Home : Blogs : Ronnie Bredahl : Austin Real Estate Blog - Austin Realtor, Ronnie Bredahl

Home Buyers vs. Tire Kickers

After 8 years in real estate sales, I wonder if I'll ever be able to pick out the true home buyers from the tire kickers. For the last 3 years I have been fortunate enough to generate lots of internet leads through search engine optimization. Only thing is, most internet leads are buyers. There's nothing wrong with working buyers except it does require looking at many homes and you invest quit a bit of time.

Over the last few weeks I have had three people who come in town tell me either:

Austin is just a town they are considering.
They are not looking to buy until winter vacation or at a later date.
After I show them half a dozen homes they don't return my emails or phone calls.

Real estate can be sort of like baseball, you have hot and cold streaks. Good luck and bad luck. The only difference if you plan properly, you can be more consistent in real estate. One thing you most definitely need to be consistent at is asking qualifying questions up front! This is where I have failed lately. But at least I can sit back and realize what I did wrong. Here's four questions that could of saved me tons of time...

When are you planning a move to the Austin area?
What made you decide to relocate to Austin, TX?
Is Austin the only city you are considering?
What kind of work do you do? Do you plan on looking for work in Austin or do you already have that lined up?

There's no right or wrong answer to these questions. You have to feel each person out. Everybody has a unique situation, let them tell you their story. I find that it's best to ask questions that do not involve a yes or no answer. Using a script work best (I failed here too). Most likely if your prospect doesn't have a good, honest answer to these questions, they're not too serious about relocating to your town.

I plan on using the questions above and SCRIPTS on every lead in the future (I've done it in the past, but got lazy). Especially those people who are visiting for the weekend and want to burn a couple hours looking at area homes for sale. These people are not home buyers but more like "home tourists." I swear people do this for entertainment. Asking a few qualifying questions can save you tons of time from working FOR tire kickers and home tourists. Unfortunately, you may put a damper on their vacation!

Respect, honesty, and loyalty are not only traits every Realtors should possess, but it's also wonderful qualities to search for when choosing your clientele.

Posted by Ronnie Bredahl on 08/24/2007 06:36 AM

Comments (42)

home buyers, tire kickers, prospects

42 Comments on Home Buyers vs. Tire Kickers

AUG

2007

Ronnie, that script is a perfect candidate for automation. Ask your IDX vendor to add them to your registration page. Experiment with making it optional versus required information to provide. Once you pre-qualify your leads this way, you can drop them each into a relevant follow up drip campaign. Depending on what you see on the backend of your IDX solution regarding listings saved by your guests, you might also be able to pick up some clues about your visitor's intentions there, too.

AUG

2007

Pre-qualifying upfront can save you a great deal of time but it always seems when you are busy that is when this part of the process can suffer the most.

Ronnie:

Excellent. Telling is not selling. Only asking questions is selling. Qualify the buyer.

Buyers will fool even the most experienced agent from time to time. No amount of prequalification (or interrogation) will weed out the most determined tire-kicker.

Your honesty is refreshing and actually works in your favor. Understanding your past mistakes and creating a plan will position you to capitalize on future leads by qualifying them better. A couple of comments struck me about the time you spend showing homes. If we are to believe recent statistics from the CA Board of REALTORS, Internet buyers look at 6 homes (avg) while traditional buyers preview 21 homes (on avg). If I were you, I would embrace the Internet buyer and offer them all the search tools you can. Once they have offered their contact information, (I agree with Tracy) add them to a buyers drip campaign for those that say their urgency to buy is months out. You may consider developing a relocation targeted drip sending them local information, events, etc....another words why the area is so attractive. This is why generic buyers drips may not work for your folks relocating.

Second, most custom developed websites offer a leads management tool (ours does) to help you maintain and track all communications with prospects and note if the prospect is a new lead, first response, warm lead, hot lead, turned into a client, cold lead, or inactive lead. This helps build lead accountability and offers you a visual cue to better manage your leads. By adding these strategies, your conversion ratios should improve. Wishing you much success!

BTW - Congrats on your Featured Post. 5 Stars for sure!

