When it comes to weigh commercial real estate listing, presentation, or inspection, it is quite likely that the parties will give you a few objections in the negotiation. Objections tend to be a testing process to see if you satisfy the necessary factors that the other party requires in making a decision.
Top agents in commercial property know that practice is always required when it comes to negotiating and handling objections. You can never do enough of this type of practice when it comes to commercial and retail real estate. Build some of those topics into practice and role playing in your team meetings on a once a week basis. Current market conditions will always give you lots of factors to work with and debate as part of offsetting objections.
So here are some strategies to help you handle the objections that will arise from property sellers, landlords, buyers, and tenants.
- When the objection is raised, you need time to think about your response. Some agents will take notes as part of the negotiation and response process. As you take the notes you can consider the alternatives in responding. Solicitors do this all the time as part of working with difficult clients and customers.
- Some agents will go for the strategy of a pregnant pause. This may only be a few seconds, but in reality it will seem like half an hour. When the client has given you the objection, consider the response before you come back with the comment.
- If you need more time, you can ask the client to qualify and explain their position further. Again, this is a strategy of delay allowing you to consider your response. When you ask more questions, the client can invariably give you some leverage to respond. This process is called a Freudian slip. It is used by the top agents all the time; it is simply a matter of asking questions and digging deeper. As you get the greater levels of response you can interpret the answers from the other party.
- If the client or the customer has particular concerns, you can acknowledge them and then restate them in your words. In this way the client or the customer will then understand that you can relate to their situation.
- Break the concerns down into single factors and matters. One big problem or objection is actually a number of issues, some of which can be resolved easily.
- Respond to the other party with confidence and local market knowledge. It is very hard for the other party to refute or reject prevailing market conditions and market evidence.
- Give the other party some clear stages of resolving the problem. Show them how you can move ahead and help solve the overall situation. Determine what their best fallback position may be if it exists. Tell them that they may only have one chance to close on the transaction. If the chance passes them by, they may lose the property enquiry or the initiative entirely.
In commercial real estate today it is incumbent on us to be confident and connecting when it comes to negotiating and handling objections. This process and practice takes time to perfect. Learn as much as you can in this specialist part of the sales and business environment.