There's a never-ending debate in our world about which buyers are worth spending time with... and which are not. Some proclaim that the only buyer business we should pursue is that which will likely lead to a closing within the next 60 days or so; others (myself included) don't 
mind spending time with someone who will probably buy a house someday, even if that someday is 6 months from now or longer.
These debates also usually include passionate discussion into whether or not to require pre-approval or buyer agency before allowing a buyer to "waste" an agent's valuable time.
To each his or her own. I run my business my way; you are free to run yours your way. It's a beautiful country, ain't it?
Anyway, I recently participated in such a debate over at Agents Online (www.agentsonline.net), a forum where I've been a moderator for the last few years. As is typical, my voice (and Perky's) were on one side of the debate, with pretty much everyone else on the other. Frankly, that's why I hang out there - I kinda like the opportunity to soapbox on my philosophies knowing they'll be argued with. And from a mercenary perspective, I've noticed that whenever the debates get hot and heavy, activity in my bookstore picks way up.
But I digress (again). Sorry.
There was a comment made by a participant something along the lines of how his time is much more productively spent on prospecting activities rather than working with buyers. Um... okay. Am I missing something here? Isn't the point of prospecting to bring in buyers (or sellers) to work with?
Okay, to be fair, I think his point was that he'd rather spend time looking for what he considers a "perfect" buyer (one who will buy an expensive property quickly) rather than waste time on someone less motivated and less profitable. That if he spends 3 hours searching for that perfect buyer (or seller) instead of driving around with the imperfect one, it's a better payoff. I get that (I guess, actually, I really don't). But again, it's a choice and I respect that.
Here's my point, though (finally).
Our industry so enthusiastically celebrates the virtues of militarized prospecting that many seem to forget why we're doing all this prospecting. I see this all the time - agents bemoan the fact that they don't have enough business, but in the next breath, complain that the business they do attract with their efforts isn't, basically, good enough. So, they, basically, chase it off. My friend Susan Haughton said it best - "It is astounding how many roadblocks agents put up in front of the prospects they burn up so much shoe leather to obtain."
I have about 5 more blogs on this topic burning a hole on my keyboard, so if you like this one, stand by for more. But for today - the moral of the story is: Unless you are so darn busy with well-qualified, motivated, gotta-have-it-now buyers (or sellers), don't fret if the business you have isn't moving as quickly as your mentors seem to think it should. There ain't nothing wrong with a full pipeline!
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Jennifer, it looks like he was looking for the cream of the crop and easy handouts. He wants them to come knocking on his door. Apparently he doesn't believe in filling the funnel and eventually a client will drop out of the bottom. By using his methodology, I can't see how he will be in this business much longer unless he has a significant other to support him. Thanks for the post.
Jennifer, Hmmm...I have seen some stats that indicate first time home buyers are the majority of active buyers right now. Newsflash: FTHB's are almost never "slam dunk" transactions. But they are loyal and motivated. A pipe full of FTHB's will eventually "pop" big time.
Jennifer,
Good stuff. Many buyers say they are planning to buy in the future, but are using that as a defense against self-serving agents who are on missions to "create buyer urgency" or to "get buyers off the fence."
And when an agent earns their trust, without undue pressure to buy, that future buyer often turns into an immediate buyer.
Jennifer, this reminds me of an office manager/broker I once had. Way back when I was affiliated with another company locally. I had just gotten my license and was very hungry (there's no better motivation). I sat floor duty a lot and a lot of the leads I got were for the city rather than the county near my office. I got lots of sales and I got lots of listings and they sold and settled. The amounts weren't big but they were sales none the less. My broker said to me that I'd have to do some work in the county so I could afford my habit in the city. I could never understand that and still don't. I didn't want to fall all over my fellow agents who were competing for the local area business, I went for the captive audience that was underserved in the city and did very well there. I think the adage is the same with this agent, I'm going to prospect and wait for just the right local client to come along rather than take the lesser valued client somewhere else. I don't see the advantage but oh well!!
Most of my buyers are not looking to buy within the next few months, but they are filling the pipe line for me, and each month a client moves closer to being within that 90 day period.
