5 Common Objections in Real Estate - Objection Handling LIVE ROLE PLAY | #TomFerryShow

today I'm role-playing five objection handlers looking to empower you to know what to say for over 20 years I've dedicated my life to bringing you the very best selling marketing and business building strategies to keep your business thriving get ready to experience the success you've been searching for welcome to the tom ferry show welcome to the tom ferry show today we're gonna work on handling five of the most common objections you receive now it's gonna be a little bit different I've asked my friend Brian Jono Ryan get over here Ryan has been with our company since the very beginning and know it's a salesperson and today he helps do sales training for our nearly 90 salespeople so Ryan is going to give me the objections I'm gonna handle the objections and it's giving you an opportunity to listen to watch to observe and you know I'm not gonna get into all the patterns we certainly covered that enough times on the tom ferry show you should go back to tom ferry calm searching the blog objection handling if you're not familiar with the patterns so Ryan you got your list yes I do let's do some objections buddy have at it so what's number one you know you know I have some friends that said they could do the same thing for a lower Commission yes so there's certainly a number of agents in town that will reduce their fee in order to earn your business I'm curious that I'm gonna open up my laptop can you give me one of the friends names as an example because I think it's important that we look at their track record in my track record not just commissions which are always variable so tell me the first person's name Nate Secor great and I type in that person's name into Zillow or into the MLS and I say Ryan Nate's a terrific person he sold three houses so far this year let me show you mine again as you see we've done 37 transactions this year now why is that important to you Ryan three verses 37 I would say you probably have a lot more experience well and in the world of experience when it comes to negotiating the highest possible price for your home 3 or 37 Nate's a great guy he's a friend he's a pal I mean look how quickly did he give up commission points a percentage to you how fast did he do it I mean did you really have to hit him hard did you have to wrestle with him did you have to rely on your years of history and relationship or did you say we're friends can you give me a little discount the later and he quickly gave you a discount yes three transactions a year 37 transactions a year on the other hand I fight actively and aggressively to serve my customer to get them the highest possible price I've talked people out of selling their home if it didn't make sense because I do it a lot does that make sense totally so if this was just about getting a discount everybody can do that you called me because you saw my marketing you saw my signs you went on Zillow you saw my track record you saw the number of homes I said and you wanted to shop and compare what I'm doing versus what your friends doing yeah so what are the differences you seem a lot better Nate's a wonderful guy he sells houses we just sell in this case nearly 11 times more and all that means is we built a machine to service more customers and I get a negotiate more often so just like if you were going to heaven forbid take a loved one to a surgeon right if you had to perform the surgery you're probably going to pick the one that does it you know 16 times a week versus the person that does it you know three or four times a year does that make sense even though they might both be great surgeons most people say I want to go with the person that's doing it all the time because they're fresh they're in the market they know exactly what they're doing and they've they've had enough challenging circumstances to rise above it and solve the problem this time Ryan is exactly like that time makes sense totally so we charge 3% for our services the question we have to ask tonight is what do you want to offer to the other side and that's the direction I would basically go so that's a long answer and I hope you picked up on it's a metaphor now what if what if Nate is so in the same number of homes as me right so let's play that scenario Vaughn I think I'd be fair right so we're both doing 15 deals a year hey your buddy Nate's doing 15 transaction here I'm doing 15 transactions here so here's my question for you let's look into a little bit deeper okay Nate has done so far this year eleven buyer controlled sales that's outstanding and he's had four listings sold I've had thirteen listings sold in two buyer controlled sales in the real-estate business one of the questions you have to ask yourself is are you hiring a listing agent or you hiring someone to represent you on the buy side it sounds like you should hire Nate to help represent you on the buy side and me to help you on the sell side just based upon the numbers what do you think that totally makes sense actually yeah so so right just I'm gonna give example after example now look whether you're using your EMA last year using Zillow using some of the strategy to look at people's numbers let's play the game if he won't give me his friend let's do that all right so okay so Ryan so you know I appreciate the fact that your friend would give you a discount there's lots of people in the marketplace that will dramatically reduce your Commission's all the time to win the business do you mind if I ask because I like to look at the data yeah who's your friend you know tom has don't feel comfortable kind of giving my friend out sure that that's fine that's fine so well so so here's my question for you I charge three percent and for that I do all of this marketing and my current lists to sell ratio I listed here and I'm right now at 101 percent of my list to sale price I've had two expired listings this year everything else has sold at or above on average list price what about your friend not quite at that level okay yeah so so everybody's got a friend of the business I actually used to save for a long time if you didn't have a friend in real estate in our town you probably didn't have any friends yeah so so I guess I'd also ask why is it that your friend is so readily discounting their Commission like what like like did you have to really hit him hard to get him to do it or did you just say we're friends we just do me a favor and they said yes yeah he's a good friend of mine and I've known him for a long time and so