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The Most Common Real Estate Objections and How to Overcome Them

sales consultants speaking with potential home buyers

It’s something that all sales consultants have dealt with. They’re speaking with a potential buyer, and the conversation seems to be going well, but then an objection comes. When this happens, it’s important not to panic. Sales consultants should be prepared and have a response ready to go. In this article, we’ll outline some of the most common real estate objections and suggest how to overcome them.

The Four Most Common Objections

In sales, there are four categories of objections:

  • Lack of budget
  • Lack of trust
  • Lack of need
  • Lack of urgency

Lack of budget

This is usually the most common objection, as all purchases come with some sort of financial risk. To overcome this real estate objection, sales consultants must demonstrate how the reward outweighs the risk.

Lack of trust

Buyers can be wary of sales consultants, as they do not want to be taken advantage of. It makes sense that they would want to do business with someone they trust, so emphasizing your value and your builder’s authority is key.

Lack of need

Odds are, when you meet with a buyer, they are actually in need of a home. But there are other options out there, and not only from other builders. Some buyers may be contemplating renting due to increased rates. The sales consultant is responsible for educating buyers on the benefits of buying new.

Lack of urgency

Is timing really what the buyer is worried about, or is it something else? This is a common real estate objection and could mean that the buyer is shopping around or is, in fact, taking their time to make a decision. By asking them to elaborate on their priorities, sales consultants can really dive into what is the real issue.

Objections While Prospecting

Why Handling Prospect Objections is Important

There are many objections that happen while prospecting as well. This starts at the very beginning of the buying process and prevents buyers from moving along through the sales funnel. This could even occur before the buyer becomes a lead, meaning that objections at this stage that go unresolved can prevent you from closing deals. It is of utmost importance that sales consultants understand the common real estate objections that happen in the early prospecting stage.

How Prospect Objections are Different from Other Objections

As you prospect, you will probably start to gather common objections from your buyers. This is helpful as you can start crafting responses and be prepared to handle these objections. Of course, it is important not to come across as pushy. You will only have a few seconds to really identify and communicate your home builder value proposition. Make sure you articulate clearly and identify the next steps. This will help keep your conversations moving.

Most Common Objections in New Home Sales

New home sales can be a tricky industry. Luckily, as the largest seller of new home sales in America, we can provide guidance on overcoming these common real estate objections.

“Home values will drop.”

When this real estate objection comes up, it is important to know what is happening in the industry and the economy. Bringing up specific points on material costs, inventory, and more allows you to showcase your knowledge. Explaining that this is a long-term investment that will build equity often helps the buyer see the bigger picture.

“I don’t like this homesite.”

When closing out a community, this is a common objection. At this point, the favorable homesites are taken, and what’s left are undesirable locations. As a consultant, get familiar with each home site left and increase your enthusiasm about each one. After all, to build customer enthusiasm, you must show enthusiasm yourself. Also, envision an ideal buyer for each. This allows you to target the buyer who would be ecstatic to live on the property.

“The pricing on these upgrades is too high.”

Most times, the option pricing is competitive due to the purchasing power, so ensure that your buyer knows that these savings are passed on to them. The upgrade cost is also wrapped up in the loan so that they will pay it back over time. If possible, give them the exact numbers on how much it will cost per month so they see how little it will be. 

“This home does not have a basement.”

First, ask your buyer what they plan to use the basement for. Then, be sure to communicate the ability to add a den or a bonus room that they can use to watch movies, work out, or store things that they may have needed a garage for.

“The backyard is too small.”

Here, you can learn more about what the buyers would use the yard for. You can always point out that their weekends will be more open because of less yard work. Many new home communities also have walking trails and parks, so point out that this is good outdoor space for families and pets.

“Interest rates are just too high right now.”

This is a common real estate objection. Buyers are often more concerned about their monthly payment than a high-interest rate. Do some discovery to determine the case for your buyers. Then, remind them that rates historically fluctuate and have gone higher than what we are currently seeing. Also, know your builder’s incentives and explain how that can help drive down costs.

“I need you to offer an incentive for me to consider buying.”

First of all, don’t say “no.” We recommend shopping lenders in your area – they may be able to help out your buyers with closing costs and special programs. Being familiar with the competition and knowing their incentives is also key. Additionally, let your buyer know that you will ask your builder for assistance but also ask for a commitment.

“The commute is too long.”

Sympathize with your buyer, but then point out some of the benefits of a commute. It gives them time to prepare mentally for work or decompress after a long day. It’s also a great time to get caught up on podcasts and audiobooks. Afterall, it’s nice to have some time to themselves before and after the workday. 

