Identifying Which Real Estate Lead is a Qualified Lead
When it comes to real estate investing, finding qualified leads is the key to success. But what exactly makes a lead qualified? According to a recent transcription, it’s a very subjective qualification standard, and what might be a qualified lead for one person might be completely different for someone else. However, some general rules can help determine whether a lead is worth pursuing or not.
Price of the property
The primary and most essential thing to consider is the price of the property. This is a universal standard, as it directly affects the profitability of the investment. If the seller is unwilling to accept a price that makes sense for the investor, then it’s not a qualified lead. Of course, there may be some flexibility when it comes to short sales, but generally speaking, the price of the property is the number one criterion that investors look at.
The motivation of the seller
If the price of the property is right, but the seller is not motivated to sell, then it needs to be a qualified lead. Investors are looking for sellers who are ready to sell as soon as possible. This could be due to a divorce, job loss, or other factors that motivate them to sell quickly. If the seller is not motivated, then it’s not a qualified lead.
Condition of the property
This can be very different for different people. For example, for some investors, major structural work may not be an issue, but it could be a dealbreaker for others. Similarly, some investors may be willing to overlook cosmetic issues, while others may be looking for a property that is in pristine condition. So again, it’s a subjective criterion that is important to consider.
Timeframe for the sale
If the seller is not able to sell the property for months or even years, then it’s not a qualified lead. Investors are looking for sellers who are ready to sell as soon as possible, preferably within a few weeks or months.
Authority of the seller
If the person contacting the investor is not the actual decision-maker on the property, then it’s not a qualified lead. So, for example, if a group of siblings owns the property, and not all of them are willing to sell, then it’s not a qualified lead.
In addition to these five considerations, there are a number of other factors that investors may look at when determining whether a lead is qualified or not. For example, if the property is listed with a real estate agent, it’s generally not a qualified lead. Similarly, if the mortgage on the property is much higher than the investor is willing to pay, then it needs to be a qualified lead.
The bottom line is that finding qualified leads is crucial for real estate investors. Investors can determine whether a lead is worth pursuing by considering factors such as price, motivation, condition, timeframe, and authority. While these criteria are subjective and may vary from investor to investor, they provide a useful framework for evaluating potential leads and maximizing the chances of success in the real estate market.