h. handling seller objections

Handling Seller Objections 1

Handling Seller ObjectionsPresenting the CMA, Agreeing on Price, and Close

1. “Mr./Mrs. ____________, now that you’ve seen Beverly-Hanks’ Marketing Plan, let’s look at some market data I’ve prepared.”

2. Hold the CMA so both can see it clearly. Use the presentation skills you have already learned. Pointing with your pen, pulling eye contact back at appropriate times, ask tie-down questions such as, “This fact is important for you to know, wouldn’t you agree?”

3. Discuss COMPETING properties on the market FIRST.

4. Discuss SOLD properties next. “In my opinion, based on this information, the range of value for your property would be from $ ____________ to $ ________________. How do you feel about that range?”

5. IMPORTANT: Sit back, relax, and don’t talk. Let them respond.

6. WAIT for them to answer. You must know what THEIR thoughts and feelings are.

7. CLOSE (ask) based on the information they gave you at Step 2 of the Listing Presentation.

8. Involve them in the process of agreement on what the price should be within the range of value based on their motivation to sell.

9. COMMAND RESPECT.

10. “This is Beverly-Hanks Marketing Agreement. That says you trust me with the marketing of your property. Let’s take a look at it now.” Walk through the agreement and proceed as if they have already said “yes.”

11. When you finish, “All I need to get the ball rolling and get the Beverly-Hanks’ team working for you is your ‘okay’ right here.”

12. CUSHION (ask a MINOR POINT QUESTION as you hand the pen to one of them.)

13. If they want to overprice, go to the “Pricing Right Triangle” at the end of the Listing Presentation.

14. Continue if necessary.

• “There is something holding you back. Could you share with me what it is?”• “I’d rather you say ‘no’ tonight than let me down in three or four days.”• “I know you’re not ready tonight, but let’s pretend you are.”

15. Go to the listing presentation manuals to “Triangles.”


Handling Objections

1. How many objections are there?

2. Understand that handling objections is _____________________.

3. The best time to handle objections is _____________ _____________ _____________.

4. How do you handle objections before they happen?By developing your professional ______________ skills.

The three most common objections are:• ______________________________• ______________________________• ______________________________• What are objection handling techniques?

_____________________________

-Most OHT’s _________________ work!

-It’s the _______________ that counts!


Talk to Other Brokers

• Agree ___________________________________________

• If it weren’t for the fact that you want to talk to other brokers, ___________________________________________________________________________________________________________________________________________________.

• (First close) “Just to clarify my thinking, if you talk to other brokers, what do you think they might have to offer in comparison to Beverly-Hanks?”

• Whatever the answer, show Beverly-Hanks results! After showing results, ask for signatures! And if they’re still not ready…

• (Second close) “Let me share a thought with you. I respect your feelings about talking to other brokers. I wouldn’t want you to make a decision you weren’t comfortable with. I wouldn’t want you to list tonight unless you were sure of these three things:

1. Price

2. Timing (in other words, you’re convinced that listing and selling is what you really want to do);

3. “You have confidence in me”

“Just so I know, which is it?”

SAVE THE COMMISSION!!

• _______________________________________. It makes sense that any one would want to save money.

• If it weren’t for the fact that you want to save money, you would _________________ ___________________ ___________________ _________________ ___________________. Am I right?

• Let’s talk about what you could do for yourself and what Beverly-Hanks & Associates can do for you.


Friend in the Business

• Understand you __________________ ________________ ___________________.

• _______________________________

• _______________________________

• Sell __________________ __________________ _____________________ (raise your _____________________)

• Close again. “I’ve got an idea. How about if you could entrust me with the marketing of your property and you friend could still get paid? Would that be okay? Let me tell you what I’ll do.”_________________________________________________________________________________________________________________________________________________________

Objection Handling“Our house is worth more than that.”

• Never select an agent based on price. That puts them in a situation where they bid up the price in order to get the listing, which benefits nobody. Remember, we all have access to the same data ~ and the numbers don’t lie. Many agents will give you a price to win your listing; I’m interested in giving you a price where it will sell. Select your agent based on the confidence that they can get the job done.

