You receive a phone call or e-mail from a consumer who contacted you from your Internet presence. It may be your web site, your blog, etc. It doesn't matter. THEY CONTACTED YOU!!
They suggest that they're not quite ready to buy today, but will be next year. Could be their lease will end next year. Could be they are planning to change job locations. As long as they are not "cleaning up their credit", it's never too early to look. I just want to make sure they look with me.
This post inspired by Cindy Westfall's post today - Can We Look At Homes Now Even Though We Won't Be Ready To Buy Until Next Year
"SO, WHAT WOULD YOU DO LENN??"
I'm glad you asked because I encounter these circumstances regularly. 
A first contact from a home buyer is really like a first date. You don't want to appear to be anxious (prying), but you really want to know more about them. Don't rush that first phone contact. It can mean sending them away forever. Or, it can mean there will be a marriage made in heaven for them - the buyers and their home, of course. For you, their patient, helpful agent, means finding a "Pot 'O Gold".
We spend so much of our resources, time and money advertising our services, why not show your enthusiasm and ability to help those buyers who actually call for your help?
If it sounds like the caller is qualified and you can easily get that information in the first contact. They call for help and the first thing I want to do is determine an approximate price range. If you want to know about their credit worthiness, ASK THEM.
Don't forget, these folks CONTACTED YOU. It's not hard to simply say, "How's your credit?" You'd be surprised how cooperative folks are if they hear a friendly, helpful agent.
Do they know their credit scores?
What type of credit do they have?
have there been any late payments in the past year?
YOU MAY HAVE TO COURT THEM FOR A WHILE. The answer to those questions are what you want, but they may be a bit direct for some prospective buyers on first contact. I simply offer to send them some good listings for homes for sale and then they can select the ones they would like to tour. If the caller is agreeable to that, and I have never had anyone say "NO", that takes you to the next step.
"LET ME GET MY TRUSTY CALCULATOR AND I'LL BE ABLE TO DETERMINE YOUR APPROXIMATE PRICE RANGE." Of course, if they have already been pre-approved by a lender, you can skip this step. If not, you'll want to ask the following:
What's your family income, that is everyone who will be on the mortgage loan?
How many folks in your family (for VA loans)?
Do you have any large car payments or student loans, etc.?
Depending on their answers, you should be able to compute the approximate PI, loan amount and a PRICE RANGE.
All you want is the price range so you can send them some listings of homes for sales.
If you have problems with any of the above, it's just a lack of experience. Some roll playing with fellow agents will cure this. When I was teaching a real estate finance class for agents a while back, one agent said, "I could never ask anyone how much money they make." Another agent said, "By the time Lenn gets them to the corner, she'll know how much money their grandfather made."
ALL OF MY PROCEDURES FOR QUALIFYING PROSPECTIVE BUYER/CLIENTS DEPENDS ON THAT FIRST TWO WAY CONVERSATION.
Lets Take A Tour. Once you're satisfied that the buyers are able to buy (You already know that they ready and willing), get them out for a tour of homes in the suggested area and in the price range in which you (credit worthiness) and the buyer ( PITI) are comfortable. They may be qualified for a $500,000 mortgage, but if they are comfortable with a monthly payment for a $400,000 loan, that's your price range for showing. THAT, when you're out on tour, is when you really get to know each other.
OPEN HOUSES ON THEIR OWN? No, no, no!! One of those open house agents just might be the most friendly, helpful agent in town. She/He will help them BUY THAT OPEN HOUSE or arrange to take them on a tour. That agent they meet on the open house is there, on the scene, making a good impression, offering to help, answering their questions. It's possible there could even be a loan officer at the open house. I see that a lot. That loan officer will "run the numbers" and the buyers and the agents will know for sure what they're qualified to buy. Even with no loan officer on site, the open house agent may offer to do the computation and many buyers WITH NO AGENT will accept their help.
YOU'VE LOST THEM! Actually, you sent them away.
NO SECOND DATE FOR YOU!! All they'll remember about you is that YOU SENT THEM AWAY.
"Honey, should we go to this open house without an agent???"
"I don't see why not Dear, the agent we called suggested it."
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.
Serving home buyers in Maryland and Northern Virginia.
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