily.
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