As we get closer to the full implementation of the NAR settlement rules, it’s more important than ever for agents to know how to respond to objections, particularly those about compensation, contracts, and commission sharing.
So, for last week’s BAM BBQ, we asked Chris Smith, co-founder of Curaytor and author of The Conversion Code to join Byron Lazine for a fireside chat.
Their conversation focused on objections agents are hearing more than ever as August 17th approaches—and how to leverage those objections to improve your conversion rate.
Smith began with the science of sales, including timing and duration for phone calls with potential clients. From there, he shared some of the magic phrases agents can use now to proactively uncover and resolve common objections.
Read on for some of the highlights of the fireside chat. Then head on over to BAMx to watch the full recording of BAM BBQ. (The conversation between Byron and Chris starts at about the two-hour mark.)
The Science of Sales
Knowing the science behind sales is essential to understanding how to have more conversations and, more importantly, to have more of those conversations lead to conversion.
Successful scripting is about keeping the conversation going in a way that improves your chances at gaining a new client and earning their trust, as well as their business. The best agents know real estate is about the long game. They consistently put in the time, attention, and effort to build lifetime client relationships.
A huge part of that is knowing what to say and when to say it, which is why we asked Chris Smith for his insights into the right things to say to convert more leads.
“People are looking for scripts, but they’re not looking for monologues. They don’t want you to put a paragraph in their mouth. But if you can give them a couple magic words that they can sprinkle in, it’s a game changer. People are going to be able to start using this right away, and they’re going to be able to use it in their marketing as well…”
One of the first questions to come up had to do with how long it takes leads to convert a lead. Nearly half of all leads (46.4%) take upwards of seven months.
This is why, as Smith put it, “the fortune is in the follow-up.” And that’s why he recommends going into your CRM and making a list of people who have been in your database for more than six months.
Value-based follow-up is critical to staying top of mind with these people. And there’s a science to having phone conversations that help you build rapport and trust even before these leads make their first move to buy or sell a home.
Another question focused on the relationship between the length of a phone conversation, specifically for outbound cold calling, and its conversion rate. Based on Smith’s research, the average phone call resulting in an appointment lasted 5:50 minutes.
The entire fireside chat was packed with eye-opening stats on phone conversations, including—
- When top performers discuss price (as opposed to average performers)
- How the length of your sales pitch impacts your close rate
- How critical it is to respond to a lead as quickly as possible (every minute counts)
- The cost of waiting even five minutes to respond to a lead
- The best timing and duration of your first three phone conversations with a lead
Since “conversations create customers,” we’re highlighting five phrases Chris Smith uses and recommends to overcome objections and keep the conversation moving in the right direction.
What to Say & When to Say It: Magic phrases and how to use them
Once you’ve got a lead on the phone, what should you say to them?
That question alone has plenty to do with why so many agents put off cold calling and even responding to warm leads. Until you’re actually on the phone with them, there’s still a chance the conversation will go perfectly.
Once you’re on the line with a human being, and you’ve got their attention, it’s sink or swim.
You’ve heard about the objections other agents are hearing. So, what are the questions you should be asking to address those objections?
Notice how we’re leading with questions as an objection-handling tactic. We’ve mentioned this before, but it’s worth repeating: the person asking the questions is the person controlling the conversation.
Smith shared another stat to keep in mind: Top salespeople are only speaking 47% of a call, while bad salespeople are talking for 90% of a call. Unless your goal is to induce a fight-or-flight response in your leads, doing 90% of the talking is not the play.
Magic phrase #1: “Do you consider yourself open-minded?”
This is a yes-or-no question. And here’s the beauty of it: even folks who are not actually open-minded generally believe they are.
So, when they answer that question with a “Yes,” you can follow up with a question that starts with “Would you be open-minded to…?” or “How open-minded are you to…?”
Here are a few examples:
- “Would you be open-minded to [doing X] if [it would get you Y]?” — “Would you be open-minded to lowering your asking price if it would create some immediate interest?”
- “Are you open-minded to [doing X] to [gain/accomplish Y]?” — “Are you open-minded to working with a trusted local lender to get this approved?”
- “Would you be open-minded to [doing/considering an alternative solution]?” — “Would you be open-minded to considering some alternative neighborhoods?”
- “How open-minded are you to [doing X]?” — “How open-minded are you to looking at something that could be perfect but a little over your budget?”
Having trained his own agents on how to use this phrase, Byron Lazine knows how effective it is in conversations with clients and prospects.
