If you’re marketing as you should, your phone will be ringing with sellers responding to your direct mail advertising. But are you prepared for some of the seller objections you’ll undoubtedly encounter over the phone?
Objections are one of the most common roadblocks that prevent real estate investors from succeeding. The initial phone conversation is especially crucial since it can make or break your relationship with a seller and determine whether you’ll be able to close the deal.
If you want to learn how to overcome objections quickly and gracefully so you can close more deals, keep reading because we’ll be sharing some helpful hints and scripts to assist you in today’s article.
First and foremost, it’s important to understand why sellers give objections in the first place. In most cases, it’s simply because they’re feeling apprehensive about selling their home and working with someone they don’t know. Both of which are perfectly normal.
But as a real estate investor, it’s your job to put their mind at ease and build trust by providing them with the information they need to make an informed decision. After all, you’re asking them to do something that’s probably outside their comfort zone, so it only makes sense that they would have some reservations.
There’s no one-size-fits-all solution to overcoming objections when talking to sellers on the phone because every seller is different. However, incorporating some of the following best practices can help you navigate these conversations more effectively.
One of the most important things you can do when speaking with a seller is actively listen to what they’re saying. This means being present in the conversation and not letting your mind wander. Not only will this help you better understand their objection, but it will also show them that you’re genuinely interested in what they have to say.
It’s important to remember that sellers are human beings with real emotions and concerns. So, if you want to build a rapport and earn their trust, you need to be able to empathize with them. This doesn’t mean that you must share their feelings, but you should at least be able to understand where they’re coming from.
Overcoming objections takes time and patience. You can’t expect to overcome every objection on the first try, so don’t get discouraged if it takes a few shots to get through to the seller. Stay calm and keep trying until you find a favorable solution that meets both of your needs.
One of the best ways to overcome objections is to get creative and think outside the box. No rule says you have to do things the way everyone else does, so feel free to be creative when coming up with solutions.
While you don’t want to be pushy, being persistent is vital when working with sellers. This means following up after your initial conversation and staying in touch until they’re ready to move forward with the sale. You’ll need to find the right balance between being persistent without appearing aggressive or pushy.
Finally, it’s important to project confidence when speaking with sellers. This doesn’t mean that you need to be over-the-top or salesy, but you should believe in yourself and your ability to help them. If you don’t, they’ll be able to sense it and will be less likely to work with you.
Now that we’ve gone over some of the basics let’s look at some of the common seller objections that real estate investors get over the phone and how you can overcome them.
If a seller asks you to take them off your list, it’s usually because they’re not interested in selling at the moment. However, this doesn’t mean you should give up and move on to the next lead.
The key is to find out why they’re not interested and see if there’s anything you can do to change their mind. For example, if they’re not ready to sell yet because they need to make some repairs, you could offer to help them with the cost of those repairs.
Response Tone: Upbeat and positive.
“Of course, I’ll gladly do that… Have you been receiving a lot of mail recently? Has there been quite a bit of interest in your house?”
“No problem! Do you by chance have any friends or neighbors who need help selling their homes?” (Include information on any referral incentives if you offer them.)
“I completely understand. Can I ask, what is causing you to want to take your home off the market?”
“I’ll gladly remove you from my list. In the meantime, is there anything you need help with in preparing to sell your home? I know it can be a big undertaking. I’d be happy to provide some referrals if you need assistance with repairs.”
This is one of the most common objections you’ll hear from sellers, but it doesn’t have to be dead-end. In fact, it’s usually just a defense mechanism that sellers use to protect themselves from getting hurt or taken advantage of.
The key is to find out what’s really behind this objection and see if there’s anything you can do to help them feel more comfortable. For example, if they’re worried about being taken advantage of, you could offer to put everything in writing so they can see that you’re being honest with them.
Response Tone: Sincere and understanding.
“It sounds like you may have had a bad experience in the past… I completely understand why you would feel that way. Can I ask what happened?”
“It sounds like you’re not sure if this is the right decision for you… Can I ask what’s holding you back?”
“I completely understand where you’re coming from… Can I ask what it is that you’re looking for?” (After they tell you, see if there’s anything you can do to help them.)
This is another common objection that you’ll hear from sellers, but it’s usually not because they’re not interested in selling. In most cases, it’s simply because they’re not ready to make a decision yet.