I hear ya..what do you do with regard to making sure they are financially prequalified, I have had some agents tell me they require a pre-qualification letter before they show homes....in theory that makes sense....because, they need to show they are as committed to the process as the agent is..In practice, I still have not found a comfortable way to say "hey can you send me your prequalification letter"

KonnieMckee

The tire kickers (home buyers) are evolving, they get smarter as we get smarter, and they make themselves look more real all the time. Best bet is to just take the bait and be honest with them and upfront.

James Boyer

Realtor Associate

Keller Williams Real Estate

Summit, NJ 07901

Certainly some buyers will need a bit more latitude; however, I'll agree it has become more difficult to spot a waste of time walking in the front door. Even with years of experience evaluating a new customer either in-person or online,seasoned brokers can still be fooled.

On the other hand, isn't it cool when the opposite happens? Someone you never expected to decides to buy? When that perfect property is found and they are so happy about it (and your pocket gets happier too) it is a great feeling.

I agree there are times I dont care how serious they are it is good to get out, but most of the time I dont like kicking tires with people :)

I'm so glad to hear that other agents show homes and then don't get calls returned. I was starting to get a complex.

Here is one to add to the mix...When does your loan lock in expire?

Konnie, my agent had two great approaches on financial pre-qual when my husband and I were shopping for our house. One was "sellers will want to see the letter with an offer and we should get that ball rolling now" and the other was "let's confirm what price range we're shopping in."

Congrats on the gold star, Ronnie!

Ronnie,

My team and I meet with every buyer upfront for our buyer presentation. There they must sign a buyer's agency agreement and get pre-qualified if they haven't already. If someone doesn't then we don't work with them. We even do this on sign calls...we never rush out and show the home to an unqualified buyer. This system works well because we're commited to the clients and they are to us as well.

John

Thanks for everyone's comments! I'm not sure what a gold star is yet but it sounds good. From my experience, bad things usually don't come in gold.

It makes me feel better hearing other experienced Realtors go through the same thing from time to time. I agree with James comment above, while we brush up on our qualifying skills, tire kickers are doing the same. There is probably a website where they are downloading "Realtor scripts" while we're sitting here chatting. Featuring titles such as "How to Get a Free Tour of Anytown, USA While on Vacation." lol

Thanks for all the additional qualifying questions! They're all excellent questions, BUT we must use them consistantly. A lot of times you can get emotional over a "good" price range and go out and show, show, show!

Ronnie

Hi Ronnie,

I always ask a series of questions to buyers when I have them come into my office. Also, I have them a mortgage consultant to see what price range and mortgage program they're qualified for. That way when we look at homes, I know we're looking the right price range and I know they're motivated. If not, you could refer them to another agent for a referral fee. Don't waste time with unqualified prospects.

I use to think that talking with a prospect buyer is the first necessary work to do,before you engage yourself in any action.

First of all ,you have to understand the very needs,I mean the real ones you have to be very technical ,and you must go deep.

If you can't do that with your potential client ,he is not a real one at the time,so you let him go .

Some other less methodical agent will get exhausted ,and the client will come back to saying how bad was the other guy.

Knowledge always pays it's a matter of time ,people always recognize knowledge.

When you go to the doctor you have to answer questions, so the educated man has grounds to start his search ,you find it normal ,nobody wants to loose any time or detail ,it could be fatal .

Look at it that way ,and if you throw into it a good sense of humour ,may be you are a winner .

what do you think?

Claude

www.usatav.com

Hi Tracy, I agree that most things can be automated. As far as asking qualifying questions via a web form, I don't think I would do that. I use to have about 20 questions I asked people on my forms. Do you know what happened? No one filled out the forms, or very few I should say.

I love technology. I'm a raving fan! However, I don't think technology will ever replace the human touch, the personal phone call, or the Realtor. Emails and web blogs will never build rapport with a potential clients like a phone conversation. You can convey emotion, tell jokes, laugh, and maybe even get them to like and trust you.

On my forms I try to get only name, phone number, and email address. I also have a comment box so they can ask questions or tell me more about their situation.

