In order to remember which questions to ask when qualifying a buyer, we use the LPMAMA system. Here’s how it works.
When qualifying a potential client, the phrase LPMAMA is a great way to remember all the right questions to ask.
L for location: Many buyers will call excited and not even know if a home they found is even in the location they truly want, so ask this to make sure it’s where they want to be.
P for price: Which price point have they been looking in?
M for motivation: Do they have a home currently? Do they need to sell it to buy the next home? Are they currently in a lease? If so, when is it up? You might need to guide them on special timelines, like a lease ending soon that requires a little more urgency. Conversely, if they have six months left on their lease, it might be too early to buy a home.
A for agent: Have they been working with one? If they’re calling signs, they’ve probably called other agents. Sometimes buyers just truly don’t understand how we work, so it’s our job to politely explain that to them. I also don’t want to step on another agent’s toes, so if they’ve been working with another agent, I’ll advise the buyer to call them.
M for mortgage: Are they financing the purchase? If so, have they spoken with a lender? You have to phrase this carefully because if you assume they have to qualify for a mortgage, what happens if they’re actually a cash buyer or their parents are buying the home for them? You could insult the buyer. I’ll always frame it by asking the buyer: “Will you use cash to buy this home or will you obtain financing? If so, have you talked with a local, professional lender?”
A for appointment: This comes after we’ve vetted them to be sure they’re a serious buyer and have talked to a lender. We want to set this appointment because we’ve found it to be crucial to sit down with buyers so they can see the whole process from the beginning. They can get a lot of preliminary info online, but our true value as an agent comes by taking them through the whole process with as few speed bumps as possible.
If you have any other questions about this topic or you’d just like to discuss your real estate career, you can always give me a call or send me an email. I’m here to help!