08.8.2023 PropStream
One of the most important skills that you can develop as a real estate investor is the ability to turn any objection into an opportunity. Just by asking you questions, sellers are engaging with you and offering you the chance to win them over with your knowledge and experience.
However, this skill, like many others, takes practice to develop. We’ll guide you through some of the most common objections raised by sellers, and offer some recommendations on how you can respond in a way that reassures them and moves the sale forward.
6 Common Objections — and How Investors Can Overcome Them
1. “I’m going to list with an agent instead.”
During the first meeting with a real estate investor, it’s not uncommon for many sellers to insist that they want to follow the traditional path and list their property with an agent. Unfortunately, this is often much more expensive than they might imagine.
A great way to handle this objection is to hear them out, then show them a few cost breakdowns for similar properties in their area. Using PropStream, you can get an accurate market value or even an after-repair value (ARV). Chances are, their property isn’t going to sell for as much as they thought. You can then show them your proposal, including a simple breakdown of their expected profits, to help illustrate the value of your offer.
2. “I think it’s easier to rent it out.”
Most of the time, when sellers are focused on renting out their property rather than selling it to a real estate investor, it’s because they’re afraid to let it go. By renting it out, they reason that they’ll still have control over the unit. An effective way to overcome this objection is to focus on the loss of control that comes with renting out their property.
In fact, landlords have all of the responsibility and none of the enjoyment of a home, given the fact that they are still liable for the mortgage, taxes, and utilities, regardless of whether the unit is occupied.
3. “I’ve already been promised X amount by another buyer.”
Many unscrupulous real estate investors will tell sellers anything they want to hear to secure a deal. Unless the seller has asked the investor to provide them with a purchase agreement, these overtures are often little more than theater. Most sellers don’t know that, though.
If you’re talking to a seller who says that they’ve been promised a set amount, or even an incentive at closing, the easiest thing for you to do is lay out your offer using multi-sourced, objective market data. That way, sellers will know that you are honest, since you can back up all your claims with cold, hard facts.
4. “Your offer isn’t high enough.”
It's often difficult for sellers to determine an accurate value for their house since there are so many sources that are happy to offer inflated estimates just to get them in the door. To help them realize the value of your offer, use PropStream to pull up a few comparable homes in their area, along with their final sale price.
By using this data to support your offer price, you can demonstrate the value of what you're offering, helping them get to the final sale faster.
5. “I think it just needs a coat of paint before I can sell it for my asking price.”
When a seller believes that all their home needs is a coat of paint, it can be a struggle to convince them otherwise. Instead of asking them to take your word, show them a few on-market listings in their area that have sold for their asking price, along with photos. This will help them see how much work they would have to do to get what they're asking.
6. “Why should I trust you?”
When someone asks why they should trust you, this is an excellent opportunity to showcase your experience and expertise. Use data, but make sure to end every point by illustrating how your knowledge can help them.
By focusing on their needs, you can ensure that they not only understand your role but trust that you will deal with them honestly and with integrity.
Prepare for Your Next Seller Meeting with PropStream
Access to a vast amount of data — and an easy way to organize it — is a key resource in overcoming seller objections. Since you’re able to prove your points using data from multiple sources, it’s easier for sellers to put their trust in you. This paves the way for a much smoother and more straightforward closing.
With multi-sourced market data accessible 24/7, it’s easier to handle objections and encourage sellers along their journey to a successful sale. However, don’t just take our word for it. Try it for yourself by starting a 7-day free trial today.
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