Nearly 15% of real estate contracts fell through in June, according to Redfin. That’s about one in seven and the highest cancellation rate ever recorded for that month.
If you’re an agent, that stat should have you on high alert. It means a lot of people are spending time with buyers and sellers who aren’t actually ready, willing, or able to close. And when deals collapse, it’s not just the client who loses. You lose time, energy, and income.
You can’t afford to guess who’s serious and who’s just browsing. You need a system to qualify the people in your pipeline.
Here’s the formula I use to decide if someone belongs on my top prospect list, or if they’re a time-waster.
First, What’s a Top Prospect?
A top prospect is someone you can realistically expect to go under contract within the next 90 days. They’re actively engaged, financially prepared, and clearly motivated to make a move. Most agents think they can spot one on instinct. But without a checklist, it’s easy to get fooled.
So here’s a better way.
The 6 Signs Someone’s a Real Prospect
Use this as a filter when reviewing your buyer and seller pipeline. If you check four or more of these boxes, that person probably belongs on your active list. If they check one or none, it’s time to reassess.
- There’s consistent, two-way communication: If someone doesn’t return your texts, calls, or emails, they’re not a prospect. Period. Real prospects want to stay in touch. They ask questions, follow up, and reply within a reasonable time frame. When the communication starts to fade, it’s usually a sign they’ve cooled off, or never really warmed up.
- You’ve had a financial conversation: You don’t need to ask for their bank balance on the first call, but at some point early on, you should know their financial picture. That includes how much they’ve saved, what they can afford, and how they’re thinking about value, either as a buyer or a seller. Too many agents are afraid to go there. But if you don’t know the money side, you don’t know if they can actually transact.
- They’ve spoken to a lender: Getting preapproved isn’t just about paperwork. It shows commitment. If someone has taken the time to gather their documents, meet with a lender, and go through the process, that tells you they’re serious. If they won’t take that step, they’re not ready to buy. Plain and simple.
- They’ve shared a clear motivation: Every real buyer or seller has a reason. And if you don’t know what it is, they probably haven’t decided to move yet. Look for one of the “D” motivators: death, divorce, diapers, diamonds, diplomas, downsizing, or relocation. If none of those apply and you’re still unsure why they’re looking to make a move, chances are they’re not.
- They’re coachable: This one’s simple. Do they listen to your advice? Are they open to your feedback? Or are they constantly pushing back, ghosting you, or doing the exact opposite of what you recommend? If they don’t trust your guidance, they’re not likely to follow through when things get tough, which they will.
- You’re actively showing them homes (or they’re allowing showings): For buyers, this means they’re getting in the car and touring properties regularly. For sellers, it means they’re cooperative with showings. If they’re dragging their feet, canceling appointments, or ignoring good listings, their actions aren’t lining up with their words.
How to Use This List
Don’t expect all six boxes to be checked on day one. This is a process. But once you’ve built enough rapport, you should be able to answer each of these questions confidently.
When I review my own prospect list, I go name by name and ask, “Are they doing these things?” If the answer is yes to most, I know they’re worth my time.
If not, I focus my energy somewhere else.
The market is tough right now. Transactions are down. But the agents who get disciplined about who they’re working with are the ones who stay in control, and keep closing deals.
