You’ve heard some realtors jokingly spout the old cliché, “Buyers are Liars,” right? Sure. It’s not meant as an insult, but more as a cautionary phrase to remind us that Buyers are fickle. They will say they want, for example, three bedrooms one day, and four the next. What I take from that is we should be careful and choosy when it comes to making a buyer your client.
When an agent decides to work with a buyer, do they really prequalify them the way they should? Absolutely not. I am not talking about prequalifying them for a loan. I’m talking about prequalifying them regarding this question: “Are they worth your time… or not?” Most agents, as in almost all agents, do not stop to think about how much time a particular buyer could take up and how that could affect their business in the long run. You see, some buyers are worth every minute you spend with them, and some are not. Mastering the skill of establishing which buyers are worth taking or not is crucial when it comes to success in real estate.
Here are four types of buyers that you always want to take:
- Past Clients/Sphere of Influence
- Any Owner/Seller who wants to Buy
- Buyers wanting to buy one of your listings
- Any Direct Referral
All four of these types of buyers deserve your full attention. Giving as much time to these buyers as needed will deepen relationships with integral people within your business and grow your overall sphere. The growth and strength of your sphere over time is the path to being a multimillion dollar producer. The way you create, maintain and retain the relationships within your business will dictate the level of success you experience. Treat all four of these types of buyers as if they were family. Think of them as your only client, and no one else matters except for them at this moment.
Other than these four types of buyers, what other buyers are in the market? Well, you have internet leads, sign calls, first time buyers, people you meet in public, ad calls, etc. All of these buyers should be immediately recognized as a buyer who needs serious evaluation. Every situation is different. So, there is really no rule or script of questions to follow to determine if they are the type of buyer worth taking or not. The real secret behind mastering this skill is to take lots of buyers and gain experience in this area. That experience will teach you how the process works from start to finish and after going through this time and time again, sooner or later you begin to realize from the second you meet a buyer how the entire deal will go. In other words, with enough experience, you will become a fortune teller about which buyers will be worth your time and which ones will not.
Follow your intuition about what types of buyers to take, and refer the rest of them to another agent who is eager to work with buyers. Find a very dependable agent who doesn’t mind taking all the buyers you decide not to take on. When you refer these buyers out, you still stand a chance of making a referral fee (normally 25% of the gross commission) for doing absolutely nothing. Meanwhile you can get back to work on the dollar productive activities that you feel are worth your time.
Remember, when you take on a buyer (or any other activity that takes up your time), you are taking time away from other activities that make you money. So if you are going to take time away from those guaranteed dollar productive activities, it better be for a good reason.
With experience, you will make wiser decisions with the buyers you decide to work with. It’s okay to work with a buyer who ends up being a bad decision if you learn from the experience. With proper reflection and “lesson-learning,” no time working is time wasted. And with relationship-building in mind, the more time you “waste” on people, the more money you make.
If you have any questions, feel free to reach out to me anytime. I am happy to chat with you. Thanks for reading.
Ricky Carruth, Real Estate Agent and Coach
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