The goal here is not to convince your lead that it’s your way or the highway; it’s to apply your knowledge and experience to get them the results they want—or something even better.
Magic phrase #2: “How important is it that _____?”
The next phrase gets your lead thinking about their priorities and which ones rank over others.
Examples:
- ‘On a scale of 1-10, how important is it that you sell your home quickly?”
- “How important is it that you get full price?”
- “How important is it that you have four bedrooms?”
- “How important is it that we secure this specific property?”
Just asking the question gets people thinking, “What’s more important to me than selling my home quickly?” or whatever priority you include in your question.
You can then suggest an alternative outcome that ultimately aligns better with their higher goals and aspirations. And getting that outcome for them is far more likely to result in a lifetime client relationship based on trust.
Magic phrase #3: “How certain are you that…?”
Here’s another phrase to get your leads thinking, “What am I missing, here?” or “What does this agent know that I don’t?”
After all, for most people, the list of things they’re 100% certain of is a short one.
So, if your lead just told you, “Actually, I’ve decided to work with my cousin/neighbor/nephew,” it can’t hurt to ask them, “How certain are you that they have the experience to get the best outcome for you?”
The doubts are probably there already. Shining a light on them could get your lead thinking harder about just how comfortable they are with the idea of taking on thousands of dollars in additional debt or leaving thousands of dollars on the table to please a relative or family friend.
Other possible uses for this phrase:
- “How certain are you that this is not the best offer you will receive?”
- “How certain are you that the effort in staging won’t be worth it?”
- “How certain are you that the listing agent will have your best interest in mind?”
Magic phrase #4: “Could it be possible that…?”
Here are a few examples to get you started:
- “Could it be possible that you don’t get a better offer and the listing expires?”
- “Could it be possible that they are suggesting it is worth more purely to secure the listing?”
- “Could it be possible that mixing family and business is a bad idea?”
This phrase is similar to the previous one but goes a little farther to invite the person to consider possibilities that may not have come to mind yet—or possibilities already percolating at the back of their minds.
These are possibilities that could seriously impact the success of the potential client’s transaction and have real consequences for their financial future.
Buyers and sellers alike want the best possible outcome. They also want the process to be as clear, straightforward, and stress-free as possible. So, if you manage to echo a lingering concern in their mind—or bring up something that raises the stakes for them—you can stand out in one or more of these ways:
- You demonstrate your experience as an agent by bringing up real situations that could cause them to take on a higher cost than necessary or to leave money on the table.
- You present yourself as an agent who’s willing to tell them what they need to know to get the best possible outcome—rather than just telling them what want to hear.
- You present yourself as someone they can trust to shine a light on the path and the challenges ahead and walk with them every step of the way.
Magic phrase #5: “I’m guessing you haven’t gotten around to/had the chance to ____?”
Get them thinking about something they know they need to do—but haven’t done yet—to get closer to buying or selling a home, and you create a sense of urgency.
So, if there’s something you’re willing to do for them that would help them get further along in the process, they’re likely to stay on the line to hear what you have to say.
Here are a few examples:
- “I’m guessing you haven’t gotten around to looking over the documents yet…”
- “I’m guessing you haven’t had the chance to speak with your spouse yet…”
- “I’m guessing you haven’t found a home you want to see yet…”
This phrase gives you a way to proactively uncover objections and turn them into opportunities to deliver value and build trust.
Bonus phrase: “Most ____ [do/say] ____.”
Another magic shared by Chris leverages the very human desire to belong—and especially to belong to a group of people getting the kinds of results they want for themselves:
- “Most people who list with me sell their home quickly and for above the asking price.”
- “Most people who work with me leave me a glowing five-star review on Zillow.”
- “Most people who take this advice get their offer accepted.”
- “Most people decide to sign a listing agreement at the end of this presentation.”
Caveat: Any time you use one of these magic phrases, be prepared with proof to back them up. Be ready to share a link to those five-star reviews and glowing testimonials.
Using any of these phrases dishonestly will eventually backfire.
There’s far more to this conversation than we’re including here. Watch the entire conversation in BAMx, and be sure to pick up your own copy of Smith’s book, The Conversion Code.
Big thanks to our amazing sponsors—Formations, Mosaik, and ReminderMedia—for making it possible for us to host BAM BBQ, our third virtual edutainment event for 2024.
Soak it up, and start applying what you learn. There’s no time to lose.
