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The Prequalifying Process

Some real estate agents spend a huge amount of time building relationships with prospects. They get to know them, become friends, share recipes, play golf and ensure they do everything but sell! The problem is that building a relationship takes a long time and produces highly uncertain results. There is no guarantee that the buddy you’ve built and cultivated will ever list his or her home for sale. Or list with you! Relationship building is a nice way to make friends, but you’ve come to the real estate industry to make a living. Let’s move away from the concept of building a relationship, and instead let’s turn our attention to the concept of prequalifying.

Prequalifying Prospects

The process is like any other procedure in real estate. There is a script for it. When we follow the script, we get great results, so keep your prequalifying script everywhere. You could set an appointment in your office, your car, your home— so be prepared! Have it ready, because you can never predict when business may come your way. The number one rule when it comes to prequalifying is to look for people who have to sell instead of those that want to sell.

Who Has to Sell?

Those that need a bigger home or a smaller home. They’ve been through divorce. They’ve got financial issues or they’re in relocation. Those whose families are growing, and those who are empty nesters. These individuals need to sell a house. For that reason, we concentrate on them. Leave that difficult task of trying to coax people into selling their homes to the others who do things the old fashioned way.

People that have to sell take action, sign contracts, and move forward to buy and sell homes. Prequalifying will set you apart from your competition. As a result, it will increase your listing percentage, shorten your presentations and improve the quality of your service!



Mike Ferry is the global leader in real estate coaching and training. Watch Mike each week as he discusses a variety of topics to help real estate agents and brokers. Grow your real estate business by improving your mindset, developing your skills and creating a plan of action to increase your production!


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