The Essential Checklist
for Qualifying Real Estate
Buyer Leads
The first step to increasing your conversion rates for online real
estate leads is to identify as early as possible those leads most
likely to convert. But how do you determine which leads are
ready and which ones are not? Use this seven factor checklist to
determine how ready each of your buyer leads is!
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Introduction
Online ads contribute to a major chunk of business spending for real estate
agents. In 2017, around 63% of real estate agents have spent more than
$5,000 per month on advertising, and this number is expected to grow due
to increasing competition among real estate agents and smarter lead
conversion tactics.
Annual spending on real estate ads in 2017
However, expert opinions suggest that generating more leads might actually
hurt your business if you do not have the right processes in place to
prioritize your focus. More leads translate to you spending more time
contacting and engaging them to getting them to be sales ready!
This is where lead qualification comes into the picture. Real estate lead
qualification is about gathering information about your leads using a
checklist of seven factors that show you how ready your leads are to
transacting.
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The Buyer Lead Qualification Checklist
3
Location
If you are an agent in Indianapolis, you don’t want to service buyers looking
for a home in Bloomington. Irrelevant leads can be a waste of your time.
This is why location is the first qualifying factor that helps you determine if
the lead is relevant or not. Also, knowing lead’s preferred location can help
you prepare a list of other relevant properties that he/she might like.
The list of information to qualify leads on location should include
1. The exact property your lead is interested in (if possible)
2. The zip code(s) of the neighborhood(s) your lead prefers
3. How open is your lead to viewing similar properties in the different
neighborhoods
4. How open is your lead to viewing properties in a nearby city or town
How to ask?
Are you only looking at properties in specific
locations or neighborhoods?
Is this property in your ideal area? Are you
also looking at other areas as well?
What are some other areas or neighborhoods you
be also open to looking at properties in?
4
Budget
Your buyer’s budget is the next factor in the list. Asking for your lead’s ideal
budget is necessary as it allows you to narrow down a list of relevant
properties further.
The list of information to qualify leads on their budget should include:
1. The price range/budget of the lead
2. Would your lead be open to looking at homes in other budget friendly
neighborhoods?
3. Their ability to stretch their budget with respect to a different
neighborhood or property
How to ask?
Is this property within the budget range you
are trying to stay within?
How flexible is your budget, have you thought about a
maximum amount you’d like to stay under?
Would you be open to other neighborhoods if we can
help you find properties within your budget range?
If we can find properties that meet your criteria, would
you be open to increasing your budget?
5
Mortgage
Cash buyers are great, but the majority of home buyers, 2 out of 3, need
some form of a mortgage to fund their purchase. This makes the lead’s
mortgage situation one of the most important qualification questions.
The list of information you need to qualify the lead for mortgage:
1. Are they looking to pay using cash or mortgage?
2. Have they spoken to a lender yet?
3. Have they been pre qualified or pre approevd yet? If so, up to what
amount?
4. If not, are they okay being introduced to a lender?
5. How much down payment are they ready to make?
6. Does their pre approved amount justify their budget range?
7. If not, are they open for other neighborhoods?
How to ask?
Would you be looking to pay cash or
mortgage for this purchase?
Have you spoken to a lender yet about getting
pre approved for a mortgage?
Since you haven’t spoken to a lender yet, would you be open
to chatting with some of our local lenders?
6
Agent
Agents are integral to the buying process and a majority of home buyers
work with an agent to find their dream home. It is imperative to ask your
leads if they are currently working an agent or not so you don’t waste your
time with leads that already have an agent.
What information should you seek from the lead:
1. How are they searching for homes? Online, offline, open houses etc.
2. Are they already working with an agent?
3. If so, have they signed any contracts with their agent?
4. If so, what is the name of their agent?
How to ask?
Are you already working with a real estate
agent for your home search?
Just to make sure we don’t step on any toes, are you
already committed to your real estate agent?
Mind if I ask what the name of your real
agent is?
Are you already committed to your agent?
Have you signed any contracts with them?
7
Preferences
It is important to know what your lead’s dream home look slike. Preferences
may include the type of home, number of bedrooms and bathrooms, type of
flooring and other amenities they might be looking for.
You can ask them about the following
1. Type of home, single family/duplex/condo etc.
2. Preference for schools in the neighborhood
3. Preference between old and new construction
4. Number of bedrooms and bathrooms
5. Do they want a swimming pool?
6. Do they want a lawn/backyard
How to ask?
What type of features are important in your
new home? Beds, baths, etc.
Do you have any specific requirements you need your
new home to have that we should be aware of?
Do you have any particular preference for
schools or proximity to specific places?
8
Timeline
Every agent should have a sense of how long their sales cycle is, between
initial contact with a lead to the transaction. Talk to your lead and try to
figure out how long they have been searching for and what their timeline is
to buy their home.
It is important to determine if your buyer has a realistic buying timeline in
mind. A buyer who is thinking to transact in 2-3 years is not really an ideal fit.
Ask them about the following:
1. Are they waiting to sell their property before buying?
2. How quickly are they ready to buy?
3. Could they move forward if they found their ideal property tomorrow?
4. If they need some time, would they be open to receiving weekly or
monthly new listing alerts or market reports?
How to ask?
Have you been searching for long? We
know how daunting home searches can be!
Do you have a specific timeline you are trying to stay
within for your new home?
Do you need to sell your current home
before looking to buy?
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Appointment
The last step is set up an appointment with the lead! By now you should
have a pretty clear picture of how qualified the lead is and what they are
looking for. This should make your meeting with them go really well.
Focus on the things you can show them in person that are not possible
through websites and portals. Do you have any listings that are about to hit
the market? Any new construction properties that are not yet listed
You should spend your appointment developing trust with your lead by
showing them your value and help them solve their queries.
You can ask them about
1. Their preference between weekdays and weekends
2. Specific dates and times they are free
How to ask?
When are you open to taking a look at a few
properties with our agents?
Are you open this weekend to look at some properties
that have not hit the market yet?
What is your availability like this Thursday or
Saturday to go home shopping?
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Conclusion
Qualifying your buyer leads effectively helps you determine which leads you
should be spending your time on and which ones to ignore. It is a necessary
step to maximizing your lead conversion rate.
It might be a little exhaustive to go through the checklist with each lead, but
rest assured, if you are serious about growing your real estate business, you
and your agents absolutely need to make it a part of your lead conversion
process!
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