I'll say you know Ryan I was gonna give you a break sure you're my buddy sure cool so here's the here's the general challenge with that someone that will readily discount their Commission that quickly just because they're a friend or a friend of a friend or a friend of a friend of a friend or you're referred by a buddy someone that gives it up that quickly my concern is how rigorous will they attack your bottom line when it's time to negotiate the final sales price in the terms of your property hmm I'm a little more rigorous people even say it too many times Tom you're a little militant right you're maybe a little too tough I've had sellers say to me Tom it's okay we'll accept the deal because I get in and I fight so hard to help my clients win cuz that's that's just my sense of pride does that make sense totally so between the two of us based on that new information who's the best person for you to hire yeah I think uh be more comfortable having you represent my house right so again I'm gonna win every time no matter what and I think we're all clear as you're watching this there's a number of different ways that you can attack every objection I don't always have all of the context so I'm gonna try and hit it from a couple different points of view looking to bring you more value so what's number two number two is we had a specific number that we wanted to get yeah the homes sold for I know Ryan and is when we went through all of the sales and all of the expired and all the pending prices and all the you know homes that are closed recently I want to get every one of my clients hundreds of thousands of dollars more but see Ryan I'm not buying the house right my job is to market and expose your home to the highest number of quality agents and buyers online and offline to create a frenzy of opportunities to people that want to write offers to ideally drive the price up so here's the challenge it really doesn't matter what you want hmm right like when you go out to go buy your next home are you gonna basically look at every one of the prices and say you know what I'm gonna give them even more no how are you how are you going to start your negotiations I'm gonna try to get the best deal possible and don't you think every other buyer on the planet is thinking the same thing yes so you know we actually do we actually in this case go to a three pricing strategy so let me educate you on this and I'm sorry I didn't bring it up in the first place I believe that most agents have one approached to listing a property they see the seller they look at the comps and they say what do you think yeah and the seller says I like this price but I want more right every every seller wants more once less Commission do it in the quickest amount of time possible make it as stress-free as possible right yeah I actually have three different approaches I say to you here's the needle in a haystack price where I say let's go slightly above the last comp and the reason why is you've got a beautiful home it's in a desirable neighborhood you know the likelihood of selling this home is pretty high right and you know that and I know that yeah so that's one option pricing option number two is we go right at fair market value and what the studies are showing right and I can show you some examples of this is in our marketplace when we listed at fair market value we're gonna have a few offers within the first 30 days because the home is desirable and it's in a great community if it was an outlier property if the home wasn't is nice that wouldn't happen does that make sense totally but my most savvy clients will say to me Tom I want to list it there but I understand that you know that needle in the haystack pricing strategies probably not the ideal strategy because of your timing yes right if you said to me sell in the next six months we can go and deal in the haystack but you told me you wanted to be moved in the next 120 days yes so I've got a market it expose it get the people insider get some offers going get some negotiations happening close the property getting you guys enough time so you know to make a double move right yeah totally so consider the following the third pricing strategy is where we actually list it directly below fair market value now you've seen auctions before right yes and you know that do you know the general like how auctions work yeah totally they never come in and say let's go to the highest possible price and drop it down what do they do they go to the lowest the lowest price go up and as they go up what happens the kind of frenzy goes up higher the frenzy goes up higher the non real buyers drop off and you identify the two or three ones and in a perfect world what you create is what's that phrase called a bidding war a bidding war yes so what we might want to consider and I can actually show you some examples of how we've done this in the past where we priced it below below fair market value we throw a mega open house and I mean I'm gonna get you know 150 potential buyers and agents the following week through the house and it's gonna be priced below fair market value and people are gonna say wait a minute first what's wrong with the house which is why they're all gonna show up because they're gonna say that house this neighborhood that location at this price tom ferry must be an idiot they're gonna say things like that but then they're going to show up and go wait a minute this home is remarkable and at this price and then they're gonna look at the number of people in the house and guess what they're smart agents are gonna say we're gonna be in a bidding war mm-hmm so how badly do you want this house and we may get five offers six offers seven offers so the question you have to ask yourself tonight in terms of pricing is you want to create a situation where we have multiple offers a couple offers or waiting for an offer multiple offers okay so so instead of maybe pricing it high let's let's be counterintuitive and press it below fair market buy and remember you don't have to accept any offer hmm you're empowered okay my job though is to get you the highest possible net proceeds for the home and I know if I start here we chase the market I know if we start here we're gonna have good activity but if we go below a home like yours mmm I mean it's gonna be metaphorically blood in the ocean with sharks you with me on this I'm with you on and and my job and that's a horrible example but my job is to try and create that frenzy so people are writing offers that you're satisfied with so you were thinking 369 