First Phone Contact with the Buyer

There are two rules to remember in conversations with buyers:

1.         The person who calls has more control. So, if you are answering the phone, ask for a name and phone number and tell the caller you will call them right back. Then return the call promptly.

2.         The person who asks the questions is in control. Of course, the buyer will start out asking questions about the house, putting him or her in control. Answer all their questions as best you can. However, once you feel they have gotten enough information to make an appointment, you must immediately take over.

You do this by using a series of questions and statements. This also starts qualifying them for financing. The questions/statements are:

1.         Will you be living in the property, or do you plan on renting it out?

2.         How many people will be living in the home?

3.         Where are you living now? How much are you paying per month?

4.         Credit is not something I’m really concerned about. What is important is the amount of down payment you can make. How much can you put down right now? (If it’s five percent or more of the sales price, respond: Great! I’m sure I can work with that. )

5.         Are you sure you can afford $671 per month? Depending on your down payment, I might be carrying a second note for a little more than that.

6.         You sound like someone I’d like to work with on this.

7.         I can show you the home tomorrow afternoon at ____. Will that work for you? Be  sure to bring a check in case you like what you see and want to hold the house.

Refer back to these questions and statements as we analyze what each conveys and achieves.

Question #1: This tells us if we need to waste any more time with this person. If he/she plans on renting out the property, you are talking to an investor, and our program will not work with him/her unless you are selling a duplex or 3-4 unit building. In that case, the buyer can live in one unit and rent out the rest.

The bottom line is we must be talking with someone who will live in the property. If the buyer is an investor don’t waste any more time with them. Tell them thanks for calling but that you cannot finance an investor.

Question #2: This is just a good general question of interest.

Question #3: This helps round out the picture of their current circumstances. The second part is the real question here. It shows what they have been paying on a monthly basis and whether they can afford your payments.

Question #4: Although credit is important in the final selection of who you will choose to buy your home, you don’t want them to feel defeated in that area at this point in the process. You must downplay credit as a factor. It lets them know they have a good chance at getting owner financing. The second part of this question is a great psychological question that makes buyers want to prove to you they can afford your home. This question also lets the buyer know that you want as much down as he/she can afford.

Statement #6: You must now reassure the buyer they have a good chance by telling them everything sounds great. If you don’t do this, the qualifying questions will work against you after the phone call is over. The buyer will get discouraged, thinking he/she won’t qualify, etc. Then, he/she will not show up at the scheduled time.

Statement #7: This is the most important statement you will make. If you don’t include it, you will reduce your chances of a sale from 85 percent to two percent. That’s how important it is. If you have done everything correctly thus far, you should have 80 to 90 percent of the prospects show up and fill out the contract and credit application.

Some prospects will ask to drive by first to see the home from the outside or to check out the neighborhood. Let them know that will be fine with you.

Arrange a day and time for them to meet you at the home. Let them know that you will have to take off from work or miss some other obligation to spend time with them and show them the house. Tell them you would appreciate being called if for any reason they can’t keep the appointment. This alone will cut down on no shows. Don’t let them know you will be showing the house to others at that same time, as that will discourage them before they show up.

Arrange to have people show up every 15 minutes or all at the same time. Set up as many showings as you want. We suggest a minimum of two showings per week: Wednesday at 6 PM during the summer, 4 PM during the winter (avoid showing at night) and Saturday at 2 PM. Schedule four to six buyers per showing. Make sure both the husband and wife can come to the showing together.