I’d like for my motivation to match your motivation – and what I mean by that is, if you want to buy a home yesterday then you would love it
if I called you every day with new listings for you to look at. Wouldn’t you agree? And if you don’t want to buy a home for 6 months to a year, I would drive you crazy if I called you every day, right?
So I know how to follow up with you best, tell me, on a scale from 1-10, with 10 meaning you have an immediate need to buy a home and 1 means you’re just curious, how would you rate yourself? (Anything less than a 10) –
What would have to happen to bring your motivation to a 10?
The Buyer sees the market shift and believes that he has all the time in the world to look and buy.
There is really no rush; there are a lot of houses on the market.
Agent: [Insert Buyer’s Name], there certainly are many homes on the market. Let me ask you, has there
ever been a time when you were out shopping and you saw something on sale that caught your eye, and
yet you didn’t have the time right then to stop and buy it and you thought “there are so many I can
come back later and buy it” only to find when you went back the best ones weren’t available anymore?
Agent: Well this time is like that time, may I explain?
Agent: Even through there are many homes on the market the good ones always sell. Everyone is
looking for the best home for the best value. So regardless of the number of homes the best ones still
sell quickly. You do want the best home with the best value don’t you?
Agent: Then let’s buy today and make this a great home for your family. OK?
The Buyer has a “fear of the future” and is concerned that property values will continue to go down.
We are really worried that the property’s value will go down and we’ll lose money.
Agent: [Insert Buyer’s name], I understand. Other than property values possibly going down, is there any
other reason you wouldn’t buy today?
Buyer: No, that’s what I’m afraid of.
Agent: Let me ask you, how many years do you plan on living in this home?
Buyer: [Buyer will answer].
Agent: Terrific! And when do you feel you would lose money? Isn’t it when you sold the home?
Agent: Let’s go back and look at the recession cycles. Other than the Great Depression no recession has
ever lasted more than 16 months and, historically, nationwide average home prices have always gone
up. So let me ask you, are you willing to have someone else living in this house tomorrow knowing you
could own it today?
Buyer: Well, we do like the house.
Agent: Great, let’s buy it.
Buyer: We’re still concerned about losing money.
Agent: Just out of curiosity do you enjoy paying rent and helping someone else earn equity?
Agent: Well whether you buy this home or not, you will still have to pay money to live somewhere,
Agent: As long as you’re paying to live somewhere, don’t you think you deserve to have the tax
advantages and build equity for yourself by owning your own home today?
Agent: Let’s get started today on building your equity. Go ahead and sign the contract and let’s buy this
Agent: [Insert Buyer’s name], I’m curious, what makes you feel prices are coming down?
Buyer: That’s what I’ve heard and I’ve seen price reduction signs on homes everywhere.
Agent: I agree. Now let me ask you what has been happening to interest rates over the past few months,
have they gone up or down?
Buyer: They have been going up.
Agent: Right. Well looking at this mortgage calculation graph you’ll see that a $200,000 loan at today’s
interest rate of 6.5% would be $1264.14 a month, and when interest rates take another jump to 7% it
would be $1,330.60 a month which means that you would pay $66.46 more per month. So the price of
the home would acutally have to come down $10,500 to have the same payment as today. Do you think
that we should hold off on buying in hopes that prices will drop before the mortgage rates go up? Or
should we make an offer based on the reality of today?
Buyer: Let’s go with reality and make the offer.
Situation: The Buyers sees the market shift and believes that he has all the time in the world to look and
Buyer’s Objection: There really is no rush; there are a lot of houses on the market.
Agent: [Insert Buyer’s name], you’re correct; there are many homes on the market. Let me ask you how
many homes are in great shape and would be a home your family would love and enjoy?
Buyer: I don’t know. I would assume many of them
Agent: You know, as a buyer specialist I look at homes every day and there are many homes that look
great on the outside and need a lot of work on the inside. Are you willing to pay thousands of dollars to
fix up a home?
Buyer: No, not really.