• If you price your home too high, you could lose valuable exposure to potential buyers. Sometimes only a few hundred dollars can mean the difference if it puts you out of the “MLS looking range” of your potential buyer ~ if the price is too high, your home won’t even come up on the search.

• You may not like what I have to say. The fact is, however, that I value honesty, and my entire program is based on telling you the truth even if it’s not what you want to hear.

• My marketing plan is of NO use unless your home is priced right.

• There are over XXX homes on the market in the area right now, and only


approximately XXX of those go under contract each month. It’s my job to see that yours is one of those that is successfully marketed. I’m sure that you can see why price is such a critical factor, when buyers have so many choices.

• Let’s use the “slightly more, slightly less” pricing concept. Let’s set the price more than current sales, and slightly less than those competing properties. Chances are that more people will see the property because we are less than the competition, and chances of getting an offer closer to our asking price will increase. You see, the competition being so much higher than the market should serve to make your home sell a great deal faster.

• It is critical to have your home priced properly from the onset, because the best activity on a new listing occurs when it first hits the market. Agents maintain an inventory of active prospects that have been cultivated over time, and when a home is newly listed, they make arrangements to see it immediately. Once this active group has seen the property, showing activity decreases to only those buyers new to the market.

• What you have “in it,” or how much you owe on the mortgage is unrelated to what the home is worth. Consider a property you would buy ~ does the current owners’ loan balance make any difference in what you are willing to pay for it?

• I understand your frustration that you have made so many expensive improvements to the property…however, although they are lovely, and the decorating and condition may make a buyer choose it over another house (in other words, improve your “saleability”), he probably won’t be willing to pay you for landscaping and decorating.

• A new roof is certainly a plus, and will definitely help us avoid negotiating over that item at home inspection time; however, it is really considered more of a maintenance issue than an upgrade.


“Another agent said they could get us more money…”

• I can appreciate that… however, let’s think for a moment, an agent that will list your property too high assumes that they can take the listing now, and then begin beating you up on the price, week after week…is that what you want? They are afraid to tell you the truth up front…do you want the truth?

• It’s kind of confusing, isn’t it? I mean, you interview four different agents and get four different prices, right?

You are probably asking yourself, why did I come in with such a low price…didn’t she want to get my listing? Well, the answer is yes and no. I want very much to sell this home for you, but I don’t want to bid for the listing and then let you down when it sits because the price is too high.

• My comps show the price I have indicated. I will take the listing at your price only if we set a date now ~ 30 days from now ~ where we can sit down and re-evaluate and adjust the price if it has not sold.

• There are two ways to price your property ~ in “never/never land” where it sits, or in “reality” where it sells…which will it be?

• You should never select an agent to market your home based on price…we all have access to the same MLS data; the only difference is in the interpretation…May I explain?

• Some agents’ CMAs take into consideration all of the activity in your area, and focus a lot of attention on properties currently for sale. It is critical for you to understand that those homes may never sell! They certainly don’t give any indication of what the market will bear ~ or, they would already be sold! I try to look at pricing the way a buyer broker will. I run a search of all properties a prospect for you home would look at…and see where you fit in that inventory. I then double check myself against realistic comps that have actually sold within the last 6 months.

• You know, even if we are able to get a contract at this price, it would be difficult to get all the way to the closing table…may I explain? When the buyer applies for a loan, one of the first steps in the process is for the lender to order an appraisal. The appraiser looks only at properties which are sold and closed…period? No pendings and no actives. These right here are the closest comparables, and the appraiser is going to be looking at the same comps. That means


we will have to adjust your price down after the appraisal comes in low. And, at that point, we’ve been off the market for over 30 days, with little or no bargaining room with the buyer. Also, a VA or FHA buyer doesn’t have to agree to the lowered price ~ they can just walk away.

• Let’s look at how homes get sold. YOU see, if we come out of the chute with your home overpriced, all of the agents who show property in this area will instantly write you off as a non-motivated…may I explain what this means from an agent’s perspective?

• The higher a price on a property, the less a seller needs to sell it…at least that’s what the agents believe…purely from their past experience. An unmotivated seller means, even if you come down on your price later, that one of two things will happen:

- First, most agents will never know that it’s been reduced.