I love your idea about the drip campaigns. I need to set that up. I have the RealEstateWebmasters.com CMS program. It's pretty good. I just need to read up on it and put it to use.

Ronnie

It seems no matter how you try to qualify people, there's always something they don't tell you. I just spent three long days with clients from another state who had good, solid answers to those questions, but drove off without writing an offer! Maybe they still will. But however it ends up, I did everything right to make certain I was spending my time shuttling a solid prospect and yet you just never really know.

Great post!

Ronnie,

Thanks for sharing like many that have posted before me I was starting to get a complex as well about buyers. At this point one area of opportunity (Positive way to say something I dont do well) =) is to ask what is a hard question to me. "Are you qualified? and do you have the documentation to show you are? I'm not sure why I lack the confidence to ask such an important question. It is not fair to anyone to go and show houses to people who cannot buy what you are showing. Recently, I was told something interesting that has helped me ask that question now. As an agent I have a fiduciary requirement to serve my client. Showing homes to unqualified buyers is not holding up my end of that agreement. Now, I tell buyers that unless they are qualified to purchase the home they want to look at I cannot show it to them. I then follow up that they would not want me bringing through people to their home who just wanted to look or could not afford to complete a transaction. This has helped me not spend so much time out kicking tires.

Best wishes,

Scott

Great post Ronnie. Sometimes they are really qualified and motivated and still don't buy - some have fear of comittment. I spent this spring with a buyer that was a referral they are friends of a happy client that bought last year. They were qualified and motivated. A couple with new baby their lease running out on their 1 Bedroom apartment. I must have shown 40 places - the husband found fault with everything. They ended up renting.

My manager says it is never a total loss at least I got to know all the inventory.

On my website form I have a pull down that asks when are you looking to buy: this month, within a month, 3 months, 6 months 9 months more than a year. They all answer it.

Great points! I continue to have the same buyer issues as well.

Mitchell is right, Ronnie. I'm not a fan of onerous registration forms, but a couple of pointed questions can help you out tremendously.

Ronnie,

In light of all the fun we are having in the mortgage business you might be able to sort out who is a serious buyer and who just wants to look at remodeling ideas by having them pre-qualify for a mortgage before you take them all over town. What does looking at homes do for anyone if they can not get a mortgage right now?

The mortgage market is changing daily. The most important person on YOUR team is your mortgage broker. Let him/her qualify your buyers. How much can they afford? Convert monthly payments into real price range for your buyers.

What a timely article. I have just completed two weeks with 3 'buyers' covering hundreds of miles looking for the perfect home for them. I got the exact same outcome that you described. It's comforting to know that I am not alone...

great post, i think we've all had to learn this the hard way. or at least the majority of us. There's nothing worse than wasting your time with a buyer who isn't going to buy.

With everything said, sometimes it comes down to trusting your gut feeling. You can ask all the right questions and buyers can give you the right answers and still they pull the carpet from out under you.

Of all the tire kickers I have shown property to I once had a couple return to me at the end of the day with a $50 gift certificate to a restaurant I recommended to them. Wish more of those kickers were so considerate.

Ronnie,

Unfortunately, all of us have the tire kicker syndrome in our markets. The art of questioning is key. I used to work in a walk-in traffic office and learned to never take prospects out the day they walked in. I always scheduled a house tour for another day, thereby weeding out those who didn't have anything to do because it was a rainy day.

After I show them half a dozen homes they don't return my emails or phone calls.

Oooo. That's the one that would concern me.

You can usually weed out the tire kickers once you start talking about financing. Have you spoke with a Lender yet? If the answer is no, then tell them that is the first step in the process of buying a home. We need to see how much home you qualify for, and if it is a comfortable payment. (I Don't want to waste your time or mine showing you homes that won't fit your financing.) Now if you are working with someone who owns a home and they say that they have plenty of equity to buy another home, ask for their listing first. Tell them with the current market homes are taking longer to sell and contingent offers usually are passed up. If they are really serious about selling and buying a new home they will usually list. I am sure you already know all this, but this has really helped me weed out the tire kickers. Best of luck!