Agent: Then we only want to look at the great homes that you’ll enjoy, correct?
Agent: Buyers are looking at homes every day and when you look, you shop by comparisons correct?
Agent: Well when a buyer finds a home that fits their needs and it is in great shape, they usually react
quickly and buy the home taking it off the market and leaving what’s left. Do you want someone else’s
leftovers or do you want to choose the home that you and your family will enjoy?
Buyer: I don’t want someone’s leftovers.
Agent: Great. Then we need to look now and buy a great home. Don’t you agree?
The Buyer sees the market shift but does not understand that it is a good time to buy.
We don’t know if it’s really a good time to buy. Who knows what’s going to happen?
AGENT: [Insert Buyer’s name], you’re right. No one knows what will happen in a minute, an hour, a day,
or years from now. All we know is what is happening right now, this minute. And right now home prices
are the best they have been in a long time and interest rates have been steadily increasing. Let me ask
you, are you interested in finding a great home for your family and saving money?
AGENT: Then we need to buy now. May I explain?
AGENT: Today we know the price and we know the interest rate. If the economy picks up what
generally happens to interest rates?
BUYER: I think they go up.
AGENT: Right. And what do you think happens to prices?
BUYER: They will also go up.
AGENT: That’s correct. So doesn’t it make sense to save money and care for your family by buying
BUYER: I guess so.
AGENT: [Insert Buyer’s name], what specifically makes you think this is not a good time to buy?
BUYER: Prices could go lower.
AGENT: Yes they could and while you’re waiting for prices to go lower the interest rates could go higher.
What do you think would have to happen for you to save money?
BUYER: I’m not certain.
AGENT: [Insert Buyer’s name], a home at $300,000 at 6% interest has a principle and interest payment
of $1,798. If interest rates go up to 7% — just a 1% increase — then the house would have to drop in price
to $270,479 to have the same payment. Do you think a seller is going to drop his price by almost
$30,000, which is 10% of his asking price, and then buy a home where he’ll be paying a higher interest
rate and making larger payments, or do you think he’s going to raise the sale price of his home to help
him when he buys?
BUYER: I guess he would just raise his price.
AGENT: You’re right. Let’s buy now so we can save money and take advantage of the interest rate and
lower prices right now. OK?
The Buyer has a “fear of the future” and is worried that they will pay too high an interest rate.
What if we buy now and the interest rates go down again?
AGENT: That’s an interesting point. Sounds like you want to save as much money as possible, right?
AGENT: Great. Let’s look at the last year and the trend of interest rates. If you’ve had an opportunity to
watch the business news in the last year you already know that interest rates have been going up every
time the Fed meets, and they are looking at them to continually rise. So since you are concerned about
saving money we should make an offer today while the interest rates are at a low [Insert current rate].
Don’t you agree?
BUYER: OK, that makes sense.
AGENT: [Insert Buyer’s name], if the interest rates dropped would that mean you would not want to
own your own home?
BUYER: No, not exactly, but we would like the lower interest rate.
AGENT: Interestingly enough, most buyers want the lowest rate they can get. The question is, is the
absolute best home that you chose to raise your family in more important or is the absolute best
interest rate more important?
BUYER: The home we raise our family in is more important.
AGENT: [Insert Buyer’s name], then doesn’t it make sense to go ahead and just buy the home you really
want now and refinance it later if the rates drop significantly?
BUYER: That makes sense.
AGENT: Then let’s do the right thing and buy today.
Seller Commission Objections #1
SELLER: Will you lower your commission?
AGENT: No. Any other questions?
SELLER: Well, so&so says they will list it for (amount lower than yours).
AGENT: Mr. Seller, first and foremost so&so knows better than I what he/she is worth. Let me ask you this, if I’m not willing to fight for the commission that I know I am worth, how will I ever fight for you in intense negotiations in getting you the most money possible?
SELLER: Well, so&so said they will list it for (amount lower than yours).
AGENT: Wow, why are you paying so much?