If I could have a steady stream of 2 clients in each of 1, 2, 3, 4, 5, 6, 7, 8, 9, 10,11, 12 months from buying, I would be a happy camper. Then I could concentrate on filling that 12 month slot as it moves up to 11. All the rest would take care of itself.
Val - I LOVE a full pipeline! And don't worry - by Month 11, you'll be all filled up for the following months if you approach the career with a little more patience than looking for that "ideal" buyer or seller.
June - A new agent recently told me that one of the brokerage firms he interviewed told him not to pursue short sales or FSBO's because they weren't ideal clients. Hmmmm. I've sold hundreds of houses and very few of my clients were "ideal," but they generated paychecks for me, and future business and referrals. Had I cherry-picked the way this broker wants my friend to do, I'd have been a very bored and broke real estate agent.
Mike - that's so true, isn't it??? The agents who participated in the discussion kept saying that if a buyer won't commit to you right away, they aren't worth your time... but I'm positive that all the pressure to commit forced the buyer to protect himself!
Deborah - I worked under this mindset my entire career and truly enjoyed all that popping!!!
Don - well, if you ask the guy, he's so busy he can't see straight. Although I have to wonder how ... nah, never mind, what I want to say would be snarky ;-]
Well, you know I'm on your side along with Karen. Gosh - the "prospector" offended me. I would be appalled if I ever find out that's what he said. People buy at their own right time. If we cannot respect that, then so sad for the little pathetic salesperson.
I had your Ummm Duh response going on in my head as I read this... I personally prospect for buyers! I cant feed my kids with out buyers. Isnt that the point of prospecting. I guess the person preferred listings. But dont you want to sell your listings? a two-fer or two a year would be nice, and would establish you ast the Go-To listing agent in your farm area.
I try to take myself out of the bubble we all live in and look back in, If I were selling my home I wouldnt want a "listing" agent, I want an agent that plans on selling my home...
I do admit that today I am feeling guilty because I have not done enough prospecting this week, so off to prospect I go, have a great weekend.
There really has to be a balance. I have had clients that were total time sucks, looking in a really low price range and unreasonable in their expectations of what they were going to be getting. Even though I'm completely committed to giving people great service no matter how much I stand to make from their purchase, I can't justify 10 hours a week for 6 weeks on someone who is going to give me, at best, about a week's worth of the income I need. My time would have been better spent prospecting for another client.
Your guy went too far one way but it's definitely possible to go too far the other way as well.
Jennifer, I would like to have the crystal ball that tells you which one is the perfect buyer.
Also, if you don't work with the ones buying two years from now what will your sales volume look like two years from now?
I work with a lot of 1st time home buuyers. One of the last ones I worked with took almost 2 years to buy. But if you add all the time up that I spent with them in the 2 years it was probably not mare that 15 hours. If you have apipeline of buyers, you just never know who is going to "pop" Yes, prospect, but you have to meet the people to get the job done. By the way, if you don't work with buyer how do you know when they are going to buy?
Sorry, I was me who wrote the last comment. I didn't realize I wasn't logged in. Just so you know who said it.
I work with buyers all the time, sometimes they buy immediately, the longest one took 3 years. I NEVER and I mean NEVER consider any of them a waste of time. Nearly all of them have referred us because of the caring we give each and every client. It's nice to be able to say that 85% of our business comes from referrals...to a new client. I would much rather work with present clients to generate new ones than spend time doing any thing else...well almost.
Jennifer: Maybe my outlook on new business is a bit different because I'm a lender ... not sure. But increasingly, I wish I had more time to prospect. Closing a loan, even with support help and assistants, is increasingly taking more and more of my own immediate attention and personal action. So many details and so many unique and new problems are occurring within a file these days ... that I find little or any time to look for future business. Prospecting is something I do after all other items are put to rest for the day .... and it's definitely after typical business hours. I am blessed that I have support from staff ... and support from my marketing-educated wife ... or I'd be in real trouble. How in the world other lenders do it without the support ... I have no clue. As far as weeding out the perfect client from the imperfect? I don't. Each deserves my help and attention, unless they prove otherwise down the road. Some of my best and favorite customers/referral sources have been born of "less than perfect" credit and transaction starts. I say ... bring 'em on!
