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How to Build a Hot and Warm List

July 04 2013

recruitEveryone knows that your hot list is made up of everyone you're currently working with or those who are soon to buy or list. But, what about your warm list?

"A lot of agents look at this list the wrong way," says Garrett Frey, owner and ninja master coach with Ninja CoachingNinja Coaching in Redding, Calif. "If a buyer or seller tells you they're six months away from buying, that person should be put on the warm list, but so should anyone going through a life change," he says.

How do you know that? If you're completing your goal of talking to 50 people a week, then your conversations should lead you to these life changes. "If I'm having a FORD conversation and the person tells me that they have a baby on the way, are getting married or divorced, or have an elderly parent moving in, they go on the warm list. They don't know they're moving yet, but we know they will probably move," he says.

Another person to add to the hot (yes, hot) list—those who say they're a year out. "More often than not, you'll find people who say they're a year out from buying or selling. But, the truth is they're just confused about how to do it. Fix that confusion and you've got a buyer," he says. "Something is holding them back. It may be that they haven't decided which is the right school to send their kids to, or that they're waiting to hear about a possible job promotion."

When that happens, Frey says that it's up to you to figure out what is holding them back, then help them fix it. For example, if deciding on a school is the issue, he will have the buyers stop looking at homes and settle the school issue.

So, who goes on your warm list? "Anyone who mentions a life change to you, regardless of whether or not they've mentioned moving," he says.

As for your hot list, Frey recommends you put anyone who says they're thinking of buying or selling a home. "Find out what's stopping them and help them move forward."

Frey has a special Excel spreadsheet business tracker that he uses for his warm and hot lists. "It's a great way to track your income and you use it as a basis for your weekly phone calls," he says.

Download the BusinessTracker_2013BusinessTracker_2013. For a list of possible life changes that would warrant a change in real estate needs (even if the prospect doesn't realize it yet), download Frey's ClientswithChange_GuideClientswithChange_Guide.

This article originally appeared on the REAL Trends Blog. Reprinted with permission of REAL Trends Inc. Copyright ©2013.