"Thank you for showing us around, but we don't think any of these houses are for us."

"This is a really nice house. We love it! But we think it's a little too expensive."

"I'm not sure about the house we're looking for. I'll talk with my wife and contact you again in a few months."

"Our neighbors sold their house for $40,000 over the asking price. I think we can do it, too."

"I saw on TV that it's the perfect time to sell our house."

Do any of these lines sound familiar to you?

Any seasoned real estate agent would know that these leads are most likely not serious. Chances are they are still undecided and will probably just be looking around.

This can be especially frustrating for new agents looking to close more deals and grow their real estate careers. The last thing you want to do is waste your precious time and effort on the wrong leads.

So, how can you avoid these types of situations in the future?

Simply put, you need to qualify your leads first. Get a clear picture of who these potential buyers or sellers might be before you start working with them.

As a new or growing agent, learning how to qualify leads is crucial in determining those who are motivated and more serious in closing deals with you.

Why is it Important to Qualify Leads?

1. It Saves Time and Increases Productivity

Once you've prioritized your list, you can focus on potential clients who are more likely to buy or sell a property with you while nurturing colder leads.

2. You Can Build Stronger Relationships

You can establish trust and build a solid relationship with your leads by getting to know them better. As a result, it increases the likelihood of repeat business or referrals in the future.

3. Increases Conversion Rates

Qualifying leads help you identify those with the highest likelihood of closing.

Now that we know why it's important to qualify your leads, let's discuss the questions you should actually be asking.

What Questions Should You Ask?

Depending on whether you're working with buyers or sellers, you need to adjust your qualifying questions accordingly. Here are some general key takeaways to help you come up with more specific questions that will help you understand your leads better.

Below are some examples of buyer-oriented and seller-targeted questions:

1. Understanding their intent is determining why they are buying or selling a property and what they expect during the buying or selling process.

   • What type of properties are they looking for?

   • Why are they relocating?

   • Are they open to finding similar properties in other neighborhoods or cities?

   • Are they looking for something bigger than where they are?

   • Are they downsizing or upsizing?

   • Why are they selling?

   • What are the most important things they're looking forward to with their new house?

2. Gauging their motivation refers to how serious they are about closing a deal soon and where they want to relocate or settle.

   • Where do they want to buy a property?

   • Are they buying because of lifestyle (family, work, finances) changes?

   • Are they currently working with another agent or broker?

   • What is their plan B if they can’t find what they’re looking for?

   • What would happen if their home doesn’t sell in the next three months?

   • How willing are they to buy a property if you found the perfect home for them?

3. Determining the time frame helps you estimate how long you might be working the lead.

   • How soon do they want to move in?

   • Do they have something that requires them to move in a particular time frame?

   • How long have they been looking for a house?

   • How long has their property been on the market?

   • How quickly do they want to sell?

   • How well do they know the current market?

4. Knowing their budget allows you to find other options and help your leads make better choices.

   • Are they paying in cash or getting a mortgage?

   • Did they save for a down payment?

   • Did they budget for their monthly payment?

   • Are they pre-qualified and how much did they get pre-qualified for?

   • Are they planning to get government assistance?

   • How much is the house worth?

   • Is the asking price firm or flexible?

   • Are they willing to make improvements in order to sell the house faster?

   • Is the property in their name or a spouse/relative’s name?

Your goal is not to know every single detail about your lead. Your primary intent is to see if your leads are motivated and can be converted into clients quickly. With the sample questions provided, you get an idea of how to qualify your leads the right way.

Remember that real estate is a relationship business. Don't be afraid to ask questions and get to know your clients better. You should always keep in mind that building trust is going to be one of the best characteristics to help you grow your real estate business.