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A Simple Technique to Handle Buyer Objections

Chalkboard_Yes_No

We all have our share of failed attempts: riding a bicycle for the first time, attempting a new hobby, even asking someone on a date. In each of these scenarios, we move forward, stumble into some obstacles and then are faced with a choice: succumb to failure or push past doubts and make another attempt?

The truth is, failure is really a matter of mindset. Failed attempts are not failure, so it’s important to never fear the attempt itself. Charles Kettering; an American inventor, engineer and businessman; warns us of this when he writes, “The only time you can’t afford to fail is the last time you try.”

Joe Rothchild, mega agent and Keller Williams operating principal of the Katy, Texas, Integrity market center, understands that objections (and the fears surrounding objections) are part of generating a massive amount of leads. “I have no fear about calling people or knocking on doors. That is how you make business happen.”

Objections are a part of life for real estate agents. In order to move forward, Millionaire Real Estate Agents think without fear. To rephrase the popular bumper sticker: SETBACKS HAPPEN. The good news is that setbacks along the way do not represent total failure and should never get in your way unless you allow them.

The next time you’re in a situation where the buyer isn’t happy, they’re looking for other options, or you just aren’t on the same page, use the A.E.I.O.U. technique from Buyer Mastery, a Keller Williams University course.

Ask questions

Get at the real issue by investigating it further. You might ask questions such as, “Can you tell me more about that?” or “Can you tell me what’s important about that?”

Empathize

Acknowledge the buyer’s concern by saying something like, “I can certainly understand how you feel.”

Identify the real issue

Restate what you believe the real issue is. Clarify the issue by asking, “So what you are telling me is …”

Offer a solution

Problems appear insurmountable until you know how to solve them.

Urge an agreement

Use tie-down statements such as, “Don’t you agree?” or “Are you comfortable with that?”

The A.I.O.U. technique is really just the tip of the iceberg in terms of strategies to overcome objections. How else do you handle objections?

Sources: The Millionaire Real Estate Agent, Buyer Mastery.
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Posted in coaching, MREA, Script
 
  • http://www.homebuyeradvantageteam.com briancrossagent

    I set up “if, then” scenarios. For example, at the buyer consultation I always share key factors in our market report. One of the key indicators I mention is Average List Price To Sales Price Ratio. In other words, how much sellers are taking off of a home on average, if anything at all. Right now, the LP/SP Ratio in our market is 2.5%. So on average, sellers are taking off about 2.5% if anything at all. So, here’s my script for someone who wants to write a lowball offer:

    “Now that we’ve established the average LP/SP ratio is 2.5%, let’s write up that LOWBALL OFFER at 5%. I tag LOWBALL offer with bidding 5% under. 5% under is still a lowball offer in our market, but at least it’s not a 20% lowball! Works like a charm to get them more realistic about their offer when we work within the confines of the market report.

  • Keller Williams Realty

    @briancrossagent Fantastic script! Using local market data to set expectations about how much a buyer is realistically going to pay is an excellent way to keep emotions at bay. Thank you for sharing!

  • http://www.hardcorecloser.com Ryan

    Here is a great way to handle “listing objections” after all, most people that list a home end up buying another. In my humble opinion, the listing appointment is the most important sale you can make.

    http://www.hardcorecloser.com/rock-star-closer-radio-the-facebook-syndicate/

  • http://www.myvateam.com/ vinbais

    I had read about this approach many years ago in some business book, I tried it and more than often it worked for me.
    According to this approach, you should ask those questions at the start, which client will answer in affirmative. Try to take as many ‘Yes’ at the start, so that their psyche becomes tuned to be more agreeable towards you and what you offer.

    Never let a conversation with your client begin with a No from them. So beforehand prepare some short questions, which client will only answer in affirmative.

  • Praful Thakkar

    Simple AND easy technique to respond to buyers’ objections. Actually, this is true for seller objections, too.

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