New Real Estate Agent Objections and Scripts

New REALTOR Training Scripts: Seller Objections and Buyer Objections

New Real Estate Agent Objections

Objections are part of being a real estate agent. Every successful REALTOR has scripts to handle common objections when dealing with sellers, buyers, and prospects. As a new real estate agent, you will have a particular set of objections to be prepared. In this post, you will learn how to handle new REALTOR objections in real estate. Plus you can download a PDF objection guide for new real estate agents.

Buyer Objections

 Meet with a positive approach and finish with a question

“I have a few places already picked out on MLS. Can we have a look at these before the meeting?”

- You have started the process! That’s awesome. I’ll tell you what why don’t we meet for half an hour before our first showings and then we can head to your selected properties from there?

- You have started the process! That’s awesome. I know the thought of a meeting can be boring but this is a super exciting meeting where I get to know your criteria in detail so I can best be of service to you. Does that make sense?

 

“Why do I have to sign a buyer brokerage agreement right now? When we purchased last time we didn’t have to sign anything”

- I understand where you are coming from on this. Buyer Brokerage Agreements are put in place to help us clearly define our relationship. We have the contract to simply protect all of us. How about we make the agreement for only two weeks to see if we are the right fit? After that we can go our separate ways if it isn’t the right fit or we can extend the agreement if it is. Does that work for you?

 

“No I’m not pre-approved but financing won’t be an issue”

- That’s great! I’m glad you're in a good position here. One of the main reasons for a pre-approval is your official “pre-approval letter” is required by some sellers. The other thing is attaching it to your purchase contract can greatly improve your negotiating power. Does this make sense?

“I’ve been out on a few showings with another Realtor”. “I’m receiving properties from a few Realtors in town”

- That’s great I’m glad you have started the process already! I know the industry can be a little confusing with compensation so let me quickly explain how I am paid. In almost all cases the seller is responsible for both their Realtor and the buyer’s Realtor’s commission; therefore, we actually don’t get paid until the transaction closes. For that reason we request our buyers remain loyal to us and we will remain loyal to you. I’ll tell you what go through all of the information we went over today and let me know if you would like to work together. This has to be a win-win relationship for everyone. How does that sound?

 

"I've been through a few new show homes recently"

- That’s great I’m glad you have started the process already! Dealing with new homes is a slightly different process than re-sale. I can definitely help you work with builders as well. The tricky thing about their model is they require me to be there the first time you go through the sales centre. So, I’ll tell you what, can we touch base with the builders you have met and let them know you will be represented. If not I do understand but I will not be able to advise you as you work through that transaction. Are you ok with us all having a quick conversation OR WOULD YOU PREFER TO GO AT IT ALONE? (Powerful statement)

 

"My friend might be selling me their house"

- That’s great I’m glad you have started the process already! Private deals can work well. There are two approaches here that you can choose from:

-I can still help advise, negotiate, and bring the transaction to a close. I would just request my compensation from the seller (don’t say friend).

-Or you could handle it ALONE.

Do you have a preference?

 

“You Have Been Through A Number of Homes”

- Ask: “How is the process working out for you?” — They will like respond and say they are frustrated they can’t find what they are looking for.

- Set up a quick meeting/phone call to review criteria. Discuss criteria and move back to the Magical Wording (85% Home, 3 Things). Let them know that everyone wants what is slightly out of their budget. This happens at all price points.

“If we could just pick this house up and put it down there”

- I totally understand what you mean here. That is one of the challenging aspects of buying a home — Remember the 3 things we discussed in the meeting: Home, Price, Location — This is exactly what is coming to light here. Usually when I chat with buyers like yourself about this, I ask them if there are 2 of the 3 things that are really important. What are the 2 non-negotiable in the 2 of 3 items.

 

“I don’t care if they are offended I’m just going to submit the lowest price”

- For sure! You should be focused on getting the best price. Offending the seller is no problem at all but one just must be prepared to lose the property or end up paying more than you may have originally. Let me explain: Offending a seller can cause them to not respond at all. If you start coming up on your price until you receive a response weakens your negotiating position. As they begin to see your interest they will hold out and you will likely pay more for the property than you may have. It’s not a standard back and forth on price negotiations as terms, conditions, the market, and motivation all play into the final price. In these cases, we usually recommend coming in on the lower side but still at a reasonable price. This usually results in the best price for you. Does this make sense?

