It’s not unusual.
In fact, it’s common.
You make a fair offer to a motivated seller who’s looking for a way out of their situation. To their unexperienced ears, though, the offer sounds too low and they consider other options.
“I could just rent the house.”
“I could try listing with an agent again.”
“I could just file bankruptcy.”
“I could just let the house foreclose.”
“I have options.”
Answering close to 10,000 calls per month for top investors around the nation, we’ve heard it all (you can schedule a demo with Call Porter here).
But you know as well as I do that those ideas will either not work how the prospect plans or they would leave the prospect with credit that’ll struggle to get a loan for a toaster.
Still, tactfully communicating why those “options” aren’t as good as they seem is easier said than done. So here are 5 objection-destroying phrases you can steal for your next sales call.
Objection Destroyer #1: “You could certainly rent out your home. In that case, you’d want to fix the house up yourself and find trustworthy tenants. Many people find that renting takes more time and money than they had hoped.”
When a prospect claims that they could simply rent out their house rather than working with you, they often forget how expensive and time-consuming doing so would be.
First, though, remind them that you’re both on the same team (i.e. “You could certainly rent out your home. In that case, you’d want to fix the house up yourself and find trustworthy tenants.”)
An objection often means that the prospect is struggling to trust you, so always start with an understanding statement in response (as you’ll notice with each “Objection Destroyer” within this article).
Then, explain to them the reality of what it’d look like to rent out their house. They’d have to fix up the house, find a trustworthy tenant, upkeep anything that breaks, and pay taxes on the home. It’s probably a bigger undertaking than they’re ready to tackle, which makes your offer a bit more appealing.
Objection Destroyer #2: “There are certainly many real estate agents to choose from. Unfortunately, you owe [$XX,XXX] and according to my comps, you could only sell the house for about [$XX,XXX] in its current condition.
Depending on if the prospect has already tried to use a real estate agent or not (many have), they might claim “I could just work with a real estate agent and get way more money for my house.”
After a quick word of understanding and empathy, it’s time to explain why that probably isn’t the case.
The easiest way is to provide the prospect with detailed information about their home’s market value from the comps you ran on the house. So long as the deficit between what they could realistically sell the house for and how much they owe on the house is either nothing or negative, this is an easy objection to bypass.
Plus, most real estate agents won’t even try to sell a house if it’s in terrible condition, which means some un-favorable prospect-funded repairs might be in order, depending on the state of the home.
Objection Destroyer #3: “It makes sense that you want to get as much money for your house as possible. But let me give you a rundown of why our offer is what it is.”
When you make an offer, high-hoping motivated sellers will often say “I was really wanting to get $XX,XXX for the home…
You know that isn’t what the home is worth. But with emotions attached, the prospect is thinking differently.
The easiest and most empathetic way to dispel that false belief is by providing the prospect with the details of why your offer is what it is. You can even show them the comps you ran on the house and explain that theirs is in worse condition (if needed).
This will keep you and prospect on the same team and give the prospect a much-needed explanation for why your offer isn’t what they had hoped but is what they should expect.
Objection Destroyer #4: “I’ve known a few people who filed bankruptcy instead of working with an investor. Unfortunately, it really hurt their credit and some government jobs won’t even consider hiring them now.”
Prospects who are overwhelmed and frustrated will often consider bad ideas (bankruptcy as #4 and foreclosure as #5) as a way to retain control of what’s happening.
The best thing you can do in this situation is (again) remind them that you’re on the same team and gently explain to them why bankruptcy is probably unwise for their future and why, if they can avoid it, they should.
To do this without being too direct and offending an already frustrated prospect, tell a story of someone who chose bankruptcy and how that affected them. This will ensure you stay on the same team as the prospect while also pulling them back into reality.
Objection Destroyer #5: “I know that letting the house foreclose seems easy, but I knew someone who tried that…”
Similar to the fourth objection in this article, foreclosure is a last resort option that (usually) only frustrated and worn-out prospects consider.
To explain why foreclose isn’t a good idea, tell them a story about someone who did foreclose on their house and how it turned out for them. Then contrast that situation with a person who worked with you and how that turned out.
With a bit of contrast, your offer will certainly be the more appealing option.
Conclusion
It’s not unusual for prospects (no matter how motivated) to consider their options. With an offer that seems too low, even foreclosure sometimes looks appealing.
It’s your job, though (or the job of your salesperson – you can schedule a demo with Call Porter here), to explain why those options aren’t always preferable to working with a real estate investor who can pay cash for their house.
Stories, an understanding voice, and the above five phrases can do a wonderful job obliterating objections and closing faster, so you can spend less time on the phone and more time making money.
Let me know if you have any phrases that you’d add to this list in the comments.