You may say, but we can send them a flyer…yes, we can send out 1,000 + flyers daily ~ and, trust me, it will probably go unnoticed. Worse, they will see the flyer indicating that it has been reduced ~ and see a golden opportunity to “steal” your home for their clients. Obviously, it wasn’t a great value or it would already be sold in this market.

- Second, agents know that price reductions probably mean that you were unrealistic when you first listed, and now are probably frustrated. They are going to interpret this as trouble when steering their clients toward a home; they want to write an offer on something with the best chances of it being accepted.

So, it we price it right to begin with, we have a much better chance of getting agents to show it…doesn’t that make sense?

• Let me explain how agents and buyers work. There are a few inquiries that are generated by a new listing, a call on the sign perhaps. And then there are incoming transfers that come up during the term of the listing. But the vast majority of prospects for your home are already in the market. Their agents search new listings daily, and if your home is overpriced, they may never even see it. Our MLS system now allows the agent to review the property history: how long a home has been on the market, and any price reductions. This can be very dangerous information in the hands of a buyer broker negotiating against you…


• Our market is very competitive. 97% of the homes that sell are priced within 3-5% of the final sales prices. Buyers in this area are not used to unrealistic asking prices, so they tend to steer clear of those homes they consider too high.

“We cannot afford to bring money to the closing table.”

If they have re-financed:• I understand that this news seems hard at this point. But let’s look

at it this way…basically, by re-financing; you have already taken your equity out in the form of the lower monthly payments for the past 3 years.

If they have not re-financed:• By marketing the house at a realistic price, we can save the extra

payments you would have made by the home sitting on the market. A timely sale will allow you to get on with things,

If they say, “maybe we’ll just rent it out”:• That’s certainly a possibility; however let’s factor in all of the

consequences of heading in that direction.

-First, bear in mind that when you are ready to sell, the house will no longer be a primary residence, causing tax consequences that you’ll need to explore.

-Second, we can never predict where the market will be, so let’s assume a flat market.

-Third, we’ll need to figure in basic wear and tear, repainting, and new carpet at a minimum every 3 years.

-Finally, we need to consider a vacancy factor (carrying the payment while you’re looking for a tenant ~ mortgage companies generally figure 20%), as well as management fees.

-So, you see, it will actually cost you considerably more money in the long run to be a landlord ~ and that doesn’t even count the stress and worry. Doesn’t it make more sense to absorb the loss now, when we know the bottom line?


“We want to wait until after the holidays or until spring”

• I can understand that…tell me, how many days during the holiday are you going to want all to yourself? (Christmas week)…that’s great! Did you know that less than 10% of the houses listed will go under contract in the next 30 days? Did you know that there are currently over 4,000 homes for sale in our MLS? Did you know that more homes come on the market in the spring than any other time of the year?

• So, my question is, if I promise to keep everyone out of your hair for Christmas week, doesn’t it make sense that you should compete in the market now, as opposed to next Spring when there could potentially be twice as much competition? If could mean a lot more money in your pocket!

• Let’s get a jump on the competition! Why not complete the paperwork now (it won’t take long), and I can get to work on preparation of marketing materials. That way we can make all the advertising deadlines, and we’ll be fully on the market when the first “post holiday” buyers start to look!

• You realize that there are actually very few showings during the holidays most folks are just like you, and want to take some time off. What past experience has shown us, though, is that the buyers, who are in the market, are the serious ones. That increases your chances of getting a solid offer.

• Agents agree that homes always show better while they are dressed up for the holidays and prospects understand that you are celebrating and will forgive a little “Christmas clutter.”

• You certainly don’t have to show your house during major family celebrations, but I would hate for us to miss the solid buyers who come to look during school vacations. This also applies to many military personnel who are in a school preparing for an assignment here…the holidays are generally the only time they have to look. We’ve sold many homes on the 23rd, 26th, and 31st of December!


“We have a friend in the business.”

• That’s great; I can really appreciate your loyalty. I’m curious…has there ever been a time when you decided to buy something or do something, and a friend said, “Hey no problem, when you need help, I can do it.” And, in the end, because you didn’t check around, you really didn’t get what you wanted I know it’s happened to me! I’m sure that you can appreciate how important it is to shop around before you make a decision. It will only take me 20 minutes or so to give you a solid second opinion, and then you can rest easy that you’ve made the right decision.

