Working with Buyers
1. Mike’s 2 basic rules regarding buyers:
a. 100% of all buyers should be pre-qualified by a lender … no exceptions, and
b. You should then pre-qualify the prospect for their motivation and the type of home they want to buy
2. You need to identify what differentiates you from your competition
and be prepared to share this with the buyer.
3. As with a seller, develop a list of 4 or 5 standards that you are going
to work with when working with a buyer and stick with them.
4. There only are 3 types of buyers that you should be working with:
a. Past clients who are motivated and have to buy;
b. Sellers that are priced to sell;
c. Highly qualified, highly motivated referrals.
5. Tell your buyer prospects the exact process that you are going to use before you show them property. “This is the process…”
6. Only show property when all the decision makers are present … call to confirm that they will all be there before you take further action.
7. Have all buyers meet you at your office … don’t meet them at the home you are showing.
8. Its common for buyers to buy the same home over and over again. Have them describe their present home to you and don’t be surprised when they buy the same type of home again.
9. Only show 3 homes at a time … then ask them to buy. Showing them 6 or 7 homes is not going to save you and them time … it only confuses them.
10. As you show a buyer more property over the course of days and weeks … their confidence in you diminishes.
11. If your business is to be 75% listings sold and 25% buyer controlled sales … don’t hesitate to refer your non-great buyers to other agents for referral fees.
12. Only use a showing agent when your listing inventory and your referrals are bringing you an usually high number of leads.
13. The following are sample minimum standards for working
a. Pre-qualify for financing by your lender
b. Pre-qualify for motivation and type of home
c. All decision makers must be present for seeing property
d. First meeting always at your office
e. Buyer/Broker agreement signed
f. Never show more than 3 homes at a time
14. Create a buyer presentation that you can use in your office … show them all the properties that you have previewed and how and why you chose the ones you did. This will build confidence in the buyer and will prepare them to make an offer on one of the ones that you show them.
Next Week: Administration and Staffing