Residential Real EstateQualifying the Buyer
We invest large amounts of time with buyers. There is nothing more frustrating than spending a lot of time with buyers and than never getting paid for our efforts. The key component to successfully working with buyers is the qualifying process. Qualifying is the lost art of the sales process. Sometimes we get so excited that we have a lead that we fail to determine its value. That is why the process of qualifying is focused on determining the value of leads.
To really have effectiveness in qualifying we must develop a series of questions. This series of questions, or script, has to be used every time. Every buyer must be evaluated on his response to these questions. Some examples of questions are:
How long have you been looking? If he has been looking for six months the motivation to buy is probably not very high.
Do you need to sell a home before you can buy? Whoever gets the listing will get the sale as well.
Have you met with a lender? Understand that the lender is viewed by the consumer as a consultant. You are viewed as someone who wants to sell him something. The barrier of entry is lower for the lender.
Are you committed to another Agent? My philosophy was always to lay the cards on the table. If you are working with someone else, then good luck to you. I don’t need to invest my time and not get paid.
How soon do you want to be in your new home? This question will tell you the buyer’s motivation. Time frame and motivation are linked together. The longer the time frame the lower the motivation.
Determining the time frame and motivation are critical to earning a paycheck now. If a buyer doesn’t want to move for six months, then realize that your commission check is also at least six months away. How many prospects can you afford to work with where your commission is six months away? How much time can you invest in someone who will pay you six months to a year from now, or never?
The best way to qualify people is to ask for an appointment. In one question you can separate the motivated ones from the unmotivated. The people who are unmotivated will fight not to meet with you. This appointment should be at your office. Do not set the appointment to look at a property. Set the appointment for your office where you have control. The prospect knows that you are serious about creating a relationship and helping him.
If he doesn’t want to or is not ready he will avoid the appointment. Here is a good script for this appointment, which I call the buyer interview. "In order for me to provide the highest level of service to you and all my clients, we set up a meeting previous to showing the properties. Would x or x be better for you?” You want the script to be simple, straightforward, and to the point. If you know these buyers are committed, you will be able to provide a higher level of service.
Make sure that you qualify everyone you work with before you invest your time. Time is your most precious asset. Don’t invest it where it doesn’t bring you a return. I guarantee that if you took the time you waste with unmotivated people and invest it at home with your family the return would be like no other.