According to Sun Tzu, "If you know your enemies, and you know yourself, you will not be imperiled in a hundred battles." Okay, we are not discussing war, but commercial real estate. Quite different, but the basic rationale behind this quote is more than relevant. Considering the importance of commercial real estate transactions, qualifying a prospect is a vital step in your long term success. Bringing in the right prospect will make the entire process that much easier, and will allow you to focus on the important aspects of the sale, as opposed to playing games with those who are not the right fit. The following list below are some of the essential aspects of qualifying a prospect, and should be kept in mind during the process.
Knowledge
Understand your real estate. This may seem like a fundamental aspect of the overall process, but surprisingly enough, many agents do not give the proper attention it deserves. Knowing the in's and out's of a property will not only enable you to effectively show it, but will also give you the ability to provide quick answers to the prospects questions. A bumbling real estate agent with a lack of property knowledge will quickly lose negotiating leverage, as well as the prospects interest. Understanding your site will also give you a better opportunity to discern whether a particular prospect is the right fit for the property in question.
Information
The first thing you should do when qualifying is learn about the prospect. Getting the correct information from the prospect will give you a better understanding of who they are, what their motives are, and if they are serious about the proceeding with the transaction. This investigation can come in the form of many questions, such as: How did you hear about this property? Why are you looking at this particular site? Is there other property that you happen to own? Basically, vetting the prospect will give you a quick and efficient way of deciding if this is individual or business is the right fit for the site. Needless to say, getting their basic stats, like name, phone number, and if they are the decision maker or just a messenger are a necessity. Knowing WHO you are talking with will allow for greater organization and ability to streamline the process.
Interest
Another step that tends to be improperly employed by many real estate agents is gauging interest. Considering you are a salesperson, immediately reading your prospect is an invaluable trait that can make your job much easier. Once you figure out the prospect's level of interest, you will know whether to move forward, or proceed with an exit strategy, so you can focus on more justifiable leads. If there is solid interest, even with one particular aspect of the property, you immediately have a negotiating tool to use, which tends to allow for satisfactory offers for the site. It is vital to find prospects that "want" to move forward, because if you waste time on those of middling interest, your business will stagnate and future deals may be compromised from time lost.
As a commercial real estate agent, there are many factors to consider throughout the course of any given day, so to be able to properly vet a prospect without spending too much of your time and resources is of paramount importance. Using these tips should reduce your qualification time and give you the ability to focus on moving forward and growing your business, rather than toiling away with dead-end leads. Know your property, know your prospect, and you will know success.
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