TWO QUESTIONS TO ASK CLIENTS BEFORE ENTERING INTO A REAL ESTATE BUSINESS RELATIONSHIP
I remember when I first entered the real estate business ten years ago. It was quite overwhelming for myself at the time I had entered the real estate market. I had to learn by fire for the following reasons
- First child born November 2001
- Purchased first home in December 2001
- Let from from high paying job February 2002
I really appreciated to being mentored my first two years of my real estate career. Yes, I had a 60/40 cut arrangement at the beginning to start transferring knowledge from my mentor to me. The commission cut was changed to 70/30 commission cut after six months of being on the job. I had the confidence and know how to close deals. However, I still needed to learn the ropes from my mentor.
He instructed me to ask TWO QUESTIONS to every person that was interested in using my real estate services
- ARE YOU CURRENTLY WORKING WITH ANOTHER REALTOR AT THIS TIME?
- WILL YOU BE PAYING CASH OR OBTAINING FINANCING WHEN PURCHASING THE HOME?
OK-they seem to be innocent questions to ask potential clients. I did not really understand why until I started closing real estate transactions. My mentor was teaching me to stay out of trouble when it comes to real estate. Let's analyze both questions in more detail.
ARE YOU CURRENTLY WORKING WITH ANOTHER REALTOR AT THIS TIME?
This is a great question to avoid AGENCY conflicts with other real estate agents in your local area. I remember I had a buyer that I showed a home. We were about to write a contract until my mentor called. He asked if I had asked both questions. Well, I had forgot to ask the buyer because I was so excited. So, I asked the buyer if they were working with another real estate agent? The buyer informed me that they were working with another agent but they could not reach the agent. Furthermore, I was writing an offer on a home that they viewed with this real estate agent. My mentor and broker informed to stay away from this transaction since there was implied agency at this time.
It is great to have wise mentors in one's life when it comes to real estate. Now, I mentor other agents in my local real estate market. I am passing it forward to other real estate agents that want to learn this business the correct way.
WILL YOU BE PAYING CASH OR OBTAINING FINANCING WHEN PURCHASING THE HOME?
It is best to obtain proof of funds or letter from a licensed mortgage professional stating that the buyer has the means to perform when an offer has been accepted. I learned early in my career to only take qualified buyers into my car or I am just a glorified taxi drive. It seems people love to look at homes but never pull the trigger simply because they are not qualified.
I believe in the KISS method which means KEEP IT SIMPLE AND STRARIGHT
The KISS methods brings CLARITY AND COMMUNICATION into one's real estate business.
I hope this blog post has been informative and effective for one's real estate business.
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