Overcome Home Buyer Objection in Canada
The Ontarian real estate market is booming. It is a seller’s market, but you can still face some objections from your buyer. It sometimes becomes a serious challenge while executing your real estate deal. We will list some of the most common buyer objections you face in Canada.
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Top Buyer Objections and Responses
There is no definite list of objections. Each buyer is different, and so are their questions. The gravity of such hindrances also depends upon the real estate deal, such as the type of property involved, the quantum of consideration, etc.
However, after having a thorough conversation with several real estate agents and genuine sellers, we have identified a few common objections, which are listed:
1. Challenges of Affordability
It takes a fortune to buy a house. One of the most common buyer objections in the Canadian real estate market is that the buyers are not confident about their finances.
With the prices of the real estate market in Toronto and Vancouver (two of the hottest real estate destinations in Canada) skyrocketing and increasing rapidly, most buyers cannot budget properly.
“Last year shortlisted a property, and the asking price was $300,000. I mustered $275,000 and was short of a mere $25,000. However, I still lost that property. Today, when I went to the market to buy a similar property, it cost me around $350,000. My deficit has now increased three-folds,” said Marcus Brown, an aspiring homebuyer who currently lives in rented accommodation in the Greater Toronto Area.
- Monetary issues are the strong objections or hurdles the sellers face, even in a seller’s market.
- Most buyers usually think that their credit scores are not that great, and they will not be able to get a mortgage loan at competitive interest rates.
- If buyers have a good credit score, they have not accumulated enough money to pay the down payment.
Ideal Response
If your property is in an excellent location, if not prime, and appropriately priced, you will receive many responses from the buyers. But understand that not all buyers are strong enough to buy your property, and they differ in terms of financial strength.
In all such cases, you must get the help of your realtor (preferred) or any expert real estate agent who is usually in a better position to determine the potent and most relevant buyers.
2. Timing Matters
Here we will not talk about the superstitious buyers who rely on astrology. We are referring to those sensitive buyers who rely heavily on recent developments, news, and economic events.
Most such buyers are hesitant to buy houses in times marred by some alarming event (it can be both on the global scale or even at the domestic level).
Some common examples of such events are:
- The global economic slump of 2008
- The government of Canada’s attempt to slow down the real estate market in 2017
- The covid-19 pandemic of the year 2019
Such buyers feel that the real estate market is inflating, and the bubble will burst soon. Time or phase will mark the beginning of an appropriate period during which you can invest in the housing sector.
Ideal Response
Such buyers are usually non-serious about buying a property. However, they always bid and mark their presence. They intend to buy a property at a price that is below the asking price. In such situations, you can direct your real estate agent to converse with them and understand their ideology.
3. The Game of Comparisons
Amy James is a seller of a property in Clarington, the Greater Toronto Area. She recently listed her property and usually faced several buyer objections, which are like this:
“You are offering too little at too high. A property just two blocks away has everything from a finished basement to a hardwood floor and has a competitive price tag. Why should I consider your property? Are you giving me something monetary to ponder?”
Indeed, buyers compare property before making a buying decision. Being rational, they will always want the maximum benefits by spending the least of their capital. In such situations, they will always degrade your property by comparing it with a similar one in your neighborhood.
Ideal Response
Such buyers are usually looking for some discounts, and you must not blindly believe them. Make your place tidy, welcome them warmly, and ensure that your showing goes spotless. Further, you must always remain flexible and accept a few common inconveniences, such as last-minute showings, frequent re-scheduling, etc.
Initially, this might seem uncomfortable but will become fruitful once you get a strong buyer with tremendous interest.
