How to Find Buyers Who Buy and Don’t Waste Your Time

About once a week (sometimes more) I always meet or talk to a real estate agent complaining about gas prices and how Buyers are a waste of time. When I was a real estate newbie, I felt that way too. I would spend days and tanks of gas driving around these clients wondering if they would EVER find the right house for them. (And gas was “cheap” then – you could still find gas around $2 a gallon or less!)

As I gained more experience working with Buyers, I noticed something: My clients started buying the first or second houses I started showing them. I still had the occasional buyer who had to see every house listed in their price range, but for the most part my travel time and showing costs were drastically reduced.

The secret to doing this is finding what some call “A-List” Buyers. These are buyers who need to buy a home NOW. They are motivated. They are prequalified. And most importantly, they have a deadline. Maybe they are expecting a baby and want to be went in and have rooms painted before the baby’s due. Maybe they are starting a new job out of the area and need somewhere to live quick. Maybe they want to be in before school starts or Christmas. Perhaps their lease is expiring and they’re ready to make the leap to home ownership. It doesn’t matter what the reason is, what matters is that reason is pushing them to act quickly.

Unmotivated Buyers, also frequently referred to as Tire Kickers, on the other hand, are “just looking” or “thinking about it”. They could go tomorrow – or 3 years from now and either way they’d be equally pleased. They have lists of things that they might want or need that they don’t currently have. They have time, so are under the illusion that if they wait something better could come along.

It can be hard to screen these buyers between the A-Listers and the Tire Kickers. An A-Lister who is skeptical of real estate agents might give you all the signs of a Tire Kicker because they don’t like agents. A tire kicker may act enthusiastic but it when comes time to make decisions will keep mulling over a choice to the point the “perfect house” is already sold by the time they’ve chose they’re ready for it.

To help you find these Buyers Who Buy or Convert Tire Kickers, here are some tips:

Require Mortgage Pre-Approval:
Most Buyers need a mortgage to buy a home. Even ones with millions of dollars in the bank may finance, so ALWAYS insist that every Buyer gets pre-approved for a mortgage. It puts them in a better position to make an offer, and it ensures you are working with a ready and ABLE buyer. If they refuse, it could be a huge warning sign something is unusual or this person is not a legitimate buyer.

Identify Their Deadline:
Above I listed some examples of deadlines people face to push them into buying a home quicker. You can choose to try and find these people as your buyers which can prove to be very effective. But if you’re meeting someone through an open house or a floor time call, you need to find out this deadline sooner than later to determine how quick they may act. If there is no deadline, question them questions on what it would cause them to buy a house in the next two or three weeks.

Focus Your Area:
While I typically like out of area buyers because they usually have a need to go and buy quickly, they often fall into the trap of wanting to see every house and neighborhood within a 25 mile radius of their target interest (work, school, family). This can be a killer on time and gas money. Instead, get that Buyer’s Agency Agreement signed and offer to take them out to the homes closest to your office or their interest first. If they’re still expressing interest in other areas, you will want to give them a list of homes, directions for each one, neighborhood reports/information and tell them to do some driving around – see how they like the traffic patterns, the shopping, the styles of homes, etc. This will helpfully help you narrow it down and meet with them to see the houses they really like.

Become a House Matchmaker: Finding houses that your clients like can also drastically improve how much time it takes to get a buyer to finally buy and not waste your time. If you’re not doing so already, have your buyers fill out a small and brief yet detailed questionnaire with exactly what they are looking for – number of bedrooms, number of baths, garage, yard, schools, etc. etc. The hard job is finding houses that only exactly meet those criteria. In many markets, especially with Buyers disillusioned with prices, this could be down right impossible. But if you make every best effort to match only what they are looking for, you will avoid seeing houses they’re not interested in or have major things they can’t live with (like a 2 bedroom when they want 4 for example).

Don’t Discount Every Apparent Tire Kicker:
I like to believe that every tire kicker is a tire kicker with some sort of purpose. It’s hard to say exactly WHY they are going around looking at houses when they do not have the means to buy or aren’t plotting to go for another 3 years and have already been looking for 5…

But that doesn’t mean you should automatically discount them. Instead, add them to your passive marketing list. Send them open house invitations or email updates of open houses. Every few months just give them a call to see what they are doing and if they’ve come any closer to being ready yet. If financing was an issue, equip them with the tools to save a down payment and improve their credit score. Send them periodic emails of new listings Make them feel like their business is vital to you – and eventually they will feel like they can depend on you so when the time comes (though it could be 5 years from now!) they will eventually buy or sell with you. And hopefully in the meantime they’ll send some referrals your way.

Do you suffer from dealing with tire kicking buyers? Any thoughts or suggestions on finding buyers who buy and don’t waste your time? As always, comments are welcome and encouraged.