Hi, I’m Kathy Tucker with New Homes Solutions, and today I’m going to talk about how the pros Handle Objections. While this is usually a two-hour workshop, I’m going to take the next 12 minutes to share with you the seven steps of how to handle objections to help you help your prospects make a good decision and, of course, help you convert more sales.
Before we discuss the HOW, it helps to be clear on:
- What exactly is our goal with the prospect?
- What exactly is an objection?
- What are the 6 MUST Dos before you can properly address an objection?
What is our goal?
Our goal with each prospect is to find a home they love and move the process forward to closure so that everyone is happy. Unfortunately, though, we all know that there is no perfect home. This is where the objections come into play, and it’s our job to help the prospect overcome the obstacles and objections so they can get a home that is 90-95% perfect. That’s our goal.
What is an objection?
One type of objection is when there is a feature or element of the home that the prospect doesn’t like that’s enough to keep them from moving forward. For example, your prospect might love the home, but its located on a home site that backs to a busy street, And they don’t like that. So, you have an objection, and you risk losing the sale. Or, another type of objection is when there is a feature they want in their new home that you just can’t provide. For example, maybe they want a pool in the backyard, and your home site will not accommodate a pool. In both cases, the prospect has voiced an objection, and unless you know how to overcome it, it may prevent them from getting the home they want, and force them back to starting all over. You lose the sale. Before we discuss how to handle the objections, let’s first dive into what the pros do first before they address an objection.
The 6 MUST DOS before you can properly address an objection. This is CRITICALLY IMPORTANT:
1. Build a strong rapport so they can be honest with you and you can be honest with them
2. Discover their wants, needs, and the whys behind each of their needs.
3. Discover the priority of those needs.
4. Discover their dominant buying motive.
5. Present your product in a way that doesn’t just satisfy those needs but also delights them so they are personally and emotionally attached to the home, except for this one objection.
6. Gain acceptance on how those features truly satisfy your prospect, so ultimately, they love the home, except for the one objection
So, if you’ve done a good job up front, then handling the objection is much easier.
Now let’s talk about the seven steps to overcome an objection. I’ll also share a personal story with you to help you follow the step so you can see clearly how it works. When my husband and I were looking for a home, we found a home we liked, but although it had a pool in the backyard, it did not have a lap pool. My husband, Dave, had been set on getting a lap pool in his next home.
The 7 Steps:
1. Ask open-ended questions to clearly understand the objection. What is the need that you’re not satisfying that is causing the objection? Why is the need important, how will the objection impact them, and how important is it relative to their other needs?
Example: Dave, I understand it’s important for you to have a lap pool in your backyard. Can you tell me about how you planned to use the pool, and how often? How important is this relative to the other critical items we discussed regarding the first-floor owner’s suite, the side load garage, the privacy of the home site and the availability of a community clubhouse with an activities coordinator?
Once you feel you have a clear understanding of their perspective, then you
2. Acknowledge their perspective and the relative importance of that issue. This shows you care and understand the issue.
Example: Dave, I get that you truly wanted a pool in your backyard, and I can appreciate that that was very important to you.
3. Ask permission to give them another perspective or another solution to consider.
Example: Dave, I know you really love everything else about this home. Would you mind if I gave you another perspective for you to consider?
4. Offer an alternative perspective or solution to the problem, if available. This is where you must get creative because you’re not going to be completely satisfying their need, but you’re giving them another alternative or another way to look at the situation.
Example: Given that you like to swim laps daily, I would like to share with you that there is a public outdoor pool within 5 minutes of this home where they offer lap swimming for adults. In fact, they offer a master’s swim program there where they have a competitive team, and they do lots of social activities outside of the pool as well. Would that be something that would interest you? While that is not a lap pool in your backyard, it would provide you with an easy opportunity to do outdoor lap swimming daily. Would that be a consideration? Would that work?
5. Refocus them on the big picture so that you can put the objection in perspective, and remind them of all the benefits they have already accepted.
Example: Dave, let’s take a step back and refocus on the big picture here and review what you came in here telling me you wanted when first started to look for a home for you.
6. Outweigh the objection with the power of all the benefits they already accepted.
Example: Given that this home offers the first-floor owner’s suite since you don’t want to walk stairs since you have a bad back, and it has the first-floor guest room so your parents can stay for an extended period of time without needing to do stairs. It has the first-floor office which gives you the convenience of working and still being close to the kitchen and being a part of the family. The home is located walking distance to the farmers market and all the restaurants and the Bayfront, which was what you and Kathy had dreamt to have one day. And since it does have an outdoor pool, and the opportunity for lap swimming is within 5 minutes, would it make sense that all these benefits outweigh the fact that you wouldn’t have a lap pool in your yard?
Example: With all of this in mind, and knowing this is the ONLY home available that meets your criteria in this location in your required time frame, let’s go ahead and take this gem off the market before someone else does. Sound good?
So, as you can see, there might be seven steps, but they work together seamlessly if you’ve done a good job up front. Allow me to reiterate that point; Your ability to masterfully handle objections is directly related to how well you have connected with your customer up front, discovered their needs, satisfied them with emotionally impactful benefits, and gained their acceptance along the way. Then you and the prospect BOTH are reminded of all the valid reasons why your home is a great decision for them, even if it is missing this one element. This strategy works. It’s how the pros handle objections. It will increase your conversion rate and help you sell more homes AND have happy customers.
Oh, and by the way, do you want to know how the story ends? We bought the home without the lap pool, Dave swims regularly at the local pool with the master’s team, and we’ve lived happily ever after…Amen!
Thank you for your time. I hope this helps. Remember…work smart, have fun and finish strong!
Kathy Tucker joined New Homes Solutions as a consultant and partner in July 2018, offering over 30 years’ experience as an executive in the Homebuilding Industry. Her specialty is helping builders develop effective sales programs, rock-star sales professionals and brilliant sales leaders. She offers development workshops for sales teams and sales leaders including From Basics to Brilliance in Sales Management, Creating and Maximizing your Competitive Advantage, Mastering the Art of Competitive Community Positioning, The Art and Science of New Home Sales and more. She is available for builder consulting, one-on-one sales and sales management coaching, small group workshops and keynote speeches.
For questions, comments, more information or to book Kathy for your next event, visit https://newhomessolutions.com or contact her at Ktucker@NewHomesSolutions.com. Connect on LinkedIn www.linkedin.com/in/kathytuckermba.