Hey there! Verl Workman here, also known as Big V, and today we’re going to tackle a big question: What’s stopping buyers from moving forward in today’s market? If you’re a real estate agent, you’ve probably heard it before: “I could afford a house when interest rates were lower, but now it’s just not possible.” Sound familiar?
As agents, we often think of clever ways to overcome objections, but today, I want to explore a different approach—one that uses emotional and artificial intelligence to truly serve our clients and help them see new possibilities. Let’s examine how we can guide buyers toward success, even in a challenging market.
Understanding the “River of Real Estate”
In our program, The Shift, we introduce a concept called the “River of Real Estate.” This idea is based on a Harvard study that identified the reasons why people move. People upsize, downsize, relocate, want better school districts, or simply seek a lifestyle change. The key takeaway? People move for all kinds of reasons—regardless of interest rates.
Your job as a real estate agent is to position yourself in the middle of this river, ready to help. While some agents sit on the sidelines when the market shifts, the most successful ones dive in, capturing opportunities and gaining market share. By understanding why people move and addressing their unique needs, you can thrive even when the market feels uncertain.
Lessons from a Fishing Trip: Go Where the Fish Are
Let me tell you a quick story about a fishing trip I took with my son in Alaska. On the first day, we booked a discount charter. The captain seemed unprepared, and we barely caught anything. Meanwhile, I watched other boats return with huge catches. The next day, I booked with Saltwater Safaris, a company that knew exactly where the fish were biting. The result? A boat full of fish and an unforgettable experience.
The lesson here applies to real estate: If you want to succeed, you can’t stay close to shore where everyone else is. You have to go further out, find where the opportunities are, and approach the market differently. In today’s market, that means crafting messages that resonate with consumers and using innovative tools to help them move forward.
Overcoming Buyer Hesitations: The Interest Rate Offset System
One of the most common challenges we face today is buyers feeling stuck because of higher interest rates. Here’s how we tackle it with our Interest Rate Offset System:
Step 1: Understand the Buyer’s Frustration
Imagine this scenario: A buyer was looking at $450,000 homes when rates were at 2.4%. Now, with rates around 7-8%, they can only afford homes in the $300,000 range—and they’re frustrated. Instead of settling, they decide to wait, thinking rates might improve.
But here’s the thing: real estate values tend to increase over time. Waiting often means paying more down the road.
Step 2: Introduce the Interest Rate Offset Calculation
We created a simple calculator that shows buyers how to offset the higher interest rates. Here’s how it works:
- Calculate the monthly difference between the original payment at the lower rate and the new payment at today’s rate. For example, let’s say it’s $460 more per month.
- Multiply that difference by 5-7 years (a typical timeframe before refinancing or moving). If it’s 7 years, that adds up to about $35,000.
Step 3: Offset the Difference
As an agent, your job is to help offset that $35,000 difference. You do this by negotiating:
- Seller concessions
- Discounted prices
- Interest rate buy-downs
- Builder incentives
Let’s be honest—you might not be able to offset the entire $35,000, but every bit helps. When buyers see progress and start touring homes again, their excitement builds, and they’re ready to move forward.
Moving Buyers from Stuck to Engaged
Our ultimate goal as agents is to guide buyers from feeling stuck to feeling empowered. Here’s how we do it:
- Use Emotional Intelligence: Understand your clients’ frustrations and show empathy.
- Present Clear Solutions: Introduce tools like the Interest Rate Offset Calculator to create a path forward.
- Reengage Their Emotions: Once buyers start seeing homes and imagining their future, they regain enthusiasm for the process.
Tools to Help You Succeed
To make this approach easy for you, we’re offering two powerful resources:
- The River of Real Estate Framework: Understand why people move and how to position yourself to help them.
- The Interest Rate Offset Calculator: A tool to show buyers how to overcome financial hurdles and get back in the game.
Both of these resources are free to download—just click this link to access them. By subscribing to our YouTube channel, you gain access to so many more resources and tools! Use these tools with your team to practice scripts, refine dialogues, and reengage your clients.
Let’s Make It Happen!
The market may be challenging, but that doesn’t mean opportunity has disappeared. By thinking differently, going where the fish are, and using proven tools and strategies, you can help buyers navigate their challenges and achieve their dreams of homeownership.
So, what’s next for you? Download the resources, practice with your team, and start making those calls. Together, let’s create success stories that inspire and show your clients what’s possible.
Let’s Get Started!
So, where are you now? Where do you want to go? And do you believe having the right coach can help you get there? If the answer is yes, don’t wait. Click the link below, take the assessment, and start your journey toward success today. I promise you’ll walk away with actionable ideas, whether you join our coaching program or not.
Take our 2-minute Find My Fit assessment to get started!
Remember, you have the power to make a difference. Let’s go out there and make it happen!