15 Day Challenge

Lesson 10: Converting Buyers

Tasks

  • No task for today

Reminders:

  • Always show more than one property on your first tour.

  • Use the Educational Tour to convert a buyer you haven’t met.

  • Use the Three Things to help with decision making

    • Right House, Right Location, Right Price

    • Every buyer can choose 2 of the 3

  • Use “throw your hat in the ring” when the buyer is apprehensive about putting in an offer.

 
 

Places We Can Hang 🤙

Video Transcript

0:00 Hello, and welcome back to your 15 day challenge. My name's Michael Montgomery, and today we're talking about buyers and we have concepts for you today instead of an actual task, however, you will be implementing these concepts when you're out with buyers.

0:15 So there's three particular points that we're going to talk about. The first one is converting somebody from a lead to an actual buyer.

0:21 Then how to help that buyer make a decision, and then how to determine if that buyer's ready to write an offer.

0:28 So let's start off at the top. Let's say we have a lead and we want to convert them to a buyer.

0:32 There's two things that we need to do. First off, we need to not qualify so much. I know that sounds like an unpopular opinion, but here's the thing.

0:41 90% of buyers are going to use the first agent. They see homes with 90%, even more than 90% in my experience.

0:49 So it's our benefit to go out and show them at least a couple of properties. This isn't to say I'm gonna go and show them properties for six months, but I will show anybody at least one set of tours.

1:00 Now, the reason why I say tour is because when I go out with them, we always want to book more than one, especially off the start.

1:06 This allows us to build rapport, and then on top of that allows them to compare. So we want to drop the qualification off the start, qualify them after this set of tours.

1:16 So after you've gone out once with them and showing them two properties, then you qualify them. Now, if they only send you one property to C, always include a second one.

1:25 And if you say to them, Hey, I'm off to go look at this other one, it's pretty similar to this.

1:29 Did you want to join me? Nine times outta 10, they're gonna want to come along as well. And then you've actually formed a relationship.

1:36 Now, the second type of lead is the one that doesn't want to go out there and look at properties yet.

1:41 So how do we end up converting this person? Well, we convert them with the educational tour, and it works like this.

1:47 What we let them know is that off the start, we want to go and look at a couple of properties just to get a feel for what homes are like on the inside, not just based on the photos, but there is zero pressure to buy.

1:58 In fact, we actually do not want to buy and actually label it as an educational tour, because what that will do is it's going to solidify in their mind that this is an actual concept.

2:07 So we have not qualifying so much before the first tour, and next we have the educational tour. Now that we've converted them, we need to understand how to help them make a decision.

2:18 Well, this is what we're going to say to them when we're out with a buyer, you're going to hear at some point in time, the buyer's gonna say, I wish I could just pick this home up and move it over there.

2:27 And this is our opportunity to bring up the three things. So the three things that every buyer wants is the right house.

2:32 So that's the right upgrades, the right number of bedrooms, bathrooms, things like that. They want the right location and they want it for the right price.

2:39 Here's the thing, they can have two of those. So we need to have this conversation with buyers to help them make a decision.

2:46 So if they want the right house, so they need the right number of bedrooms, the right size, and they need it to be within X price, they may have to go outside of their target area.

2:54 So they may have to sacrifice on location. But if they need location, say for schools, And they need a certain price, well they may have to sacrifice in the home.

3:02 And what this is going to allow them to do is to avoid them fixating. On the 10 of 10 home, there is no such thing.

3:09 So we let them know there's no such thing as a 10 of 10 home, there's an eight and even potentially a nine outta 10.

3:14 But we have to sacrifice on one of those three things. So after we've had that conversation, we then move into determining whether this is the right property to write an offer on.

3:23 So how do we do that? Well, we can do it in two ways. The first way is to be honest and upfront about them, about when you expect this home to sell.

3:32 So this is the way that you can bring it up. You're going through a home. It's been on the market for only a couple of days.

3:37 You're seeing that they're interested in it. So what you can then say to them is you can let them know the next step should you wish to proceed would be drafting an offer.

3:47 Now, you don't have to draft an offer, and in fact, if we don't draft an offer, it may sell in the next couple days, but not to worry because there's always another home that will come up.

3:56 Now, is it a concern for you if this one does sell in the next couple of days? So what we've done here is we haven't pressured them to write an offer.

4:04 We've just let them know, with all honesty, it looks like this will probably sell in the next few days. Now, if we don't think it's gonna sell in the next few days, we don't necessarily have to say that.

4:12 Actually, we shouldn't say that. Now, the second portion of this is not pushing them to write an offer and saying, okay, well let's go sit down and write an offer instead.

4:19 We want to use softer language. So the language that we use here is, would you like to throw your hat in the ring?

4:24 So this takes the pressure off of them to actually say that writing the offer is buying the home. It's the next step in the process, but it's not the same thing.

4:33 So no task for today. Instead, we want to implement these concepts if we have buyers at particular stages that are caught.

4:40 So specifically off the start, if we're trying to convert them to go out and look at homes, or if they're struggling with decision making, we can use the three things.

4:48 Or if they're struggling with writing an offer, we can use the hat in the ring or take a stab at the property.

4:53 Thank you very much, and we'll see you in the next challenge tomorrow.