yeah why don't we start right at like 329 it's gonna create a frenzy all right let's do that press hard lots of copies buddy boom all right so another example and you've seen me do that on the tom ferry show before and we have clients in New York City that are doing that at two million dollar sales prices using that three pricing strategy strongly recommended what's number three oh you know tom we're just not ready to pull the trigger now I need some time to think about it I understand so you know so since two minds are always better than one what specifically I mean I honor that yeah what specifically do you need to think about oh you know it's um it's just that it's a timing you know that's it's it's kind of the holidays have Thanksgiving coming up then we have you know we have Christmas yeah I have a huge family yes you know I'm Chinese so we have big parties and yeah big people all the time so just I'm just thinking it might be better if we waited to January I understand so so here's the good news whatever you want to do is entirely fine with me does that make sense you know if you want to list it now you want to list it that but let's talk about timing okay and again whatever you want to do is fine in the fourth quarter the number of homes that are on the market drops for exactly what you're bringing up paper thinking about the holidays I'm thinking about the holidays you're thinking about the holidays a lot of people are the number of homes drop and everyone says I'm gonna put it on in January I'm gonna put it on in springtime and and I'm doing this for a reason Ryan because this represents the number of homes that are on the market for the same number of buyers that are always there does that make sense yes so so it really comes down to this if there was an advantage to putting it on the market now selling it because there's less inventory and you guys have a magnificent home yeah and then timing the negotiations in the the clothes or maybe a rental where we lease the property back and we get it for a couple months for free as an example if we can create a scenario like that would that be of interest if if we can get you a fantastic price in the right terms in the fourth quarter that's an option or we put it on the market when everybody else does and in you know it's basic supply and demand yeah less homes on the market the same number buyers ready hmm lots more homes on the market less number of buyers I'm here to serve what would you like to do I think we can deal with putting on the market now okay and and again the worst-case scenario is if it doesn't go under contract guess what we can do we can turn it off hmm okay okay we can turn it off I mean it worse things have happened okay what would be perfect is that we staged the home we do all the things we discussed in our marketing plan how we unveiled a property we get it under contract in the first 30 days and then in the middle of that we're negotiating ready hey you guys can't move in right away they want to enjoy the holidays you guys can take possession January seventh eighth ninth tenth these are all negotiation points now if we can't get what we want do we have to accept the offer no no no right and if you choose to put it on the market in January I'm fine with that as well okay I'm your real estate agent I'm your professional I'm here to serve yeah that makes sense but I want to just give you the lesser ohms on the market the same number buyers versus Lots homes on the market and that we can negotiate those you know renting back your property which it happens okay does that make sense totally so what do you guys comfortable doing as long as we could do that you know is kind of a no-brainer I think I could just put on the market now cool so the most important thing and I know especially as this market you know maybe for some of you watching this is that you know there's always this pressure to close now and to get it now and and I think there's just a powerful way to be which is I'm here to serve I'm here to help so whether you want to do it now or do it later but it's our job to be the knowledge broker to explain what happens in this quarter versus that corner that could be summer versus spring versus fall versus you know you you all know the deal all right what's objection number four you know Tom I love you you're a freakin great agent and and there's just I promised to interview at least two other agents wonderful and so I want to interview them next okay and then okay I feel really good about working with you though good so was that a promise to yourself or was that a promise to them I'm both okay go alright so so no problem Ryan so let me ask you a question what specifically are you looking for that was different I'm just curious I mean we've got a natural rapport yeah no you said we didn't know each other prior to this I know but I've sold a bunch of homes in the area and obviously you've checked up my track record I actually checked out your track record as well yeah I was on LinkedIn I've seen what you've done so you know we've got some common ground you've seen my marketing plan you know my track record what are you looking for specifically that would be maybe different or better I see you're really good you're kind I mean I take this I mean obviously you take your profession very seriously I see that and I do the same so you know we respect that yeah but if there isn't something different my question is why waste the time mm-hmm that's a good question yeah I mean I'm not asking you to break your promise okay I'm asking you to consider if there's nothing different let's move forward hmm yeah okay I can't let you off the hook yeah but I can call them at a professional courtesy hmm we've all done it to eat you know before I'll call him say you know hey Sarah I was with Ryan you know we just had a natural connection you know if you got a buyer please bring him in early you know let's do something but you know I strong-armed em I can you know I can tell her that it means it's professional courtesy amongst friends you know the harder part for them is that they walk into the appointment knowing that you and I are already here and we've got this great rapport in connection and mutual respect and then they're basically in the eight-ball position the entire time Yeah right or worse they might do something that they don't want to do so I think we just remove that from the equation if you're comfortable we move forward if you're not you can interview them mm-hmm I'm totally fine what what do you want to do you know uh you're