In the real estate industry, the ability to handle objections professionally is a critical skill an agent must have. While focusing on market data and statistics is necessary, engaging and communicating with potential customers on a more personal level is just as essential. To guide you in effectively handling objections in real estate, I prepared the eight most common real estate objections you might hear, along with sample scripts and tips.
Download all the scripts below and read through the article for additional tips and scripts to copy and use:
1. ‘Could you please cut or lower your commission? Because other agents will.’
When handling objections in real estate such as this situation, your natural response is to establish your worth as their real estate agent by discussing what you can do that other agents can’t. Pointing out your mutual interest in the property’s success is recommended in this scenario. Remember to concentrate on the prospect and their main goal to save money while working with you. Plus, emphasize that you might not be able to obtain the best price for their property if the commission is reduced.
Sample Script 1:
I understand your desire to save more money, but let me ask you this: would you want to work with an agent who sells your house, or would you want to work with an agent who will sell your house for the best price on the market? At every step of the process, I’ll be in your corner, making sure that you are paid your fair price, but I can only do that when I know that you trust me and know my value. Do you want to sell your house for the best price?
Sample Script 2:
Got it. Thank you for being direct with me, and I understand your intent to save money. I am always honest with my prospects, so there’s a reason I won’t be changing my commission. You see, when I work with you, I bring many promising buyers to your doorstep. But to be honest, almost everyone interested will want it for less. I intend to negotiate the best price for your house every time. In a way, I will protect my earnings the same way I’ll be defending yours. Does that make sense? If you want someone in your corner who won’t back down, I’m the agent for the job.
(Sample scripts from Follow Up Boss)
2. ‘I want to sell it myself’ or ‘We want to sell it ourselves to save on commissions.’
This is one of the common real estate objections agents hear. Some prospects may have had a negative experience with an agent in the past or read about the process on the internet and decided that it doesn’t seem that tough after all.
Whatever the case, to effectively handle this objection, provide them with points of value that an agent brings, like the following:
- You will market the property internally and through the Multiple Listing Service (MLS).
- You have real estate signage and other marketing materials that can help highlight the property’s value.
- You have excellent connections with numerous contractors and handymen.
- You are skilled at negotiating and creating contracts and know how to help the prospect obtain whatever they want.
- You are an accomplished agent with extensive knowledge of the current market and know what factors can make or break a deal.
Sample Script 1:
Oh, sure! Listen, you have a great house, and I think you will be able to sell it pretty quickly. The only question is: what’s the price you’re going to list it for? [If the price is below the market, prove you can get them more money / If the price is above market, explain how you will save time and money on expired listings.]
Sample Script 2:
I understand your desire to save on commissions. However, working with an agent often leads to a higher sale price that can more than offset those costs. Let’s discuss how we can maximize your net proceeds while also benefiting from my expertise.
(Sample scripts from Follow Up Boss and Agent Marketing Essentials)
3. ‘Zillow says it’s worth X’ or ‘Zillow told us that our house is worth X, which is more than what you’re saying.’
Zillow is the world’s most widely used real estate platform, so prospects often trust it and its Zestimate. However, Zestimates takes the deed recordings in a geographic area to determine the number, and it doesn’t consider the home’s condition or any upgrades.
But keep in mind that even though you and Zillow are directly competing in this case, you shouldn’t view the platform as your rival. So, overcoming objections in real estate like this will require you to present yourself as a Zillow partner who helps people get the most out of the platform. Once you have a prospect’s trust, you can educate them about why you are a better option and why a Zestimate is not the most accurate property assessment.
Sample Script:
Yes, I’ve seen that Zestimate! In fact, that’s something I wanted to explain a bit. After all, we listed 30 houses with Zillow last year. It’s a great platform. But I wanted to share with you that with all 30 houses, the initial Zestimate was off by at least 15%. In one case, by 40%. Why? Because there are no Zillow agents that live in the area or come by your house to evaluate it!
Zillow just tries to calculate a market average based on an algorithm. But your buyers will not care about a Zestimate because their agents won’t. If a Zestimate is 15% lower, you will lose 15% on the sale. If it’s 15% higher, no one will buy the house, and then you’ll lose money on negotiating. Wouldn’t you rather just sell your house for the best price and get the most money?
(Sample script from Follow Up Boss)
4. ‘I don’t think I’m/we’re ready to sell/buy.’
People don’t think they’re ready to buy or sell for various reasons, such as believing they can sell the property later on for a higher sum of money. As a result, you must first reassure the prospects that you will support them in whatever they decide to do and that your main objective is to assist them throughout the process. This way, no one needs to feel they are committing to something they are not fully prepared for.
