As real estate agents, we have to be ready to answer the question, “how’s the market?” So ask yourself, do you have a good answer for that question? Do you know how to respond to that question in a way that inspires confidence in the lead or client you are talking to? Because with higher interest rates and uncertainty in the current state of the housing marketing and overall economy, this conversation could make the difference between working with someone or not.

To help you out, I’ve put together a couple tips for how real estate agents can effectively answer questions about the housing market and interest rates.

Don’t Act Like a Master of Everything: Talk about Your Local Market  

Let’s start with the last thing that you want to do when a client asks you how the market is or where it’s going. You don’t want to start making concrete predictions and act like you are the end all, be all when it comes to macroeconomic trends. Instead, focus on what you can and do know. You should be a master of your own housing market and be able to speak about where local conditions are headed.

Touch on what current interest rates are doing to the wider housing market in general, but really try to focus on trends in your own backyard. Share some relevant data points about home prices, sales, and other noteworthy statistics. Show you’re knowledgeable and that you are here to help, but don’t act like you can see the future or understand things that are beyond your knowledge.

Give the Lead Context

Another thing real estate agents can do is give some background on what higher interests may mean. Conventional “wisdom” in real estate says that higher interest rates will make purchasing or selling a home harder. For buyers, increasing mortgage rates typically means less affordability. But you should educate your clients on the fact that current rates aren’t that abnormal when looking at the past. Rates in the 2000s have typically been the lowest they’ve been in history.

So, it’s definitely possible to buy and sell homes with interest rates around 7%. It’s also important to remind your clients that their specific rate ultimately comes down to their lender. Mortgage lenders have different types of products and will work with you to find a solution.

But before you educate or inform, real estate agents have to listen.

Listen to What the Lead or Client Already Thinks

At the end of the day, asking about increasing interest rates or fear about the current housing market are just objections like any other. And the only way you can overcome any objection is by understanding the lead’s perspective and actually listening to them. Here’s what not to do:

• Disagree with the lead
• Make the lead wrong
• Educate the lead before understanding them
• Try to close immediately

You also want to avoid using the word “why”. “Why” is inherently confrontational and sets up a they vs. you feeling. Don’t make them feel wrong by asking them why. Just use a different word. For example, instead of asking, “why do you think rising interest rates are a problem?”, say “what about higher interest rates do you think is a problem?”

The Strategy Real Estate Agents Should Use

When you’re thinking about how real estate agents can explain rising interest rates, you want to follow the same formula that you would use for any other real estate objection.

• Get the lead’s perspective
• Get the lead’s experience
• Tell the lead the benefit of moving forward now
• Educate the lead after understanding their perspective
• Identify motivation and ability
• Set a logical next step

Here’s how to cover all of these points and overcome this tough real estate objection:

Ask

• When you say rising interest rates…what do you mean?
• Do you know that lenders will work with you to determine your rate?
• What will waiting for interest rates to change do for you?
• What if a change doesn’t happen?

Then you want to always tie the lead to a logical next step. Think about when you will meet next, why you will meet next, and what the lead will get out of meeting with you again.

Use Your Website

This type of conversation doesn’t just come down to the actual talk you have with the lead or client. Most likely they are also going to visit your website at some point. Make sure you have your listings front and center, and also highlight some of the most interesting and attractive properties recently sold by you or in your market. Pique their curiosity and show them that people are buying and selling houses, despite whatever reservations they have about the interest rates and housing market.

That’s the best way to overcome this tough objection.

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