How Can You Overcome Buyer Or Seller Objections in Real Estate?
Navigating through the objections of potential buyers or sellers can be a complex task for real estate professionals. We've gathered insights from seasoned experts, including a Real Estate Consultant and an Owner, to share their effective tactics. From employing the 'Feel, Felt, Found' method to using Comparative Market Analysis as evidence, here are the top five strategies they've successfully used.
- Employ the 'Feel, Felt, Found' Method
- Educate to Address Misunderstandings
- Promote Understanding of Other Perspectives
- Craft Unique Solutions for Objections
- Use Comparative Market Analysis as Evidence
Employ the 'Feel, Felt, Found' Method
One effective tactic I've used to overcome objections from potential buyers or sellers is the "Feel, Felt, Found" method. This approach acknowledges the client's concerns, empathizes with their feelings, and provides a solution based on past experiences. Here's how it works:
Feel: Acknowledge their feelings. For example, if a buyer is worried about the price, I might say, "I understand how you feel about the price; it's a significant investment."
Felt: Relate to their experience by sharing that others have felt the same way. For instance, "Many of my clients have felt the same way when they first saw the price."
Found: Provide a resolution by sharing what others have found after addressing similar concerns. "However, they found that the value of the property, combined with the financing options we explored, made it a worthwhile investment in the long run."
By using this technique, I'm able to validate their concerns, show empathy, and offer a proven solution, which often helps in easing their objections and moving the conversation forward.
Educate to Address Misunderstandings
Buyer or seller objections usually stem from a lack of understanding. My approach is always to listen, identify the root of the problem, and then calmly educate them on why something needs to be done in a certain way. Real estate sales involve a lot of emotion, so it's important in every transaction to help clients figure out what's causing the issue and whether the decision is right for them.
Promote Understanding of Other Perspectives
For both buyers and sellers, one of the biggest ways I help them overcome an objection is to help them see the other party's viewpoint. I also share how I would behave if I were in the role of the other agent. It helps the parties connect to the reality of the situation.
Craft Unique Solutions for Objections
I try to take each situation as its own unique challenge. What worked for one deal might not work for another, so I try to listen to the specific objections or concerns I'm hearing, and then work collaboratively to solve the problem in a way that can move the deal forward.
Early in the pandemic, I was selling my own home in San Francisco and in the worst possible market. I accepted an offer that had a contingency: the buyer needed to sell their own property in Seattle (which was worth about half of the SF property she was buying) prior to completing the purchase. After 60 days in escrow, the agent in Seattle hadn't even listed the property yet. That market was hotter, he had many listings, and he wasn't moving quickly to get the deal done. The buyer called me up and said that, despite loving the SF property and wanting to complete the sale, she would have to back out of the deal based on the timing. It was an absolutely atrocious market environment in SF, and I wasn't sure I'd be able to get another offer, let alone at the contracted sale price. I was in a real pickle.
So I made her an offer—I'd buy her property in Seattle and we'd 'swap.' I'd buy the Seattle property and remove the contingency. Personally, I thought I'd have a better chance in the Seattle market at that moment and I'd carry the risk on a much lower property value. But there was one stipulation—I wasn't going to pay the listing agent's fee on the purchase given the delays they caused. She agreed, and I started to line up financing. When she called the listing agent to let him know about the deal, lo and behold, he magically had a buyer lined up later that day!
Instead of being angry, or calling the Seattle agent to pressure them to move faster, or adjusting the economics of the deal to try and incentivize my buyer, I just focused on the problem at hand and found a creative solution. With a little fire under him, the Seattle agent got the message and wanted to protect his commission, and both transactions went off without any further issues.
Use Comparative Market Analysis as Evidence
One effective tactic has been the use of Comparative Market Analysis (CMA). When buyers or sellers express doubts, presenting a detailed CMA provides clear, data-driven insights about the market value of properties. This not only educates them but also establishes a basis for negotiation grounded in reality, not emotion. Using this method, I've turned many skeptics into satisfied clients, securing deals that align closely with their expectations and the market norms.