Next, ask the client to speak with you and express any hesitations. Always have a reason or two for why now is the right time to buy or sell. You can motivate the client by focusing on the location’s current interest rates, market conditions, or seasonality.
Sample Script 1:
I see. What specifically are you waiting for?
Do you have a home to sell before you can buy?
When do you want to move into a new home?
On a scale of 1 to 10, with a 10 meaning you want to buy as soon as possible, where do you think you fall? And why?
Understood. There is a lot to get in order before buying a new home: preparing your current home for sale, meeting with a lender, insurance, inspectors, repairs, finding a home, etc. Would you like some help with all of that?
Sample Script 2:
That’s perfectly fine. And I think that’s a very healthy approach that will help you get an even better price on the sale. So we don’t need to list it now. Instead, how about I warm up the market for you? I have a few buyer agents that might be interested in the property. I can create some buzz for your property before it’s listed and have some qualified buyers already lined up. When do you think you’ll be ready?
(Sample scripts from therealestatetrainer.com and Follow Up Boss)
5. ‘We’re still interviewing other agents’ or ‘I’ve promised to interview another agent.’
Find out by asking the client why they would want to interview more agents if you are prepared with a successful plan. In case they perceive an area you are lacking, reassure them of your expertise and the unique abilities you provide, as demonstrated by your reputation and record of success.
As a professional courtesy, you can even offer to contact the agent they planned to interview on the client’s behalf and inform them that you will be working with the client. This allows the client to start working with you without having to break the news themselves.
Sample Script 1:
I’ll call in a day or two to see if you have additional questions. Is there something in my presentation you’d like me to cover in detail right now?
I understand this is a big decision, but I know you’re looking to sell quickly. If you sign a listing agreement now, I’ll do an open house this weekend.
As an alternative, we can do the paperwork now, and I’ll postdate it. If you don’t want to work with me, I’ll rip it up.
And if you do, we’ll be ready to go. I can appreciate that you want to compare real estate agents.
Let’s set up a follow-up appointment so I can answer any concerns or questions you may have after you meet with other agents.
Sample Script 2:
I understand your house is probably your most valuable asset, and you want to make the best decision. I do have a favor to ask, though: I really believe I can do the best job for you.
I’d like a chance to see if there’s anything else I can do for you before you make a final decision.
Would you be willing to meet with me again tomorrow after you’ve talked to the other agents? What would you like to see in the marketing plan or in the representation of your agent and their company that I didn’t discuss with you?
What would make it possible for you to make a decision tonight? Is there anything you believe another company or agent could do for you that I haven’t offered to do?
(Sample scripts from danieldobbs.org)
6. ‘I’m not sure if my credit score allows us to buy’ or ‘Our credit score isn’t good enough yet.’
If the buyer has found their dream home but thinks they need a higher credit score or lack the buying power, educate them with various mortgage resources for a better understanding, such as mortgage lenders or credit repair companies. Keep in mind that you’re not a mortgage professional, so you should always seek a qualified person to answer mortgage questions for your clients.
Sample Script 1:
I sincerely encourage you not to stop looking for a better house because of that. There are credit repair companies I’ve worked with that have successfully helped my prospects boost their credit scores. Would you like me to ask [Company] to look at what they can do for yours?
Sample Script 2:
I understand. Have you spoken to a lender to find out?
That’s very common. I’ve also had many clients find that their credit is better than they thought after speaking to a mortgage lender. Plus, a lender can help you start working to fix any credit issues sooner that way. Could I have a lender that I trust at least give you a call?
OK. Did you know that there are many loan programs available that have very different credit requirements? Wouldn’t it make sense to at least meet with a lender to find out exactly where you stand?
(Sample scripts from Follow Up Boss and therealestatetrainer.com)
7. ‘My relative/friend is a real estate agent’ or ‘My relative/friend is helping me to sell/buy a house.’
Clients with friends or family in the real estate business are frequently guilted into using them as their real estate agents, which makes them raise this objection to other agents. In handling objections in real estate like this, it is essential to highlight the things you can offer when you become a part of the commitment, or you may exemplify that you can assist the prospect’s relative or friend in obtaining the greatest possible deal.
Sample Script 1:
I’m sure your friends will be trying their best to help you. I can only help that cause. Can I contact them and see if I can provide some additional value on your behalf?
Sample Script 2:
I see. So does that mean you feel obligated to have your relative/friend represent you, or are you able to freely choose who you work with to find your next home?