AGENT: I mean, if you’re just looking for the cheapest way to go, there are agents that will do it for a lot less. Let me ask you this, what’s more important: What you pay or what you walk away with after all the smoke clears?
SELLER: What we walk away with.
AGENT: Right! So is it fair if we focus on that number vs. what my commission
The Buyer has a “fear of the future” and worries that he might lose his job.
With everything that is happening in the economy, we are afraid we might lose our jobs and not be
able to make payments on a home.
AGENT: [Insert Buyer’s name], I can appreciate that. So what it looks like you want is to make certain
you can make the payments. Is that correct?
AGENT: Great. You are currently making rent payments. Is that correct?
AGENT: So there are people, like you, that rent property, right?
BUYER: That’s right.
AGENT: So let’s say you lose your job and can’t make the payments. Where would you go?
BUYER: I’m not sure. We would have to find a place.
AGENT: Fantastic. So regardless of where you live you are going to have to pay something for your living
AGENT: So you could rent your home to someone else and still earn equity. Wouldn’t that be great to
have someone else helping you save money?
AGENT: [Insert Buyer’s name], let me assure you: What you are going through is normal. We call it
“buyer’s remorse before you buy.” Generally, buyers wake up at 2 in the morning with buyer’s remorse.
Thank goodness you have it over with and can sleep tonight knowing you’ve made a great business
decision. Let’s own the home and have positive thoughts about how you are going to enjoy living here
with your family. Fair enough?
BUYER: Sounds great.
AGENT: [Insert Buyer’s name], I understand how you feel. Don’t you think many buyers might have the
same concern right now?
BUYER: I don’t know, is that what they say?
AGENT: Sure, people are just evaluating their options more closely right now. When I look back on the
many changes in the market, there are always buyers that buy in every market, and there are always
sellers that chose to sell. You have a place to rent don’t you?
BUYER: Well, yes we do.
AGENT: Now all we have to do is decide today whether you want to take advantage of the lower interest
rates and better housing prices or if you want to throw your money away on rent. What is it going to
BUYER: I guess we were just nervous. Since we aren’t the only ones that feel that way, we should just
buy and not pay rent.
AGENT: Great, let’s do that.
Buyer Consultation-Setting the Table
Once you’ve gotten your Buyer Appointment scheduled IN THE OFFICE, this is the beginning of what could be your Buyer Consultation. Creating a Consultation that you present to all Buyers create consistency in YOUR business.
Use this script to set the tone for the Buyer Consultation.
Agent: First off, Mr. and Mrs. Buyer, thank you so much for agreeing to meet me here in my office. You will find that this will end up saving us lots of time and frustration in the future! Let me share with you my mission. My is to meet or exceed your expectations in the home buying process and help you achieve the end result of home ownership! The bottom line is, after you work with me, I want your experience to be so pleasant that you wouldn’t hesitate to refer all your friends and family with confidence.
My goal for this meeting is one of three results:
1. After we go over the benefits of working with me and why my clients choose me again and again, you will choose to hire me… and that would be GREAT!
2. You may decide after hearing the benefits of working with me that you would rather not, and I’m ok with that too.
3. Or finally, #3, I may choose not to represent you in the purchase of your next home.
Now, does that sound like a fair assessment? (Let them answer!!)
Buyer: WHAT? What do you mean you won’t represent me??
Agent: Let me explain that, remember where I explained what my mission was? To exceed your expectations and find you a home? If at any time during this meeting, in getting to know each other and discovering your wants and needs, I see that I will not be able to provide that type of service or meet your goals, I’d rather turn you away now than disappoint you later. Does that make sense?
Overall, what this script does is build trust and sets you up in a position where you are not attached to the outcome. The Buyer realizes through this that they are not just a commission check and that you only work with people that you know will be a good fit for you and your business standards.
When a past client / friend / family members gives you a referral; it is very important how you reach out to that individual.
Below is a great example from the Referral King – Joe Stumpf.