As a real estate agent, finding new real estate clients can be a tough job. Working on a commission basis means that the amount of money you make depends on your potential buyer’s ability and willingness to buy a home. There is no need to spend a lot of your energy and time meeting potential buyers and showing them properties, only to realize that most of them have no intention of buying. Therefore, it’s crucial for any realtor to know how to properly qualify buyer leads.
Related: 10 of the Worst Real Estate Lead Generation Mistakes to Avoid
The purpose of real estate lead qualification is to help you know if a lead could become a client. If you don’t qualify potential buyers to know if they are worth your time, energy, and money, you’ll end up frustrated. Your time is valuable and using it on the wrong real estate buyer leads will limit the time you spend on leads that will actually bring you a commission check. You should be selective in who you choose to work with. So, how do you know whether buyer leads are ready to make a move?
Here are 5 signs to watch out for:
1. They Are Pre-Approved by a Lender
When qualifying real estate leads, one of the most important factors to take into consideration is their financial ability to complete the purchase. Most buyer leads will need some form of mortgage to finance their purchase. If they understand the financing process and have a pre-approval letter, it shows that they are serious about buying and can finance the purchase. They know where they stand with their finances and will be ready to make a move when a good opportunity comes along.
If they have not spoken to a lender yet, encourage them to get a pre-approval letter. You can refer them to mortgage lenders you prefer so that they get approved for a mortgage loan. There is no point in spending your time serving buyer leads with no proof of funds. They might not even be aware of what they can afford and what they can’t. Don’t waste your time and energy if the lead can’t afford to purchase the property they are interested in. However, with a pre-approval letter, you can show them real estate properties within the price range they can afford.
2. They Have a Reasonable Timeline
Another sign that buyer leads are ready to make a move is their sense of urgency. How soon do they want to buy a home? Are they waiting to first sell their current house before making the new purchase? How long have they been searching? Are they ready to move forward immediately if you find an ideal home? Such questions will help you determine if they are motivated to buy a home now.
Quality real estate leads will have a reasonable timeline in mind. You don’t want to work with real estate buyer leads that are still unsure of when to buy a home or don’t have an urgent reason to buy. Such leads are likely to be a waste of time. The sooner the lead needs to move in, the more likely they are to make a move now or in the near future.
Depending on where they are in the sales cycle, you will be able to assess buyer urgency and how patient you might need to be before you get a commission check. If they have been shopping for a home for a while, they are likely to close the deal faster if you help them find an ideal house. If you have just met them on the internet and they are commencing their home buying process, you need to find a way to keep in touch with them until they are ready.
Related: Real Estate Assignment of Contract Explained
3. They Know What They Want
Quality real estate leads will give you detailed information about the type of property they are looking for. They will have specific requirements for their ideal home including the neighborhood, property type, type of flooring, number of bathrooms/bedrooms, and other features. This shows that they are motivated and have done their research even before contacting you. It will also make your job of finding their ideal property much easier.
Related: 6 Must-Ask Questions to Identify Qualified Leads in Real Estate
4. Mashboard Qualifies Them
A good way to avoid wasting time with unqualified buyer leads is to use technology. Mashboard, one of the best tools for real estate agents, can help you qualify buyer leads for real estate agents even without asking questions.
Mashboard
The AI lead qualification uses data and analytics to promptly and accurately qualify real estate leads. If the lead is added on Mashboard, you can instantly get all the data you need such as financing, budget, and more. With our lead likelihood algorithm, you can automatically tell if a lead is ready to buy an investment property or home and take guessing out of qualifying. This is the most efficient way to find the best real estate buyer leads in the US housing market.
Related: How to Use Predictive Analytics as a Real Estate Agent in 2020
5. They Are Willing to Schedule an Appointment Without Delay
Another way to find out if buyer leads are committed is to arrange an in-person meeting with them. Ask for a specific place and time to meet with them so that you can finalize the arrangement. An appointment is best left for last when you already have a clear picture of the potential buyer’s situation.
Quality real estate leads will schedule an appointment as soon as possible. It shows that they have a sense of urgency and will be the ultimate sign that the lead is ready to make a move. Buyer leads that are not willing to meet you in person within a reasonable period are unlikely to make a move in the market any time soon.
The Bottom Line
As a real estate agent, you don’t want to waste time with leads that won’t buy property now. Your objective should always be to convert buyer leads into real estate clients that will earn you income as fast as possible. These 5 signs will give you a clear picture of the situation of a lead and help you know if they intend to make a purchase now before you invest much of your time and energy in serving them.
One important thing to remember: When we say “don’t waste your time”, we mean don’t interact with them in ways that you would with someone who is ready to buy. Instead, make sure to help move the leads through your sales funnel. If someone doesn’t have a timeline, perhaps add them to an email campaign rather than continuing to follow-up with calls. Be sure to nurture leads. When they are ready, you’ll hopefully be the one they turn to.
Need help with lead qualification? Check out Mashvisor’s lead qualification tool here or schedule a demo and learn about it first hand.