How Agents Should Respond to the 3 Most Common Real Estate Client Challenges
At its heart, the real estate industry is about people as much as it is about homes.
Buying and selling real estate is about networking, relationships, communication, collaboration and trust. It can be highly personal and highly emotional.
To be a successful real estate agent, you need to be a people person. But the people don’t always make it easy.
From stubborn sellers to wishy-washy buyers and everything in between, some real estate clients give their realtors a run for their money.
Knowing how to handle those clients is key to keeping your cool — and closing the deal.
Here’s how agents can best respond to the three most common real estate client challenges.
“We’d Like to Wait It Out Instead of Accepting That Offer”
You’ve agreed on a listing price, the house hits the market, showings take place and an offer comes in.
A great offer. Except that your stubborn seller doesn’t see it that way. They want to wait.
As an experienced real estate agent, you know a great offer when you see it and you also know the dangers of turning it down.
Depending on the house, the season and the market conditions, it could be the best offer that comes in. Plus, the longer a house sits on the market, the less interest it generates.
How to respond to your client:
Step 1: Seek to understand their feelings
Ask them what it is about this offer that doesn’t work for them — the number, the terms, the potential buyer? Be patient, attentive and non-judgmental. Validate their feelings where possible.
Step 2: Explain your opinion of the offer
Make sure to root your opinion in your expertise and market insights (for example, “based on X, I feel that…”). Stay calm and logical, and bring your explanation back to what the offer means for your client. You don’t want your client to feel as though you’re simply deal-hungry.
Step 3: Suggest a counter
If your client isn’t convinced by your explanation, you’ll want to try to convince them to compromise in the form of a counter offer.
Step 4: Explain the risks
If they’re not interested in countering, you’ll need to make sure they understand the risks of rejecting the offer completely. Again, stay calm and bring your explanation back to what it means for them (e.g., missed opportunity, money on the table, lingering on the market, etcetera).
“I Want to Go In With a Lowball Offer”
It’s exciting when your client decides they want to make an offer on a property you’ve shown them. But that excitement can quickly give way to panic when your client insists that their offer come in way under list.
It’s a tricky spot to be in. You want your client to land the house they love, for a price they feel good about paying. But not only will a lowball offer not get the deal done, it also stands to offend the seller and their agent, and make you look bad in the process.
How to respond to your client:
Step 1: Politely express surprise
Your client should see that you’re taken aback by what they’re suggesting. At the same time, you don’t want to offend them, so stay measured in your reaction.
Step 2: Ask why
Do they think the home is overpriced? Are they simply hoping to save money? Do they feel it’s a smart tactic?
Step 3: Provide your suggested offer with context
Explain to your client what you feel is a smart offer and why based on factors like comparables, market trends and your determination of the home’s value.
Step 4: Suggest other negotiation strategies
If your client’s main motivation is to be a savvy negotiator, provide them with possible alternative negotiables to consider, such as closing date, contents and repairs.
Step 5: Outline the risks
Finally, make your client understand the risks of a low offer, drawing special attention to the fact that the seller may be too offended to even counter, leading your client to miss out completely.
Agents can help manage unrealistic expectations by providing their clients with accurate information about the market, the buying or selling process, and the costs involved. They can also help their clients set realistic goals and expectations.
“Your Suggested List Price Is Way Too Low”
Of all the client objections real estate agents encounter, this is probably the most common: the seller who thinks the agent’s suggested list price for their home is offensively low.
It’s also often the hardest objection to respond to. Emotions (the seller’s) are high. If you can’t come to an agreement, the seller may very well choose to list with another agent.
How to respond to your client:
Step 1: Validate their feelings
Put yourself in their shoes. You’ve just informed them that their home — full of memories — is worth less than they feel it is. Take the time to hear them out and make them feel heard and understood.
Step 2: Explain your thinking (using a different approach)
You would have already explained the thinking behind your price during your listing presentation. Time to do it again, but this time with a more delicate touch. Keep their position and emotions in mind as you use comparables, market data and your selling strategy to review your thinking once more.
Step 3: Discuss their goals
Your best shot at bringing your client to your side is to make them understand that your suggested price is rooted in wanting to do the best job for them. Ask them what their goals are for the sale of their house. Get the most possible money? Sell quickly? Feel good about the buyer? It’s likely a combination of those things. Outline how your list price will help them achieve those goals.
Step 4: Regroup together
They may or may not accept your suggested price. If the answer is still a no after steps 1 through 3, it’s time to reevaluate as a group and potentially come to a compromise.
Last Updated on May 6, 2024 by myRealPage
