Closing a deal on an investment property or even a home may actually be harder than you think. This is due to the fact that such real estate deals depend greatly on the various parties involved. It all comes down to lead qualification.
As a real estate agent, you should be able to determine whether a property buyer or seller is serious- whether they meet the lead qualification criteria or not. This is key to successful real estate deals and making money as a real estate agent. In order to make your life a bit easier, we have listed major signs that can help you determine if the property seller/ buyer is not ready to make a move.
Signs a Property Buyer Is Not Serious
Sign #1: Just Starting the Journey
It takes around three months on average for property buyers to purchase a home. The reason behind this is pretty simple. Buying a home or investing in real estate for the first time is a huge financial investment. Therefore, property buyers should carefully as well as calmly decide whether or not buying a specific property is the right choice.
If a buyer lead has just started searching for a possible property, it is likely that he/she will not proceed with the first property you show. A property buyer typically wants to make a well-informed decision and to review all the possible options. When buyers have done some basic research and started their search, that is when they move from being leads to qualified leads. Therefore, focus more on real estate clients that have been searching for a property for some time.
So, how to qualify leads in this step? Pretty easy- successful real estate agents detect the quality of leads simply with effective communication. In order to start making money as a real estate agent, ask the right questions to select quality leads and close real estate deals.
Learn More: 6 Must-Ask Questions to Identify Qualified Leads in Real Estate
Do not forget that Mashvisor can help real estate agents in the process of finding qualified leads. We work with real estate investors who have searched for property on our platform and are ready to buy. They want to be connected with agents. To learn more about Mashvisor’s lead generation program, schedule a demo.
Sign #2: Working with More Than One Agent
Another sign that the property buyer is not serious is that he/she is in touch with several agents. Usually, property buyers do not have to pay a penny to their real estate agents upfront since these professionals work on commission. Consequently, when a property buyer is looking for a property to purchase, they might bet on several agents. You’ll be competing with other real estate agents in your market. This means that the prospect of you closing a deal will drop.
If the property buyer is in the stage of going through many real estate agents, it’s likely that he/she is not yet serious about buying a property. You don’t want to work with a property buyer who isn’t serious enough to put their trust in one agent just yet. Finding this piece of information out should be an early step in your buyer lead qualification process.
Sign #3: Not Yet Pre-Approved
If a property buyer is not planning to pay the whole sum in cash, then getting pre-approved for a mortgage loan will be a necessary first step. With pre-approval, property buyers can know exactly how much they can afford to spend on a property. This, in turn, makes for a much more realistic real estate lead who can be taken seriously by both sellers and agents.
Also, getting pre-approved is quick and easy. Consequently, there is no reason to skip this step of the process if a buyer is serious about moving forward.
Working more with real estate clients that are pre-approved for a mortgage is the right way to go. Keep in mind that without pre-approval, a property buyer can’t move through the lead qualification process. You have to be sure that they have their property financing in order. Otherwise, they may turn out to be a dead-end lead (for now).
Related: 10 of the Worst Real Estate Lead Generation Mistakes to Avoid
Signs a Property Seller Is Not Serious
Sign #1: Asking for an Unrealistically High Price
The first sign is asking an unrealistic price for the property. There might be a few reasons why seller leads are asking high prices for their properties. It might be just the fact that the seller has an over-inflated idea of how much his/her house costs. However, it can also be the case that the property seller is just not ready to sell the property yet. Agents should be able to assess the situation and act accordingly. If this sign goes hand in hand with the next one, this seller is not serious at all.
Sign #2: Refuses to Negotiate
When the asked price is much higher than the market value of the property, property buyers and their agents expect room for negotiation. In most cases, sellers accept the negotiation phase. Yet, if it comes to the point that the property seller will not budge on the price, this could mean that the seller is just not serious about selling the property.
If educating the seller lead on why the price doesn’t make any sense fails, then there may be no point in spending a lot of time with this lead. Our advice is to simply focus your energy on another property seller who is more realistic or flexible on the asking price. Otherwise, you may just waste your time and lose out on better-qualified leads.
Related: Tips for Real Estate Agents: How to Deal with a Difficult Client
Sign #3: Makes No Effort to Present the Property in the Best Possible Light
Most sellers want a homebuyer to fall in love with the property at first sight. However, when the real estate agent encounters a mess in a house, it might mean only one thing for lead qualification- the seller is not ready to actually let go of the property. If even after some advice on how to present the property, the seller still makes no effort, you shouldn’t spend more time on this lead right now.
It sounds drastic, but if a property seller won’t take the time to clean up or even make seriously needed repairs to a house, it’s likely they aren’t ready to even enter the real estate market yet. And showing a property like that could hurt the reputation of your real estate business. Make sure you see the property you’re going to be selling early in the lead qualification process.
Final Words on Lead Qualification
When it comes to lead qualification, there are signs that point to the fact that buyers and sellers may not be ready to work seriously with an agent yet. Keep an eye out for these signs.
And remember: just because a lead doesn’t pass your lead qualification criteria initially, it doesn’t mean they should be abandoned completely. It just means you will have to adjust your tactics and nurture them in different ways until they are ready. In the meantime, you can move onto more qualified real estate leads and start closing deals.
Need help with lead qualification and generation? Check out Mashvisor’s lead generation program here or schedule a demo and learn about it first hand.
