Keith’s Musings Vol. 1: Level 3 Clients

Now more than ever in a shifting real estate market you need to make sure you have Level 3 clients. And because we’re early shift you need Level 3 buyers on both sides of the aisle. 

What is a Level 3 client? They meet all of the following criteria:

1) Motivated

2) Realistic

3) Loyal

If they meet two they are a Level 2 client.

I bet you’re guessing if the meet one they are a Level 1… nope.  If they only meet one of the criteria they aren’t even a client. They are a lead. 

Allow me to unpack.

Many sellers are slow to accept the reality of the market. They think their house is different and will buck the headlines. Many buyers are too but on the other side: they think it is time to get their pound of flesh from the real estate market. Neither are true.

As an agent you have to get more purposeful about prequalifying possible clients. If someone isn’t motivated, realistic and loyal they aren’t bad humans… they just aren’t ready to dive headfirst into the market today. It is ok be present for them, answer questions, be a resource for them but save your full energy for the Level 3 clients. Here are a couple of ideas to help define what level they are.

Well if they aren’t loyal to you then you’re kind of out of the game. So we’ll just move on from this one. 

Realistic: for a seller the price discussion is a great way to define this. Maybe send them some articles before the listing presentation about the market and ask them their thoughts. Don’t steer it to set up your conversation make it an open dialog to really learn: how realistic are they about the state of the market. One of the things I have been recommending for a while is if you can’t come to terms on price have them agree to having an appraiser put value on the home. You pay for it but you both agree that you’ll take the appraisers valuation into consideration when pricing. It will be a lot closer to your value most of the time. And appraisers have more time than they had a few months ago so they’re probably willing.

Motivated: ask a seller “what would you do if you didn’t sell the home”. NOT in a “take away” close kind of move. That is just yucky. Please don’t be yucky. But do have an open/thoughtful conversation about all their options. Once of which is, of course, to just stay put. That shouldn’t be some conversation you fear that should be something you explore to find out how motivated they are.

There are a ton of ways to approach this but be alert and aware of explore all three criteria with your people. If they check all the boxes then work tirelessly for them. Over communicate, exceed expectations and dazzle. If they don’t then pause, have more exploratory conversations with them until you can identify the best way for you to work together. Which might be to hit the pause button and circle back. Keep your peak energy for the Level 3’s. 

And I know I’ve said it twice already but please don’t read this as “find the motivated and forget the rest”. This is a service business. Some of what we do every day is to sacrifice to the real estate gods. You’ve got to serve them all. But know who to give maximum energy to… or you’ll run out.

Keith