Welcome and Good morning to Mike Ferry TV. It is the week of June 30th. Half the year is gone. Half is done. Half is finished and we aren’t getting it back. So how have you done? How many listings have you taken compared to your business plan? How many listings sold? How many sales have you made? Have you spent time working on your schedule? Are you prospecting your database? There’s a lot to learn about the real estate business. Over the last couple of weeks, I’ve done several little three-hour seminars for some of our customers in Southern California, and one of the things that I became most aware of was the amount of information that is necessary to build a successful career way outweighs what most people think it should be. If you take a look at setting a schedule that is going to be productive on a daily basis, working your database and getting referrals as well as transactions. Other methods. Other methods of prospecting doing good lead follow-up. prequalifying buyers and sellers. Making strong listing presentations. Make strong showing presentations. Handling their objections. Handling their questions. Closing for a contract. Handling. Any other questions that take place then negotiating. And that’s just the first half of what we have to know and learn.

So, we’re going to work today on what I have been saying for several months is probably the most important step of the ones I just mentioned, and that is the prequalifying process. And the reason why I’ve decided it’s probably of utmost importance is because the average agent today does not have to prequalify or believes they don’t have to prequalify, because they think that if a buyer shows up or they get a lead on a seller, that these people are automatically motivated to do something now. And that is a 100% falsehood. These people need to be pre-qualified. 100% of the time. In fact, if you follow the Mike Ferry Listing Presentation process, the first thing I say is every potential seller should be pre-qualified 100% of the time using 100% of the questions with no exceptions whatsoever. So, let’s look. I think I’ve got 8 or 9 points here on prequalifying that might be of interest to you. And if they’re not, I would say make them of interest to you because they’re vitally important in looking for the motivation and the right price on a listing presentation.

1) The prequalification process will set you apart from your competition 

I wrote down number one. Remember, the prequalifying will set you apart from your competition because you will look a lot more professional in your approach. The majority of your competition does not prequalify. I mean, think about this. This. This urge to have an appointment. You’re sitting in your office and you’re taking floor schedule or floor time or whatever you call that, or you get a random phone call, and they say, we’re thinking about listing our home. Could you come by and see us? I’m on my way. And you jump up and you throw some papers together and you take off. You’re on your way to. What an unprofessional appearance by. Probably a good real estate agent like yourself. So, by prequalifying, you’ll discover the motivation, the price, and what objections you’re going to get during the presentation.

2) You are looking for people that have to sell half to sell versus those that simply want to sell while you’re prequalifying them.

So, I wrote down number two. You’re looking for people that have to sell half to sell versus those that simply want to sell while you’re prequalifying them. Half to sell would mean the need, possibly for a bigger home, a smaller home, a possible divorce in the family, financial issues, a relocation of a job that the husband or wife has, starting a family or having kids being grown and gone. You learn so much. But if they don’t have to sell. You’re wasting your time. Well, my attitude is, even though they don’t have to sell. If I go out, maybe I can convince them to sign a contract. Maybe you’re going to get younger. Maybe you’re going to get taller. Maybe you’re going to get thinner. Maybe you’re going to get richer. And those none of the above is going to take place. Prequalifying is what has to be done. Because think about it this way. A man or woman says we’re considering we’re thinking about selling. And you rush out to make a presentation. And you actually believe that with your suave and debonair presentation skills, they’re going to suddenly go, wow, we didn’t realize we had to sell. So let’s sign a contract and get this thing going. If that happens once out of every 500 times you try it, It would be a miracle.

3) Spend more time prequalifying and less time building a relationship in order to build the quality of your business

Number three spend more time prequalifying and less time building a relationship in order to build the quality of your business. A buyer or seller does not have to be your best friend. In fact, in most cases, they don’t want to be your best friend. And think about this do you really want every buyer and seller to be your best friend? I mean, you don’t have to walk inside the house and say, oh, what beautiful carpet and what a beautiful painting you have on the wall. You’re there to get discussing with them the market statistics, the pricing, the motivation and what you’re going to do to get the property sold. The less time you spend in that relationship oriented conversation, the better chance you have of getting a listing contract signed.

