Conditions Versus Objections
A problem arises when Agents mistake conditions for objections. Agents often treat a condition as an objection and beat themselves up when they don’t get the transaction or contract signed. The definition of a condition is a valid reason for the prospect to not move forward. You still need to try all the techniques of handling the objection. You just need to realize that a condition is usually linked to their ability or authority to act now.
They might have the desire to move forward with you but lack the ability or authority to do so. Ability relates to financial capacity, credit score, and down payment. Those types of issues relate to their ability to act. Authority relates to the ultimate decision maker. Is there anyone else who will be influencing this decision? Young couples and first-time home Buyers often do not have the authority to make a decision without outside guidance, which is usually a parent.
The most common condition is lack of money, lack of credit worthiness, and (in the case of a Seller) lack of equity. You might not be able to overcome these to make a sale. It is better to know early, before you invest the time in the presentation, if your efforts are guaranteed to not result in a signed contract.
Another condition we are seeing more frequently is a pre-payment penalty on a mortgage for a Buyer. This clearly could be a condition. My best advise is don’t waste your time trying to overcome impossible conditions. Sometimes, you can invest more time than it’s worth trying to be the hero. If you are prospecting consistently, you will have more than enough opportunities without overly burdensome conditions.
A word of caution, don’t become so emotionally involved that the line between an objection and condition gets blurred. We can want to help someone so much that we blur the line. We start investing large amounts of time negotiating short pays, pre-payment penalties, waivers, and an abundance of other items. We lose sight of our business.
I realize that going that extra mile for the client can give you really warm feelings. It can build an extremely loyal and appreciative client. That “sold out” client can send you referrals for years because of your extra service. However, let me give you a word of caution about these situations. Where Agents get into trouble is not recognizing these types of opportunities for what they really are. These types of clients allow you to generate large amounts of goodwill. You feel good helping people who are struggling.
I did a number of these types of, what I call, donation deals annually. I didn’t donate my commission, but the value of my time against the time, effort, energy, and money spent was a net loss against the commission earned. I am not saying don’t do them. I am saying a Champion Agent recognizes them for what they really are – a donation transaction to benefit someone in trouble. Your reward will never be monetary, especially in the short-run. Where Agents get into trouble is when they quit halfway through the transaction because the conditions of the transaction hint that they aren’t going to make any money. Now, they are embittered and frustrated. If you can’t financially or emotionally do a donation deal, pass.
The last point I want to make regarding donation deals is that you can’t do too many. Even a Champion Agent can ill afford to do a lot of these each year. If you do too many, it affects your income, attitude, and family. Limit the number of these you take on. I took a couple a year. That was all I could engage in and still reach my business and life goals.
Realize that conditions are often temporary. Their circumstances or the market conditions can change. Their credit can improve; they can save more money; new loan programs are created; new children arrive, pre-payments can be negotiated. Many of the conditional roadblocks can be removed over time. Don’t fail to keep in touch with people who have conditions as to why they can’t move forward now.
Dirk Zeller is a sought out speaker, celebrated author and CEO of Real Estate Champions. His company trains more than 350,000 Agents worldwide each year through live events, online training, self-study programs, and newsletters. The Real Estate community has embraced and praised his six best-selling books; Your First Year in Real Estate, Success as a Real Estate Agent for Dummies®, The Champion Real Estate Agent, The Champion Real Estate Team, Telephone Sales for Dummies®, Successful Time Management for Dummies®, and over 300 articles in print. To learn more, please visit: .http://www.realestatechampions.com/businessplanningkit/
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