Liked the topic of this post and the chance to express my thoughts ...
Gene
I couldn't agree with you more. I am a firm believer that everyone deserves the exact same amount of time whether they buy or not. No one is ever a waste of time.
My MORNINGS are better spent prospecting so I can dedicate my AFTERNOONS to giving my clients the time they deserve! (But a well qualified and committed client of mine will always get whatever time they need!)
I had a sales trainer tell me one time that there are enough folks ready and willing and able to do business with me now, that I dont have to waste time with anyone else. That was the begining of week long course in prospecting. It sounds like your guy heard this and didnt stay for the rest of the presentation
The rest of the story is this: As you prospect divide your leads into three piles, 1)rejects 2) cherrys and 3)green cherrys.
The cherrys are the folks that are ready willing and able to buy now. The green cherrys are those that will be ready willing and able to buy later. The green cherrys go into the pipeline, or funnel to ripen.
So as I see it we have three jobs to do 1)prospect for folks to put in our pipeline, 2)work that pipeline and 3)sell.
People will only "waste" your time if you let them. I often meet with people who are not ready NOW. Sometimes it is a brief meeting at my office to answer questions or point them to areas that might interest them. Sometimes it is a brief tour of a neighborhood that interests them. I don't consider this a waste of time.
These people appreciate the time I give them. They also appreciate that I am honest with them. I let them know that unless they are ready to close within 45 days then it wouldn't make sense to show them homes. Why fall in love with a home you cannot have? No one has ever disagreed with me on this one.
I like to treat people with respect. They are not prospects or leads. They deserve courtesy and honesty.
Cindy - Absolutely! I will show houses even if someone isn't ready to buy - not on a regular basis, but I think it helps them 1) bond with me and 2) get a better idea of what's really out there and adjust their expectations accordingly. And... every once in awhile, someone gets so excited about a property that they find a way to move up their timeline. But I have no argument with your policy either.
Ron - Good stuff! Although sometimes the green cherries turn red without warning and the cherries just dilly-dally around!
Lisa - Yes! The best source of future business is having satisfied past clients. And you get satisfied past clients by making them your priority during your business together!
Eric - I agree, although sometimes I might sound as if I don't! But every person you work with has the potential to be your biggest source of business, even if they never buy anything!
Gene - I've heard that from so many lenders... I feel for you guys!
D&S - EXACTLY. See my comment to Lisa above!
Lesley - that is a fantastic point. Agents act as if they're spending 8 hours a day for months on end with slow-moving buyers. And that's just not the case. Just because someone is in your pipeline doesn't mean you're spending all your time with them.
Ted - I'm going to comment on your comment separately...
Julia - some people are time-wasters, but I have to wonder how many people truly have all this time of their own to waste? It happens, sure, but for the most part, I believe our clients consider their time very valuable as well.
Robert - Always glad to feed your guilt!
I believe in planting a seed. You never know who that person will talk to or how that contact can branch out to other contacts. It is the rule of 6 in motion. Yes sometimes you feel like nothing more than a set of keys yet even if that person does not buy doesn't mean your professionalism can't win them over enough they tell 3 others who do buy from you and then eventually you get their business as well. If anybody doesn't want a client send them to me LOL!
Was thinking some more about this...
Let's say that the guy who made this comment on the other forum truly does have so much business that he's able to cherry-pick. Let's just say.
That's fine; if that's the case, then sure, cherry-pick away - I'd probably do the same thing.
What bothers me about this "advice" is that newer agents hear it and think it applies to them. They think it's The Way It's Done and don't run it by their guts to see if they really believe it. And... they get into the mindset of chasing perfectly good buyers out the door if they don't measure up, thinking they're doing the right thing...
Amen, John. I feel the same way! Send your 61Day+ buyers my way and I'll be happy to pay a juicy referral fee when they DO eventually buy!
There is a fine balance and everyone has to find the mix but I don't think there is anything wrong with showing someone a house even if you aren't sure they are going to buy today. It's the best way to get to know them, their motivations and create a relationship. Hopefully, if things click between you then they will remember you when the time comes to get serious.
