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31 Cards in this Set
- Front
- Back
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“If I list my home with you and buy my next home from you, will you cut your commission?” |
“You know, I can appreciate that, and I want to be up front with you and say NO, I will not cut my commissions, and for one very simple reason”. “As a professional my time has a certain value and I only work with people, like you, that realize the value of my service….and before you say anything, think about this… “If an agent is willing to cut his or her commission, just like that, how well do you think they will hold up when it comes to negotiating the best possible price for your home?” I want to demonstrate, up front, how tough I am going to be for you…Therefore, cutting my commission is not an option…does that make sense?” |
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“I have to keep my promise to the agent from which I originally bought the home.” |
“That’s great, I can appreciate your loyalty and that is a quality that I respect in people…so, I’m curious, let me ask you this… “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…Have you ever been there before?” (YES) “Well, I think you might find that this time is just like that time, and with that in mind, I’m sure you can see the importance of having me over to give you a second opinion…that wouldn’t hurt anything, would it?” |
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“I have seen this marketing plan from many different agents….what makes yours different?” |
I’d level shift…”You know what? You’re right! There are only a certain number of things any agent can do to get a home sold and I think the final decision is not based on what I do differently… “I think the real issue is how you feel about the agent representing you…So tell me, what qualities are you looking for in an agent? Did you see how I shifted from “What do you do different”, to “What qualities are you looking for?” |
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“Why is your price so much lower than the other agents that we have talked to? … I mean, they have comps that show higher prices than yours”? |
“It’s kind of confusing isn’t it? I mean, you interview four agents and you get four different prices ... right”? (Yes, why is that?) “You are probably thinking why did this person come in with such a low price? Doesn’t he or she want to get our listing? Well, my answer is Yes and No. “You see there is a very big difference in the way that I operate and the way that most agents operate. Most agents manipulate the computer to show figures that they think you want to hear. Why? “Well, most agents don’t do much or get much business. Getting your listing makes them feel like they are accomplishing something… “Whereas, I, on the other hand, sell homes, non-stop, all day long. Do you want to know why?” (Sure) “I tell nice people like you, the truth. Did you know that only ___% of the homes that are listed for sale actually sell?” (No, I didn’t know that) “There’s a very simple reason, do you want to hear it?” (Yes) “Most agents do not have many listings. Therefore, convincing you to list your home with them becomes very important. “That’s why they’ll tell you whatever price they think you want to hear, even if they know six months from now, you will not be happy with them at all because no buyers will look at a house that is over priced…Does that make sense?” |
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“I’ll sell my home when the values go up!” |
If a prospect has no reason to sell their house then that is a condition. You can’t overcome conditions. |
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“How much advertising will you do, because I want a lot of advertising?” |
“I understand that advertising is a concern…Are you familiar with the difference between passive and active marketing?” (No?) “Passive marketing is basically sitting around with your fingers crossed waiting for a buyer to shop up and buy your home… “Passive marketing is holding open houses, sending out flyers and advertising in the newspaper… “You see, these methods are passive and you can’t predict if they will work or not. Yet, agents that don’t want to work at getting your home sold will insist that they have sold many homes this way…And do you know what? “I agree, you can get a home sold that way…But, you can’t guarantee it. Do you understand what I mean by passive, basically sitting around waiting to get your home sold? “Active marketing on the other hand is much more aggressive and very predictable. “I will be on the phone every single day and call 10, 25, and 50 even 100 people asking them if they would like to buy your home, if they know someone who would like to buy your home or if they would like to sell their house… “Do you know why I ask them if they would like me to sell their house?” (Why) “You see, the more signs I have out in the community, the more buyers that will call on those signs. The more buyer calls I get, the more people I can show your house to… “Now, which way, passive or active do you think gets more homes sold? “Would you like me to spend all my time and effort doing what is proven to get your home sold or would you like me to sit around with my fingers crossed hoping a buyer happens to call?” |
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“I want to find a house before I put mine on the market.” |