“All I want in a home is the best price/deal out there”

- I’m glad you are focused on finding great value. I can certainly help you on this front. There are 2 ways to get a great deal on a property:

1) You know the market and jump on one that comes on ASAP to avoid anyone else tying it up OR

2) You focus on properties that have high days on market that NO OTHER BUYERS WANTED (The reject properties) at their asking price. Now there is no right or wrong here but is there one of those two approaches that jumps out at you?

 

“I’m not ready to buy for at least another 6 months so no need for us to sit down yet”

- If you're 6 months out I would recommend starting to get a handle on the market. Most buyers we have find a ton of value in receiving properties that are coming on the market even when they are 6 + months out. Would you be interested in getting a handle on the market before starting the shopping process? I can happily set up a quick auto search for you.

“If I already have the property I would like picked out will you provide me with commission back since you don’t have to work as hard?

- That’s great you have a property in mind. If we don’t have to tour through as many

homes that does cut down on time but the true value in a trusted Realtor is advising, negotiating, and bringing the deal to completion. As a rule we never do commission kickback and it is actually not permitted by the regulatory body in STATE/PROVINCE. This is because the commission agreements are between the listing brokerage and the seller. Our compensation comes from the listing brokerage to our brokerage. Does this make sense?................ (USE WITH CAUTION, CHECK WITH BROKER) I’ll tell you what if this goes quickly I’ll make sure you get some great seats at a hockey game and a nice dinner beforehand.

 

“We aren’t in any rush we will just wait for the right property to come up”

- That is great you aren’t in a rush. This puts you in a great position when it comes time to negotiate. In moving through the process we find buyers are in one of four stages: Curiosity, Interest, Desire, Commitment. For the curiosity and interest stage buyers are very focused online and eliminating properties. Once they move to desire we have to be out looking at properties. Where would you guys put yourself in the four stages.

- .... Take all the time your need to find the right home. You shouldn’t be rushed. I just don’t want you miss out on a great property.

 

“I don’t mind the busy, loud road, smell, bad street, .......”

- That’s awesome! Just so you know this may affect you when it comes time to sell. If you are buying a property with a potential negative you just want to make sure you are getting a discount from the comparables as you will likely have to sell for less than the comparable down the road. Does this make sense?

- That’s awesome! When people ask if certain things are a deterrent or not I let them know that there are still buyers out there but the pool of buyers shrinks (use gestures). Does this make sense?

 

“What should I be looking for when I go through a house”

- Great question! Although that can depend on the buyer I recommend looking for things

you can’t change and picture your life in the home. I’ll be pointing out important drawbacks or positives that may affect you on the resale market. Also I can answer any questions you have as we go through. Of most importance is picturing your life in the home and determining if the layout works for you.

 

Seller Objections

 Meet with a positive approach and finish with a question

*Most problems stem from flawed systems not flawed people.

How many years of experience? Aren’t you brand new?

- Be very confident here. This is an opportunity for you

*Never say 3 months, say I’m in my first year and doing very well* - Re-establish confidence and control.

- Come back to why you are in real estate (EX - I was very successful in XYZ with sales and with negotiations so I had to get into real estate and it’s paying off for my clients!)

- Co-Brand and use Stats (with your broker/team/brokerage) - Example “I’m new but my tenacious sales skills and hard work are really paying off. I also have a broker/team member/ etc that sells X number of homes in a year and can deal with any situation.

The major benefit is that I have an experienced team behind me PLUS because I’m newer your awesome listing gets more attention. It’s frustrating when your listing doesn’t get the attention it deserves and busier agents sometimes just don’t have the time to give you this much dedication.

 

“You’re the expert. You tell me what it should be listed at”

The market speaks and we listen. Based on the info we will go over the current market range is _______ to __________. Will that work for you?

