Early stages of the buying cycle.

[ResaleBroker]

Another agent recently posted this elsewhere and I told him I would ask around and and try to get him a few perspectives. Here is his post:

"Here is a common scenario I see. A couple is here on vacation and staying in the community in either a rental or an RV they own. They have decided they like the area enough to keep coming back but don't know if they want to buy or keep doing what they are doing. The community has a sales office so it's natural for them to start out by wanting to look at what's for sale. This has been one of my greatest challenges because these people aren't ready to buy yet. They are in the exploration phase and are trying to find out what ALL of their options are before they make a decision on what to do. Because they are just starting to consider the idea and learning about the different options I could show them the best deal that ever came down the pike and they probably wouldn't jump on it. Of course, they want me to show them everything that is available; big, small, new, old... it doesn't matter because they are just trying to get a feel for what is available. They are doing their research.

If you were in my shoes what would you do with prospects in the early phase of the buying cycle? What can a salesperson do to sell people in the early phase of the buying cycle?"

[FairwayandIsle]

We have that type of buyer here as well because we are a vacation spot for many people. It is truly a tough situation to be in because you want to keep the potential clients but you don’t want to waste time either.

I think if I had them in my car I would show maybe 1 of each style house so that they got an idea of what you get for your money. But then after they left I would send listing information once a week or so. I think doing this they are going to (hopefully) start to get an idea of what they want.

Just my $.02 ...

[ScottFicek]

Are the properties for sale in a planned community or something where there are only a fixed number of floor plans/designs available?

I think Coarine is right. Show them some stuff, set up a auto-email from your MLS to shoot them all new listings and then email drip on them with a call every quarter.

[Pete968]

I would probably make them a value added offer they can't refuse from the start and continue to supply them with relevant information minus the legwork until they decide and focus on deals that have higher closing potential.

Another 2 cents.

[SLP-NYCT]

I always offer any client 1 day of car time and unlimited e-mail and phone support. If they want me to run them around again, I need a commitment. Not that they will buy, but a commitment to me that IF they buy, its through me. So out comes the BAA. If they are just looking, its a year contract. If they have a pre approval its 6 months.

[rvolk75]

Larry, what happens when they don't buy within a year?

I had a guy contact me after being registered on my website for over 2 years. He's finally ready.

[SLP-NYCT]

Russell, I too have buyers watching the market, looking at new and sold listings every day, but they are just not ready. It is easy enough to assist them via, e-mail and phone for as long as they need. There is no need for a BAA with those clients/customers.

If I am working with a motivated buyer who actually goes an entire year without finding a house that works...then I have failed that client. Sometimes I have to adjust searches or educate them a little more, but buyers that get in my car will be buying soon. If we do go past the expiration of the contract, they just have to re-up it.

However, if someone is Not Ready to buy, there is no need to be taking them around and showing them houses.

[Madtown RM]

The best way to sell someone in the early stages of the buying cycle is NOT to sell them. Back off as much as possible and they will likely become more motivated to buy. I've found that the harder you try to sell people, the more they're inclined not to buy. Consult to them, advise them, reiterate back to them what you're hearing (that they're not ready for this and that reason) and they will likely try to tell you the opposite and actually move forward faster. Just my two cents worth. No one likes to be "sold".

[rvolk75]

Hey Larry, you're right, you shouldn't waiste your time with those who are just not ready yet. See, the thing with BAA's, in my area they are just not that common. If I told someone that I want them to sign a contract to see homes, I don't think I would be making too many sales. Many buyers in my area are very surprised know that this kind of contract even exists. Some people actually ask me, if they have to sign a contract to work with me.

I'm just curious how BAA's work.

Jolenta, I agree with you on not trying to sell them. When they're ready, they'll find you. Try to help them as much as possible and eventually, they'll appreciate it and will work with you. Since you already have a LEC2, you know the importance of having a great web presence. Just keep collecting these leads, follow up with them periodically and they will contact you. At some point they will have a question or will need help.

[Madtown RM]

My big problem is that I hate picking up the phone and calling my leads. But one of these days I'm going to find out I lost a huge piece of business (I'm pretty sure I already have) and then I'm going to transform into a complete bad-ass maniac and never EVER be shy about it again.