DEFINING LEADS

One of the major challenges facing a real estate salesperson is managing leads. Selecting the right lead becomes critical to your success.

The first key step is defining what a lead is to you. I have found from coaching and training real estate agents worldwide that, for even the best of them, the definition is rather broad. Most real estate agents define a lead as a human being who will create condensation on a piece of glass held up to his mouth. In other words, it is anyone breathing.

The most successful real estate agents have clearly defined definitions of what is a lead. Let me share mine with you: An “A” lead is someone who would buy or list their home in the next 7 days. These people are highly motivated and ready. Whoever gets to them first wins the game. For me, they had to be pre-approved with a lender as buyers or be in the pre-approval pipeline for my lender. They also needed to be realistic as to what they can buy. The key to landing these people is the ability to set appointments; to convince them to come in and meet with you again.

A “B” lead is someone who will buy in the next 30 days. They need to be pre-qualified by the lender and ready to move forward when the proper property comes along. They also must be realistic as to value, pricing, and what they can afford. The people who are trying to find the perfect house will never find it. There are people who look at homes regularly who would move if they could sell theirs for $30K over market and could buy for $25K below market. They will even make this statement as if they are doing you a favor. Do not waste your time. These people will never buy. The conditions will never be ‘just right’.

A “C” lead is someone who will buy at a specific time in the future. The key word is specific. There is a reason for the move. They are retiring at the end of the year. They have one child left to graduate high school, and then they will downsize since their child is a senior this year. These are specific reasons and time frames. The people who say, “We are thinking about moving in two years,” rarely do.

Take the time to evaluate your leads to find the motivation. Be sure to classify the leads clearly into categories. Focus on generating the “A” and “B” leads. These are the key leads for success. Remember if the lead is 6 months away from buying, your commission check is at least six months away. How much time can you invest for the future payout?