 

“That price is too low”

I understand and can appreciate you were expecting more. The market ultimately determines the value of a property. We have to stay ahead of the market.

Buying too? — make up on other end

We can try with a higher price as long as we are ready to move the price should we not see the action. Are you comfortable lowering the price after 1 week on the market if we do not get the traction required to sell?

“I won’t sell it that low”

I completely understand your frustration. Please take some time to review the material and discuss your needs. We are here to help and fight for the highest possible price when the time is right.

 

“We want to start higher and test the market”

The choice is always yours to make and we will back you up 100%. We just do not want to see you chase the market down and end up with a lower price than anticipated based on this evaluation. Would you be willing to reduce in 2 weeks time if this is the case?

No problem, let’s do it and let’s also keep a very close eye on the market’s response. We will let you know right away if we are helping sell other listings. It will be our duty and obligation to recommend a reduction if this is the case. Would you be willing to reduce in 2 weeks time if this is the case?

“Your fees are too high”

I agree that normal fees are too high for the value and resulting amount left in your pocket (NET). That is why we demand a higher standard of listing when we list a property. We believe the old way of listing a property is dead and it’s time for a higher standard and an ACTIVE process to sell your home. I can appreciate the investment is no small amount and neither is your home. We strive for fairness and honesty.

“Will you reduce your commission”

I fully understand your desire to want to lower commissions. Correct me if I’m wrong in saying that ultimately what you would like is more in your pocket at the end of the day. If you select a team that will do it for less, this should make you nervous. Let me explain: someone who just swipes their commission will likely be the same person that won’t fight for you when an offer comes in or pay particular attention to your listing as we move forward nor will they be advertising your property and getting it in front of as many people as they could. In my experience agents that just swipe off their commission are the same agents that are out there for a quick, easy sale. I can almost guarantee you that you will be left with less in your pocket at the end of the day. Does this make sense?

More intense: This is the investment for this level of service. What service offerings would you like removed?

 

“If you represent the buyer as well what will your commission be?”

That’s a great question. It is very rare that this occurs as most buyers have/want their own representation since my duties are fully to you. If it is our buyer that we have been working with then we cannot alter the commission; however, if the buyer comes from simply a “sign call” then we will discuss a fair commission adjustment for our team to handle both sides. We believe everything about the process should be FAIR AND HONEST.

 

“My home is worth more… we did XYZ”

I hear you and fully understand. We absolutely must account for this added value and I know this helps differentiate your home in the market. We also have to fully analyze what a buyer will be willing to pay for this and if we want to be right above where we should be or if we will have the other homes help sell yours. It is all about positioning you in the best spot to have your desired outcome. Does that make sense?

"How are you going to sell my home"

We have a long list but let’s jump into three very important things

1.       Marketing like no other - It is all about getting the most number of eyes on your listing

2.       Advanced and continuous market and price analysis

3.       We have the experience and skill to bring an accepted offer to close - many deals fall apart and return to the market. Also there can be complications with closing. We excel post-offer to complete the deal - an offer is only first base.

"Can I exclude a few people from the listing contract? - I am already talking to them and they might be interested in my home"

Absolutely! We completely stand behind having our marketing leading to the buyer. We are willing to do a X week exclusion with just having you cover the start up marketing costs. From there you are free to go through the whole process on your own. Or we can represent you in the transaction, charging you only the listing side of the commission. OR WOULD YOU PREFER TO GO AT IT ALONE (Powerful statement)

"I’ll tell you what - I’ll pay you the full amount if you get my asking price but your commission will go down with my return going down"

I like you are a tough negotiator! You should get into real estate (HUMOR). The tricky thing here is the hard costs to get your listing in front of the most people will not change. By removing any further investment is food off my family's table (FEELING). Actually commissions are a percentage of the sale price so as your accepted amount goes down so do the commissions - that strategy is already built in! (LOGIC)

"My basement doesn’t have permits but I don’t want to disclose this"

I can fully appreciate and understand your desire to not have this affect your bottom line. We simply disclose this to avoid you getting sued down the road when you are moved into your new place. There have been recent cases where buyers have taken the seller to court for not disclosing permitting. It’s actually a legal requirement. I’ll tell you what, we will just put it in the Realtor remarks so agents will know but it won’t be visible on public MLS. Does that work?

