Screen buyers with a few simple steps.

Source: CUSTOM HOME Magazine
Publication date: 2007-09-01

By Paul Montelongo

Every custom builder must qualify prospective customers in order to determine whether they are serious buyers. It's a tried-and-true way to streamline the sales process and save valuable time.

Below are five key issues that need to be addressed before a sale can be made. With some prospects you will need more time in certain areas, but for the most part you can adequately qualify a prospect in about nine to twelve minutes of direct questioning.

Location. Simply ask, “What area of town would be best for your family?” Further determine if the community or location you are offering suits their needs. Better yet, help them realize that your houses will suit their situation, lifestyle, work habits, etc.

Timing. By having a conversation about when the prospects want to buy, you can determine how serious they are, if you have inventory available, and what it will take to move the process along at the right speed. It also relates to their degree of urgency (or lack thereof). Ask, “Provided that we have a home to match your needs, when will you make the move?” Also related to timing is the need to have an expeditious transaction. Many sales are lost because the builder did not correctly perceive the importance of making the sales transaction a seamless event.

Finances. Here's the sticky part. Many salespeople have the notion that “buyers are liars” and that they would never reveal enough information for you to get an honest take on what they wish to spend. I personally don't buy into that philosophy because it automatically sets you up for defeat, objections, and buyer resistance. However, you must get an idea of what their financial expectations are. Simply say, “The homes in this community range from $465,000 to $645,000. Of course, the final investment is up to you. Where in that range do you expect to be?” The response will give you ammunition to move forward with further questioning to help them get what they need.

Decision Makers. The reality of making the sale is that there are many levels of authority that must be satisfied. In order for a new home to be sold, many parties must interface and come together. In addition to the family decision makers, there are the bank, title company, insurance company, municipality, employers, etc. Asking a customer about his or her level of experience with the home-buying process will give you information about who must be involved in the process.

Wants/Needs. Every prospective buyer has a wish list of amenities and features they desire. Every prospect has basic needs that must be met to move forward with the purchase. It is your job to find these out very early in the conversation to determine if your prospect is a qualified sale waiting to happen. There are many insightful, useful, and probing questions that you can ask to determine a customer's needs. Obvious among them are, “What is it about your current home that has prompted you to visit our community today?” and “What does your wish list for a new home look like?” Once you have an idea of the prospects' needs, continue to speak to those needs in your sales conversation.

Don't throw in the towel if you determine that a prospect is not ready to be qualified. Keep his or her name in a tickler file and contact them in a few months to see if the situation has changed. In this business, it's important to remember that timing is everything.<i>—Paul Montelongo has been a builder for more than 23 years and is a nationally recognized speaker and consultant to the construction industry. Visit Paul at www.paulmontelongo.com.</i>