Most Frequent Objections

Most Frequent Objections

 

 

 

  1. Not interested. .Don’t call me anymore. I don’t want to sell. Where’d you get my number? Why should I sell?  It produces enough cash flow. I’m happy with what I have. This has been in my family forever.

 

Answers:

  1.  
    • Well I’m not suggesting you should sell, but…………
    • It’s a great building……
    • Ok hope you don’t mind if I call back another time
    • Just out of curiosity can I ask why?
    • How did your family come to own this?
    • You’ve seen a lot of changes in the market.
    • How’d you do in the earthquake?
    • What were the rents when your family first bought it
    • How has the rent control affected you
    • Many clients who aren’t interested in selling keep up with the value….
    • Are you out of depreciation? How’s the after tax cash flow?
    • Would you be interested in diversifying? Or consolidating into one larger property?

 

 

Deflection responses

 

I’m real busy right now

Just send me your card

I’m not the one to speak to

I don’t speak English

Talk to my property manager

 

 

“none of your business”-                

means you haven’t given anything before asking for something.

Well you’re right sir that is confidential, perhaps I could start over by offering you the info I’ve gotten from several surrounding buildings

 

 

 

  1. Can’t Handle the capital gains, find me my upleg first, what’ve you got for me to buy? All you want is a commission what do I do with the money?

 

Answers:

·        Have you considered an exchange or carrying the financing to defer or mitigate the effect of capital gains?

·        That’s exactly what I wanted to talk to you about

·        All I ask is that you let me present some ideas about that.

·        From there, answering the trade objection may involve:

 

1.      Going over the exchange timeline, and without denying the risk involved, demonstrate how it can be mitigated

2.      Move on to demonstrate:

·         the number of properties available today

·        the number of properties that changed hands in the last twelve months that would have fit their criteria

·        the different sources of up legs that are on the market

·        examples of up legs that were found that weren’t on the market and how the broker network often produces these deals

 

  1. Find me an up leg first, where would I put my money, I know the deal I have now,

 

 

 

Answer;

  • This has proven to be an ineffective strategy in securing your upleg and in selling your property. If we can meet I’ll show you exactly why. Your ultimate conclusion may in fact be that you don’t want to risk doing an exchange , but I think that I’ll be able to demonstrate enough probability if you decide it’s a goal you want to accomplish with your equity.
  •  We wouldn’t let a Buyer tie your deal up without cash in hand and neither will the seller of a deal you want to Buy. If we had found you an upleg and you were selling your property, would you take an offer subject to a sale or one from someone in a 1031.

 

3.      I’m a broker and have been for 25 years; -my son is a broker;- I’m working with another broker;- I’m working with another broker at your firm,- My property manager has always asked;- I’d use the broker that sold me the deal.

 

Answer:  You know more than half the people we represent are brokers who have realized the value of a marketing force like ours to stimulate price competition and be insulated from the market.  But after all, I’m only asking to meet you.

-         Your son may be the best choice for you, but I wouldn’t want decisions about my equity influenced by what was in my son’s best interest. Many people find that to be a complication.

-         Well I hope to have that kind of relationship with my clients also, does that mean you don’t want to hear about deals or information unless your other broker is involved?

-         Very few property managers could give you the benefits of a specialist….

-         Who is your broker?

 

 

5. I’m too old to do anything. I’m leaving it for the kids.

 

Answer: That may be the case, but

·        How confident are you in their ability  to manage the property

·        Many of my clients kids are too busy or out of the area, many just aren’t interested as my clients would have hoped

·        Have you considered leaving each of them a separate property

·        Some clients would rather their spouse have a no management property

·        Have you planned for the estate tax implications for your family and heirs?

-         A lot of my clients move equity into management free investments rather than have family members step into the management of properties that even if they are willing to they may not be able or certainly as able as your self.

-         Other clients have set themselves up to be prepared to pay estate taxes

-         Some clients would prefer to set their family up with a first mortgage on the property for 30 years

-         Even if you never sell wouldn’t an estimate be helpful to your family

 

 

4.      I work with so and so in your office

 

Answer:  You know what, he’s a great broker and I hope when you list it with him I’ll be able to bring you guys a Buyer.

 

 

 

 

 

6. Just bring me offers

 

Answer; I’ll do that if you want me to but believe me, that is the surest way to leave money on the table. If there’s anything I’ve noticed in 18 years here it is that people behave differently when they know they are competing in an exposed marketplace.

If I can’t demonstrate that to you when we meet, then I probably don’t deserve your business.

There’s two prices a buyer will pay for your property- the one he wants to pay and the price he’ll pay if he has to. That’s my job.

Why would you let a Buyer decide what your property is worth?

And as a matter of fact don’t judge me by the offer you choose, judge me by how many offers I bring behind the one you choose that keeps him in line

I’d love to bring you an offer- can I come over to ask some questions this afternoon

 

 

 

 

5.      I promised my property manager

 

Answer: You know they have been compensated every month for the job they do for you and no one forced them to accept the position. That is not a good reason for you to jeopardize your equity by allowing someone else’s wants come before your interests.

 

 

6.      Why should I sell? What would I do with the money? That’s my retirement. I’m going to give it to the kids. Why would I want to know what it’s worth if I’m not going to sell?

 

Answers…. You shouldn’t sell…. People either sell to alleviate a problem or take advantage of an opportunity and a lot of reasons fit those headings…return on equity-take advantage of rates-more profit- bigger asset base-out of depreciation-separate a partnership   Your mutual fund statement comes every quarter and that doesn’t mean you are

 

 

Objections that lead to a question

 

 

I have nothing to do with that

 

You’ll have to speak to  so and so about that