• There is one critical factor to consider before you hire a friend or relative to manage such a large financial transaction for you. That is, can you count on them to be 100% forthright and objective with you even when it may hurt your feelings? In this market, it is imperative that your agent is comfortable to tell you the truth about both the price and the condition of your home. Let me take it one step further…could you fire your best friend if she wasn’t getting the job done?

• I make it a policy to never do business with friends or family…those relationships are just too important to jeopardize with the stress of expectations from a complicated transaction.

• I can appreciate that, and almost everyone knows somebody in real estate. You owe your friend friendship, and you owe me nothing. But, you owe yourself the best possible person for the job. All I’m asking is that you allow me the opportunity to interview, and then make your decision on merit. Sound fair?

If you are the friend and they say, “We are just uncomfortable doing business with friends.”

• I assure you that I will keep our business transactions on a professional level…who better to look out for your best interests than a friend?

“You’re too new or inexperienced compared to other agents.”

• That’s a valid concern…and let me ask you…are you aware that there are really two different kinds of real estate agents?

They are passive and active, rather than new or experienced. I am an active agent, which means that when you hire me tonight, I will spend all of my time actively marketing your home to the public, instead of simply placing it in MLS and hoping that it sells…isn’t that what you want?

So, you see, experiences vs. new isn’t the choice to make…you want someone who will work actively and aggressively to get your home sold, right?


• Experience is important, but enthusiasm and the time to devote to selling your house are equally important. I am fully committed to selling your home within your time frame, and because I am not scattered in my efforts right now, I will have the time required to devote to your sale.

• I understand that experience is important. You are not just hiring me; you are hiring the expertise of Beverly-Hanks & Associates. My branch manager has XX years of real estate experience, and the mentor with whom I work daily has been selling homes like yours for over 10 years. As I told you earlier, I also bring many skills to real estate from my previous career.

“I only want to list for 30 days.”

Beverly-Hanks & Associates makes substantial commitments to their listing clients up front in terms of marketing and advertising; we expect an equal commitment from them to provide us with a fair opportunity to get their home sold.

Average market time in our area is 90 days +, so I’m sure that you can see why it wouldn’t be very wise on my part to give you a full blown marketing system, without enough time to allow it to work.

A 30 day listing will give the buyers’ agents the impression that you aren’t really serious and may even lessen the marketability of your house.

“You haven’t sold any homes in our neighborhood.”

I can certainly understand your concern; however, most buyers don’t come in looking for just one neighborhood. The obvious reason to select a Beverly-Hanks & Associates’ agent is that we have homes for sale all over the community, meaning that we can expose your property to potential buyers from all over. I’m sure you realize how important that kind of exposure is.

“We don’t want a Lockbox.”

• With so many homes for agents to show right now, a big part of my job is making my listings both as attractive and accessible as possible. Convenience is a big factor for a busy agent, and a Lockbox can make a huge difference in whether or not your property is shown.

• The simple fact is that it is somewhat inconvenient to have your home on the market. However it is far more critical to have a potential buyer see your home in less than


perfect shape than not to see it at all. Many buyers have also been sellers, and they understand that having a home on the market is not easy. Accordingly, they will forgive a certain measure of “mess,” especially if they are not giving you much warning. The quicker it’s sold, the sooner the Lockbox can come off!

• It’s up to you of course, but we may miss important showings if your house isn’t readily available to buyers. Our present system is very sophisticated…only licensed agents have access, and the box records the name and number of each agent who uses the box.

PRICE REDUCTIONS

• I’m afraid that I wasn’t strong enough with you when we first listed about getting the property at the right price. The market is clearly telling us that the price is too high, because in 90 days we haven’t had any showings/offers. At this point, I’m going to recommend an 8% reduction to get it in line with where other homes are selling.

• It appears that you are still the highest bidder for your home! We need to go ahead and reduce the price 3-5% to generate the activity we need to get an offer.

• Here is an update on everything that has sold in the 90 days since we’ve had the property listed…based on these numbers, the market is telling us that we need to bring the price down about 10%.

h. handling seller objections

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