"This other Realtor sold more homes in the area OR you haven’t sold any homes in my area"

While I can’t argue the number of homes I have sold in your area I wouldn’t confuse selling the most number of homes in an area with whether a team can get you the most money. While I understand we have not sold as many homes in your price range we do represent a number of move-up buyers that are looking in this area. We also have proven new strategies and are not stuck in our same ways.

“That number is way too low...I’m not going to counter”

I agree it’s low and we will definitely have to get them up closer to us. It’s not uncommon for buyers to come in lower to feel a seller out. The tricky thing is if we don’t counter we might be missing out on an opportunity here. I’ve seen these situations before and it’s worked many times in the sellers favour we just have to give them something to work with. How about a conservative counter to see if we can get some movement out of them?

“I know we are only $5K apart but I said I wasn’t going below X, they can come up $5K or walk away”

I’m with you in wanting the most for your place but often times these situations come down to “risk tolerance”. We could work with this one or we wait for the next one - waiting is just a larger risk.

 

“Let’s try and get another couple grand out of them”

We definitely can. It’s also really powerful to enter into the conditional period on good terms. I’ve seen countless deals fall apart because of frustration and both the seller and buyer lose. Sometimes it works best to do everything we can to stay on the best terms as we move into conditions. Know that I’m behind you 100%

“This is only the first offer, let’s see if we get another one before we accept anything”

*Avoid this off the bat by letting them know letting them know in the listing presentation that your first offer is usually your best*

I’m with you in wanting the most for your place but often times these situations come down to “risk tolerance”. We could work with this one or we wait for the next one - waiting is just a larger risk.

“We aren’t in any rush. If it sells it sells. If not we will just take it off the market”

Not motivated. Best to avoid working with this seller. You can work with them if they want to price aggressively.

Podcast Transcript

[00:00:00] Hello and welcome to Rev Real Estate School. The podcast with quick tips and actionable advice to help you sell more real estate in today's world. And now your host Michael Montgomery.

[00:00:11] Hello and welcome to another episode of Rev Real Estate School. I'm your host Michael Montgomery. Do you ever have the problem of what to say when a client or a lead looks at you and they say how long have you been in the business or how many homes have you sold in my area?

[00:00:28] Today we are talking about new real estate agent objections and how you can overcome them and actually how you can use being a new real estate agent to your huge advantage. So look I get it can be hard. I remember when I had my first buyer and she knew more of the communities in my city than I did. It can be tricky when you're looking at the prospect and you feel like the prospect might know more about this industry than you do. And how do you compete with big agents if you are at a listing presentation you know you're up against some big agent in the community how do you compete with that. Well let's jump right into it.

[00:01:04] First off there is a freebie for this episode head to the show notes you can download all of our objections for new agents and then the responses to them.

[00:01:13] First off if somebody asks you how long you have been in the business and you have been in the business for months not years do not say I've been in for one month two months. Oh this is my first week in real estate. Don't say that. Say you're in your first year. This sounds much better than two weeks into the industry and when you say you're in your first year say you know what I mean my first year I'm loving it I'm doing great and I'm really really excited to be sitting down with you today. So what you've done is you've diffuse the situation you've shown enthusiasm and you've also answered their question very very well. You need to be honest. You do not have you never want to lie to somebody and say you've sold more homes in a neighborhood than you have or you've been in the industry for longer than you have. It's all about honesty but the words that you choose are powerful. So if somebody asks you how long you've been in the business and it's less than a year then you simply say you're in your first year you're loving it you're excited you enjoy the industry so so much.

