One of the main principles of influence is creating scarcity and limited availability.
We can see this principle being applied in selling everything from cars to insurance and mortgage plans. If you want to be successful at your sales job, you’ll need to master the psychology of influence and persuasion.
In addition to mastering the psychology of influence, you’ll also need to understand different closing techniques. Know how to encourage your client to make the decision you want to hear.
Below is a guide on common mortgage closing techniques, including the Now or Later close. Close more mortgages by reading below.
Now or Later
The Now or Later close applies the previously-discussed idea of limited availability. In short, seal the deal with mortgage leads by telling them they’ll only receive a special deal if they sign on the spot—the ‘now’ part of this deal. Signing later will result in an increase in price.
Keep in mind that using these techniques shouldn’t include deceit or malicious intent. You’re closing a deal based on an appealing one-time offer, not by purposely hiding their available options.
Some clients are skilled at negotiation and will try to work out an agreement with you regarding your offer. While the negotiation is up to your personal discretion, we suggest remaining firm in this closing technique.
Using the Power of Assumption
One of the most popular closing techniques is the Assumptive Close. The idea is straightforward—limit possible objections from the client by assuming the deal is done.
For example, you’ve heard salespeople say things like, “Great, so, I’ll chat with you next week to get this started?” directly after explaining the offer. They’re assuming the client will agree and provided an action-oriented next step.
In reality, your client can decline your offer or ask to have further time to consider. But using the power of assumption decreases the chance of that happening.
Be a Good Samaritan
Everyone likes receiving something beneficial for free. By being a good Samaritan, you can close a deal quicker than expected.
You may have heard of the ‘Something for Nothing’ technique in which the salesperson offers a free, no-strings-attached discount. You can choose to waive some of the mortgage closing costs or offer a special discount if they close with you.
Even if the discount you’re giving doesn’t make a large impact on the overall payments your mortgage company will be receiving, clients like hearing they’re receiving a surprise discount. They’ll be appreciative of the kindness.
Utilize the Hard Close
The Hard Close is a very popular mortgage closing technique. In this technique, you’ve probably heard something about ‘the books’ closing.
Even if you don’t know the exact details of your company’s financial quarter, using a hard close is still very convincing for the client. They’ll act quicker in fear of not sealing the deal before the new quarter.
Using this technique sounds like you saying, “Act now before our books close to receive this deal. Prices and packaging will change.” You’re creating a sense of urgency with your elusive yet definitive deadline.
Summarize Your Conversation
Investing in personal relationships with your potential clients takes a lot of time. Even though you aren’t able to buy each one a coffee, there are things you can do to show you care.
One small thing is using the technique of summarization to create a personalized close. Talk to your client about the need you’ll be fulfilling with your service. As you’re closing, summarize the points they made regarding their personal needs and financial situation.
By repeating back to them what they’ve said, you’re showing you were listening. You’re also letting them know that your deal will satisfy their specific needs.
An example of a summary close sounds like, “So, what I hear you saying is you’re in a bit of a financial pickle. You need something quick and affordable for you and your family. I can waive the closing fees for you and get this process started for you today.”
While an empathetic approach may not be one of the popular sales closing techniques in hard-hitting Wallstreet jobs, showing empathy when working with families is important. Use an empathy close if you sense fear and hesitation from your client.
Taking out a mortgage on a house is a big decision. Because you don’t know why the individuals are having to move, proceeding with empathy is powerful. They may be moving due to a loss of a job, the passing of a family member, etc.
If your potential client says they’re afraid to close on a deal on such short notice, say something like, “I know this is a big decision to make for you and your family. You’ve been through a lot lately. Why don’t you let me know by the end of the week?”
Finding a salesperson who cares for their situation could strike an emotional chord strong enough to persuade them to close the deal.
Develop Your Personal Closing Style
As you can see, there are plenty of closing techniques to use. The techniques you choose to use may depend on the client’s personal situation and your own motivation for the day.
Take time to develop your closing style. Practice listening skills, problem-solving, and flexibility. You never know what curveball a client will throw, so it’s important your closing style is able to quickly adapt.
Chat with experienced sales reps about sales tips and organizational hacks that have helped them succeed. They’ll know a few tricks.
Strive for Success: Mortgage Closing Techniques
Gain the confidence you need to seal the deal by using any of the above-mentioned mortgage closing techniques. You’ll be meeting your personal sales goals in no time.
Play hardball with the Hard Close or Now or Later close. Approach softly with an empathetic close. Whichever route you decide to take, spend time developing your personal closing style.
Do you need extra help in closing deals? Work with our team of exceptional loan officers and mortgage brokers. Connect with us to get started.