The Art of the Question- The Delicate Prequal

The task of pre-qualifying a potential tenant or lease-option buyer can be tiresome and uncomfortable.  In polite conversation, nobody wants to ask, "So, how's your credit?" yet in the real estate investing business when dealing with potential tenant buyers, the answer to that question gets to the heart of the matter.

I market my properties as either "Rent To Own" or "For Sale- Owner Willing to Finance."  My goal in marketing is to find those who don't just want to rent, but who want an opportunity to own a home of their own. After the initial pleasantries are exchanged,  I ask the caller 3 specific questions developed by a former mentor.  They are:

#1. Is this the first time you've thought about owning a home of your own or have you thought about it before?  

This question is an ice-breaker question. Almost everyone over the age of 18 has thought about owning a home before.  It's very non-threatening and no matter how they answer, it is a perfect lead-in to the next question which is:

#2.  What has kept you from owning a home of your own Up Until Now?

I don't ask the buyer upfront if they have good or bad credit.  This question is designed to be non-threatening, yet it tells me almost everything I need to know.  All I need to do is listen!  

It discloses if they have had a bankruptcy, job loss, serious illness, etc. and, it tells me if they have bad, broken, or bruised credit before I even pull a credit report.  Perhaps the buyer has been living in an apartment and just had a child and they want a home of their own with a yard. Or, perhaps they are newly single following a divorce.  Maybe, they were laid off 18 months ago and lost their home to foreclosure. This question will tell me.  Once they answer this question, and we review the particulars of the property, I then say:

#3 Well, if you have a few more moments RIGHT NOW, I can get a little bit more information from you and let you know how fast we can get you into this home?   Would that be OK?

Most callers- if they are indeed serious about the property and have answered questions one and two- will comply. The phrase "right now" is an embedded command and the phrase "a few moments" puts the idea in the callers mind that you want "just the facts." When I go through this sequence the conversation usually ends with an appointment set with a pre-qualified client to view the home.