There is a lot of talk that there may be an interest rate cut on the horizon. For real estate agents, that means you are going to have a lot of questions about whether or not your leads should wait to move forward with their home purchase until rates go down. These types of questions can put you in a difficult position of needing to provide answers about macroeconomic trends and the potential actions of government agencies—answers that you almost certainly do not know for sure.
So, what can you do when you are hit with questions or concerns about interest rates? Well, in reality, these questions aren’t really any different from the typical objections you hear on your calls. And the strategies for moving past them are the same.
First, Don’t Act Like You Know Things You Don’t Know
The last thing you want to do is give concrete information when there is no concrete information to give. You don’t want to mislead clients and tell them that something is 100% going to happen a certain way, if you don’t know that for sure. Concrete predictions open you up to criticism and distrust if those predictions end up not coming true.
Instead, focus on what you can and do know. You should be an expert on your own local housing market and be able to speak about where you think 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. You can talk about what may be on the horizon with interest rates, but avoid saying that something is 100% going to happen.
What You Should Never Do When Talking about Interest Rates
When it comes to real estate agents addressing concerns about rising or falling interest rates, it’s crucial to avoid certain pitfalls when handling these objections:
- Don’t contradict the potential client
- Avoid making the client feel incorrect
- Refrain from immediate education without first understanding their perspective
- Don’t rush to close the deal prematurely
The key is to attentively listen and process the client’s or lead’s concerns. Pay close attention to their responses throughout your conversation, ensure you understand their viewpoint, and then address their specific concerns. Only after this should you provide education on the subject. The goal is to cultivate a natural dialogue that builds upon their statements, rather than simply acknowledging their words before moving on to your predetermined talking points.
Here’s What You Should Do
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
Ask
- When you say falling 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?
The truth is that no real estate agent knows exactly what is going to happen with interest rates. The best thing you can do is share what helpful knowledge you do have with your leads and clients, and ask them the right questions to clarify their reservations and what they think—for both their own benefit and yours.
No matter what interest rates do, you need to focus on what you can control; consistently improving your conversation and sales skills.
At Smart Sales Coaching, we offer a FREE LIVE training with a professional real estate trainer. We test your 4 Core Skills when it comes to converting leads and winning clients. Schedule your free Skill Assessment with one of our trainers today. You’ll get actionable feedback on where you can improve to immediately set more appointments and win more deals.