Since our income is (usually) tied directly to closings, many real estate agents wonder how to close deals faster. Faster sales not only allow us to help more clients each year, they also help alleviate some of the stress and anxiety that come with a commission-only career.
Keep reading for expert tips on how to close real estate deals faster, plus ways to make your real estate transactions more seamless.
1. Prospect for highly motivated sellers
Focus your lead generation efforts on finding people who need to sell. I see many agents chasing potential clients who have little or no sense of urgency. While it’s important to help every client when they’re ready, if your goal is to close deals faster, targeting your efforts to find highly motivated leads is key.
Who are these motivated clients? People going through divorce and need to sell (and potentially buy a new place…or two), people moving across the country for a new job and estate/probate sales after someone has passed away are the three most common life stages in which property needs to be sold.
You can find these highly motivated clients by networking with divorce and estate/probate attorneys, HR departments and relocation companies. You can also position yourself as an expert in these life scenarios and use that in your marketing; this will attract motivated clients to you and keep you top of mind for referrals.
2. Pre-qualify your leads
Honing your pre-qualification process will save you time and energy by ensuring you’re focusing on potential clients who are ready, willing and able to buy or sell soon. Here are some great pre-qual questions to ask, either before your initial appointment or during your buyer/seller consultation:
Have you been pre-approved by a lender yet, or will you be paying cash?
What’s your ideal timeframe for moving?
Do you currently own your home or are you renting? When is your lease up? Do you need to sell first in order to buy?
Tell me more about why you’re looking to buy/sell now? What about that is important to you?
While you never want to let a lead slip through the cracks, when you’re determining how to prioritize your time and close more deals faster, you will want to focus on potential clients who meet certain criteria. They’re ready to go now (with a pre-approval in hand or proof of funds letter), they are motivated to buy in the next few months and their lease is up or they’re ready to put their house on the market asap.
For leads who are not ready yet, keep in touch with them regularly and provide value such as market updates or off-market listings. That’s your future business!
3. Price your listings at or slightly below market value
Pricing correctly is the absolute best tool in your marketing toolkit and one of the best ways to close real estate deals faster. It’s also the best strategy for getting your seller the best price and terms possible. Win-win!
With very few exceptions, such as ultra-luxury listings, the faster a listing sells, the better the price and terms. Once a listing sits for a while, it gets stale. Days on market accrue. Buyers wonder what’s wrong with it, and they think they can get a deal. We know this because on the buyer side, we look for lingering listings for our buyers who want to get a deal. So be sure to price your listings at market value or even slightly below; this will drive buyer interest and result in a faster sale.
Pro Tip
Of course, the listing price is ultimately the sellers’ decision. Once you educate your sellers on how pricing works and show them real examples (comps), most sellers will agree with an aggressive pricing strategy. If they’re motivated to sell, they will be eager to get the best price in the quickest time and understand that the list price is the marketing price, not necessarily the sale price.
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