Every wholesaler or investor has faced objections from real estate sellers at some point. Whether it’s skepticism about your offer or hesitation to sell, objections are a natural part of the negotiation process. The good news is that objections aren’t deal-breakers—they’re opportunities.
When you handle objections correctly, you build trust, show professionalism, and set yourself apart from the competition. Sellers want to feel heard, and overcoming their concerns is often the key to closing deals.
In this guide, we’ll break down the top 5 objections from real estate sellers and provide actionable strategies to address them. You’ll also see how tools like REI Podio CRMs can help streamline your follow-ups, manage leads, and stay on top of seller concerns.
Understanding Real Estate Sellers Objection: Why They Happen
Before diving into strategies for handling objections, it’s important to understand why real estate sellers raise objections in the first place. Often, objections stem from deeper concerns, misconceptions, or emotional attachments to their property. Recognizing these root causes will help you address objections more effectively and build trust with sellers.
1. Emotional Attachment to the Property
For many real estate sellers, a property isn’t just a house—it’s a home filled with memories. This emotional connection can make them overvalue the property or hesitate to let it go.
2. Misinformation About Market Value
Sellers might base their expectations on outdated comps, online estimates, or what their neighbors tell them, which may not reflect the true market value.
3. Fear of Being Taken Advantage Of
Some real estate sellers worry that investors or wholesalers are only trying to lowball them. They may feel skeptical about offers, assuming there’s a catch or hidden agenda.
4. Uncertainty About the Selling Process
Many sellers have never worked with a wholesaler before. They might not understand how the process works, creating hesitation or mistrust.
5. Desire to Explore Other Options
Sellers often want to shop around, compare offers, or explore listing with a realtor.
Why This Matters
Understanding these underlying reasons helps you approach objections with empathy and confidence. When you acknowledge concerns and provide clear, honest solutions, real estate sellers will feel more comfortable working with you.
Pro Tip: Use tools like REI Podio CRMs to track seller objections, preferences, and follow-ups. This ensures that you’re always prepared to address their concerns in future conversations.
1. “Your Offer Is Too Low”
Why Sellers Say This
This is the most common objection wholesalers face. Sellers may believe their property is worth more due to emotional attachment, overestimating its value, or hearing inflated figures from others.
How to Overcome It
- Explain Your Offer Clearly: Break down the numbers to show how you calculated the offer. Transparency builds credibility.
- Show Comparable Sales (Comps): Provide data to justify your offer. For example, show recent sales of similar properties in the area. Tools like Podio for Real Estate make it easy to organize and present comps.
- Highlight the Value of a Cash Sale: Explain the benefits of selling quickly for cash—no repairs, no commissions, no delays.
- Ask Questions: Open the conversation by asking, “What number were you expecting?” This helps you understand their expectations and negotiate effectively.
According to a study by ATTOM Data Solutions, distressed properties typically sell for 36% below market value, highlighting the importance of managing seller expectations.
Success Story:
A seller in Dallas wanted $200,000 for a distressed property worth $150,000 after repairs. By showing comps and explaining the costs, I justified my $120,000 offer. They agreed once they realized my offer included repair costs they couldn’t afford.
Pro Tip: Use REI Podio CRMs to store comps, repair estimates, and seller conversations, so you always have data to back up your offers.
2. “I Need to Think About It”
Why Sellers Say This
This objection often means the seller is hesitant, overwhelmed, or wants to shop around for better offers.
How to Overcome It
- Uncover the Real Concern: Ask, “Is there something specific you’re unsure about?” This can uncover hidden objections like price concerns or fear of commitment.
- Reinforce Your Value: Remind them of your benefits, like speed, convenience, and no hidden fees.
- Create a Sense of Urgency: Without being pushy, let them know market conditions or your timeline may require a quick decision. For example, “I can hold this offer for 48 hours.”
- Schedule a Follow-Up: Don’t let them slip away. Say, “I understand you need time. When’s a good time for me to check back?”
Pro Tip: Use REI Podio CRMs to set reminders for follow-ups, ensuring no lead falls through the cracks.
3. “I’m Not Ready to Sell Yet”
Why Sellers Say This
Sellers often hesitate because they’re emotionally attached to the property, unsure of their next steps, or overwhelmed by the selling process.
How to Overcome It
- Ask Empathetic Questions: For example, “What’s holding you back from selling right now?” Listening to their concerns shows you care.
- Offer Solutions: Suggest resources like moving companies, storage services, or referrals for their next home.
- Position Yourself as a Long-Term Option: Let them know you’ll be ready to work with them when they’re ready to sell.
- Stay Top of Mind: Use a CRM to follow up periodically and keep the relationship warm.
Pro Tip: Track these hesitant real estate sellers in REI Podio CRMs and set reminders to check in every 30-60 days. Over time, consistent follow-ups can turn hesitations into agreements.
4. “I Have a Better Offer”
Why Sellers Say This
Sellers might mention a higher offer to test your flexibility or negotiate a better deal.
How to Overcome It
- Ask About the Offer: Ask politely, “Can you tell me more about the other offer?” This helps you determine if it’s legitimate or just a tactic.
- Highlight Your Certainty: Explain that your offer is firm, while some higher offers might come with contingencies or fall through during escrow.
- Educate Sellers: Let them know that some investors offer high prices initially but renegotiate after inspections.
Pro Tip: Share a success story of how a seller came back to you after another offer fell through.
5. “I Want to Work With a Realtor Instead“
Why Sellers Say This
Some real estate sellers think listing with a realtor will get them the best price, without realizing the time, costs, and delays involved.
How to Overcome It
- Explain Hidden Costs: Point out commissions, repairs, and holding costs that eat into their profit.
- Emphasize Speed and Convenience: Explain how your cash offer avoids delays from inspections, financing, and buyer contingencies.
Pro Tip: Mention case studies of real estate sellers who tried listing with a realtor but came back to you after their property sat on the market too long.
Template for a Follow-Up Schedule
Here’s an example of a follow-up schedule to manage hesitant real estate sellers:
- Day 1: Send a thank-you text/email after the initial conversation.
- Day 7: Check in with a market update or ask if they’ve had time to think about your offer.
- Day 30: Follow up with a “no-pressure” message offering help or additional information.
- Day 60: Revisit the conversation and ask if their circumstances have changed.
Pro Tip: Use REI Podio CRMs to automate these follow-ups, ensuring consistent communication without manual effort.
Overcoming Objections Is About Building Trust
Objections are a natural part of real estate wholesaling, but they don’t have to derail your deals. When handled correctly, they’re opportunities to build trust and demonstrate your expertise.
Key Takeaways:
- Listen to real estate sellers and understand the root of their concerns.
- Be transparent, professional, and empathetic in your responses.
- Use tools like REI Podio CRMs to track leads, manage follow-ups, and stay organized.
By addressing objections with confidence and care, you’ll set yourself apart from the competition and close more deals.
