Buyer or seller objections usually stem from a lack of understanding. My approach is always to listen, identify the root of the problem, and then calmly educate them on why something needs to be done in a certain way. Real estate sales involve a lot of emotion, so it's important in every transaction to help clients figure out what's causing the issue and whether the decision is right for them.
One effective tactic I've used to overcome objections from potential buyers or sellers is the "Feel, Felt, Found" method. This approach acknowledges the client's concerns, empathizes with their feelings, and provides a solution based on past experiences. Here’s how it works: Feel: Acknowledge their feelings. For example, if a buyer is worried about the price, I might say, "I understand how you feel about the price; it’s a significant investment." Felt: Relate to their experience by sharing that others have felt the same way. For instance, "Many of my clients have felt the same way when they first saw the price." Found: Provide a resolution by sharing what others have found after addressing similar concerns. "However, they found that the value of the property, combined with the financing options we explored, made it a worthwhile investment in the long run." By using this technique, I’m able to validate their concerns, show empathy, and offer a proven solution, which often helps in easing their objections and moving the conversation forward.
I try to take each situation as it's own unique challenge. What worked for one deal might not work for another, so I try to listen to the specific objections or concerns I'm hearing, and then work collaboratively to solve the problem in a way that can move the deal forward. Early in the pandemic, I was selling my own home in San Francisco and in the worst possible market. I accepted an offer that had a contingency, the buyer needed to sell their own property in Seattle (which was worth about half of the SF property she was buying) prior to completing the purchase. After 60 days in escrow, the agent in Seattle hadn't even listed the property yet. That market was hotter, he had many listings, and he wasn't moving quickly to get the deal done. The buyer called me up and said that, despite loving the SF property and wanting to complete the sale, she would have to back out of the deal based on the timing. It was an absolutely atrocious market environment in SF, and I wasn't sure I'd be able to get another offer, let alone at the contracted sale price. I was in a real pickle. So I made her an offer - I'd buy her property in Seattle and we'd "swap". I'd buy the Seattle property and remove the contingency. Personally, I thought I'd have a better chance in the Seattle market at that moment and I'd carry the risk on a much lower property value. But there was one stipulation - I wasn't going to pay the listing agent's fee on the purchase given the delays they caused. She agreed and I started to line up financing. When she called the listing agent to let him know about the deal, low and behold he magically had a buyer lined up later that day! Instead of being angry, or calling the Seattle agent to pressure them to move faster, or adjusting the economics of the deal to try and incentivize my buyer, I just focused on the problem at hand and found a creative solution. With a little fire under him, the Seattle agent got the message and wanted to protect his commission, and both transactions went off without any further issues.
For both buyers and sellers, one of the biggest ways I help them overcome an objection is to help them see the other viewpoint of the party. I also share how I would behave if I were in the role of the other agent. It helps the parties connect to the reality of the situation.
One effective tactic I’ve used to overcome objections from a potential buyer is to provide a comprehensive market analysis. When a buyer hesitated due to perceived high prices, I presented data showing recent sales of comparable properties, trends indicating the potential for value appreciation, and the benefits of the neighborhood. This evidence-based approach helped the buyer see the value and long-term benefits, addressing their concerns and building confidence in their decision.
One of my go-to strategies for overcoming objections from potential investors (in my case) is the "Feel, Felt, Found" method. It's a simple yet effective way to address concerns in a three-fold step: Step 1: Acknowledge Their Feelings (Feel) First, let them know you understand their worries. It shows empathy and that you're on their side. For instance, "I completely understand how you feel about the risk involved in this syndication." Step 2: Relate to Their Situation (Felt) Share a story of someone in a similar situation. This helps them see they're not alone and that others have had the same reluctance. For example, "Many of our investors felt the same way when they were considering their first syndication investment." Step 3: Provide a Solution or Outcome (Found) Finish by explaining how the concern was resolved and the positive results. For example, "But what they found was that our thorough due diligence process and detailed market analysis helped mitigate the risks, and they ended up achieving great returns on their investments." I believe this strategy is also applicable during the buying or selling process. It is a friendly and empathetic approach that helps build trust and demonstrates that you're committed to supporting them throughout their journey. I hope I was able to provide you with valuable insights. If you have any more queries, feel free to reach out! Author Bio: Ameet Mehta Ameet is a technology entrepreneur and founder of SponsorCloud, a syndication and fund management platform and FirstPrinciples, a venture holding company of B2B SaaS Companies. Mr. Mehta is also the founder of the SaaS business SyndicationPro, a Real Estate Syndication Software. Ameet's experience includes working at TechStars, KPMG, and Cambridge Capital. Also, he sits on the Board of the Milaan Foundation. LinkedIn: https://www.linkedin.com/in/ameetcmehta Twitter: https://twitter.com/AmeetM