“I agree, finding your new home is important and the unfortunate thing is…it may take as long as three months for your home to sell. Then it will take another two months to get all of the paper work done and, by that time, any home that you would have found would already be sold. “Let’s get the listing agreement signed right now and get to work on getting your home sold tonight, so you don’t have to wait any longer than is necessary to get moved into your new home…sound good?” |
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“You don’t handle homes in our price range.” |
I’d level shift… “You’re right, I don’t sell a lot of homes in your price range and that’s exactly why I’m here tonight… “I usually sell homes in lower price ranges and what I find is…after I sell my client’s homes, a great many of them move up to your price range, therefore, it only makes sense…that the next logical step for me is to start to sell your price range as well, considering I already have a relationship with many of the buyers that will be interested in your home…does that make sense?” |
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“I need to net this amount in order to move, I have to be at my new job in 90 days, but I can’t afford to buy a new home if I take a loss.” |
“I can appreciate the position that you are in. Many people in our area are in the same position and you know…I’m curious. Has there ever been a time when you knew you were going to have to make a sacrifice? “I mean, you knew it was going to be tough and in the end, after analyzing all of your options, you realized that there was only one thing to do…Put our head down, grit your teeth and go for it… “But you found that in the end, it all worked out. You made it through the tough times and life went on, maybe en better than before… “Have you ever been there before?” (Well, yes)
“This time is just like that time…as you can see, the competitive market analysis shows that there is no way anyone is going to give you what you need to make this move… “My question is this. Is it more important to get out from under this house, take the new job and work through the tough times or are you in a position to keep making mortgage payments on this house for a couple of years until property values go back up?”…Help your prospects to see that they have probably been in tough places before and made it through…and this time is no different. |
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“If I have to sell at that price, then I will sell it myself.” |
“I can appreciate your frustration with the market place and I was wondering, what specifically causes you to believe that you can sell this home yourself, when less than ___% of the home listed for sale with Real Estate Agents are selling?” (I don’t know…but, I can’t afford to sell at that price) Ah-ha! The real objection comes out! Now dig more, find out the true motivation and handle the objection the way I have already taught you. Top Agent Alternative: “No matter what you ask for, the homeowners are trying to save money by selling their homes themselves. I can create more competition through the brokerage community.” Here’s a derivative of the same one… |
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“If we have to sell that low we will sell it ourselves and pay 3% to the agent that sells it.” |
“I completely understand your point of view Mr. And Mrs. Seller and it sounds like you haven’t been involved in this kind of transaction in a while…can I tell you why?” (Sure!) “Agents work with buyers because it is easy. You show the house, the agent writes an offer and the agent on the listing side handles the next three months of legal paperwork trying to get the deal closed…Does that make sense?” (Yes)
“If you list it for sale yourself, who will follow up with the three months worth of legal paperwork…you? If so, what agent will want to risk the fact that you have never done it before? “Let me ask you this…If you were an agent, would you rather show homes that were listed with professional agents that worked to get deals closed? “Would you rather show a home and keep your fingers crossed, hoping that you don’t get sued by the buyers because some legal aspect was overlooked by the homeowners and the transaction didn’t get done…Which would you rather do? “Do you see my point?” (Yes) “Your idea sounds valid. It just doesn’t fit into today’s “lawsuit-happy” reality…I’m sorry. Are there any other questions I can answer before you sign the listing agreement?” |
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“We don’t want to list at a price that will get it sold in one week.” |
First of all, why would you tell them that it was going to sell in a week, unless they told you they needed to be gone in a week? The only reason you would get that objection is if you were getting overly egotistical and ambitious and bragging…I’ll sell your home in a week… It is more important to listen to when they want to be gone and tell them that your price will get them there on time and maybe even a week or two sooner! You created that objection yourself, so I’m not going to handle it. |
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“We can always come down in price later.” |
