Prequalifying Clients... It’s Not Just for Buyers!

By
Education & Training with The Lones Group, Inc.
The Lones Group, Inc.

Prequalifying Clients... It’s Not Just for Buyers!

Last week we hosted an event completely focused on listing presentations, and helping agents understand how they can win at the listing presentation.

I was thrilled at the response (we were completely sold out and had to turn people away at the door!) because it confirmed two suspicions I had: 1) agents are struggling at listing presentations, and 2) agents aren't getting great training on this critical topic.

Based on the questions we had at the event, it was clear to me that most agents don't do much (if any) prequalification of sellers. It seems as though many of you are taught to prequalify before getting in the car with buyers, but that same philosophy isn't extending to the listing side of the business.

Qualifying your seller is an important part of the process. Too often, we get a call from someone indicating they may want to list their house, and we drop everything and dash over. I truly believe agents don't put the same level of care and energy into qualifying sellers that they do with buyers.

Agents typically feel they've qualified the seller if they ask questions such as, "What is your timing for selling?" or "Why do you want / need to move?" without probing further. These questions only scratch the surface of what is driving the seller's decision to move.

When you truly qualify a seller you are discovering not only surface answers but also a seller's concerns and worries. Surface questions don't uncover expectations. And believe me, it's critical to understand what expectations and concerns the seller may have. These are what I call "pain points," and if you don't know what they are you may never get the listing. Even if you do, you could be blindsided when the pain points rear their ugly heads later.

Most agents don't want to do more than scratch the surface. They avoid the pain points because they don't like conflict or they simply are worried about how a seller might react if pushed to a deeper discussion. When you avoid tough questions you are not getting the information that could help you most - the pain points.

Here's what I recommend you ask a seller when you are called to go on a listing appointment: "Have you got a quick 10 minutes for me to ask you a few questions about your house and your situation?"

Assuming the seller agrees, you need to use the three magic words: "Tell me about..."

  1. Tell me a little about your house (always start here because people are more comfortable talking about things rather than themselves).
  2. Tell me a little about why you want/need to move.
  3. Tell me about your timing.
  4. Tell me how much you currently owe on your mortgage.
  5. Tell me about your expectations for selling.

You now have a wealth of information regarding a seller's position, motivation, and expectations. The information you receive will not only help you determine whether you should even go on the listing appointment, but will help you know how to position your services.

But let's imagine when you asked for 10 minutes of their time the seller was unwilling or unable to talk. I then suggest you say, "I completely understand. Can you make a little time later?" A seller who says "no" may truly be very, very busy... or it could be a red flag that there is a challenge which you may or may not be interested in taking on. If you decide to go on the appointment anyway, you need to ask the same five questions I outlined above - and make sure you ask those questions right at the beginning of the listing presentation.

There's one additional question you must ask sellers when you are at the listing appointment:

"Is there anything you feel I may need to know that's relevant to the sale of your home?"

When I've asked this question I've gotten information I would never ordinarily have received. For example, one seller told me that he had terminal cancer and that he wanted the home sold before he passed on so his family wouldn't have to deal with it after his passing. Another client shared that the parent sitting in the room with them wasn't on title, but had helped with their down payment money and as a result would be involved in the decision to sell.

Do you think those pieces of information were useful? You bet they were! They completely changed the dynamic of our meeting, and may not have been something the seller would have volunteered without my prompting question.

Remember the three magic words of qualifying  I mentioned earlier: "Tell me about..." You can and should use them throughout your discussion with sellers. That might look like this:

"Tell me about your concerns." "Tell me why you think your home is worth $500,000." "Tell me about the process you'll use to select your listing agent."

"Tell me about..." allows your clients to tell their story. They're less likely to leave out information when they're sharing their thoughts rather than being asked a series of scripted questions. "Tell me about..." is also beautiful because you don't need to know the exact question to ask - it allows you to get the conversation moving forward if you're aware there's an issue but you're not quite sure what it is.

To summarize, here are the five biggest mistakes agents make when qualifying sellers:

  • They only ask surface questions - the same questions everyone asks.
  • Their pace is off. They talk too fast or too slow, and don't match their speed to that of the seller.
  • They take everything at face value because they listen to what is being said but don't hear the deeper part of the message.
  • They allow the seller to the end conversation before itshould be ended and before they've obtained all the information they need.
  • They hop in their car and immediately go to a seller's home without being properly prepared... and without qualifying the seller.

If you can learn to master seller qualification you'll go a long way toward understanding a client's concerns and motivation. That information is exactly what you need to determine if you want to work with the client and (assuming you do) how best to address client issues and position yourself as the agent of choice.

By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings over two decades of experience in the real estate industry. With expertise in strategic marketing, business analysis, branding, new home project planning, product development, and agent/broker training, Denise is nationally recognized as the source for all things "real estate". With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

The Lones Group, Inc.
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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Evelyn Kennedy 09/05/2012 07:59 AM
Topic:
Real Estate Sales and Marketing
Location:
Washington King County
Tags:
listing presentation
client care
prequalification
client communication
communication with sellers
prequalifying clients

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Show All Comments
Rainmaker
214,375
Rajeev Narula
iPRO REALTY LTD.,Brokerage - Mississauga, ON
My Services Are All About You!

Thank you Denise. I have made a note of your well articulted points.....And I ertainly agree that it is great training topic anad content wise!

Sep 04, 2012 01:35 PM #5
Rainmaker
806,889
Lanre-"THE REAL ESTATE FARMER" Folayan
Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

Denise this is a great post. I am definitely going to start doing this once I go on listing appointments. Tell me more. Thanks for sharing.