great I I could call them all this tone I appreciate it thank you so much for your business you're welcome right now listen there's a lot of different ways you can do this you never want to burn the other agents under any circumstances you want to flush out like why like this is a promise you made to them or as promised you made yourself right you're not asking me to break his promise but if you did pay attention there was an embedded command used inside there for some of us that understand the the Jedi language so how did that feel I'm just curious for you that actually felt really good you know I I was felt uncomfortable telling them that I wasn't going to see them sure and then when you took that away from me and you said that I'm gonna I'll call them for you then I thought to myself no I'm not gonna be like that I'm strong enough to call them and take responsibility for yes picking a lot really want to pick yep that's exactly right and that's that's by the way that's the feeling you want the client to have all right so what's the last objection you already handled it as it was waiting for the holidays so let's play all right so let's do the holidays again specifically all right so so Ryan I can appreciate the fact you're thinking about waiting for the holidays you know what that's an excellent that's an excellent idea can I tell you why sure a lot of agents are gonna start pounding on you saying you know there's nine reasons why you should listing the holidays and 7mn are just listening they're all in there there are a lot of advantages supply-and-demand is different but at the end of day you guys have a beautiful home and you've got a desire to do what you guys want to do during the holidays so what I would love to do is I'd like a handshake or even a signed agreement that says Tom start marking my house on January seventh or whatever day you choose and then with your permission with your permission I want to start doing some early pre marketing as if we call it a pocket listing right and that's the kind of the phrase you'll hear where it's not inside the MLS right an agent has it in their pocket and they kind of go around to their best buyers and their best brokers and say I've got this charming three-bedroom two-bath bungalow at the corner of Hama Hama and nunn of nunn it you know what they all say when's it coming on the market Thom when's it coming on the market because they got two or three buyers with your permission I'd like to get some of that going and when the home is stressed up and ready to go for the holidays nothing better than if with your permission you can say no having a few of those buyers see the house during the holidays because then we might have three four or five buyers in three or four or five offers ready to go before we even hit the market does that make sense that's totally make sense and again you're always in you're in control you're in the driver's seat you could say no to showings maybe we pick one day right where we just open up the house when it's really you know decked out for the holidays and let them just get a little frothy mm-hm and then let them come back in January when it hits the market and they could start writing offers yeah either way is fine that sounds good to me now the reason I love that guys even though you saw me how the objection earlier where I was doing the opposite supply and demand right similar buyers lower never inventory versus the you know what comes on in the market is I like being different if all the agents are saying nine reasons solicitor in the holidays and seven reasons why now and oh my god and they're doing that and you know the number of buyers that show up during the holidays are serious buyers we all know these great scripts these great dialogues but oftentimes like it's like power to the people give the people what they want right and then once he said yes and I could say let's get a signed agreement I've got the listing who cares if I put it on the market on January seventh or six or fourth right versus how to do it right now so again playing the long game and trying to make it great for the client and good for my business to win so those are my five listen just first of all Ryan first time on the tom ferry show congratulations so my friends that are watching this first of all I would encourage you to go back to tom ferry com go to the blog search objection handling you there's a bunch of language patterns I mean we've both been well trained in all these different language patterns he's teaching it to our team so you heard the patterns you experienced the patterns it would be important for all of you to watch go back to Tom very calm go to the blog do a search on objection hailers watch a few the episodes read some of the stuff look at some of the scripts and dialogues but most importantly know this knowledge equals confidence and ignorance equals fear right I was thinking about an episode I shot this is almost a year ago where I said to people like when I get an objection I get excited right because because they want to do business with me yeah they want to do that's why they're saying what we're not sure right they want to do business but they've got a question in their mind and I frame it for myself emotionally that every objection is one step closer to a yes and if I stay focused on giving the customer what they want honoring where they're at and then providing new information or new resources to make better decisions then I win and that's what it's all about my friends so thank you so much for watching I can't wait to see your comments below and by the way post the objection you get the most so we handle that form as well all right guys thank you so much for watching remember always your strategy matters and now more than ever Ryan Joe no absolutely rules hey it's coach tom ferry have you been considering hiring a coach if so click the link below and check out what we do [Music]

Channel: Tom Ferry

Views: 153,289

Rating: 4.8439026 out of 5

Keywords: tom ferry, real estate, real estate coaching, real estate training, real estate school, business, real estate scripts, objection handling, master, the art of, live roleplay, role play, sales tips, grant cardone, sales role play, real estate agent, realtor, sales training, sales skills, sales trainer, listing appointment, real estate agent training, new agent, overcoming objections, handle objections, how to, video, training, how to get listings, real estate leads, exam prep

Id: tkRRWvZtMow

Length: 23min 23sec (1403 seconds)

Published: Tue Nov 07 2017