In the current market, you're more likely to hear from buyers than sellers. So when a buyer calls, it can be an interesting conversation, but most often, it starts with wanting to see a house they've found. And while it's great to have a client, you must quaify them to make sure they actually are able to buy, so you don't waste your time, nor theirs.
You will get calls for showings from buyers that have no money for a down payment, bad credit that will prevent them from getting a loan, or are just hoping for a rent-to-own situation. Unless you know how to qualify them, you're going to end up wasting a lot of time on buyers who aren't actually able to purchase.
A buyer can be looking today for a home they hope to find 'someday'. They may not even know when that someday is. They may not even know what they can afford. They may not understand financing, a down payment, or what an HOA is. They often don't understand the process, or the legal requirements of buying real estate. Some believe that they just pick out the house and you get them financing and they move in when you're done making it all happen for them.
And of course, I'm sure you've heard the phrase, "buyers are liars," a sometimes true statement that reflects this relationship of awkward randomness and 'forgot to mention' details that often accompany buyers.
For all of these reasons, it's not only important to qualify buyers to know if they can buy, it's equally important to educate them on the buying process so they will be cooperative and easy to work with. It's in their best interest to know what to expect so that they are ready to quickly move forward when it's time to buy.
So what is the proper way to handle buyers when they call? It depends... as always.
When and how do you qualify buyers?
Very often you will first meet a buyer when they contact you to request to see a specific home. This is where you make a decision.
While option #1 is the easiest, the better option is #2, but it can be a very awkward process. Most agents don't know how to do the buyer interview, and they fear losing a buyer because of it. But, without this, you can waste a lot of time. While you may enjoy showing homes, and it is part of the business, the reality is that it's a huge time waster if your buyer isn't really ready and able to buy right now.
As agents get more experienced, and burned out from buyers, they will often become more rigid with option two, the required interview. In fact, some agents have a calendar scheduler on their website where new buyers are required to schedule a phone call or meeting with the agent to discuss their needs. Some agents feel this is more professional and weeds out buyers who are flaky or not willing to sign a buyers agent agreement.
And right now, there are way more buyers than sellers, so some experienced agents are not worried about losing some that could be hard to work with or not up front with their finances, etc.
Option 3 for the win
As a new agent, I suggest meeting as many people as you can. You will get better at the people side of business and you'll get better at interviewing them. And you can use all the experience you can get. It's how you improve.
Many agents, instead, do a combination of both of these options. In reality, you must interview the buyers, but many buyers will resist because they are worried about not knowing you yet. And they'll call anyone else to see the house if they feel push back.
The result is a hybrid model where we ask a few questions before we show the home and then we build rapport while we show the home. Then, if it feels like this buyer is serious, we'll do a more in depth interview, which by the way, just means, we're going to make sure they CAN buy.
If the home you show is something they really want to make an offer on, then we need to get all these details now. But, if the home doesn't quite fit, then we can go find a place to talk further now, or schedule a time to go deeper so you can research and find more homes for them.
Quick Interview
When you get a call from a buyer interested in a house, this is your first chance to bond, and get to know them. You'll want to ask them several questions, schedule the showing, and then let them know that you be able to help them further after you learn more about their search.
The first questions you'll ask a buyer are some basic questions, and while these are simple, you'll need to practice them, because they can feel very intimidating.
Here are some quick questions for your first call with buyers:
You can add a few more if thy are open, or you can ask these when you meet them to show the home:
These questions will help you learn if your buyers are ready and able to buy. If they aren't in a place where they can buy, it's best to save yourself from wasting time. You can refer them to someone who can help them get qualified, or keep them in the loop with your email newsletter and when they are ready and able, you'll be better able to help them.
The more you learn to qualify buyers confidently, the happier you'll be and your clients will actually thank you for helping them.
When you have your formal time together to ask deeper questions, especially if you're might be putting in an offer, you'll also want to explain the process and steps to come... aceptance or counter offer, deposit/EMD, inspection, appraisal, etc.
You'll want to make sure that they are ready to move quickly with each step as time is of the essence. This means that any delay can damage the deal, causing it to fall apart, including losing the deposit.
Once you've asked your questions and explained the process, you're ready to start showing homes with your buyer and hopefully putting in an offer.
