By Bill Traback, Regional Director for Florida - New Home Star
When selling new homes, the 'market uncertainty objection' may come up and threaten sales. It is important you be prepared to effectively handle the subject and confidently let your customers know it's OK to buy now.
Here in Florida, we prominently hear objections from active adults who see their 401K slip. According to Founder David Rice, it's incredibly important that we understand the logic of buying as we sell to our customer's emotions.
As a sales agent, it may seem odd for customers to visit homes and then tell you they don't believe that now is the right time to buy. Why are they out in the market if they feel it's a bad time to buy a home? This scenario reminds me of old cartoons where the angel is talking in one ear and the devil is talking in the other. These customers may be at war with themselves when it comes to the home buying market. Our job is to nurture the angel.
Since customers are the ones who come to see us, we must assume there's a flicker of hope we can convince them that now is the time to buy! When a market slows down (as it invariably does), there is often discouraging publicity. Yet there are always customers who are looking. All of my builder accounts reported an upsurge in traffic last weekend. We had quite a few sales as compared to the first three weeks of the month in spite of the scary headlines. So what do customers want from us? We have to believe they want us to provide reassurance.
Suppose they say things like, "I am just concerned about the market." It is our job to provide a straightforward response, saying something along the lines of, "What is it that has you worried/concerned?" The first step to moving past this barrier is getting them to articulate their anxiety as specifically as possible.
You may also want to respectfully address the fact that their fears have not kept them away from looking to buy ("You must have some good feelings, or you wouldn't be out looking.") Let the prospective buyer respond to that before moving onto more delicate topics. Always be sure to convey the right body language and linguistics so that your customer sees this as reassuring and not combative.
The truth is that during a hot market we sell with a calm and confident demeanor that increases the comfort level of the buyer. Our confidence becomes the buyer's confidence. When the market slows down, we begin to feel anxiety which is transferred to the customer. When buyers are skittish about market conditions, your ability to sell with a relaxed and confident demeanor becomes the most important tool. Demonstrate to your customers that you want to sell them a home, but you don't have to. There are still plenty of customers out there who can meet your needs. Buyers need to see this 'abundance mentality' in order for their comfort level to rise.
Don't expect buyers to demonstrate urgency at the beginning and don't try to draw conclusions about their likelihood of buying. Give their urgency time to evolve. They need to reach the point where they believe your home will improve their lives before they can begin to feel that it's okay to buy. Remember that all bets are off until they like your home better than where they live now or others they've seen. Only at this point can they become receptive to your message of why it's okay to buy today.
If you truly believe you can sell homes, your confidence becomes a source of energy for your customers and for yourself. You are able to get people to love your homes because you have a passion for what you are doing. Customers will begin to realize that they can improve their lives in a slower market, just as they would in a hotter one. I always love posing the question, "Why would you want to put off making your life better?"
For more on this subject, visit discussion groups in the Peer Learning section of New Home Connect. I would encourage you to comment with any challenges you're facing or suggestions for handling objections so that we can use the brainpower of the brightest minds in the industry to maximize sales.
Bill Traback is an expert industry leader, currently located in Central Florida. As the Regional Director for New Home Star's Florida divisions, Traback has furthered expansion of sales volume and strategies.
