In this article, we’re going to be discussing one of the essential skills you must possess if you’re going to be successful in this real estate (or any other) business. When you master this skill, you’ll be MUCH more efficient with your time, reduce frustration & anxiety, and keep your self-respect and motivation. Sound good?
Of Course, I’m Talking About How To Properly Pre-screen People.
We all know that the first thing we need in any business is LEADS - People who have raised their hands to signal that they’re interested in either our product or service...or are at least interested in getting more information about it. In real estate, this could simply be a list of people who either want to sell their house or buy a house.
There are many sources for these leads - you can either find, buy, or create them...but that’s a topic for another article. For now, we’ll just assume that you already have several leads, and you just need to find out if you can do business together.
And this is where a LOT of people have challenges. The problem is that most people mistakenly believe that they have to convince people to do business with them! However, nothing could be further from the truth. I’ll let you in on a little secret...
The truth of the matter is that we’re not going to convince anyone of anything. Instead, it’s our job to sift and sort everyone we talk to so that we correctly identify only those people who are flexible and motivated enough to consider other ways of getting things done...And whack the rest at lightning speed! But in order to do that, we need to know:
Did you know that there are only three types of people? Well, of course there are many more than that, but for our intents & purposes, we need to only concern ourselves with these three:
You know the type. These are the sellers who ONLY want full price, all cash, and don’t even want to think about anything else. These people will waste your time, suck all the life & motivation out of you, and almost make you want to quit. Unfortunately, these are going to be the majority of people you talk to.
How To Identify Them:? ???Someone in this category would say something like “Oh, we wouldn’t do anything like that,” “We don’t need to sell,” or “Yeah, we’re just testing the market to see what people are willing to pay."
How To Deal With Them: Identify early & get out fast. OPTIONALLY: If you had a good conversation & think there may be a reason to follow up later, you can send them some information (or use the Fast Offer Generator) and follow up in a few weeks if you like.
Look, if you were to continue trying to "sell" them on why they should sell their house to you with owner financing, on terms, or on a lease purchase, you're wasting your time!! If you were selling anything else, this would be like trying to shove your product or service down the throat of someone who's not in the market to buy what you have, or is not qualified to do so, or can't afford it, etc. For example, if you sold women's shoes, it would be like you trying to sell a pair of fashionable pumps to a straight man with no wife and no kids (and no, he doesn't dress "funny" on the weekends). In other words, he's NOT qualified nor interested. So don't waste your time!
Got it? Good, now let's look at the exact opposite...
2. The Fully-Motivated, Qualified, and Interested PROSPECT:
These are God’s gift! The "low-hanging fruit," as Ron likes to say. This person is a total lay-down, ready for your solution...and desperate for what you can do to help them. Just treat them right and move fast.
How To Identify Them: You’ll know them when they say things like “We’ve got to sell, like, yesterday,” “I don’t know what else to do,” and “Please just make me an offer!”
How To Deal With Them: Recognize WHAT they need and HOW to give it to them. Make an appointment to go out to see them as quickly as possible - with a contract in hand, ready to go, because the first one there with a workable solution gets the deal!
Listen, THESE are the deals we're looking for! And you'd better have your act together, because these situations are rare - they don't come up often, especially in a hot seller's market. They're definitely out there, but not as often as we'd like. So when you find someone like this, GO out there and GET IT! Okee-dokey?
The next one is kind of what like a wife will give her husband to do over the weekend...
3. The Somewhat-Motivated & Qualified, But Not-Quite-Ready PROJECT:
These people need your help...they just may not know it yet. In order to best serve them, you’ll need to have your skills sharpened and ready, because they’ll test you.Think about them as being PROSPECTS that just need a little more work & skill to be able to turn them into deals, ok?
How To Identify Them: These people say things like, “I don’t know what to do,” “How does that work?” and “How can you help me?” But - get this - they may also say things like, "Let me think about it," "Let me talk to my wife/husband," and "Sounds interesting...Can you send me some more information?"
How To Deal With Them: Use the right psychology & sales tactics to help them understand that they need your solutions. Don't beg! Sharpen your sales skills. You’ll probably need to follow up. Scratch that - you'll definitely need to follow up!
One of Your First Goals/Missions: Get them to make you the offer by asking questions. Yes, I'm referring to "The Million Dollar Script." (This refers to "The Big 3," Price, Down payment, and monthly payment. Get intimately familiar with that. You can learn/practice that by using the Closing Call Script.
Why Is It Important To Know The Difference Between These Three?
Because the SUSPECT will make you BROKE...
The PROSPECT will make you MONEY...
But the PROJECT? They can make you RICH!
Let me explain.
If all you ever talk to and deal with are suspects, you’re going to get frustrated, start to think that this business doesn’t work, and want to punch someone (it's true).
Real Prospects are great, but like a needle in a haystack, they’re usually a lot harder to find. Projects are the ones who will truly make you rich, because you’re not only able to add value to these people’s lives, you’ll do more deals, because the competition is not skilled enough to handle them.
These people will truly justify the investment in your education, many times over.
Ask me how I know this.
It’s actually very simple to effectively prescreen the leads you talk to. The method is so simple, you’ll be tempted to just blow it off or take it for granted, but that would be a mistake, believe me.
Here it is: The best way to prescreen people is to ask them the right questions.
Obviously, you need to get the right information about their house & their situation, determine what their needs and greeds are, and to gauge their levels of flexibility and motivation.
But like anything else, there’s a right way and a wrong way to do it...
The wrong way would be to interrogate them like a handcuffed suspect accused of committing a crime. You don’t just go from question to question, forcefully extracting information from them, because it won’t be long before they resent and resist you.
The right way means that you should first frame the conversation properly so that they understand the context of your questions. You should also skillfully and respectfully converse with them to find out what you need in order to determine which of the 3 categories they belong. You'll need to use the right vocal tonality and body language, while giving them the right feedback thru active listening.
The right way also means that you’re open, honest, and confident about what you’re able to do for them.
The Bottom Line is This: ONLY after you’ve gotten the right information (also known as qualifying or gathering intelligence) you need to know do you present a possible solution to their situation. Stop wasting your time trying to convince people about how smart you are or all the creative real estate techniques you just learned this week. Nobody cares. All they truly care about is what you can DO for them. We’ll talk about how to best present your solutions in another article.
So there you have it! You now know the importance of the art of prescreening people, what the 3 categories are (Suspect, Prospect, and Project), how to determine who belongs where, and why. You also learned what to do with people in each category.
Armed with this information, you’ll save yourself a TON of time and frustration, because you’ll only be dealing with qualified people who want to do business with you, while the rest will most likely drive your competition crazy when they talk to them.
Until Next Time,
Copyright 2017-19 Tony Pearl | All Rights Reserved
BIO: Tony Pearl is a writer, speaker, copywriter, mentor, marketer, coach, musician, poet, ballroom dance instructor, world traveler, father, fiance, internet marketer, voiceover artist, and real estate investor. He’s also a Politically-Incorrect Insomniac with ADHD who specializes in adding massive value to people’s lives by helping them overcome limiting beliefs, have more fun, and make more money while improving lifestyles through investing in real estate!