“These options are not ideal for an inventory home.”

Because it is an inventory home, its rare that a buyer will like every single feature. When approached with a dislike, like, “I do not like the color of these cabinets,” turn their focus to the things they do like and push the positives. Remind them that an inventory home may not have everything they want, but they will get a better deal and can move in quickly.

"There is a lack of storage space in this home.”

This real estate objection offers an excellent opportunity for discovery. Ask your buyers what types of things they need to store, then offer solutions. Recommend ways to organize the basement. Suggest they add cabinets and shelving to the garage. If the community allows it, let them know that they can build a shed. Storage solutions and organization bins also make a great closing incentive!

“My preapproval rate is lower than the starting price of the community.”

First, it helps to show the buyers your comps so they can see the prices your homes are appraising at. This helps build trust and shows them that you are not trying to oversell. If they are open to it, offer to call their lender to see if they can go up in their preapproval. You can also check if any of the incentives will help them out.

“I do not like the HOA restrictions.”

It’s best to study your HOA rules so you can answer basic questions that your buyers may have. You can also create an FAQ sheet that buyers can take with them to get more answers to specific questions. If there are objections that you simply cannot answer or clarify, it may be best to connect your buyer directly with the HOA.

“This neighborhood is just too noisy.”

Usually, this real estate objection is raised in a community that is adjacent to a highway or other busy road. You can remind your buyers that they will have easy access to a main road, reducing commute time to work, restaurants, and shopping. There are also options to build fences or plant tall shrubs to help mute some of the noise.

“Why should I buy when market conditions are unstable?”

Reminding your buyers why they were excited to purchase a home will get them interested again. Remind them what they love about their home, the builder, and the process. Reiterating that this is a long-term investment is also important since housing prices will continue to rise.

“The build time is too long, and I can’t wait.”

Do some discovery and determine why your buyer is not able to wait. If there are short-term rentals in the area, discuss those and let them know that they can negotiate a rent back when they sell their home. Also, let them know there is a good chance that the homesite they love will not be available in the future, and prices will likely rise. 

“The options you have are too limited.”

Let the buyer know that you are not a custom home builder. By adding more upgrades and more options, not only will the price of the home skyrocket, but the build time will also drastically increase. Stick to what your buyer truly wants, and make sure to showcase how you can meet their needs.

“There is a lack of amenities in the home and the community.”

Ask your buyers what amenities are missing and if they need them. Fewer amenities often come with lower HOA fees, so they will save money this way. Also, be sure to highlight what they love about your floorplans and the community.

“I’m not too keen on this location.”

Remember to build value in your area and your product. Understand why the location doesn’t work for them. If it is because they do not want the longer commute to work, help them see the benefits of living in your community. Perhaps it is the quiet area they need or the floorplan that gives them everything they want. 

"This price is too high.”

When it comes to this real estate objection, discover if your buyer is more concerned about the total price or the monthly payment. If it is the monthly payment, let them know that you have trusted lenders they can speak with and give a breakdown of what the monthly payments would be. If possible, compare the cost of your home to resale homes in the area, so they can see the equity they would build.

“This is not my ideal school district.”

Ask your buyers to tell you more about what the school district they are interested in offers. Then, let them know you can provide the principal’s phone number so that they can set up a meeting to learn more about what this school district offers. 

“The room sizes are too small.”

Many times, buyers will say this about the bedrooms. But how much time will a family really spend in their bedrooms? Point out the size of the living room, family room, and kitchen, as these are usually the areas where they will spend most of their time.

“I am unable to sell my existing home.”

When presented with this real estate objection, it is important to be sensitive to your buyers’ needs. This is a big financial burden, and you must appropriately address their concern. First of all, know the market. For example, mortgage rates are currently high, so inventory is limited. Homeowners do not want to sell their homes and give up their lower interest rates, so they hold on to them longer. Because of this, when homes go on the market, they are getting picked up fast. Assure them that their home will sell!

“I’m afraid I may lose my job.”

Show your concern with their situation and remind them that we cannot worry about “what ifs.” Note that it’s best to root our significant decisions in logic and rationality. This is a long-term investment and sets them up for future financial success.

Most Common Seasonal Objections

Of course, there are objections that hit in different seasons. Here are some pointers if you are dealing with one of these objections.

“The holidays are just too busy; I can’t move right now.”