If there isn't an object to the "game" (prospecting), then what's the point of playing?
I am hoping that one agent means that she prospects for the buyers or sellers & 'others' show the homes. Such lofty expectations when there aren't that many deals going around.
Prospecting is great but isn't the GOAL to take a prospect and move him to the client column?
Jennifer, I do know some agents don't like to hold on any prospect for more than 2 months, if they don't buy in the agent's time frame, they will be out. I just don't quite understand, it is not a torture for us to keep in contact with the prospect and see if we can offer further help, is the connection, the trust we have to build with them. When we achieve that, they will become our buyer, I have done that time after time. Don't we all want immediate buyer, but is there anymore out there? Maybe 1 in 1000's, there are buyers and sellers out there, it is up to us how to work it. And also not every buyer is buying big $$$ house, what about those buyers who are buying $ house, they deserve our top service just as much. It is the service we provide, you never know who will give us the biggest referral, it may not be the $$$ buyer.
The only time a buyer becomes a waste is when you have shown them the perfect house and they agree, with the perfect price, and they agree, and they fail to make an offer. To me those types are a waste of time. .It may take 3 or 4 trips to get to that point but once you are there if the buyer balks , Charlie Walks
Jennifer - What a great post! I could not agree more! This business is about building long term relationships and some buyers require more time and effort...I am perfectly okay to give them that! I too will be more than happy to pay a nice referral if someone has too many buyers to work with! ;-) Ha!
Jennifer -- I could not agree with you more and you as well Jeanna. I am relatively new to the business so I certainly do not want to push my potential buyers away. I have learned that although they may not be "ready, willing, and able" to buy today, they will be soon. And they will remain loyal to me, which will bring me referrals in the future. My goal is to build my pipeline.
Okay -- so I uess it shows that I am also new to posting to blogs. My name is .....
Christine Turner, Howard Hanna, Brunswick, OH
Christine & Jeanna - What gets me is this... when I have buyers, I'm excited about them (most of the time). Especially when I was in my first few years, I wouldn't have DREAMED of turning away business for any reason, really. Again, if someone is drowning is perfect buyers and sellers, then fine. But otherwise... seems awfully short-sighted to me.
Charlie Walks... Too cute. Yeah, I'll buy that (or not, as the case may be)
Rita - exactly. How much time does a not-quite-ready buyer really take, anyway? A couple hours a week, tops?
Erica - One would think...
Lyn - that would make sense, but it wasn't the case here.
Edith - Maybe he just likes the game of prospecting, but not the game of actually doing the work?
Christa - That's how I do it...
I am with you 100 percent Jennifer....
Everyone who is not a prospect, now or in the future, may be a lead source...
Jennifer. I rarely work with buyers so this ones easy for me. I only work with buyers that are ready to buy today. BUT..I do have agents to pass the others off to :). No matter how fancy our businesses get real estate is STILL about building lasting relationships. The looky loo today may be a lifetime customer tomorrow.
I know exactly what you are talking about. There is an agent in my office who doesn't seem to want to "waste" time with buyers she feels aren't serious or aren't looking for an expensive enough property and she refers them to me. I'm fine with that and tell her I'd be happy to take any leads off her hands that she does not want. Out of the 4 I've received from her in the last 3 weeks, 2 are under contract, a third is getting ready to write an offer, and the fourth is coming in to town this Sunday to look at homes. Somehow, all of those buyers that she thought weren't serious were ready to buy right now.
Of course I pay her a referral fee, and we will see how long it takes for it to dawn on her that with a little bit of effort she could be getting 100% of those commissions rather than just a 25% referral fee.
I love, love, love a pipeline with something in it! Today, after working with some buyers for 27 months, we found the right house for them and expect to be writing an offer over the weekend. And when it closes, I will love buying lunch for everyone in my office who told me that they would never, ever buy a house from me and I should give up.
Shelley - Fingers crossed for you!!!
Kristen - So interesting... I wonder why she thought they weren't ready... any ideas?
Bryant - Or, could lead you to your biggest client EVER.
Christine - We're just so smart ;-]
Working with buyers that may not buy for a year or so IS prospecting. They are really the same thing. I have sold to their friends and family while the "buyer" was getting ready just because I was available and nice to the future buyer.
