This month’s question was submitted by Jami Maxwell Bloedow of Mercedes Homes:
How do you deal with those buyers who keep coming to your model/office and have no intentions of buying? They demand time and energy but yet let you know they are not in a situation to buy or don’t want to buy for various reasons. Sometimes these people will continue coming for months or even years as if they are part of your family. What can you professionally say or do to get them to not keep coming and lingering in your workplace?
“I presume the methods used have to be legal and non-threatening? Actually, I don’t seem to have a real problem with that here, perhaps because there are usually a fair number of agents, etc. obviously working. That sounds like Jami’s office doesn’t work, but that isn’t what I meant; what I do mean is that in a model home with only a few, or even one, agent, it’s a totally different atmosphere and probably much more conducive to ‘just hanging around’. How about excusing yourself and beginning to make phone calls and answering emails, with a gracious apology. Sooner or later, they have to ‘get it’.
— Toy Scott,
Norville Realty, Inc.
“This is a very easy question, Jami! I don’t even work on your side of the industry - however, being a small business owner for almost two years, I can tell you right now, more often than not, my brokers want everything, yet they don’t want to pay anything! Sure, most of them are lovable, honest guys who pay their bills timely, but like I said, more often than not, it has been my misfortune to experience the former types. Over the past six months, I have invested more money than I care to think about because I get a loan that’s been sitting in a ‘rejected folder’ for about three months and all of a sudden, it’s ‘What’s my problem? Haven’t I done this before?’
“Anyway, my point is this. If you are a legitimate business, and if you always treat everyone with respect and integrity, you will not fail, no matter how many times you have to show that ‘uninterested’ buyer a model home. My husband and I took a year and half to find our dream home. Our Realtor stuck by our side through agony, I tell you. But it paid off for her and she handles all my affairs in real estate to this day.
“If you really enjoy the fast paced craziness of this industry and you’re good at it, stick to it and you will make money.”
—Heidi Miesemer,
Mortgage Minders, LLC
“I had a buyer like that one time. They were actually building a custom home on their lot and loved my model and the way it was decorated. They just kept coming in for more than a year and treated me like their best friend. At first I thought my time with them was wasted, but then I asked for a referral! My heavens, the referrals kept coming and coming and coming. But, I did let them know as kindly as I could that I was there to sell homes and that there would be times that I would not be able to talk to them because my job was to take care of potential buyers and those that had actually bought a home from me. Because they thought of me as family, they did not want me losing my job because I was not taking care of a potential customer.
“Then there are those that come by once or twice that just want to look. I started telling them up-front that before they left I would be asking them for a friend’s name that they thought would be interested in buying. A Realtor friend was there one day and told me I was being too pushy. I don’t know. I was there to sell homes and I thought that if someone was just looking and they liked what they saw if I asked they would be willing to give me a name. And that was my job!”
—Linda J. Moore,
Harmony Homes of North Florida
“Go about your business as you would if they are not there. But you never know! Is that person sending business to you? Could they be a good part time assistant, if they have that level of interest and energy to keep visiting? How can you use them to your advantage? You have to be positive because you are a representative for your builder, but if you have a safety concern, document it. You are a professional, set your boundaries and stick to it, they will get the message.”
—Jeff Kern,
Embassy Mortgage Corporation
“Cool down the greeting, but keep it polite. The rest you - can do with body language. Don’t give eye contact, make frequent phone calls and generally go about your business as if they are not there. Pretty soon they won’t be.”
—Tom O’Connell,
Watson Realty Corp.
“In the sales positions that we are all in, you almost never want to run anyone off because if they are not a sale now, they may be in the future or could refer other business to you that would be worthwhile. However, time is money. If someone consistently sends you bad referrals, or shops with no intention of buying, or [in a recent case of mine] calls every day for nearly a month wanting new estimates faxed for a dozen loan scenarios, but with today’s rates, it’s time to make a business decision.
“It’s not personal, but sometimes you have to fire people, including customers and even an occasional referral source. If they waste your time [which in our world is just like spending your money] frivolously, they must not care too much about you as an individual or respect you as a professional. Tell them as politely as possible that you appreciate their company and occasional referrals, but if that if you continue to do business this way you limit yourself to the level of service you can provide to him/her and all of your clients.
“You can soften it with letting them know that it would sadden you to not be in business later when they needed you for sacrificing your service or missing opportunities that are present now.”
—Aleia Haney,
Beckman Mortgage Company
“A suggestion I would have is to develop a market [or niche] for these buyers. Implementing creative marketing strategies for the buyer niche described above could lead to the development of a profit center for Mercedes Homes. If there are no options for these buyers, consider partnering with a corporation that offers homes affordable to the buyers. Requesting a lender pre-approval letter indicating buyer’s purchasing power is a suggested screening tool for the sales team. Having repeat potential buyers can be a positive. The key component here is that the buyer is comfortable and trusts the Mercedes team. One day the buyer may return and have funding ready to purchase....one never knows which day that will be.”
—Carol Pryor,
Arbor Funding Corp.
“I have to answer this question. Normally I keep my comments to myself - however, your reader’s question warrants a response.
“People don’t waste their time visiting models for fun. They are shopping. Regardless of how nice a model is, people have other things to do that are more important than visiting a model home. If they return, there is a reason.
“First, a Realtor or builder has no choice but to be gracious to all shoppers. The rationale: They can refer others. They eventually may buy. They are local and are looking for guidance. They need answers that people [Realtors] have not addressed.
“Second, professional sales people understand that there is a percentage of closed business. All others are prospects and require your time and effort just as the buyers. Some more than others.
“Third, these people [shoppers] she is referring to are obviously not getting the information they need. However, each return should give the Realtor another opportunity to overcome their objections of making a decision.
“Fourth, the most important, is that each person has a reason to purchase and the Realtor has not asked the right questions to help the buyers and,
“Fifth, any response to push them away is neither professional nor acceptable.”
—Sean Flynn,
The Big Book of Homes
“I have gotten several referrals from ‘those people’ because I was courteous and treated them like buyers. Our business is a service business. We need to remember that.”
—Diana Hurst,
Heritage Realty,
Fernandina Beach
“I like to give those perpetual ‘tire-kickers’ a little homework. I ask for referrals and don’t let up.”
—Paul Gruenther,
Watson Realty Corp.,
Jacksonville Beach
“Today’s ‘tire-kicker’ is tomorrow’s referral source. Give them a handful of cards and thank them for coming by and remind them to send you all of their friends and relatives.”
—Rachel A. Rogers,
Paragon Homefunding