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You walk into a listing appointment, really connect with the sellers, and nail your listing presentation. When you’re ready to close for the listing they tell you, “We’re interviewing three other agents — we’ll get back to you.” What do you do next?
Increased interest rates coupled with historic low inventory have made today’s real estate market more competitive than ever. When there are too many buyers and not enough listings, no closing skills are needed.
As the listing agent, all you have to do is issue your counter-offers, make sure the buyers are qualified, and then take the best offer. Buyers are so desperate to purchase that their agents have little need to close as well.
Today’s market is a completely different story. Experienced agents who cut their teeth on past markets where solid closing skills were required are the ones are who doing well today. Those lacking these skills are falling by the wayside.
Common mistakes agents make when closing
When most people think of closing skills, they normally think about high-pressure tactics. While you can close clients with this approach, it often results in resentment, possible cancellation of the deal later, or even a hit to your reputation.
To illustrate how this works, how would you have responded to the following objection: “We’re interviewing three other agents — we’ll get back to you.”
3 poor closing strategies
The gracious loser
The sellers object, you stand up and thank the sellers for the opportunity to discuss the marketing of their home. You leave the appointment empty-handed and hope that they will call you back. This is a weak approach and may leave the sellers feeling you lack the confidence or ability to handle their business.
The defensive agent
“You’re interviewing other agents? Our company is No. 1, and I’m the top-producing agent in this area. Why would you go with anyone else?”
The moment you begin justifying why you are the best agent to list the house, you have lost the battle. When sellers ask you this question, it usually means that you haven’t fully demonstrated your value prior to your attempt to close. You also come across as more focused on yourself rather than on what the seller wants and needs.
The angry agent
In this scenario, the agent becomes angry or makes a sarcastic remark such as, “Call me when you’re ready to get your house sold.”
This strategy is often perceived as disrespectful and alienates the seller, which in turn can result in a loss of potential referrals or, worse yet, a highly negative online review.
Powerful closing strategies
Strong closers play offense rather than defense. If the sellers aren’t ready to list with you and you force the issue without understanding their reasoning, you run the risk of alienating them. Instead, strong closers understand how timing can play an important role in when a seller will list their home.
Here’s a much stronger strategy for handling the objection, “We’re going to be interviewing three other agents. We’ll get back to you.”
The questions you ask lay the groundwork for closing the client. By asking questions that the seller answers “yes,” you increase the likelihood they will sign the listing with you.
Before asking these questions, however, you must first set the context and establish the value you bring to the seller. Examples include:
- Creating a detailed 90-Day Marketing Plan that provides the seller with a roadmap showing exactly how you will market their listing.
- Providing the seller with testimonials from past clients, preferably using video.
- Showing sellers how their home will be photographed, examples of drone photography if you’re using it, as well as the type of lifestyle videos you may create about their property and their local neighborhood.
- Demonstrating how you utilize 3-D virtual tours and digital open houses to make their home stand out.
- Creating a social media marketing plan that shows how their property with be marketed on Instagram, Facebook, and LinkedIn.
- If you’re using one of the more sophisticated CRMs, you can share data on your past listings, average days on market, sales price versus list price, etc.
Once you have completed all these steps, you are in a much stronger position to go for the close. Here’s how to do it.
Agent: “Mr. and Mrs. Seller, after reviewing all the materials in my marketing package, do you believe I can get your property sold for the highest possible price in the shortest amount of time?”
Seller: “Yes, we do, but we made appointments to interview three other agents.”
Agent: “You indicated that you must move in less than 90 days. If you would like to start marketing your property now, I would be happy to contact the other agents and tell them that you have decided to list with our firm.”
I’ve used this close a number of times. Two times, the sellers wanted to get started marketing right away. For this reason alone, it’s important that you are the first agent that the seller interviews.
Sometimes, however, the seller won’t be comfortable with cancelling the appointments. Here’s what to say.
Agent: “I really respect the fact that you want to keep the appointments that you made. Would you feel comfortable meeting with me after you finish talking with the other agents? That way, if you have additional questions or concerns, we can address them then.”
Benefits of this approach include:
- Increased likelihood that you will be in front of the sellers when they’re ready to sign the contract.
- Laying out a detailed marketing plan like the one above makes it harder for less prepared agents to compete.
Please note that both closes begin with a question. Questions give the sellers the sense that they are in control. This means you’re not as likely to be perceived as being a pushy salesperson.
Ultimately, closing today is about helping clients arrive at a decision about which they feel confident rather than pressuring the client. Demonstrate your value, focus on understanding the sellers’ unique needs and ask the right questions. That’s the heart of going for the close.
Bernice Ross, president and CEO of BrokerageUP and RealEstateCoach.com, and the founder of RealEstateWealthForWomen.com is a national speaker, author and trainer with over 1,500 published articles.
