Use these scripts for Realtors and talking points to educate clients who want to wait to buy or sell a home because interest rates are too high right now.
On today’s podcast, we are going to teach you scripts for Realtors. Specifically, tips, techniques, and scripts to help handle the objection, “Interest rates are too high!”
Let’s dive in to helpful talking points to help educate your clients on how to visualize investing in real estate. Give your clients the confidence they need to move, and to buy and sell real estate, in an environment where interest rates are in flux.
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VIDEO: Scripts for Realtors – “Interest Rates Are Too High!”
Scripts for Realtors: know the history of interest rates
Over the past 50 years, the average interest rate has been around 8%. Now, we’ve seen rates that used to be very steadily around 5% creep up slowly over the past 20 years.
It is very hard to predict interest rates. Almost impossible.
If you start trying to make decisions about when to buy and sell — trying to “time the rates” — it really is a fundamentally bad decision.
As real estate professionals who need to advise our clients, we need to get that concept in our head. We are not manipulating our clients. We are not “panic selling.”
I firmly believe that when it comes to buying or selling real estate, sooner rather than later is always a good idea.
Brian Icenhower
Educate your clients using scripts for Realtors
Help your clients get over their objections by knowing the facts
Let’s get away from the idea that you are a used car salesman. You aren’t trying to trick your clients into moving more quickly. You aren’t trying to get the sale as fast as possible. Instead, realize that you are the expert. You have expert advice for your clients, and you know that it is in their financial best interest to not rely on interest rates to determine when they should buy or sell real estate.
I firmly believe that when it comes to buying or selling real estate, sooner rather than later is always a good idea. Especially as it pertains to interest rates!
Home prices have gone up in value steadily over the last 100 years. Even little dips backward are short lived. It doesn’t take long for housing prices to correct.
Waiting in any way shape or form only means that you know prices will continue to climb. Trying to time the tiny dips that happen will drive you crazy.
These talking points are all powerful scripts for Realtors to use when combating this common objection.
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Scripts for Realtors: unlocking motivation with a Needs Analysis
Understand that waiting on the interest rate is a knee-jerk reaction for your clients.
Moving is tough. It’s a lot of work to buy or sell your home. There is so much to do.
When there is work to be done — any tough activity — we as humans like to avoid it at all cost. It’s natural.
Naturally, clients will try to push away from the pain associated with stressful activities. Interest rate fluctuation is a convenient excuse for holding off on buying or selling.
It’s important to realize that your client is using this as an excuse. You need to dive deeper with your client and have the tough conversations that unlock their motivation for buying or selling in the first place in order to get them okay with being uncomfortable and doing hard things.
When it comes to scripts for Realtors, make sure that the Needs Analysis conversation happens early and is revisited often, especially when objections arise. Dig deep with your clients so that you can remind them of their motivation for buying or selling in the first place.
Scripts for Realtors: 4 common objections to handle
So, what’s the worst that could happen?
When I start to hear an objection from my client about interest rates, I dive into this question.
If you did buy right now, before prices continue to go up, what’s the worst thing that could happen? What are you worried about?
There are usually four things that they could be worried about. Once you hear their objection, which is usually one of the four listed below, use these scripts for Realtors to knock them out immediately.
1. What if rates go down?
It’s very simple. We can refinance. By buying now, you have locked in this lower price. You are getting in before the prices continue to go up. You can always refinance when rates go back down. “Marry the house, date the rate.” This is prudent business advice.
2. What if rates go up?
If rates go up, that’s great! You’ve locked in at a lower rate. And if they ever go down in the future, you can always refinance.
3. What if prices go up?
This is what has always happened. Home prices have always gone up, consistently. This is great for your equity. It’s important to get your money invested now, in your new home, for this very reason.
4. What if prices go down?
It has only happened twice in our history, where housing prices have gone down for more than a year. The home prices always catch back up within three to four years. If you intend to live in the house for more than a few years, then there is no risk. Housing prices going down is your worst-case scenario, and even still, there is always a bounce back.
Scripts for Realtors: make it clear
So, there really is no scenario in which a buyer should wait to buy a house based on interest rates.
Make this super clear to your clients!
Be sure to leave no doubt in their mind. That’s why using these scripts for Realtors is helpful in constructing your response to your client.
If you want to wait on buying for some other personal reason, fine. But don’t let the reason you hold back on buying be because of interest rate uncertainty.
The only exception
I tell my clients this, too. The only time when interest rates could matter to you is if you plan to flip the house and want to sell it in 6-12 months. This is the only time it might matter. And, it doesn’t even have that big of an effect on your flip, either.