Jennifer,
Like always, ya hit 'em out of the park. Bryant said,"The looky loo today may be a lifetime customer tomorrow." and it is very true, plus our business is service oriented, and service oriented businesses also suffer success by word of mouth, as well as thousands of dollars in paid advertising. It isn't a waste of time.
Good service and dedication sells in the ripple effect, regardless of how "hot" the prospect is.
I enjoy working with buyers who are planning on purchasing today, next month or even next year. Though I do take different approaches based upon their timeline. If we are talking about a buyer wanting a home 6 months from now it is not productive for anyone to be showing them homes they are not ready to purchase and may even be counter productive. What if they walk into their dream home now that they are not ready to purchase and six months from now it is no longer available? Now they are fixated on a home they cannot have.
However getting financing ready now for a purchase 6 months from now is something that can be worked on. Time to improve scored if needed etc.
I agree with Bruce. I personaly love the showing aspect of being a realtor. But I do the same with different approaches for different people and situations. For instance, if I know a couple won't be approved for a few months (financial woes that need to be cleared) but I know they are serious buyers, I will show them homes 1 day/month. I don't want them to get too overly excited about a home just to have it bought by someone else but I do want them to understand the process so when they are ready, willing and able, we will be ready to sign.
You know what's funny about all the supportive responses? (and thank you for them!) - someone else could write a featured blog (and has) about how important it is to screen your prospects so that you, God Forbid, don't waste your time with buyers who aren't ready; who will just waste your time and not buy for six months (egads!).
And the supportive comments will pour in for that perspective, too. One of the beautiful things about this forum and this country... there's plenty of room for all of us!
I am so glad I came across your post!
I will spend time with a potential buyer any day over sitting in the office!
I have been lectured to about buyers agency agreements and pre qualification letters, since I started in Real Estate 5 years ago. I lost more buyers to asking for that paperwork before building a relationship, that I stopped asking. I suggest a pre qual letter in this crazy market of course and I explain agency but do not require till we write the contract. Those agents who insist on them are not making many sales! Nor do they have a change of building a trusting relationship.
I enjoyed your post and may even buy a book or two they look like they would be fun to read and full of fantastic suggestions! Thanks
I recently attended a "class" just this past week that the trainer stressed FOUR TIMES to work 75% with sellers and only 25% with buyers. He said that sellers are your paycheck and you won't have to work as hard because someone else will do the work for you. I have a little bit of a problem with trainers telling agents how to NOT have to work. This isn't a business of get-rich-quick-by-doing-nothing. It takes WORK. Something so many people seem to avoid. This is a commission based career for crying out loud! We can't afford to hand pick only the best of the best to work with... or at least I can't!
Thank you so much for sharing! I've enjoyed reading the comments on this topic!
It's fascinating listening to all this as I never have or will be a realtor, just a buyer & seller and I've done lots of that so probably I'm not close to a typical investor.
I met my current realtor who had a listing I was shown by another realtor (newbie). I tried to explain to the newbie she simply couldn't know towns across 40 miles but she couldn't hear me ... need I explain more. Of course what I gained was my new realtor Nancy. About 2-3 wks after I'd met her, I decided to make an offer on a condo.
Yes I negotiated on commission. I found Nancy at her open house. We struck a deal and I delivered ... 1 purchase & 2 sales. 2 of the transactions went through in under 90 days, but the 2nd sale took more than a year because noone realized the market had just stalled back in 2006 (NH, and probably New England slowed down before the rest of the country).
I have never considered time with a buyer to be counter productive, even if they are 6-12 months away from purchasing. I will always take a buyer out to see homes because I consider this to be a time to develop relationships with them and also educate them on the homebuying process. Seeing homes together gives me an insite into my clients that can never be had in an office environment.
Because we handle our buyer clients with such education and care, we have a very high referral rate, and I would much rather work with existing clients and their glowing referrals than go out and prospect for the "ideal buyer".
