"I want to wait until interest rates drop before buying."

Underlying Concerns:

• The prospect is concerned about high interest rates, which could increase their monthly payments and overall cost of buying a property.
• They believe waiting for interest rates to drop will make their purchase more affordable.
• They may be financially cautious and don’t want to lock in a higher rate, potentially feeling that this would strain their budget over time.
• They may be unaware of refinancing options or the potential rising property prices that could outweigh the benefits of waiting for lower interest rates.

How to Tackle the Objection:

1. Acknowledge their concern: Show empathy and understanding that interest rates are a significant factor when deciding on a major purchase like real estate.
2. Highlight the unpredictability of rates: Point out that interest rates are unpredictable and could move up or down at any time, which makes waiting a bit risky.
3. Offer solutions: Reassure them that there are options to lock in today’s rates while exploring refinancing in the future if rates decrease, giving them a safety net.
4. Focus on rising property prices: Emphasize that while interest rates are a consideration, property prices in desirable areas are rising, meaning they could end up paying more for the property itself by waiting.
5. Tailor to their budget: Offer to show options that fit within their current budget, helping them navigate interest rates without delaying their decision.

Sample Script (Detailed and Simple Language):

Prospect: "I want to wait until interest rates drop before buying."

You: "I totally understand, [Prospect’s Name]. Interest rates are definitely an important factor when buying a home. The tricky part is that they’re also unpredictable—they could go up, down, or stay the same, and it’s hard to say when the next change will happen."

• "A lot of our clients are choosing to lock in today’s rates to avoid the risk of rates going even higher later. And if interest rates drop in the future, you can always look at refinancing options to bring your rate down."

• "Also, something to keep in mind is that property prices in areas like [mention specific locality] are continuing to rise. Waiting for interest rates to drop could mean that the price of the property itself goes up, which might cancel out the benefits of a lower rate."

• "How about we look at a few options within your current budget, and I can walk you through how we can manage the interest rate risk together? Would that be helpful?"

Probing Questions to Engage the Prospect:

• "Are you more concerned about the monthly payment or the total cost of the mortgage over time?"
• "Have you looked into refinancing options in case rates drop later? I can explain how that works and how it could benefit you."
• "Would it help if I showed you how rising property prices could impact your overall cost, even if interest rates go down?"

Call to Action:

Suggest a low-pressure meeting to review properties that fit within their current budget and explain how they can manage interest rate risks through refinancing or other strategies.

Example:
"Why don’t we set up a quick meeting where I can show you some properties that fit within your budget, and we can explore ways to handle the interest rate risk? That way, you’ll be prepared for whatever happens with rates. Would you have time later this week?"

Key Points to Emphasize:

1. Unpredictability of Interest Rates: Highlight that waiting for interest rates to drop is a gamble, as they could increase further, making the cost of borrowing higher later on.

2. Refinancing Options: Reassure the prospect that they can lock in today’s rates and refinance later if interest rates drop, offering them a strategy to mitigate their concerns.

3. Rising Property Prices: Emphasize that property values are increasing, so waiting too long could result in paying more for the property itself, which could offset any potential savings from lower interest rates.

4. Tailored Solutions: Offer to show properties that fit within their current budget, demonstrating that they don’t need to wait to find something affordable.

5. Minimizing Long-Term Risks: Position yourself as someone who can help them navigate interest rate risks and make a smart, informed decision now, rather than waiting for an uncertain future.