10. Qualifying buyers and getting to their motivation

This is a broad issue, but Im going to give you some tips and ideas in qualifying buyers. First off if you are dealing with a buyer(s) and you will showing them homes that day, whenever possible have them come into the office at least an hour to a half hour earlier. If it is a walk-in, youll have to deal with it as it comes

At all times remember that:
1.At first they may seem defensive-they may expect you to really be pushy.
2.This may be their first home and theyre really nervous.
3.They may be very experienced and may even have a chip on their shoulderthese situations are hard.
4. You only have a few minutes to establish yourself as the person they want to use and will feel comfortable handling what could be possibly the biggest purchase in their life.

Meeting the Customer
At all times remember to
1.Have props, either a map of the area or listing sheets and always have something to write down things as you go. This shows that you are serious about business and in turn take them seriously.
2.Greet them with a firm handshake and be enthusiastic!
3. Have them sit down and then offer something to be comfortable (water-coffee).
4. Hand them your business card
5. If there are two people always talk to both of them and make fairly constant eye contact. Dont zero in on only one person. Sometimes the real decision maker is the one not doing the talking.
6.Ask them general, non Real Estate questions at first (develop rapport or trust) Examples could be-Where are you from originally? Are you looking to move here full time or is this a job transfer. At this point virtually ask any question to get them talking about themselves. If they talk about a locale or subject that you have knowledge of, let them know youre familiar, but dont expound too long. Let them do the talking at first.
7.After you feel they are comfortable and you have gained their trust, then go into Real Estate.
8.If by now, they have not warmed up to you, then here is where your product knowledge will really come into play.

You must maintain control
At this point, the clock is ticking and you have a very short while to establish yourself as an expert and a professional at what you do. If all else fails being a serious businessperson will always be appreciated. You must maintain control of the situation. You do in fact have more knowledge of the homes and values in the area than they do, regardless of whether theyve bought 10 homes or more. What counts now is that while you have this narrow window of opportunity, you have to establish your value. In short you do have something to offer them and that is your expertise. Thats really why you earn your money. Remember they are going to be your employer. In effect they are hiring you to find them the right home and/or situation.

At this point little things can really count. Sometimes just knowing a small thing can convince them that you really do know your stuff. You see why I emphasize product knowledge. Havent you ever asked a REALTOR what the taxes where or how big the lot was and they didnt know. This cannot be you-you have to know it inside and out.

So, lets assume that we have gained their trust. In effect, they have qualified you, now what?

We need to find out if they are qualified.
Sample questions to ask could be:
1.Is your price range really firm?
2. Are you working with a bank?
3. If so, do you have a pre-qualifying letter with you? If theyre working with a bank that is not local, could they get one faxed to you? Explain that if you do find something you stand a better chance of getting a price reduction if they are set for financing.
4. How quick a close would you like?
5. Are there any contingenciesdo you have to sell your home or?

They need to sell their home first, now what?
1.Tell them that this is possible but not desirable because the listing agent will typically want to continue to market the home and if another buyer comes in that can close quicker, they (your buyers) will be generally given 48 to 72 hours to remove the contingency.
2.Ask them if they have spoken to their bank about an equity or bridge loan(your Broker will explain this but you need to know)
3.Ask them if their home is currently listed? If so, get the name and phone number of the listing agent
4.Ask them their opinion on how quick they think their home will sell.
5. Explain that there has to be a firm close date on the contract-generally 90 days is the outside, but you can see what the listing agent feels about this. Always write it up with everything your buyer wants as the sellers will either accept it or want it modified.

If they absolutely have to write it that the sale is contingent on their home closing, and the listing broker wants a kick out clause, then I suggest you write the contingency. Write it that the sale is contingent on their home closing and that you will furnish proof that their home is listed within 48 hours. Then state that in the event another buyer comes into the picture your buyers will have 72 hours to remove the contingency. A note here: your Broker may want you to write it entirely different-always go by their guidelines. This is just a suggestion on how to do it. Also before presenting the offer if possible contact their listing agent and get their feelings on how quick their home will sell. Is it overpriced, etc? Whenever you present any offer, you want to have as much going for your side as possible. Obviously an all cash, quick close no contingencies offer is generally the best. Remember we talked before about negotiating. You need to sell the listing agent on your customer and the deal, so he/she will present it to the seller enthusiastically! This is a very, very import point.

11. Learn to say no and get yourself off the hook
All right lets say that we have their confidence and things are going well, but in your qualification they say they are just looking and really are not sure or if they make a decision it may not be for another year. At this point please never ever write them off. This could be a ploy to protect them selves from a hard close or it could be true. At any rate, your job now is to establish yourself as their salesperson, be it today or a year from now. Stay professional, but also be aware that you cant afford to go off on wild goose chases.

One of the things I do, is to give them MLS sheets of property marked on a map and tell them to drive by and look at these homes. That way they will get to know the neighborhoods plus they can do it at their leisure. There are lots of customers that will actually prefer this approach. I then tell them if they see anything they like to call me back with the MLS numbers and if they are serious you can arrange for a showing. Now if, they clearly adamantly tell you they are not going to buy anything nowplease dont waste other agents time setting up showings. They will hate you for it.

If you must show them something, show them homes on a lockbox or your own listings.(ones where the other agent does not have to be present) Always remember that you are going to be working with these other agents for along time and the best thing you can do is to have a good reputation with them.

PS-If you don't want to just be a tour guide-you must qualify. The best salespeople are good at it.

I have recently designed a website that provides a customer in-depth information which will save you time when they do showup. The subjects covered are what buyers want to know. se the site at http://www.flarren.com.