Anyone who is thinking of selling a home or other property is a potential client, but many people begin to explore their sales options well in advance of the time they actually intend to sell. You should definitely take time to talk with people who are undecided, and stay in touch with them until they are ready to put a property on the market — but devote the most time to people who wish to sell now.

A ten-or fifteen-minute friendly conversation is usually all it takes to determine if a property owner is ready to sell. Jot down a few important questions and keep them handy so you can pull them out any time a potential listing client comes your way. After a few sessions you won't need your list anymore — you'll know exactly what to ask to determine how serious a person is about selling.

Important questions include:

• Are you ready to sell your property now?

  A “no” answer tells you this is someone you should stay in contact with and provide your marketing information. This is probably not a seller you should devote a lot of your in-person time to, until they are closer to their target sell date.

• What events must take place before you sell?

  Maybe the owner is waiting for a job promotion or relocation. Perhaps he won't sell until updates or repairs are completed. The answer to this question will help you determine timing and motivation.

• How long do you think it will take to sell your property?

  You'll find that most people don't have a clear understanding of how long it takes to sell a property and get it to closing. This discussion gives you the opportunity to explain area averages and educate the seller about local real estate customs. It could lead to an earlier listing date for sellers who have underestimated the average times.

• Do you know what your property is worth?

  Unless they've had a recent appraisal, most people do not know the true value of their real estate. Some owners associate a property's assessed tax value with its market value, but tax value is nearly always much less than the actual sale price of the property. You'll also find that many people think their real estate is worth much more than the facts dictate. A discussion of value is your opportunity to explain appraisals and CMAs. Some people will not disclose their perceived value until they hear from you first. They want to see if your number matches their guess.

• Do you plan to buy another property?

If the answer is “yes,” you can certainly help them find it. You can do this either through your own efforts or by referring them to an agent in another area who will pay you a commission for the referral.

All of these questions lead to discussions that focus on the owner's true desire to sell. Whether the individual intends to sell immediately or not, make sure you keep track of all potential clients. Send them your promotional mailer every month or so, or write a personal note. Follow up with a phone call. Your continued success in real estate is all about developing future business, so do all you can to make sure it's your name people remember when it's time to list the property.

It is tempting to tell people that their home is worth more than it actually is in order to have them like you and list their property with you. By doing this you are not doing your clients or yourself a service. They will have a house on the market at an overinflated price and you will have a listing that may not sell. Ask the sellers to consider hiring an agent based on the agent's merits and not on what the agent thinks their house is worth. If they think you are the best agent for the job, they should choose you to represent them, even if another agent gave them an inflated value.