Poor handling of leads can account for as much as 60 percent of fallout. “Objection handling” is searched more than 6,600 times per month on Google, showing this as a main area of concern for sales professionals. Developing strategies to handle objections can increase your earnings while improving your skills. We identified four core reasons that a prospect is likely to object and strategies for overcoming them.
Complacency is an objection often encountered. For example, you can overcome the “I’ll think about it” objection by creating a sense of urgency. Mentioning that rates are subject to change or that you cannot guarantee the same offer later on will help. You can dig deeper by asking, “What can I provide that will help you make your decision?” You will also want to follow up with your prospect early on by asking, “What day this week would be good for me to check back with you?”
Another frequent objection is financially-related. This occurs often where people are subject to fluctuating rates. Brokers commonly encounter the phrase, “I got a better deal elsewhere” or “The interest rate is too high.” Let’s take a look at how to respond to each objection.
“I got a better deal elsewhere.”
This isn’t a deal-breaker. Recognize that the prospect is still shopping for the best deal. Get more information by asking questions like, “Do you have a rate lock elsewhere?” or “Is there a Good Faith Estimate (GFE) you can show me?”
“The interest rate is too high.”
In this case, your prospect doesn’t see how the value to merit accepting the interest rate. Ask questions that will illustrate how it can be beneficial. You might start by asking, “What was the reason that motivated you to consider refinancing your home?” or “How do you think that refinancing will help you to achieve your goals?” Suggesting how the transaction adds benefit to the prospect you can minimize concerns.
You may also find that your prospect lacks the authority to make decision without approval from a partner. “Let me talk to my wife” or “My partner is still undecided” are quite common. Address these objections by asking, “Would you like me to speak with them and explain this in greater detail?” or “When would be a good time to follow up after the two of you have had a chance to speak?”
Sometimes prospects won’t see the value of your offer. If you hear, “Getting a loan is too much for me to deal with right now” or“ There isn’t enough benefit for me in what you’re suggesting,” then you’ve failed to sell your client on how your service is useful. Instead, frame your response by highlighting the benefits of the loan in question, while emphasizing the ease of the lending process. Consider the following responses: “Getting the loan is a fairly simple process—you only need to provide me with documents that verify your income and assets, and I’ll take care of everything else.”
Closing deals can be simpler than you think. However, it requires brokers to carefully listen to their prospects’ objections, address them early on in the process, and respond with well-thought-out strategies designed to counter a clients’ resistance.
K. Justin Restaino is vice president of Titan List & Mailing Services Inc. For more than 13 years, he has led Titan’s Mortgage Division, helping lenders of all capacities grow their businesses utilizing targeted direct mail. With a specialized focus in refinance and purchase markets, Restaino has the insight for proper data and mail application for success. He may be reached by phone at (800) 544-8060, ext. 204 or e-mail firstname.lastname@example.org.