Salesmanship – Fear of Loss
Have you ever had the perfect home for a very qualified buyer, yet they refused to pull the trigger and buy? Or, how about representing a seller that had an excellent offer, but they lost the buyer because of unreasonable expectations?
In both of the above scenarios, it was logical the deal should have come together, so why didn’t it? The answer lies in understanding what motivates people. And in most cases, the key to getting your clients to go to contract is a “Sense of Urgency”. Without urgency, most people are hesitant to move forward, especially when doing so involves a major decision. It’s usually far easier to sit on the fence and avoid possibly making a mistake.
So, how do you motivate people to step out of their comfort zone with a big decision like buying or selling a home? The answer lies in understanding human behavior, and the single greatest motivator may surprise you. We tend to think in terms of what we have to gain by making a decision to buy or sell. Good sales professionals look at the benefits and point them out to their clients. The best sales professionals, however, recognize the most powerful way to get buyers or sellers to make a difficult decision that involves a lot of money, is to use fear of loss.
It’s been said that; “Fear of loss, is far greater than the ecstasy from gain”. Fear is what creates the urgency to buy or sell now. Consider the following examples:
- You’ve found the perfect home for your buyer, but they think they may wait until next season to buy. First, you point out all the benefits or what it would mean to them if they were to buy now. Then you create the urgency by showing them what they will lose if they wait. The cost of the home next season will be higher because of many more buyers in the market.
- You’ve presented your seller with a great offer that is over fair market value, yet the seller wants to wait. First, you remind the seller of all the reasons they wanted to sell. Then you point out the risks associated with not accepting the offer. These include; the cost of carrying the home each month it doesn’t sell, and the concern over future sales justifying a lower market value.
In both of the above examples, you created the urgency by showing your clients what they stand to lose by not moving forward. No-one wants to “miss out”, and you’ve used that to everyone’s advantage. This approach requires strategizing prior to meeting with your buyer or seller, but it’s well worth it, especially when the alternative is to lose the deal!