In a nutshell, ‘qualifying the buyer’ can be summarized in two not-so-bon mots – “show me the money” and “put your money where your mouth is.”
As a professional real estate salesperson, these expressions should never be said aloud. Yet, it’s essentially what you’ll be doing when you ‘qualify the buyer,’ an important part of a real estate transaction.
You need to have a good understanding of buyers’ property needs so you can show them the right properties. You need to ensure they have the finances required to buy the property. And, you need to ensure they are serious about buying the property. Otherwise, you may be wasting your time.
Following is a list of questions to ask prospective buyers. [This is not an exhaustive list.]
• Are you working with another salesperson or broker? Have you signed a representation agreement?
• What style and type of property are you looking for?
• In what area would you like to live?
• How long have you been actively looking to buy?
• Do you have special requirements in a property? (e.g., near a school)
• By what date would you like to complete your purchase?
• Do you have an existing property you need to sell?
• Has a lender pre-qualified you for a loan? If yes, for how much?
• How much cash do you want to use for the purchase?
• If we find the right property, are you prepared to make an offer right away?
Warning – If the answer to the first bullet is ‘yes’ – walk away, gracefully.
For More Information
For more information on qualifying the buyer and effective offer, count-offer presentations, please consult our A Mentoring Kit for New Salespeople: Training For Success at http://www.orea.com/OREA-Real-Estate-College/Products-and-Services. This is a valuable resource for both brokers and salespeople.
Have you had a situation where you thought the buyer didn’t qualify? How did you handle it?