The key is to find out when they’re planning on deciding and see if there’s anything you can do to help them speed up the process.
Response Tone: Upbeat and positive.
“When do you think you’ll be ready to make a decision?” (If they give you a date, follow up with them then. If they don’t give you a date, try to get more information on what’s holding them back.)
“I completely understand. Can I ask what it is that’s causing you to want to wait?”
“Is there anything I can do to help you speed up the process?”
“I’ll check back with you then. In the meantime, is there anything you need help with in preparing to sell your home? I’d be happy to share some of my contacts if you need assistance with repairs, etc.”
This is a common objection, but it’s important to remember that there may be more than one seller that needs to be involved. You may need to speak with both the husband and wife (or the homeowner and their partner).
The key is to find out when the decision maker will be available and see if there’s anything you can do to help them make a decision. For example, you could offer to send them information about your company or answer any questions they might have. Or, if they’re worried about their spouse/partner not wanting to sell, you could offer to talk to them about the benefits of selling.
Response Tone: Enthusiastic and helpful.
“Of course! Can I ask who I will need to talk to if we want to get the ball rolling?”
“I completely understand. It’s important to get everyone on the same page. Can I ask what the biggest concern is that you need to address with your spouse/partner?” (Once you know their concerns, you can address them directly.)
“I’ll give you a call back then. In the meantime, is there anything I can do to help you prepare for that conversation?” (For example, you could offer to send them additional information or put together a comparison of your offers.)
“When do you think they’ll be available?” (If they give you a date, follow up with them then. If they don’t give you a date, try to get more information on what’s holding them back.)
“Is there anything I can do to help them decide?”
Just because they’re working with another investor or already have an offer doesn’t mean they’re not interested in working with you.
The key is to find out why they’re working with another investor and see if there’s anything you can do to help them. For example, if the other investor is offering a higher price, you could offer to match it or provide additional services that the other investor isn’t offering.
Response Tone: Upbeat and curious.
“I completely understand. Can I ask what the other investor is offering?” (If they’re offering a higher price, you could offer to match their price. If they’re offering something else that you can’t compete with, you could try to find out what it is that they’re looking for and see if there’s anything you can do to help them.)
“Is there anything I can do to match or exceed their offer?” (If they’re looking for a higher price, you could offer to match it. If they’re looking for additional services, you could offer to provide what they need.)
Just because they’re not interested in working with an investor doesn’t mean they’re not interested in selling their property.
The key is to find out why they don’t want to work with an investor and see if there’s anything you can do to change their mind. For example, if they’re not interested in working with an investor because they want to sell their home themselves, you could offer to help them with the process.
Response Tone: Positive and Understanding.
“I completely understand. Can I ask why you don’t want to work with an investor?” (After they tell you, see if there’s anything you can do to help them.)
“I completely understand why you might feel that way, but we offer a hassle-free experience and can close in as little as ____ days. Would that be something you’d be interested in?”
“Is there anything I can do to change your mind?” (For example, if they’re not interested in working with an investor because they want to sell their home themselves, you could offer to help them with the process.)
This isn’t necessarily an objection, but it’s important to remember that just because they want you to make them an offer doesn’t mean you should jump to a number without seeing the home first. After all, you don’t want to lowball yourself.
The key is to find out their expectations and see if there’s anything you can do to help them. For example, you could ask them if they have a specific number in mind or if there’s anything else they’re looking for.
Response Tone: Lighthearted yet knowledgeable
“An offer? Hmm, I’d love to. Do you have a price in mind?
“Definitely! As an investor, I can’t rightfully make an offer before I see the houses I buy. Do you have time for me to come see your house tomorrow?
“Sure! I just need to know the best price you could offer if I paid in all cash, closed on any date you choose, and accepted the house as-is. What would that look like?”
I’m simply looking to make a modest profit, so if you’d work with me by letting me know your asking price, we’ll quickly find out if we can do business together. Does that sound good to you?
How does a hundred dollars sound? No? Alright then, what’s your counteroffer? (This must be said lightheartedly to work.)
What’s the best you can do? (You can use this if they’ve been haggling with you for a while and you’re ready to end the call.)
Objections are a normal part of the real estate investing process. The key is to find out why the seller is objecting and see if there’s anything you can do to change their mind. With enough practice and the right attitude, you’ll be able to overcome any objections thrown your way.