In my real estate listing training courses, we call this Qualifying.
We use a four step process that works well:
1. Basic Questions - 'Why are you selling, where are you going, when do you need to be there, are you going to buy another home, do you need the money from this home to buy you next one?' - that type of question. Since there are four basic reasons people sell - Transfer, Retire, Upgrade, and Estate - the questions are tailored to the reason.
Several things happen at once as you ask these Basic Questions: you start developing rapport, building a relationship, showing interest in what they need to accomplish, and demonstrating that you understand the real estate business.
2. Probing Questions - 'What happens if the home does not sell by (on a timely basis) what are you going to do (logic)?' 'How are you going to feel (emotion)?'
The purpose of the Probing Questions is to make the seller think about the consequences of the house not selling on a timely basis. Many people just assume the house will sell and they don't consider the alternative. Probing Questions help us uncover stated and unstated needs. If they say they will just stay put, maybe they are not motivated sellers and maybe you don't want this listing. If they admit to unpleasant consequences, you have the knowledge to help solve their problems on terms they will respond to.
You asked 'fact finding questions should be based around making the client aware of the downfalls or shortcoming of their current solution. Is that correct?' Absolutely yes.
If you are interested, the 3rd and 4th steps in our qualifying process follow.
3. Time Target Questions - 'Would it be in your best interest to have this home sold AND closed in the next 90 days?' The usual answer is yes so we then take away the closing time to make them aware of a bit more urgency than they might have had up to this point. We ask, 'Since it takes about 30 days to close (go through escrow), we must have a qualified buyer on paper in 60 days so you can have the money in 90 days, isn't that right?' The most frequent response is a solid Yes. That sets us up to ask the fourth step.
4.Tentative Committment - 'If you felt you could actually get the most money, the quickest sale, and the fewest problems by listing with me, right now, today, is there any reason you wouldn't do so?' Their answer gives direction for our next step.
Final point: Professional selling is NOT something we do TO people, it IS something we do FOR people. Don't be afraid to ask penetrating probing questions.
