Thursday, January 18, 2018

7 Red Warning Flags You’re Not Closing the Sale

Just as in poker, new home buyers have certain “tells” that indicate their true hand.

There’s nothing's worse than spending days, weeks or even months working with a prospective new home buyer who has no plan on buying a new modular home. All the time they are talking with you, they are house hunting with their Real Estate agent.
Odds are that prospect probably showed his or her hand several times—you just didn't see it. Stop wasting your time.

The following seven red warning flags are surefire giveaways that your prospect will never close on the deal. "We're Waiting on Our House to Close" This is stalling tactic a lot like the old “the check is in the mail” excuse some people use to buy more time. The check is rarely in the mail. When you hear someone is waiting on something to happen in order to close on your deal, whether that's true or not, the chances are really good your deal will fall through.
In a lot of instances the prospect haven’t even listed their home for sale or found a building lot, applied for a mortgage, etc. True or not, the success of your deal is contingent upon a third, uninvolved party, greatly hurting your odds of closing the deal. If you experience this, try negotiating terms until that deal comes through, or, even better, try to make the third party irrelevant to your deal. If they balk, there’s your "tell."

General Questions
People who are serious about buying something ask a lot of hard questions as they try to fit your cost estimate into their budget. They see themselves owning it and are thinking of things they’ll want in their new home.
Casual new prospects will ask general questions like how long does it take to build a modular home, how much can it save by going modular and so on, but serious new home buyers will ask about warranties, energy savings, standard vs upgrades, high performance, etc. If they're asking too many general questions, that's your “no deal” tell. Too Many (or Too Few) Details People who are backing out of a deal often give the person they’re backing out on way too many details. The more elaborate and extreme the details are, the greater the likelihood they’ll back out. It’s a guilt thing. The converse also holds true—if your potential new home buyer is overly vague or a bit dodgy, they're likely backing out as well. Excuses, Excuses Modular home builders and salespeople call these objections. I call them the foreshadowing of a lost sale. Sure, there are legitimate objections and any good modular builder knows (and has heard) them all. But if you listen really closely, you can hear when objections turn to excuses.
For instance, if you’ve not only responded to all the objections, but you’ve shown potential new home buyers how they can actually own the new modular home they want, and out of nowhere you hear, “Well, I sort of promised my wife I’d consult with her father about this before we make any decision. He knows about modular houses better than I do.” Whether there’s really a father or even a wife isn’t the point. The excuse (aka, an irrelevant objection) is just a sign you’re not going to a signed contract with a check to deposit. "Let Me Call You In Six Months" If you hear this, you’re certainly not going to get the sale today and you’re probably not going to get it in six months either. Why? Because if a prospective new home buyer has a need at all, they have that need right now.
If the “call me in six months” is preceded by a request for more pricing, looking at different plans and other services, then the “call me” request may be legitimate, but don’t bet on it.
Time delays, without actions or commitments, are a big tell that there is no deal to be had. Time Management Issues You have a hard time getting a meeting with your prospective buyers. They’ve cancelled or rescheduled several times already. You finally get to the appointment and get to talk to the buyers and then during the meeting you hear, “We can’t make any decision on this today, but I’ll give you a call back next week.” Which they don’t. Remember, they contacted you first about building them a new home and now can’t find the time to discuss it with you.

People with time management issues will always have time management issues. You don't need them as a client. Move on

Up for a Challenge
This is my favorite. Before every meeting with the prospects they Google about the most irrelevant things and then quiz you about them during the meeting. They challenge your knowledge at every step of the process. If you have the stamina to actually meet every one of their challenges and get a signed contract, the battle of wits will now continue through the entire building process.
Asking questions of a builder is standard stuff and you have probably heard it all but when those questions become a boxing match with the prospect and the prospect loses, kiss the sale goodbye.
In this case, that would be a good thing.

1 comment:

I Am Home said...

Wow! You certainly are spot on. By not being too desperate for a sale, a salesperson should see some of these signs.