If you didn’t have a relative/friend in the business, you would be one of the few. Did you know that 90% of the sales in our market are handled by just 10% of the agents? Is your friend in the 10%?
I understand. So are you willing to risk your relationship if the job doesn’t get done? Or are you looking for an objective professional that you can put to work for you?
(Sample scripts from Follow Up Boss and therealestatetrainer.com)
8. ‘I’m looking for an agent with more experience.’
This is a typical real estate objection you will encounter, regardless of expertise level. Prospects usually say they are looking for someone with at least five years of experience in the business or who has sold many homes. You shouldn’t be intrusive or assertive in handling real estate objections like this. Instead, simply rectify their misconceptions about you and reveal your accomplishments and outstanding track record to reassure them that you will receive the finest deal possible.
Sample Script (for Newly Licensed Agents):
Well, I passed the state’s requirements to get my requirements. I’ve done the education, and I’m aligned with professionals in the industry. I’m constantly learning every day, and I’ve got a team of supportive people around me. So what experience exactly are you looking for?
(If the prospect said they want someone with more experience, you could say this…)
Well, someone who has been in it for at least five years isn’t here in front of you. But, I am here in front of you, ready, willing, and able to provide you with the best service, an excellent experience, and to accomplish your goals.
(Sample script is from carealtytraining.com)
Tips for Handling Objections in Real Estate
For any real estate professional, handling objections is a crucial skill. It is imperative to resolve any concerns or doubts clients raise effectively to proceed with the purchasing or selling process. We’ve included a few tips on handling objections in real estate below to help you successfully convert prospects into clients.
- Understand the objection by carefully listening and asking probing questions to reveal their concerns. Listening intently and demonstrating real interest when clients express objections are important. You can better understand their issues and modify your answers through attentive listening. Remember to let them finish expressing their opinions and feelings without interjecting.
Furthermore, to obtain a thorough comprehension of the objection, give out open-ended questions that prompt clients to expound on their concerns. This enables you to address their objection more specifically by assisting you in identifying its underlying reason.
- Provide relevant information, including updated market data, recent sales data, and comparable property prices. One of the best ways on how to overcome objections in real estate is to provide data and statistics to back your responses, build credibility, and gain the client’s trust. It could be shown in visual aids, such as graphs or charts, further enhancing clients’ understanding.
- Address objections with solutions. For instance, if clients are apprehensive about the prices, offer them negotiation strategies to bridge the gap between their expectations and the seller’s requested price. Emphasize any compromises that could be made to improve the deal for them, such as repairs or closing costs.
Additionally, you can alleviate your clients’ worries about the property’s long-term value by providing information regarding market appreciation trends and factors that could increase the property’s value. Bring up any future developments or infrastructure projects that could raise the area’s appeal and promote appreciation.
Communication Techniques to Overcome Real Estate Objections
Building a personal relationship with clients is critical to gaining their trust. To handle real estate objections like a pro, follow our listed communication techniques below. By doing so, you can create a comfortable environment where they feel heard and supported.
- Use persuasive language.
- Show empathy.
- Make a list of common objections and practice your responses.
- Make strong counterarguments that are supported by evidence.
- Highlight client success stories and testimonials
When addressing and handling objections in real estate, it is best to support your responses with relevant data and facts, like market research, industry insights, and success indicators. Also, taking the time to identify common objections helps, allowing you to prepare well-crafted, concise, and persuasive answers when clients express their concerns. Plus, practicing delivering these responses will ensure confidence and clarity.
Importance of Follow-up in Handling Objections in Real Estate
Remember that objections are not barriers but opportunities to establish trust and demonstrate your expertise. By managing objections skillfully, you may assist clients in reaching well-informed decisions that are consistent with their goals and needs. Effective objection handling requires a robust follow-up system for the following reasons:
- Additional information can be provided through follow-up: Emails or follow-up discussions let you address any unanswered questions and give clients further details that might help them overcome their concerns.
- Follow-up reinforces your commitment: Timely follow-up shows that you are committed to assisting clients in overcoming their reservations and real estate objectives.
- Follow-up gives post-purchase or sale support: Staying in touch with clients after a transaction goes well is essential. Assist them after the sale or purchase, respond to inquiries, and offer resources for their continuing real estate concerns.
Bottom Line
Real estate objections come in many forms, but only some have valid justifications, like bad past experiences, family relations, and current real estate conditions. To reassure your prospect and address their most pressing concerns, you must identify the fundamental cause of their objection. Once you have this knowledge, you can tailor your response and overcome their objections.