4) Prequalifying allows you to set standards for those you want as clients

Number four, prequalifying allows you to set standards for those you want as clients. There should be some standards in terms of motivation. See for example they’re motivated at level one all the way up to level ten. One is there alive and breathing. Number ten is they are excited about getting their home in the market, getting it sold and moving as soon as possible. The higher the number, the better chance you have. So, if you think about it this way, what number would you have to feel or think is going to come from that seller prospect that would allow you not to go on the appointment? See, my attitude was, as an agent, they had to be a seven, eight, 9 or 10, in my opinion, from the prequalifying to going on the appointment. And if they weren’t a 7 to 8, 9 or 10, I would either pass them off to somebody else in the office or tell them when they are ready to sell their home. Give me a call. But Mike, you lose prospects that way. I was gaining prospects because that gave me more time to prospect.

5) Remember practicing and role-playing

Number five remember practicing and role-playing. The prequalifying questions lead to more confidence, better results, a stronger mindset and more importantly, more contracts signed. Did you ever play sports? Grade school, high school? University and college. And if you did? Did the coach require you to practice? And the answer is yes. And what happened if you didn’t practice? You didn’t get to play. So practice is what professionals do. Professionals practice effectively every day. We have agents all over the world now that are doing 57,500 deals a year, but in the business 1015 years and still role-play and practice every day for 30, 45 minutes before they start doing what has to be done to create a contract.

6) Look carefully at your closing percentage or closing ratio

Number six. Have you ever thought of looking carefully at your closing percentage or closing ratio? Presentations made to contract. Signed, prequalifying will almost always improve it as long as you’re practicing and comfortable asking the questions. You can’t walk in and say, well, I got these questions, you know, that are kind of important, and I’d like to ask them if possible, they’re not going to list with you. You have to practice. You have to be very comfortable saying, I’ve got a series of questions that need to be answered for us to move ahead and get your property sold.

7) If the clients are vague or unclear, don’t be afraid to ask additional questions to determine the motivation

Number seven on the list when prequalifying. If the clients are vague or unclear. Don’t be afraid to ask additional questions to determine the motivation. Remember, look at the word motivation. Motive to action is that seller prospect you’re talking to capable or willing to take action. And if they can’t take action, if they don’t have a motive, something they’re trying to accomplish or do.

8) It’s okay to lose a prospect or appointment

And then number eight. Remember, it’s okay to have to lose a prospect or an appointment because you did your job and the pre-qualification and discovered they didn’t have the motivation, or they were to set on an unrealistic price. It’s okay to not go on the presentation, but Mike, I’ve only got one presentation a month. Well, then we have to set a better schedule to get you prospecting more often so you can do your job at a higher level. I did a seminar last week in Los Angeles, and I said to one of the people in the audience, I arbitrarily picked a man, and I said, how many presentations do you go on an average month to list property? He said, well, 1 or 2. I said, why don’t you go on more? He said, well, my average commission is 18,000. He said, if I do two deals a month, has 36,000 times 12, that’s 400,000. I said, but you live in California with the highest tax rate and the most the highest level of expense. He said no, it’s enough. Well, the motivation has to be strong in the mind of the seller that they have to sell. But the motivation has to be strong in your mind that you want to accomplish and do something beyond what you’ve done in the past.

9) When in doubt about prequalifying practice, practice, practice, practice your prequalifying scripts

And number nine, it simply says, when in doubt about prequalifying practice, practice, practice your prequalifying scripts. Remember, if the motivation is there, go endless the property. If the motivation is not there, say to them very kindly, I can’t be of service to you at this time. When you’re ready to sell, give me a call. My phone number is and move on. Have a great week. We will look forward to seeing you in a couple of weeks at the Superstar Retreat.