Sep 04, 2012 02:25 PM #6
Rainmaker
704,651
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

Denise, congratulations, this is probably one of the best blogs I have read in quite some time. Excellent, well done.

Sep 04, 2012 03:01 PM #7
Rainmaker
558,303
HGNL Digital Marketing Agency
Detroit, MI
We are a full service real estate marketing agency

Hi Denise,

Congrats on this well-deserved feature!!

I love this subtle but powerful way to prequalify by giving our sellers permission to tell us more.

Well done, keep up the good work!

 

Sep 04, 2012 03:07 PM #8
Ambassador
2,008,077
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Denise - I love the language here and think that it makes a lot of sense.

Sep 04, 2012 03:17 PM #9
Ambassador
758,987
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)
I agree with everyone else. This is a fresh perspective.
Sep 04, 2012 08:18 PM #10
Rainmaker
1,293,788
Wayne and Jean Marie Zuhl
Samsel & Associates - Clark, NJ
The Last Names You'll Ever Need in Real Estate

Great post, Denise. We like to call it a "Listing Conversation," ala Darryl Davis, because we prefer to do less than 1/2 of the talking. We have 2 ears for a reason!

Sep 04, 2012 08:36 PM #11
Ambassador
1,207,059
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

Very good post Denise.  So many people have lost the art of listening.                                                                    

Sep 04, 2012 09:57 PM #12
Rainmaker
1,373,497
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Denise, the three magic words allow the sellers to open up without invasive questioning. Great Post!

Sep 04, 2012 10:47 PM #13
Rainmaker
1,072,709
Margaret Goss
Baird & Warner Real Estate - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

I like the idea that using those words allows the sellers to tell their story - instead of just reciting the facts.  It allows for a deeper rapport and that is always a good thing.

Sep 04, 2012 11:49 PM #14
Rainer
293,375
Nan Jester
Exit Real Estate Gallery Jacksonville Beach, FL - Jacksonville Beach, FL
Realtor, Exit Real Estate Gallery

You guys are spot on.  Loved the blog and will use it in my business.....

Sep 04, 2012 11:50 PM #15
Rainer
233,428
Mike Yeo
3:16 team REALTY - Frisco, TX
Denise - those are powerful three words to use. So true that you har to prequalify the sellers to or you will be raking on more than you want to.
Sep 04, 2012 11:55 PM #16
Rainmaker
199,809
Brian Kuhns
Coldwell Banker Roth Wehrly Graber - Fort Wayne, IN
Fort Wayne Real Estate by Brian Kuhns

Great points Denise. I've been guilty of not asking the "pain points" before and it usually doesn't end well, managing expectations of sellers is critical in today's market.  I like your approach to having the seller tell you about.... it knocks down some of the barriers to an open conversation with sellers

Sep 05, 2012 01:26 AM #17
Rainmaker
419,143
Denise Lones
The Lones Group, Inc. - Bellingham, WA
CSP, MIRM, CDEI - Real Estate Coaching & Branding

Thanks to everyone who commented on the post.  It sounds like I really hit a nerve!  Do try using those three words ("Tell me about ...") and see what happens at your next listing appointment.  I really do think you'll find it opens up the conversation in a completely different way.  And don't forget to figure out what those "pain points" are before you take the listing!

Sep 05, 2012 02:18 AM #18
Rainer
178,712
Rosalie Evans
Meritus Group Real Estate - Sioux Falls, SD
The Evans Group, Sioux Falls, SD Homes For Sale

This is a very well deserved feature and you are totally correct on all points herein. When you know the motivation and all the pertainant facts you can better help your client to have a pleasant and uneventful transaction. I will be bookmarking this one for later. 

Sep 05, 2012 02:57 AM #19
Ambassador
1,154,115
Bryan Robertson
Los Altos, CA

This is a very well written article, nice work.  Starting with "Tell me about..." is a very good way to go.  I ask similar questions but not quite that way.  I'll give it a try.  I do quality my sellers, asking about their bottom line, motivation, etc.  If I'm not hearing reality, I seldom move ahead with listing.

 

Sep 05, 2012 03:17 AM #20
Rainmaker
1,225,022
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Whether an agent, LO, or other professional ... we gain business through relationship building.  Should we only establish the "surface" type of relationship, we probably won't get future, repeat business or referrals.  The deeper, the better quality, the more meaningful the relationship established .. the better we increase our chances at success on a professional and personal level.  Your post reminds me that all of that is true ... and that I must slow down and build relationships.  Just not get a deal closed ...

Gene

Sep 05, 2012 05:33 AM #21
Rainmaker
732,645
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Denise,

Great post as always, I will remember "Tell me about".

Sep 05, 2012 04:08 PM #22
Rainmaker
438,907
Debbie Cook
Long & Foster Real Estate, Inc - Silver Spring, MD
Silver Spring and Takoma Park Maryland Real Estate

I always ask Why did you buy this particular house when you were looking to buy a house?  and . . . What are your favorite things about the neighborhood you live in? 

Sep 12, 2012 01:07 AM #23
Rainmaker
419,143
Denise Lones
The Lones Group, Inc. - Bellingham, WA
CSP, MIRM, CDEI - Real Estate Coaching & Branding

Thanks for the comments everyone!  The "tell me about" question definitely helps build rapport, and a relationship, rather than feeling like an interrogation or an interview (and we all know how it feels to be on the receiving end of those!).

Sep 12, 2012 03:47 AM #24
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