This is a common real estate objection and can hinder a sales consultant from closing out the year in a big way. First, remind your buyers that they are currently looking, so they must be shopping for a new home because of some reason or need. Then, point out that a new home is a long-term benefit and one holiday season should not hinder their long-term gain. 

“I don’t want to build in the winter because of the weather.”

First, try to understand exactly why your buyers are hesitant to build in the winter. It helps to explain the process of building in cold temperatures, like additives in concrete and building materials made to withstand the cold. Also, remind them that the municipality would not allow building if it were unsafe, and all homes are subjected to third-party inspections throughout the process. Plus, building in winter means buyers can move in the summer!

How to Handle Real Estate Objections When Selling Virtually

Thanks to advancements in technology, home buying is now happening online. In fact, 100% of home buyers now use the internet to find a home. Therefore, your customers now have more options to speak to a new home sales consultant. So, it’s important to train diligently on how to address objections when selling virtually. 

Guiding buyers through the process and gaining their trust is paramount in virtual selling. Remember that many home buyers will go through this process virtually for the first time, as this is a new trend. Providing detailed information and your expertise is key!

It can be difficult to get buyers to commit to a virtual appointment. New home sales consultants should show their confidence and experience in virtual tools so customers feel more comfortable participating in virtual communication. Try utilizing the “Feel, Felt, Found” process. With this technique, sales professionals can guide the customer into a new way of thinking and lead them to commit to a virtual appointment. 

3D tours prove to be the next best thing to seeing a home in person. However, you may find that some customers still want to see the home in person. This may not be possible for a variety of reasons, so we recommend building a map of the community and adding photos of specific homesites and pins so customers can follow along.

The 7-Step Process for Handling Objections

Over 80% of real estate objections can be handled without providing a solution. By focusing on the process of questioning the objection, you can attempt to narrow it down to very specific variables, thus allowing the customer to handle the objection on their own.

Here is our 7-step process for handling objections:

  1. Sidestep the objection. If an objection is brought up early, you may want to sidestep it until you can find a more appropriate time to discuss it. It will often not be brought up again, so you do not want to spend your time addressing objections that may only be simple comments. If an objection is important, it will be brought up multiple times, and then you will know to progress to the next step.
  2. Hear the objection. Sales consultants are often eager to solve a problem, so they do not actually hear the objection. Remember that you may hear the objection constantly, but this is the first time the customer is experiencing it. Don’t rush them to respond — show that you are listening and you care about their concerns.
  3. Repeat the objection to the customer. Say the objection back to the customer word-for-word. This gives you a moment to think before you respond and verify the objection with the customer. Also, once the customer hears the words back to them, they may realize their objection is insignificant. 
  4. Question the objection. Be sincere and make sure you communicate that you want to solve their problem or question. Don’t jump to conclusions — dig deeper to understand their true concern that you must address.
  5. Answer the objection. This is where the “art” of handling real estate objections is most apparent. When you prepare for the most common objections you may hear, you can tackle this easily. Here, you can appeal to the customer’s hot button, respond with positive feedback, and remind the customer that everything is a compromise.
  6. Confirm the answer. Now that you’ve provided a reasonable solution to the objection confirm with the customer that they understood your rationale and agree. Using a tie-down like “How does that fit into your thinking?” will help you determine if the objection is settled or if you need to repeat steps 2-6.
  7. Close the objection. Once the objection has been answered, it’s time to move on. 

When an Objection Means “No”

Just as importantly, knowing when to let things go is critical. If you have gone through the seven-step process and the buyer is still objecting, it’s best to let it go. The last thing you want to do is make the buyer uncomfortable and lose trust.


What are the most common objections in real estate?

Most real estate objections center around pricing and location. When these objections come up, it’s important to do some discovery so you can determine exactly what the buyer’s objections are. Talking through monthly payments, possible incentives, and the positives of the neighborhood will help sales consultants discover the buyer's specific objections.

What are the most common objections in new home sales?

Many times, buyers may want more upgrades when buying a new home. Remind them that you are not a custom builder and when adding more upgrades and more options, not only will the price of the home skyrocket, but the build time will also drastically increase.

What resources do you recommend for objection handling?

Some of our favorite books for handling objections include:

Objections: The Ultimate Guide for Mastering the Art and Science of Getting Past No by Jeb Blount

25 Toughest Sales Objections (and How to Overcome Them) by Stephan Schiffaman

Price Objection Handline Made Easy: 118 Proven Sales Tactics that Never Leave You Speechless in a Price Negotiation by Roman Kmenta

Think Faster, Talk Smarter: How to Speak Successfully When You’re Put on the Spot by Matt Abrahams

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