The Turn Around: A Real Estate Investors Guide to Overcoming Objections
The difference between success and failure in sales comes down to one fundamental issue: confidently handling objections. You can’t close every prospect one hundred percent of the time, but your ability to overcome objections smoothly will define you as a salesperson, particularly in real estate investment. How do you master this fine art of objection management? With preparation, practice, and a friendly tenacity. To develop those three traits, here’s a guide for overcoming common objections.
The “Too Expensive.”
Believe it or not, this objection is not about your pricing structure or your properties. More than likely they can easily afford what you are offering, but they want you to demonstrate the value of your offering more adequately. This is also a classic deflection to conceal actual concerns they have. When they hit you with a “Too Expensive,” you need to ask more open-ended questions and let them talk. They probably have other concerns or need to better understand the value of what you’re offering.
The “I Love It, but It Is Just Too Expensive.”
Most of the time this is a prospect fishing for a discount on the price of your property, and there is no reason for you to give it to them. Steer the conversation towards the value of the property in question and how it generates value for your prospective client, too. It’s easy to get bogged down in haggling over price, and that generally doesn’t go anywhere positive.
Handling this objection also helps you determine whether a prospect might be a bad fit for what you have to offer, too. Remember, you do not have to do business with every prospect, and there are toxic clients out there that you will need to walk away from to avoid getting ensnared in a bad deal.
The “We’ll Buy It If We Get These Features.”
Demanding specific features, additional benefits or perks when purchasing a property is pretty common when selling enterprise customers or larger organizations on your products. Typically, these kinds of prospects are very used to getting what they want, and they are going to expect you to rearrange your business or repackage your product to suit their specific needs.
This is a tough one because you often can’t make the expected changes or meet their demands without compromising the integrity and viability of your deal. This objection can be a deal breaker, but you may find that thanking them for their time and walking is all it takes to turn this one around.
The “It’s Not a Priority for Us Right Now”
This objection means one of three things: you didn’t research your prospect well enough, you haven’t pitched to their pain points/demonstrated priorities, or this is another deflection to conceal actual concerns.
Time to ask some open-ended questions and determine what’s actually driving this response. If you hear this objection, chances are you don’t understand what is most important to them regarding what you have to offer.
The “Send Me More Information, and I’ll Get Back to You”
Do not, under any circumstances, surrender your deal by leaving the follow up to the prospect. You will never hear from this prospect again. This is a classic brush off, and it’s one that’s easy to overcome.
Always agree to forward them more information, but before you end the call or close the meeting, start asking open-ended follow-up questions. An especially effective one is, “Just so I know what to include in your information packet, can you tell me…,” and go from there. Generally, whatever has them responding in such a guarded manner will be assuaged by this line of questioning, and you may end up not needing to send them a packet after all.
The “I Can’t Commit Until I Talk to…”
The bigger the prospect’s business or organization, the more likely they actually do need to consult with other stakeholders involved in the decision before making a major purchase. Typically, this is a signal that the prospect wants to slow down your process, but you can easily turn this to your advantage.
When your prospects bring up meeting with other stakeholders, ask if you can join them. Even if it’s just being present by phone or video chat, attending this meeting may allow you to get a more immediate decision to move forward instead of making it an extended process.
The most worthwhile deals are often the most difficult to close but remember to work smarter not harder. Make sure you practice overcoming objections when you practice your pitch to improve your confidence. Take notes on what worked when you successfully overcome a prospect’s objection. Most importantly, talk to your fellow real estate investment sales representatives.
The more experienced among them have handled more objections than could be contained in any guide or how-to, and their techniques can prove invaluable. Keep the techniques in our guide in mind next time you come up against an objection, and you are sure to see more prospects giving you that coveted “Yes” in no time.