“You’re right, and I think you need to take into account how homes get sold.” “You see, if we come out of the shoot with your home overpriced all of the agents that show properties will instantly write you off as non-motivated sellers…Can I explain what that means from an agent’s perspective?” (Sure) “The higher a price is on a property, the less a seller needs to sell it…at least that’s what the agents believe…purely from their past experience… “Now, a non-motivated seller means, that even if you come down in price later, two things will happen. Most agents won’t even realize your home has been reduced. Now, you might say, can’t we send them a flyer telling them that it’s been reduced? “Yes, we could send everyone a flyer telling them that the prices have been reduced, but agents get 500 flyers a week and there is a good chance it will go unnoticed. If they see that you had the home priced real high in the beginning that will tell them that you were kind of unrealistic when we listed the property, meaning that you didn’t believe that what I was saying was true… “All agents interpret this as trouble when it comes to getting the deal closed.” “Do you understand why? If we price it to sell right from the beginning, our odds of getting agents to show it are much higher.” |
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“We aren’t quite ready yet, we need to finish a couple of projects around the house before we put it on the market.” |
I would say…”I agree that making sure the house is up to par is important and you probably didn’t realize how little effect it will have on getting your home sold… “Let’s get your home listed for sale, get some of the top brokers in town to show the house to prospective buyers and get their feedback… “The good news is you’ll find that maybe only one or two of your projects actually need to get done….if any at all…” “It sure would be nice to not have to spend a dime to get out of this place…wouldn’t it?” (Yes) “Great, which would be better for you, tonight at six or 7:30?” |
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. “Will you cut your commissions, other agents will?” |
“You know, you’re right, there are a lot of desperate agents out there and I’m a little concerned…can I tell you why?” (Yes) “Do you own anything more valuable than this home?” (No) “Could you say that it is your most valuable possession?” (Yes) “If an agent is so desperate that they are willing to broadcast the fact that they don’t think they have any value as a Realtor, then I’m confused. “Is that the type of person you want sitting across from the negotiating table trying to negotiate you a better price?
“We are talking about a person who has already admitted that he or she doesn’t even see value in himself or herself...” “Is that the type of person you want to represent you in the most valuable transaction of your life?” (No) “Good. If that was the case then I should not have even come over, considering I work 14 hours a day and my assistant works 8 hours a day to get your home sold and that’s very valuable…don’t you think?” Here’s on for the top producers, I have to say something before I give it to you. The more conviction you have the less you will get objections like this. In fact, this objection is purely a function of a weak presentation…If you sound hesitant; your prospect will begin looking for ways to exploit your weakness. I would interpret this objection as your prospect telling you…”I don’t think you have any value…so you better prove it to me.” |
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“It seems like 7% should be enough to cover your expenses without paying an additional $250 transaction fee.” |
I would level shift from money to peace of mind…I’d say…©The Mike Ferry Organization Page 12 of 30 1009 40 REAL ESTATE OBJECTIONS HANDLED DEVELPING A CENTER OF INFLUENCE “I can understand your concern. It is a lot of money…so, I want you to look at it this way…Don’t look at the money. It’s really the peace of mind you will experience when you use my service… “Unfortunately, most agents don’t run their business like a business. “That means they don’t have all the support necessary to guarantee your home will sell…and what is even more important than that is having staff necessary to get the deal closed. “Did you know that only ____% of the homes listed for sale actually sell?” (No) “Well, even worse is this, did you know that only ____% of the homes that get offers actually end up closing?” (No) “The reason you are going to pay me more is simple. Every house I list for sale sells, and my staff gets them closed so you walk away with a nice big check in your hand…I mean, that’s what you want isn’t it?” |
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“Why don’t you advertise? Everyone else we talk to says they do the same things as you plus they advertise.” |
I’d say…”Obviously that is a valid concern and I’m glad you brought it up…You see, I want you to realize that if an agent tells you that he or she does the things that I say I’m going to do, which is to… “Actively prospect daily every single day to get your home sold… “Then he or she is more than likely stretching the truth a little. Can I tell you why I think that?” (Sure) “Agents that advertise a lot don’t want to work. So, what these individuals will tell you is that they actively prospect every day to impress you… “But, let me ask you a question…”If you could sell a home without spending 50% of your money…would you?” (Yes) “I mean, all smart business people would…wouldn’t they?” (Yes) “Either they are not smart, or they aren’t telling you the whole truth…does that make sense?” Here’s another one on the list… |
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“You don’t hold open houses…Why?” |
I would say exactly the same thing I said about advertising and talk about passive versus active marketing. Here’s one…you were guaranteed the last interview and after all is said and done they say…. |
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“We still need to interview one more agent.” (Even after they promised you would be last) |
Okay? First of all…that is not the real objection…they are just saying to you…
“We don’t see why we should pay you money to sell our home…that’s why you should leave.”