Joanne, I find it interesting that you say lost buyers as a result of using a Buyer Representation Agreement (BRE). I use the Agreement in my Buyer interview as a trust-building measure. I explain (among other things) that the BRE gives them a heads-up on the buying process since it includes many of the disclosures that they would otherwise not be seeing until ready to make an offer, that it clearly spells out each party's rights and obligations and that it establishes a greater commitment on both our parts to finding the prospective buyer's new home.
I think the worst thing that you can do is fail to treat a prospect with respect. To me, that means that you have to establish and believe in your business practices, based on what you believe to be best for your clients. I don't turn prospects away whether they are ready to buy at this moment or not. I do focus on different aspects with those not ready to buy immediately, emphasizing education about real estate practices, disclosures, financing, etc. This makes the prospect feel engaged, and prepares them for a smoother transaction when they are ready.
I am on your side of the debate.
I'll take and work with the "imperfect" buyers while waiting for that perfect one to come along. The imperfect ones can be your bread and butter, and the perfect one becomes dessert.
I prospect too hard to turn anyone away. If you are a qualified buyer I will work with you.
To me qualified = perfect.
I guess everyone can do what they like...but I love spending time with buyers, regardless of when they might buy. I've bought homes I had no intention of buying....that's how I ended up with a vacation home.
Sounds like this agent was saying he would rather prospect for sellers than work with buyers. I agree with that thinking. Owning the listing is way more profitable
Personally, I think it comes back to motivation. We should be finding out their motivation during the prospecting process. Then we can determine how much time a prospect is worth. If someone is motivated but just not ready yet, they're worth following up with since a follow up call is an easy one to make. If they have no motivation they're really not worth spending much (if any) time on.
Hi Jennifer,
Heh - I read your book - WAYYY back - still have it. I may have to dust it off...
Thanks for the good insights. Locally, what I see is a lot of agents who are REALLY busy, with the clients they attract, who stand little or no chance of buying a house... I personally have chosen to be more selective, have less clients, but in general, most of my clients end up buying or selling.
Am I doing a disservice to the clients I pass on? Maybe. Some of them though, I ask to wait, as the market currently is not good for them - I have had more than one Marine tell me thank you back when they could not get a house for their life. And guess what, they can now...
I think the biggest problem is that many agents use a cannon for prospecting and are not very selective in who they prospect to. So they get a lot of clients they may not want, and don't have the knowledge or insight to re-focus that campaign to something that will generate the leads they need.
Just my 10 cents.
You alwyays want the biggest pipeline you can get. Remember buyers are suspects until they are prospects. Build a list with A,B,C,D and E people with the A list being the most likely to transact in the short term. Every list needs to be touched in a certain way. If you don't have systems in place then this is not possible. Every Realtor needs to start with a small ist and segment then setup a system. Next you go out and get some suspects to add to the systems. Its real easy. Next every day you need to touch people you don't know and work your database.
Fortunately I enjoy working with both buyers and sellers. I think being busy gets you more and more success and if your focus is on helping people your business will grow organically.
Hi Jennifer, I guess I understand the concept here but can't imagine chasing off a potentialclient. Is anyone really that busy. And if they were wouldn't the answer be to hire an assnt or do a referral ?
If someone is part of a team (which I am not) I can see why they might prefer to prospect and let others more adept deal with the actually showing and selling.
All buyers and sellers were once prospects! Patience and asking the right questions will ensure your time is spent wisely.
Ty
I have guidelines I use to qualify a prospect
Buyers
Jennifer,
Good post. That's why they call it "Time Blocking"! I plan my entire day in advance and really TRY to hold to that schedule. I alot time for prospecting, because it's the lifeblood of any sales agent's business. But I also block out time for lead follow up, showing homes, writing contracts, blog posts, exercise, family time, etc.
It's not easy, but it's well worth it.
Jennifer - Around here in Los Angeles and Ventura counties, there are Realtors that will not work with any buyer who is below 400k and who does not have at least 10% to put down on a home with a conventional loan (no FHA or VA) and they will only show them a certain number of properties before they drop them. SERIOUSLY!!!
This Jennifer is why I currently have a pipeline full of pre-approved and highly motivated buyers. While most of my buyers do take longer to get into escrow (as fate would have it, most sellers and REO banks also won't work with FHA/VA buyers with less than 10% cash to put down).
