You would be surprised to know how many Realtors don’t know the difference between a hot lead, a warm lead or a cold lead. So I am here to help clarify for you how to determine which lead is which. Below is a definition of each kind of lead.
What is a Hot Lead?
A hot lead simply is one that is ready to do something NOW! This person or persons are ready to buy or sell a home within the next 30 days or whenever they find the right home. They are pre-approved or have the cash and they are motivated to take action right away.
What is a Warm Lead?
A warm lead is someone who might be just starting to look online and driving around neighborhoods to see what is out there. They may have a date of 6 months or a year before buying due to finances getting arranged or they may be relocating to your area, but are not quite ready to jump into buying at this moment. The definitely do have a near future plan to buy or sell a property due to an important need.
What is a Cold Lead?
A cold lead can sometimes be difficult to distinguish. So let me give you an example of what a cold lead looks like. A prospect calls in on your sign and requests a showing. Excited to sell your listing, you make the appointment and rush out to show them.
Once at the property, you start questioning them as to why they called and if this home meets their criteria. You find out they just wanted to see the inside of the property as they live down the street and always wanted to see this home. They also share with you that they always want to know what is going on in their neighborhood as they might want to sell someday, but not for several years since he is 10 years from retirement. In essence they are only wanting to snoop into the neighbor’s home and have no intention of selling or buying in the near future.
Another example would be that you make the appointment to show your listing and then once at the property you find out they are working with another agent. So discouraging!
Analyze YOur Leads
Now, let’s go back now and further analyze the difference between the leads and how to avoid wasting your time and other’s time as well.
The first thing you should always do when someone calls in on your listing is to ask qualifying questions.
Remember one big common denominator that is critical for you to determine with the buying and selling public and that is motivation. Without motivation to make a change, you will never get a sale. A buyer or seller who is just kicking around the idea of selling or purchasing a property might seem like a lead, but if there is nothing really driving them to make a decision, they are not ready to make a move and just wasting your time.
How do you determine MOTIVATION?
The most effective way for you to find out a potential client’s motivation is to do a consultation with them based on whether they are buying or selling or at the least ask effective, qualifying questions when they call in requesting information as stated above.
Here are 3 qualifying questions to ask on a call-in:
1. What is your time frame to purchase a home?
2. Do you need help getting financing or are you paying cash?
3. Are you currently working with an agent and will you be using that agent to purchase? (Do this question last)
Call-In Buyer Lead Script
If you can’t get past the first question with an affirmative answer of a time frame within 6 months to a year, this will have the makings of a cold lead. In other words if they say, “I don’t know what our time frame is” or “We are just looking”, there is nothing affirming to you at that point that they have motivation to ever buy a home.
When that kind of response is received, I will delve just a bit deeper to see if I have missed anything.
Before giving up on them and ask a few more questions like; “Do you need to sell a home to buy?” If that is an affirmative, then I will continue asking questions about what their time frame for selling their home would be and if they would like help with a market analysis?
How to avoid Tire Kickers
If none of those apply and I can tell they are just tire kickers or they indicate to me in our conversation they just want to look at the home to see inside, then I use my seller as the authoritarian figure in my response.
Here is an example of how I would say to that:
Agent: “I need to let you know that I must report to my Seller about all the showings that are scheduled. He has requested that all buyers that view the property have a proof of funds of some type such as a pre-approval letter or a bank statement showing cash funds to close. Are you able to provide that?”
If they say no, you say, “I am really sorry but I must abide by his requests.”
That may seem harsh to you, but if you think about it, you are really representing the best interests of your Seller. You can convey that request to the caller with conviction. You have to be more respectful of the time and effort of your Seller who must prepare their home for a showing than a caller who just wants to waste time viewing a home that they have no intention or means of buying.
Stay Fair TO Everyone
Just make sure that if you make that request to one person you must be fair and make that request to anyone who wants to show your property. Simply place the verbiage of “buyer must have proof of funds to request showing” in Agent showing instructions on the MLS and that will solve that problem.
If you are struggling to lead generate and are seeking more in depth real estate training. I have an amazing online course coming VERY SOON!
So stay tuned and sign up at cyndasellscoaching.com to be added to the waitlist!