How Real Estate Agents Can Explain Rising Interest Rates

male real estate agent explaining to clients

How Real Estate Agents Can Explain Rising Interest Rates

A question we are hearing a lot from our clients lately is, “how can real estate agents explain rising interest rates to clients?” With rates increasing, this is an objection that you are going hear more and more often. Although it might seem like this would be a difficult objection to overcome, at the end of the day, it’s not much different from other objections that agents deal with on a regular basis.

Background: How Real Estate Agents Can Explain Rising Interest Rates

Conventional “wisdom” in real estate will tell you that rising interest rates make buying or selling a home more difficult. From a home buyer’s perspective, as mortgage rates increase, affordability typically decreases. However, it’s important to realize (and to educate your clients and leads on) that current rates are still lower than they have been historically. Rates in the 2000s have typically been the lowest they’ve been in history.

So it’s perfectly possible to buy and sell homes with rates hovering around 7%. It’s also important to educate your clients that their rate ultimately comes down to their lender. Mortgage lenders have different types of products and will work with you to find a solution.

But before you do any of that, you have to cover the basics with your lead.

How Real Estate Agents Can Explain Rising Interest Rates: What Not to Do

When it comes to how real estate agents can explain rising interest rates, there are certain things that you never want to do. As with any objection, you don’t want to:

  • Disagree with the lead
  • Make the lead wrong
  • Educate the lead before understanding them
  • Try to close immediately

At the end of the day, you have to listen to what the lead is saying and process what they tell you. For example, don’t make them wrong and avoid using the word “why”. Instead of asking, “why do you think rising interest rates are a problem?”, say “what about higher interest rates do you think is a problem?”

Listen closely to what they have to say, understand it, respond to it, and then go into educating them on the situation. The important thing is to build on what they say and have a natural conversation; don’t just nod and then go into what you wanted to talk about anyway.

Here’s What You Should Do

When you’re thinking about how real estate agents can explain rising interest rates, you want to follow the same formula that you would use for any other real estate objection.

  • Get the lead’s perspective
  • Get the lead’s experience
  • Tell the lead the benefit of moving forward now
  • Educate the lead after understanding their perspective
  • Identify motivation and ability
  • Set a logical next step

Here’s how to cover all of these points and overcome this tough real estate objection:


  • When you say rising interest rates…what do you mean?
  • Do you know that lenders will work with you to determine your rate?
  • What will waiting for interest rates to change do for you?
  • What if a change doesn’t happen?

Tie the Lead to a Logical Next Step

  • When will you talk next?
  • Why will you talk next?
  • What will they get out of it?

When it comes to how real estate agents can explain rising interest rates, a key part of overcoming this objection is getting the lead to commit to a logical next step. And be specific. Don’t just say “give me a call when you are ready to move.” Tie them to something that they want to talk to you about. Focus on the benefit they will receive from meeting with you at that time.

If you want more information for overcoming this real estate objection and all other objections, then our Conversion University program is for you and your team! See all of our training programs here.


Sales Role Playing: The Key Part of Real Estate Agent and ISA Training

old telephone

Sales Role Playing: The Key Part of Real Estate Agent and ISA Training

One of the most important aspects of real estate agent and ISA training are role plays. They are an incredibly powerful tool that allow you to hone in on your skills, learn new discovery, objection handling, and discovery techniques, and work on the things that you are struggling with. There is really no better way to improve your sales conversion numbers and no better form of real estate ISA training.

The Benefits of Real Estate Role Playing

For agents and ISAs, sales role playing not only allows them to practice closing techniques, objection handling, and all the other sales components they have to know, but it also allows other people in the group to learn from mistakes that their colleagues make. Just like pilots use flight simulators, so should inside sales agents use role play groups.

Agents and ISAs who don’t do regular role play training tend to get stuck more easily on their calls and stopped by common objections. They also have to rely too much on their scripts and risk sounding more like a robot than a human being. Through regular role play, agents and ISAs will feel confident enough with objections and closing in unique situations to avoid reading from a script. The result is that you will have more natural conversations that will boost your conversion rate.

How Sales Role Playing Works: Type 1

There basic role play structures. The first is one-on-one with a coach or experienced sales person. This is a lower stress environment that is sometimes better for less experienced ISAs who are just starting out. The coach describes a scenario or objection and then plays the role of the prospect. The ISA tries to set an appointment with them and the coach offers advice and insights along the way.

Sales Role Playing: Type 2

The next real estate role play structure is with three people—two ISAs and a coach. For this structure, the coach will determine the scenario or caller objection, and one of the agents acts as the caller and the other as the prospect. They go at it with each taking turns in each role, giving each other feedback based on how they think the other did, and the coach steps in as necessary with tips and advice on how to improve.

Sales Role Playing: Type 3

The last type of real estate role play structure is sometimes called a “fish bowl”. This type includes a group of several ISAs and a coach. This is often the format that coaches will use when hosting virtual role play groups. The coach either plays the prospect with each ISA, or the agents take turns playing the role of caller and prospect. The value of this type of setting is that everyone present, even those not directly participating, gain from the experience. They get to see they aren’t alone in the common mistakes that all ISAs make, and they typically get to hear a wider range of insights and practical advice because many people will make different mistakes or make them in a different way.

How to Overcome the Difficult Market to Come

Real estate agent and ISA training is crucial for teams and individuals alike to make it through the shifting market. And the key part of training is role playing. You have to act now and make the right decisions that will allow your business to thrive in any environment.

At Smart Inside Sales, group role plays are a key piece of our real estate inside sales agent and agent training program. We offer an engaging, encouraging environment with agents of all skill levels and real estate experience, as well as coaches with many years of sales experience. 

Check out our real estate agent and ISA training programs here.


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