Property ManagementAsk Your Buyer the Right Questions
One of the most important time savers when qualifying a prospective buyer is
asking the right questions. If you ask the right questions, you can pinpoint
the best way to help your buyer meet his/her goals as well as save yourself and
your buyer time, trouble and frustration.
As an agent, your most important product is your time. If you don"t ask the
right questions, you could find yourself wasting valuable time which will only
lower your productivity. The more efficiently you can make your time work for
you, the higher your earnings per hour will be. Asking the right questions can
help you do this.
Questions are meant to gain information. One question should naturally lead
to another. At times, it may seem that questions open up too many avenues of
exploration, but you need the answers to each question in order to proceed with
helping your buyer. Remember, your goal is to not only help your buyer, but to
protect and improve your productivity.
Start with as many open-ended questions as possible to encourage your buyer
to talk.
1. How did you hear about my services?
You need to know which advertising mediums are paying off for you as well
as the types of media. It would even be helpful if you kept a record of
responses, so you could get a percentage at the end of the year. Then you will
know if you are getting more response from your relocation ads, your buyer"s
agency ads, or your listing ads. This will help you in planning next year"s
advertising budget.
If your buyer heard about you through a referral, you"ll be glad you asked
this question because you can thank the person who recommended your services.
If the referring customer or associate never hears back from you, s/he might
think twice before referring business your way again. Make a note to thank the
referring contact immediately after your buyer"s interview.
2. Why are you moving?
Your buyer"s motivations not only reveal the kind of home they want, but
their level of urgency. A transferee may need a home immediately, or have a
home to sell. A newlywed couple"s apartment lease may be expiring. A couple may
have learned that they are expecting their first child. A single parent may
want to move to a different school district before school begins again. Your
questions can then go toward, "Do you need more space?" "What kind of a home
are you considering?" "Are you considering a house with a yard?" "Have you
decided which school district you prefer?"
3. Will this be your first home?
This question helps you ascertain your buyer"s experience and education
about the home buying process. You can then follow a natural course of
questions including, "Have you spoken with a lender?" "Have you been
pre-qualified for a loan?" You can then share with your buyer the importance of
getting pre-qualified and how that process will serve as an advantage in
dealing with sellers.
4. How much are you planning to spend?
According to Joe Klock, real estate
columnist, this question isn"t so important as it"s follow-up - "Why did you
decide on that amount?" "Their answer might reveal a flaw in their strategy,"
says Klock, " usually a low-ball goal, based on wishful thinking,
misinformation, or both.
A good way to test their resolve in this area is to further ask, "If you found
something you really liked that cost a little more, would you consider it?"
"If the reply is "yes," or even "maybe" (same answer, really), you"ve
widened the field of search and increased your chances of satisfying the
customer - objectives that the first question alone would not accomplish," says
Klock.
5. Have you looked at homes on your own yet?
Buyers may reveal that they have looked at homes on the Internet, driven a
certain neighborhood, or attended a few open houses. Make sure that they signed
no representation agreement with another agent, if they attended open houses.
You can follow up with, "Did you see any homes you liked?" "Have you chosen a
neighborhood?" "Do you like the Internet?" You can then tell your buyer that
once you establish the criteria for their home search, you can arrange to email
new listings to them from your MLS or one of the large national listings sites.
6. How do you prefer that we communicate?
Having a menu of communications to offer the buyer really makes him/her
think you are a technological wonder. Ask how often the buyer checks email - if
the answer is once a week, that clearly won"t be an option. Ask if calling the
office is acceptable. If you are dealing with a couple, ask which person they
prefer to be contacted. Tell your buyer how often you plan to communicate and
by using which means - phone, pager, fax, email, voice mail.
7. How would you like me to represent you?
In most communities today, agents still represent the seller unless the
buyer chooses to have an advocate, but few buyers understand that they also
have a choice in agency. Even if you live in a community which does not require
agency disclosure, the ethical thing to do is to explain to your buyer what
options are open to him. Some areas offer transactional agency, in which
neither party in the transaction has an advocate. Other areas offer designated
agency, in which the broker does not represent either party, but agents within
the office can be designated to represent the buyer or the seller. Your area
may offer dual agency or even single agency, but without a signed
representation agreement, your buyer may not realize that you could still
represent the seller, even while showing your buyer homes. Your buyer needs to
understand that an agreement, whether it is for a period of time, for certain
homes, or for one home only, is in his best interest. Ask, "Would you be
willing to sign a buyer"s representation agreement?"
8. Learn to review your progress with questions.
Have you ever worked with a buyer who seemed open to buying, yet could not
make a decision after viewing dozens of homes? Learn to evaluate after showings
to redefine the type of home your buyer wants, and to assure yourself that you
still have a motivated buyer. Asking more questions could reveal a hesitation
or roadblock that could be keeping a transaction from happening. Objections can
be opportunities to close, but too many objections, especially contradictory
ones, may mean a lack of sudden problem on your buyer"s part. Sometimes, with a
little prodding, a client will share with you a fear or change of heart. When
you know what you are dealing with, you can choose the appropriate course of
action.