It's 2022 August and the world is headed towards a slowdown. Buyers have been frustrated for over 2 years and have been looking forward to a crash, what it feels like all their life. Sellers on the other hand are coming to a rude awakening that their houses are not selling for 50 or 100k over asking and they aren't getting multiple offers anymore. Everyone's seeing a shift in the market.
Buyers, now want a deal. They are seeing that home prices are at their peak and the recent recession in 2008 that caused a massive drop in home prices is influencing their perception of where the market is headed. Yes, the demand is still high, the supply is still low, and the economics point towards continued growth in home prices. But major hedge funds and institutional investors, the likes of Black Rock have stopped purchasing single-family homes in 38 cities, which just a year ago were gobbling up homes like there was no tomorrow.
Buyers are smart. Though they are not in real estate like you and I are 24 x 7, it's one of their biggest investments and you better believe they are damn well researching the market and will hold their breath till the last drop in home prices. With emotions this crazy, how do you handle the objection "I want to wait till the market crashes"? Here are 5 points that I'd keep in mind.
Firstly, know that you can't influence somebody's timeline. If they are willing to wait till the market crashes, it doesn't have a lot to do with external factors. It has more to do with their internal factors. Do you know why they wanted to buy in the first place? What's better for them? Wait or Buy? What are their options? Knowing the reason why they need to house, and knowing what their alternate options are is critical to playing the urgency and scarcity card.
Second, nobody has a crystal ball. If you are pushing for them to buy now because the market is most likely continuing to rise, and you are convinced that the prices wouldn't fall even by 3%, then you are lying. You don't know for a fact what would happen. Maybe it'll fall, maybe it won't.
Finally, what's a win for the buyer? Establish that through smart questioning. Understand what they want out of a home purchase, and enable that for them. If you do not provide a solution that is 100% a win for the client, you are not providing a solution that's just. You are providing a half-ass solution. Here's a conversation you CAN have with the Buyer. Hey Buyer -
How much would the market need to crash for you to purchase? 10%? 20%? 50%?
How would you know when to time it perfectly? If it falls 20%, what's the guarantee it won't bounce back up rapidly and you didn't time it?
And IF 15% is a magic number, and if I were to find a deal that is 15% below market value today, would you purchase it?
So, here's how you would handle the objection. Find what's in their best interest and give it to them. That's sales. It's more important to be a trusted advisor than to push people to make a decision. You get more sales eventually by not being smart-ass or pushy.
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