As far as I am concerned, I am so grateful for agents like this because when these bozos agents disrespect all the buyers that don't fit into their mold of what a "valuable prospect" is, these buyers will remember the way they were treated.
I have worked with these exact buyers for eight years now and they are my biggest advocates. Needless to say, when they come to me, they don't get treated like that and I refer them to Realtors who will treat them the way they deserve to be treated. In return, they will refer everyone they know to the people who treated them with respect. So that little 200k FHA buyer turns into another one and another one and another one and so on and so on.
So, in gratitude to all those agents who don't waste their time with certain buyers - THANK YOU VERY MUCH FOR THE BUSINESS!
There are many agents who don't work with Buyers at all, and some work with only Buyers over a certain purchase price. This is not a stupid business decision, it is called working a "niche" in your market. LISTINGS are more lucrative, and are considered the lifeblood of the business.
Making the decision to prospect for business as opposed to working low-end or unmotivated Buyers in my opinion, is one I respect.
Over the years I have become a strong listing agent and worked less and less with buyers. But I'm not stupid enough to throw away potential business in the form of a buyer. As soon as I saw that listings were making the bulk of my business I hired a buyer agent to work buyers.
Yes, the beauty of the business we are in is that we can each do it our own way. I for one love a lead, whether it's a buyer or seller.
I love, love, love a full pipeline! And I find that business begets business, sometimes in mysterious and surprising ways...sometimes well-qualified, motivated buyers end up not getting the job/the transfer/the outcome they expected and plans fall apart, too, so there are no guarantees about even the most qualified of clients.
I love, love, love a full pipeline! And I find that business begets business, sometimes in mysterious and surprising ways...sometimes well-qualified, motivated buyers end up not getting the job/the transfer/the outcome they expected and plans fall apart, too, so there are no guarantees about even the most qualified of clients.
Jennifer,
How wonderful to have a full pipeline! I agree that a buyer should absolutely not be pressured into anything. Advice is great, pressure is bad. However, sometimes there are buyers that I just can not help. what they want and what is available are two completely different things. At some point I tell them that and move on.
Marcy
Hi Jennifer,
Guess I'm not so busy that I can't cultivate my clients and not rush them through such a big decision. I agree with you, a full pipeline is good! Thanks for your post.
I loved the post .Right on time. I will just wait till the Buyers get ready to move on and take a decision.
Thank you
WOW Jennifer, I seriously do not know where to begin! You know that I have been a devotee of your for the 2.5 short years I have been in the business...I agree with everything you say about how to run a business (our politics differ, but that's OK!)
To me, this can all be summed up by the simple Golden Rule. I treat every potential client the way I would want to be treated myself. Against many trainers' directives, I don't "pre-qualify" buyers before I'll put them in my car. I don't make them sign buyer agency agreements before I put them in my car. Heck, I want to see if I like them and can work with them - the buyer agency agreement protects me too!
Many agents would be appalled to hear that I don't prospect. I'm not proud of it (after all, I bought your Savvy Prospector course). It's not that I don't want to, it's because I'm so freaking busy working hard for my current clients that I don't have time. Again, I'm not proud of it, just admitting the truth. I don't know how people do it all.
But....this is working for ME! All of my clients, every single one of them, comments on my work ethic and how much faith/trust they had in me because of it. I didn't ask for their W-2's and pay stubs on the first visit - I trusted. Yes I have been burned a few times, but a precious few.
I don't feel like I've wasted my time. While I was showing houses to a buyer who couldn't buy within 60 days, I was learning more about my market. The more houses I can show, the better. I love going to a party and being able to talk about the neighborhood market. Makes me a magnet at ALL parties. Somehow, everyone wants to talk real estate.
I owe a lot of this to you. I read your books because I found someone (finally) who gets it...be yourself, be the best you can be, stay in touch, be helpful, be there, and the rest will fall in place.
Long story short, you ROCK! You GET IT! Thanks for the post! I agree, to each his own...but for me, my actions with my clients TODAY will get me more business than my prospecting for clients TOMORROW!