[00:02:09] Next we need to turn that negative into a positive. You have time you have energy you have focus. Big agents barely have any time you can use this to your advantage and it's just about how you communicate it to the seller and come right out and let the seller know you have to stand there and say look I have time I have energy you are going to be my number one I am going to work my butt off for you all day every single day they need to know that. And in the real estate industry when a consumer looks at our industry sometimes and I shouldn't even say sometimes because it's pretty well nine times out of ten they think that we are overpaid and we are under worked and by you saying that you were going to work your butt off and you are always going to be there for them. This causes them to stop a little bit and think OK maybe this person is the right person for the job. And if you are competing against a big agent you don't ever want to put I don't agree with putting down another agent and saying that they don't do good work because of x y and z reason. But you can say that this agent is busy I might be less busy but I can be 100 percent focused on your listing and this is a huge advantage for a seller next use confidence and enthusiasm to your advantage having energy and enthusiasm just makes you seem so much more confident.

[00:03:32] And the other thing you can do to increase your confidence is increase your market knowledge with increased knowledge comes increased confidence even if you are going there and you are shaking in your boots when you're in front of the lead or the seller and you don't know what to say say everything you do with energy come across with energy. And if you have to fake the confidence fake it it will come with time. But they do not want somebody who is soft. They do not want to list their home with somebody who could potentially be pushed around by a buyer or by a buyer's agent. So make sure that you have enthusiasm and you are thinking confidence confidence confidence even if you don't feel like it. It doesn't matter fake it. People can not tell.

[00:04:15] Next let's talk more about market knowledge. So if you are going in for a listing presentation you should know the market better than anybody else. So what if the other agent you're competing with has sold 50 homes in that neighborhood. Have they previewed the homes. Do you know exactly what's sold on their street over the last year. You are going to have to put it a little bit more effort when you are preparing for the listing presentation. But this will pay off if you go into the presentation make sure you've previewed listings beforehand so that when you are talking about comparables active comparables that are on the market you can say you know what Mr. and Mrs. seller I actually went through this home yesterday and I think that you have a lot more value because of this reason or that reason. This will help you stand out and make sure if you are previewing the properties you're letting the seller know that you did this. You should be proud of the fact that again you have the time you have the energy to go about and do this job properly.

[00:05:13] Next, lean on your office and or lean on an agent at your office. So if you're brand new. Make sure that you have a mentor at your office or you have somebody that you work with. Or you have somebody that you can fall back on and bring this up and you're listening presentation. Say you know what. Yes I mean my first year loving it but I also have an experience agent right by my side should I need anything at any point in time. They're gonna be very much involved with this transaction as well. But I'm your go to guy and I am going to hit it out of the park.

[00:05:43] Next you're going to see something that is came up a few times and it comes down to work. There is a lot of power in a conversation with a seller or a buyer for that matter. Letting them know how hard you're going to work. Now you have to live up to that. You can't just say you're going to work hard and then up dropping the ball like crazy after the listing contract signed you can't do that. You have to work extremely hard and you will have to work very very hard for your first few transactions but it will pay off. As time goes on make sure that your client your buyer seller know that you are going to work your butt off.

[00:06:20] Finally use the words I do things differently. Again coming back to the fact of how the consumer views the real estate industry. They look at our industry and again they think yes we're probably overpaid and you know we don't do a lot in order to get the money that we end up getting at the end of the day. And we're kind of antiquated. Let them know I do things differently. You're going to have to back that up and let them know how you do things differently. But saying that you are a different type of agent will help differentiate you because if you're up against somebody who's been in the industry for years and years yes they might say look I've sold X number of homes. That's great. But if you're dealing with a consumer that says look I want somebody who's different. I want somebody who can really sell this property in a different way than it's been done in the past. And I want to get a ton of eyes on my property.

[00:07:06] This is your chance to shine. So say I do things differently. That's a very very powerful line. So there you have it. There are some objection handlers for you and again download the freebie with a number of objections for a new real estate agents and how you can best handle those that is in the show notes. Thank you for listing this episode remember if you want to ask a top producer absolutely anything. All you have to do is rate and review the show. Head over to rev real estate school dot com. Go to the free coaching section. Fill out your information and you will get a call no matter what from a top real estate agent you can ask them anything about how they've built their business. Some struggles you're working on whatever that might be they're there for you 100 percent free. All you have to do is write and review the show. Thanks very much for listening. We'll catch in the next episode.

[00:07:55] This episode of Rev Real Estate School has come to a close. Thank you for tuning in. We'll see you back here for the next lesson.