If you’re like I was earlier in my career, you’re probably asking yourself what questions you should be asking prospects in order to make the most effective use of your time. Have you ever been in a situation where somebody calls you to see a home, but they aren’t ready to buy yet? Wouldn’t that be better to know up front? Wouldn’t it also be better to know exactly what they’re looking for before you start showing houses?
If you have these types of conversations upfront, you’ll have a much more effective relationship with your clients and you’ll use your time most effectively with buyers who are serious. When I was struggling with this, I created a tool for our agents to memorize and keep so that they can get to the “good stuff” quickly when it comes to prospecting with buyers.
It’s an acronym that’s easy to remember: LPMAMA. I’ll go through each letter and explain how it fits the bigger picture:
Location. That’s an easy one. Ask them where they want to live and understand why they want to live there. This shows tremendous value to a prospect.
Price. You want to know what price range they’re looking in so they stay on track. The reality is that there’s no point in looking at a million dollar house when their budget is $500,000. As an expert, you already know that and can relay that to the buyer.
Motivation. You want to know how quickly the buyer needs to get into the next home. An “A” client is looking to buy in the next 30 days, a “B” client is someone who has a time frame of 30 to 60 days, and a “C” client is any buyer who is 90 days or more out from buying a home. Knowing the buyer’s time frame will help you put the right plan and strategy into place so there are minimal hiccups.
Agent. Make sure you know whether or not a buyer is already working with an agent or has already signed a buyer agency contract. Having this conversation upfront will save you a lot of time and heartache.
Mortgage. You and the buyer both need to know exactly what they are approved for and what their spending power is. In this day and age, if a buyer doesn’t have a preapproval upfront, it could cost them the home they really want. A pre-approval will absolutely be to their benefit.
Appointment. This is an easy one but people often forget it. The flow of your conversation with each potential buyer should end with setting an appointment.
This is a great way to dictate the flow of the conversations you’re already having. I encourage you to do the same thing. If you have any other questions about this subject or anything else related to the real estate business, don’t hesitate to reach out and give me a call or send me an email. I look forward to hearing from you soon.