So, what we need to do is flush out the real objection. Use the “What specifically causes you to believe” but, only if you are in good rapport, otherwise it might be a little too strong… For a less direct version that will still flush out the real objection try something like this… “You know…I can appreciate the fact that you want another opinion, and the fact that I was told that I would be the last agent interviewed only tells me one thing? “Do you want to know what it is?” (Yes) “Somewhere, somehow, I have not completely convinced you that I can sell your home. So tell me… “What is it, specifically, that is stopping you from signing the listing contract with me tonight?” Now, you’re going to get the real objection and you can use one of the patterns I taught you to handle it… |
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“We want to have an exclusion in the listing contract in case our company, friend or neighbor wants to buy it.” |
I’d say… “I agree that it’s important to be thorough when we are filling out this contract and let me ask you this… “Why haven’t you already sold the home to your company, friend or neighbor?” (No one has made us an offer) “Your personal marketing hasn’t worked and that’s why you’re hiring me…is that right?” (That’s right) “So, I’m curious as to why I should waive my commission. If my marketing works well enough to convince your company, friend or neighbor to buy it…isn’t that what you are paying me for in the first place? “Aren’t you hiring me to let the public know your home is for sale and convince people that they should buy it? “So, why would I cut my commission if my marketing works?” |
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“We want to compare what you are saying to other Realtors” |
I’d use the what specifically pattern. “Great! I think that is one of the best things that you could do and before I go…Tell me, what is it specifically that is stopping you from picking up that pen and signing your home with me?” (We’re just a little shocked by the price) “Hey, I understand and let me ask you this…If I can help you to realize that your home will not sell for a dollar more than what I have told you…If you felt completely satisfied that it was true…would you still want to waste your valuable time talking to another Realtor or would you just list we me tonight?"” (Well, I guess if we felt comfortable, we would list with you tonight) “Great!” Then simply go back through the CMA and convince them. Next one on the list… |
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Why should we choose you?” |
The only way to answer this one is to know what makes you different from other agents. Since that is different with every agent…I’ll leave that one up to you. Next one on the list… |
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“We want to think it over” |
I would force them to make the general more specific. “I can appreciate that, making a logical decision is important…so tell me, what is it specifically that you’re going to have to think over?” Now, they will give you the real hidden objection and you can handle it using the patterns you have already learned. Next one on the list…. |
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An expired listing says “The last agent never showed our home himself and neither did anyone else from his office.” |
“Did they promise you that they would be showing your home non-stop?” (Yes) “Well then, I can appreciate what you’re telling me…you see I promise you I will not be showing your home! Do you want to know why?” (Yes) “The agents in my office are not part of the top 100 agents in the area that sell 88% of the homes listed for sale. “I’m curious…Did you want me marketing your property to the people that sell the homes or the agents that just do okay?” (The agents that sell the homes) “That’s why I promise to market your home to the agents that sell homes and not to the agents that don’t…is that okay with you?” (Yes) “I thought so.” |
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“We will only list with agents that have brought clients by while we were selling on our own.” |
“I can understand why you might think that is a smart thing to do…I mean it only seems logical…doesn’t it?” (Yes) “You’re right, it does seem logical, unless you know how the real estate business works…can I let you in on a little secret?” (Sure) “Well, there are two types of agents…listing agents and buyers agents. Of course both listing and selling, but let me ask you this… “You want to list your home for sale and get it sold, right?” (Right!) “Then you want an agent that knows marketing…does that make sense?” (Yes) “Agents that take buyers to FSBO’s aren’t marketing agents, they are buyers agents…They specialize in selling one-on-one.” “So, I’m curious, which do you think is going to get your home sold…An agent that tries to sell people one at a time or an agent that sells to the masses trying to pinpoint that one perfect buyer for your home? “I’m sure no other agent even took the time to explain that to you…did they?” (No) “Do you see why it makes sense to list with an agent like myself that spends all day marketing your property on a mass scale?”] |
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“We want to try selling it ourselves.” |