Ronnie, you are so right! The internet is where I get most of my leads. The other day I showed houses to folks from Houston (one hour from my office) and they were looking up to $650,000. He was going to liquidate stock because of the turbulance of the market and invest in the Real Thing! I qualified like a pro, so I thought, yet I could never quite pin them down. After our second day of searching they were down to two favorite houses and even knew where to put the furniture. In our final converstion, as I was attempting to get them on paper, it took a drastic turn! He said, "we will be leaving the motel in the morning to go to another Lake Area...and we're having such a wonderful vacation!!!" Duh. Debra A Brooks

A very wise agent once told me that "buyers don't know what they want..." I am not saying that everyone is like that, because I have had the buyer who bought the first house I showed them out of 2. But there are some people out there, especially in this market that have been lingering for at least a year with me-they are just sitting on the fence. Great post! I share the same issues.

Excellent post! It's a 5 for sure. What a year for tire kickers this has been. Almost the very same thing has happened to me as Debra Brooks. Do not underestimate the power of a Buyer's Agency Agreement. I did and I won't do it again! I've been working with a buyer for six months or more and drover her all over the mountains for two days solid as she would take me right to the edge about buying one property or another and then all of sudden, she would change direction. Turns out, she was working a number of other Realtors doing the same thing.

I have had more than my share of tire-kickers lately, but there's some tire kicking going on with sellers lately. Just kicking the market to see if any one will pay the high price.

The secret to success in working with buyers is figuring out their MOTIVATION. People only have a compelling reason to make a real estate decision. They're either buying because they're first time buyers and they're motivated to get into anything; or because there's some major change in their life: downsizing from big house to small condo. Or buying big house and selling condo because kids are on the way. If the people you work with don't have a compelling reason to purchase property, don't waste your time.

Great Post Ronnie,

I also make sure my buyers are pre-qualified. If they haven't talked to a lender, i refer them but inform them I will do one tour with them until they are approved for a mortgage so we know what they can afford otherwise we are wasting each others time. If they aren't returning my calls (3 in a row), I leave a message that I will wait until I hear back from them and stop all action except automated emails. This keeps the door open but filters the dead wood.

I find they are receptive to open and straight forward guidelines on how I work. I class my clients as A,B,C,D and D's get fired.

Its the "at bats" you have to have an "an bat" to score. In my market I am still working buyers from a year. What are going to do it just means you need more at bats to hit more home runs.

I can't agree more. You have to Pre-Qualify the Buyer.

Financially, They need to know what they can and can't afford. Its pointless to show a property that over their range because they wll forever compare what they can't afford to what they can afford. Not a pretty reality for them in most cases.

Contractually, Buyers need to understand the Purchase contract and the responsiblities that they will be contractually obligated to when they are in a transaction.

Crystalize Their Needs in a Home, The buyer needs to understand that there will never be a perfect home, our jobs as Realtors is to narrow the 1000's of 3 bed 2 bath homes by turning their wants into emotional benefits that best suit their needs. If you do this, you take their search from 1000 to 5 special homes that will tickle their fancy.

Get Hired, You need to know if the buyers are the type of buyers you want to work with.

I agree to search out the tire kickers is to get them prequalified and to also listen to what thery are saying. WHen your throw questions at where they are in the process and you see that have taken no action in their preparing to buy (for example getting their house on the marklet or even getting it ready to sell) you know you may have a tire kicker.

AUG

2007

Good post. Pre-qualifying and getting prospects to sign a buyer broker are great tools to separate the lookers from the serious.

Some suggestions- Use the word OWN instead of buy. Use Initial Investment instead of down payment. My agents also end the probing session with this question. "If we find a home tomorrow that fits your needs are you ready to own it?. I know it is a closed ended question but on the guts gauge it gets right to the point and should allow you to get the information you need to give them a grade of A, B, or C.

It's so hard to tell a serious buyer from someone not so serious ( not to be confused with someone who just isn't ready). All buyers will buy eventually. I try to work with the "now" buyers and keep the others active in my database.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?