Turning a potential buyer into your client can be challenging for many real estate agents. If a potential buyer calls you on the phone or walks through your door, do you have a system in place to qualify the buyer before you show them homes for sale?

To effectively convert potential buyers into clients, put yourself in your prospect’s mind. When they call you up or walk through your door, they have a number of questions on their mind: What should I expect from the agent? What homes will he show me? What forms will I be expected to fill out? What types of questions will I be asked? Above all else, they expect to receive a sales pitch about your services, so their initial resistance is high.

From your perspective, you don’t want to waste your time showing homes to unqualified or defensive buyers, so here are a few tips for improving your presentation and building rapport during the home showing process.

1 – Make a good first impression

When you first greet buyers, make sure you are smiling and look professional. First impressions matter.

2 – Educate the potential buyer about the home buying process

If a potential buyer is already in your office, then you can easily take a few minutes to ask them about their home buying needs and provide them with a brief overview of how you work. If they are calling you, it is best to ask them to come to your office for a few minutes before you spend time looking at homes.

3 – Qualify buyers by asking questions about their home search

Before you take buyers out to search for homes, find out if they are both ready to buy and have the means to do so. Ask them questions about:

  • Their ideal home – What area is it in? What features and amenities are they looking for? How long have they been searching for a home? What have they been doing to find potential homes? What price range are they looking at?
  • Their financial situation – Have they spoken with a lender? Do they need to sell their home before buying a new one?
  • Making a purchasing decision – Have they ever purchased a home before – and if so, how long ago was that? Who is involved in making a buying decision?
  • Their readiness to buy – Are they prepared to move forward if they find a home that meets their criteria?
  • Working with a real estate agent – Are they currently working with another agent? What are their criteria for hiring an agent? Do they have any questions about the home buying process?

4 – Decide whether to help the potential buyer

What happens if a buyer isn’t yet qualified? You can either refer them to another agent in your office (and potentially get paid if they buy in the future) or turn them away. It is up to you to set up criteria for whom you will take on as a client. Sometimes it is best to turn prospects away if they don’t meet those criteria – or ask them to postpone their real estate search until they are both ready to buy and can do so. If you do decide to refer business to another agent, put the referral agreement in writing – and make sure the agent to whom you refer business is professional and will communicate promptly with clients.

5 – Present an overview of the buying process

After you’ve decided to work with a potential buyer, give them a short presentation on the home buying process, including a basic timeframe, financing options, how to search for and visit homes, how to choose the best home, how to negotiate the best terms, how to present the offer, and how to open escrow. The home search process can be a stressful and overwhelming time for buyers, so clearly explain it in a simple, easy-to-understand format.

6 – Sign a buyer representation agreement

Finally, at the end of your buying process overview, present buyers with a written buyer representation agreement that states they agree to work solely with you as their real estate agent. If the “fee” is an issue, clearly explain how that fee is almost always covered by the seller and in most cases, no fees are due at closing. By having buyers sign an agreement, you ensure you will get paid for your services.

By taking time initially to qualify buyers and getting them to sign your representation agreement, you will work with only those buyers who can buy, are ready to do so in the near future, and will be loyal to you.

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