How to Overcome Objections to Get More Listings
Want to get more listings? The answer is simple. You need to know what’s holding homeowners back from selling right now. And, you need to be able to confidently coach them through those concerns.
Here are two of the biggest seller objections right now, and the information you need to share to overcome them. Remember, if you understand the facts and can communicate why it still makes sense to move today, you’ll help sellers feel ready to make a decision.
Why Would I Buy When Mortgage Rates Are This High?
For homeowners who share this objection with you, it’s essential to help them understand the power of home equity in today’s market.
Over the last few years, home prices rose dramatically, and that gave homeowners a big equity boost very quickly. That equity can be a game changer for your clients when they move.
That means roughly 70% have a tremendous amount of equity right now.
Once you help your client sell their house, they can use their equity to fuel their next purchase. It could be some (if not all) of what they’ll need for their next down payment. It may even be enough to allow them to put a larger down payment on their next home, so they don’t have to finance quite as much.
And, if they’ve been in their current house for years, they may even have enough equity to purchase in all cash. That helps them avoid borrowing altogether
Why Sell When I’ll Never Find Something to Buy?
For clients with this concern, give them hope by showing how newly built homes offer more options, potentially at a better price point.
In today’s housing market, there are two main challenges impacting the decision to move: mortgage rates that are higher than they’ve been the past couple of years, and rising home prices caused by low inventory. Clients lean on you to overcome those challenges and rely on your advice to expand their pool of affordable options. Newly built homes may be the bright spot you want to point them to.
New home construction accounts for roughly 31% of total for-sale inventory. Over the past couple of decades, newly built homes made up an average of only around 13% of total housing inventory from 1983 to 2019.
That means your clients could be missing out on nearly one in three options for their search if they’re not considering newly built homes. That may be why more people are turning to new home construction. But to offset today’s affordability challenges, they’re looking at smaller more affordable new builds.
New data from the Census further confirms builders have picked up on this trend and are reacting accordingly. The graph below shows the median sales price of newly built homes has dipped down in recent months:
Builders producing smaller, less expensive, newly built homes give your buyers more options that are more affordable at a time when that’s really needed. Let your clients know you’ll help them look at newly built homes or ones under construction nearby.
And don’t forget to go over how much value you add to that process based on your knowledge of local builder reputations, contracts for new homes, and more.
If you’re trying to figure out how you can get more listings, sharing this information with your clients can help. A lot of the reasons homeowners aren’t moving today is because they’re worried about affordability, inventory, or what they’re hearing in the news.
If you share data-bound information based on the facts, you can help alleviate those fears and build their confidence in selling today.