Thanks for the great blog. I really needed to hear the part about having a "full pipeline". That's me right now,- lots of "prospects", although I have no one in my car looking for a $500,000+ house. When things get better out there, I'll be ready.
I missed the webinar today again- Spent the day out with my hubbie for the first time in months. Will it be rebroadcast?
Jennifer,
We work a lot with first time buyers, and also fill the pipeline. Then out of the blue you have buyers whihc pop up from your pipeline. Its always good to have a good mix of clients, and various sources of business. I dont think you can be too choosy, except when we are working around the clock nonstop like before April this year.
Keller Williams Realty- Dallas FtWorth Texas- Coppell
Of course I would rather take someone out who is ready to buy that day, but sometimes that isn't the reality of the situation. So, if I spent the time and energy to find these buyers, I will keep working with them until they do buy.
Have to admit that a buyer who is at a low price range and hasn't seen what they want after 3 months of looking is probably starting to lose me money and I need to consider dropping them. Have I yet, no, but stupid is as stupid does. Every business owner has to realize quickly where they are loosing money and eject it or go out of business. Why are we any different?
Thanks for all the great comments. Couple of thoughts...
First, in this particular discussion, it was not a listings versus buyers debate. The agent was happy to work with buyers as long as they fit into his parameters of buying an expensive house quickly. Nor was it a matter of referring leads to a buyer agent or elsewhere; at least, he didn't mention that. Had he described either of these two scenarios, this blog would not be in existence.
And, like Melissa (xoxoxo), I have always found that my very best prospecting method was making my current clients my very top priority... waaaay ahead of any organized prospecting I might have been doing at the time... which was next to nothing because my current and past clients were such a tremendous source of new business, both directly and indirectly. But that's a topic for a different day.
I, like Donne, was always tickled when I ran into buyers (and sellers) who had been treated so dismissively by the other agents they had approached that I seemed like an angel in comparison! It was almost as if these other agents were doing my prospecting FOR me!
Agents who only work with buyers who will purchase within the next 60 to 90 days are overlooking a great source of business--the relocation buyer. I will be closing two properties next month to two sets of relocation buyers. I've been in contact with one set for two years and the other for a year. The great thing about relocation buyers is that they typically don't know anyone in the area so they are super loyal and appreciative of my efforts. With that, of course, comes the long time frame because they start researching and looking way in advance of their move date. I'll take a pipeline of relocation buyers anyday. And in my marketplace, they usually talk their friends and relatives into moving as well.
Jennifer,
Good post. You are a good writer. I might have to get your book.
i agree with you Jennifer - those rich buyers who walk in and buy in one look are gone... You have to work with what you have, even if it is 5 trips and 75 homes. There is little urgency today because there is so much inventory...
Thank you for the blog and encouragement to take care of our clients even if there is a wait time. You never know who they might refer because of the service you have offered. margaret C.
I agree with you for the most part Jennifer. I will work with a Buyer for a long time unless I get the feeling the buyer is really just having fun looking at houses and is probably never going to buy. Then I have a talk with the buyer and set a definite time line. That usually sends the "just lookers" packing.
I absolutely agree with you. I have actually picked up several buyers over the years because other agents blew them off and thought they weren't going to buy. But the fact is some buyers don't have to buy in a certain time frame and prefer to take their time to find their perfect house. My longest buyer took a little over a year and a half to find that dream home. Sure I showed them literally hundreds of houses and probably ended up in the hole when all was said and done. BUT the wife is now my biggest "advertisers" and I have received many many referrals from her which makes the time spent more than worthwhile. I think many agents fail to see the big picture and what can be gained down the road in terms of buyer loyalty and referrals.
I am big on keeping a pipeline going, keeping prospects and working with them until they become buyers or sellers. We have Marketlinx as our MLS and we have a great private client webpage that sends auto updates on new property listings. I also post on my outside blog Boca Raton Real Estate Blog and through Agent Office / Microsoft Outlook send group emails to keep in touch some more - holiday greetings, short notices when I post on my blog. It helps to build their trust in you and it works great.
I look at this as building for your future. The realtionships will build future business if not directly from that contact perhaps from a referral from that contact as a result of the reputation of a being a true professional and go-getter of a person you have demonstrated as being.