One of the most important time savers when qualifying a prospective buyer is asking the right questions. If you ask the right questions, you can pinpoint the best way to help your buyer meet his/her goals as well as save yourself and your buyer time, trouble and frustration.

As an agent, your most important product is your time. If you don't ask the right questions, you could find yourself wasting valuable time which will only lower your productivity. The more efficiently you can make your time work for you, the higher your earnings per hour will be. Asking the right questions can help you do this.

Questions are meant to gain information. One question should naturally lead to another. At times, it may seem that questions open up too many avenues of exploration, but you need the answers to each question in order to proceed with helping your buyer. Remember, your goal is to not only help your buyer, but to protect and improve your productivity.

Start with as many open-ended questions as possible to encourage your buyer to talk.

1. How did you hear about my services?

You need to know which advertising mediums are paying off for you as well as the types of media. It would even be helpful if you kept a record of responses, so you could get a percentage at the end of the year. Then you will know if you are getting more response from your relocation ads, your buyer's agency ads, or your listing ads. This will help you in planning next year's advertising budget.

If your buyer heard about you through a referral, you'll be glad you asked this question because you can thank the person who recommended your services. If the referring customer or associate never hears back from you, s/he might think twice before referring business your way again. Make a note to thank the referring contact immediately after your buyer's interview.

2. Why are you moving?

Your buyer's motivations not only reveal the kind of home they want, but their level of urgency. A transferee may need a home immediately, or have a home to sell. A newlywed couple's apartment lease may be expiring. A couple may have learned that they are expecting their first child. A single parent may want to move to a different school district before school begins again. Your questions can then go toward, "Do you need more space?" "What kind of a home are you considering?" "Are you considering a house with a yard?" "Have you decided which school district you prefer?"

3. Will this be your first home?

This question helps you ascertain your buyer's experience and education about the home buying process. You can then follow a natural course of questions including, "Have you spoken with a lender?" "Have you been pre-qualified for a loan?" You can then share with your buyer the importance of getting pre-qualified and how that process will serve as an advantage in dealing with sellers.

4. How much are you planning to spend?

According to Joe Klock, real estate columnist, this question isn't so important as it's follow-up - "Why did you decide on that amount?" "Their answer might reveal a flaw in their strategy," says Klock, " usually a low-ball goal, based on wishful thinking, misinformation, or both. A good way to test their resolve in this area is to further ask, "If you found something you really liked that cost a little more, would you consider it?"

"If the reply is "yes," or even "maybe" (same answer, really), you've widened the field of search and increased your chances of satisfying the customer - objectives that the first question alone would not accomplish," says Klock.

5. Have you looked at homes on your own yet?

Buyers may reveal that they have looked at homes on the Internet, driven a certain neighborhood, or attended a few open houses. Make sure that they signed no representation agreement with another agent, if they attended open houses. You can follow up with, "Did you see any homes you liked?" "Have you chosen a neighborhood?" "Do you like the Internet?" You can then tell your buyer that once you establish the criteria for their home search, you can arrange to email new listings to them from your MLS or one of the large national listings sites.

6. How do you prefer that we communicate?

Having a menu of communications to offer the buyer really makes him/her think you are a technological wonder. Ask how often the buyer checks email - if the answer is once a week, that clearly won't be an option. Ask if calling the office is acceptable. If you are dealing with a couple, ask which person they prefer to be contacted. Tell your buyer how often you plan to communicate and by using which means - phone, pager, fax, email, voice mail.

7. How would you like me to represent you?

In most communities today, agents still represent the seller unless the buyer chooses to have an advocate, but few buyers understand that they also have a choice in agency. Even if you live in a community which does not require agency disclosure, the ethical thing to do is to explain to your buyer what options are open to him. Some areas offer transactional agency, in which neither party in the transaction has an advocate. Other areas offer designated agency, in which the broker does not represent either party, but agents within the office can be designated to represent the buyer or the seller. Your area may offer dual agency or even single agency, but without a signed representation agreement, your buyer may not realize that you could still represent the seller, even while showing your buyer homes. Your buyer needs to understand that an agreement, whether it is for a period of time, for certain homes, or for one home only, is in his best interest. Ask, "Would you be willing to sign a buyer's representation agreement?"

8. Learn to review your progress with questions.

Have you ever worked with a buyer who seemed open to buying, yet could not make a decision after viewing dozens of homes? Learn to evaluate after showings to redefine the type of home your buyer wants, and to assure yourself that you still have a motivated buyer. Asking more questions could reveal a hesitation or roadblock that could be keeping a transaction from happening. Objections can be opportunities to close, but too many objections, especially contradictory ones, may mean a lack of sudden problem on your buyer's part. Sometimes, with a little prodding, a client will share with you a fear or change of heart. When you know what you are dealing with, you can choose the appropriate course of action.

Published: April 15, 1999

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Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.