“I totally understand the thought of trying to get a home sold yourself…I mean, let’s face it…saving that commission can mean some good money in your pocket…right?” (Right!) “So, I’m curious, are you familiar with the difference between passive and active marketing?” (No) “Real quick…Passive marketing is basically sitting around doing nothing like, holding open houses, sending out flyers or advertising in the newspaper… “Were you thinking about doing any of these things?” (Yeah) “I was afraid of that!” “These methods only work about 25% of the time! Yet, agents sell this concept as if this was the answer to all your problems…right?” (Right) “Which then makes you think well, what’s so hard about that…I could do that…right?” (Right) “The problem is…this doesn’t get a home sold anymore… “Do you understand now what I mean by passive…sitting around with your fingers crossed…waiting for the buyer? “Active Marketing, on the other hand, is literally getting on the phone every single day and personally contacting as many people as I can 25, 50, even 100 a day. “The key is…asking them if they would like to buy your home, if they know someone who would like to buy your home, or if they would like to sell their home. “Do you know why I ask if they would like to sell their home? Because the more signs I have the more buyer’s calls I get to show your home…does that make sense? “Now…which way passive or active do you believe will get more homes sold?
“And you understand that I am doing active marketing on you as we speak, right? “So, how many people do you think you could call a day to try and get your home sold…and by the way have you ever done telephone soliciting before?” |
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“We have a good friend in the business.” |
“You owe your friend friendship. You owe me nothing. But you owe yourself the best. Don’t you want the best agent working for you?” |
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“Your office is not close to our home.” |
This sounds like a smoke screen, so I’m going to flush them out… “I agree, it’s not right around the corner from your home and tell me, why is that important to you?” Now you’ll get the real objection…more service, less cost, whatever. Another one… |
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“We’re already committed to another agent.” |
I’d say… “Great! So, you have already signed a listing agreement?” (Well, no) “So, you are not committed, you are just promised…right?” (Right!) “You know…I really don’t care if you list your house with me… “If you’re thinking of interviewing more agents for the job of selling your home…it is vitally important that you understand the different marketing approaches so you don’t get burned the next time… “You don’t want to get burned again…do you?”
“So let me ask you this…Do you know the difference between passive marketing and active marketing?” (No) “You don’t!” “Passive marketing is basically sitting around doing nothing like, holding open houses, sending out flyers or advertising in the newspaper. Did your last agent use any of these methods?” (Yeah) “I was afraid of that!” “These methods have been ineffective! Yet, your last agent sold it to you as if this was the answer to all your problems…right? “Do you understand what I mean by passive…basically, sitting around with you’re fingers crossed…waiting for the buyer? “Active marketing, on the other hand, is literally getting on the phone every single day and personally contacting as many people as I can 25, 50, even 100 a day. “The key is…asking them if they would like to buy your home, if they know someone who would like to buy your home, or if they would like to sell their house…” “Do you know why I ask if they would like to sell their home? Because the more signs I have the more buyers' calls I get to show your home…that makes sense…doesn’t it? “Now, which way passive or active do you believe will get more homes sold? “And you understand that I am doing active marketing on you as we speak, right?” Got them! I don’t think I have explained what I’m doing when I give the comparison between passive and active marketing. That’s what we call a future pace…basically what my objective is…is to cut the other agents off at the knee caps by educating the customers to the realities of the market place. Now, when they are sitting in front of the other agent, what question are they going to ask? “How many people do you call each day?” |
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“We want to wait for the market to come back before we try and sell it again.” |
Can you get around the fact that they don’t want to sell? No! But, and I mean BUT, you may want to keep digging and see if they have an underlying motivation that we don’t know about that is forcing them to sell now! The fact is…if you don’t know how to match peoples’ communication patterns, they oftentimes won’t feel comfortable telling you the truth and so you need to dig more! |
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“This offer is too low; we’re going to wait for a more reasonable offer.” |
“We are lucky to have an offer in today’s economy. We could wait, and maybe there will be another offer, but it may take 4 months, 6 months, maybe even more, and even then the offer could be even lower.” |
