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Answers (8)
- Dan, "the_country_hick"
- Contributions:4690
What do you do when a buyer says "No, I am not prequalified and I will not work with any lender. I am paying cash."?
Assuming that all buyers need a loan is a bad idea. Asking for a bank statement showing proof of funds is workable however, some cash buyers may not want anyone; their own realtor included to know exactly how much they have. They do not want to be pushed to overpay.
Assuming that all buyers need a loan is a bad idea. Asking for a bank statement showing proof of funds is workable however, some cash buyers may not want anyone; their own realtor included to know exactly how much they have. They do not want to be pushed to overpay.
- Neil Blumberg, "Neil.Blumberg"
- Contributions:42
As a general rule we would not show a house to a non pre-qualified buyer. But there's a difference between saying "no", and saying "no, but..."
At Metro1 when we say say "no" to a Louisville Kentucky home buyer, we follow with "but may we help you become pre-qualified for a home loan? We work with a mortgage broker who can do that within 10 minutes over the phone". We explain why they need to be pre-qualified. If they refuse our offer, we refuse to show.
There are also a grey areas: If they have applied but not yet received approval, we will show, and if there are extenuating circumstances, such as recent move to city with good job etc..
At Metro1 when we say say "no" to a Louisville Kentucky home buyer, we follow with "but may we help you become pre-qualified for a home loan? We work with a mortgage broker who can do that within 10 minutes over the phone". We explain why they need to be pre-qualified. If they refuse our offer, we refuse to show.
There are also a grey areas: If they have applied but not yet received approval, we will show, and if there are extenuating circumstances, such as recent move to city with good job etc..
- Dorothy Engel & Stella Logan, "Dorothy and Stella"
- Contributions:14
We first have potential Buyers go through the MLS photos and descriptions of properties that might fit their criteria. Before we set appointments for the homes they want to see, we remind them that they will need to bring information as to their prequalification. We explain that many Sellers want to know that people who come into their homes are serious buyers.
- Christine McGinty, "whitemountainagent"
- Contributions:273
I absolutely require not only pre-qualification but pre-approval. I have never had an offended client yet. I simply educate them through the process letting them know that the only way we can shop for the right house is to know what they can afford as determined by a loan approval. There's no sense in wasting my time or theirs by looking at homes they can't afford or better yet find out they can afford more house and have to start over. I don't care how much my gut tells me they have the money to buy. Credit reports are taking a beating right now and loan money is very tight.
I also tell them a loan approval has a time limit until they have to go through the application process again so they need to be ready to buy once the they have received their approval. If they aren't interested in going through the application process "at this time" that's a red flag to me they are just kicking tires and not seriously looking.
- Paul Kaplan, "Modern RE Group"
- Contributions:295
We live in a resort community. As a result, often we get calls from clients that want to get an idea of what homes cost in our market. Although we try to get everyone prequalified before we show properties, often we realize that is not possible. If they are not prequalified, then often we will show 3 to 4 properties just as an introduction, to try to "sell" the Palm Springs lifestyle and show them what is available. At that point, we will inform them that if they are serious about purchasing then the next step is to get prequalified prior to continuing looking at properties.
If they are reluctant to take this next step, then we typically won't spend additional time showing them properties. However, we will include them on our property drip system as well as send them open house schedules. Often buyers in our market wont decide to purchase until later visits to Palm Springs. If we ruled out all buyers that were not yet prequalified I strongly think we would lose business.
If they are reluctant to take this next step, then we typically won't spend additional time showing them properties. However, we will include them on our property drip system as well as send them open house schedules. Often buyers in our market wont decide to purchase until later visits to Palm Springs. If we ruled out all buyers that were not yet prequalified I strongly think we would lose business.
- Mitchell Jamel e-PRO, "MyStAugustine"
- Contributions:130
Yes, Always show the property, gain the trust and help them with the process of Selecting a Lender / Program that is right for them.
In my business I never take no and 90% turn it in to a YES! maybe that is why I sold over 24 Homes in Saint Augustine Florida a small county south of Jacksonville Florida.
If you are in the Real Estate Business for the long term then building referrals is the name of the game and if you view it as a waste of time then I am happy for in the long run I will earn the business.
In my business I never take no and 90% turn it in to a YES! maybe that is why I sold over 24 Homes in Saint Augustine Florida a small county south of Jacksonville Florida.
If you are in the Real Estate Business for the long term then building referrals is the name of the game and if you view it as a waste of time then I am happy for in the long run I will earn the business.
- Angelica Blatt, "angelicablatt"
- Contributions:129
No
- Mark DiJohn, "Mark DiJohn"
- Contributions:27
If you show homes to someone that is not preQualified, you are not only hurting yourself, financially, but you are putting the seller out and even putting unrealistic expectations out for the buyer. If they are not qualified, and won't become qualified, why are they looking? I always make sure I have preQualified buyers in my car before I show them homes... If not, all your running is a free Taxi service.
I simply ask, "Which lender are you working with?" If they answer they are not or have not yet found one, I always tell them they need to begin the process now. They may be financially secure, but you never know what company has decided to attach something to their credit or even determine exactly what credit average they have. I also tell them, to get the best deal we need to show the sellers we have the financing already in place. Too many times buyers find the home they love, then start the loan process only to realize the great deal they wanted, got snatched up by another buyer that had all their financing in place already.
I simply ask, "Which lender are you working with?" If they answer they are not or have not yet found one, I always tell them they need to begin the process now. They may be financially secure, but you never know what company has decided to attach something to their credit or even determine exactly what credit average they have. I also tell them, to get the best deal we need to show the sellers we have the financing already in place. Too many times buyers find the home they love, then start the loan process only to realize the great deal they wanted, got snatched up by another buyer that had all their financing in place already.
WOULD YOU SHOW A HOUSE TO A BUYER WHO WAS NOT PREQUAILIFIED?
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- 0.0/5.0
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Contributions:182Every agent faces this problem and most handle it differently. From sellers who demand all buyers are prequailified to agents who make it part of their practice to only show homes to buyers that have been prequailified.
This leads us to the second question of 'How do you ask the buyer without upsetting them?
I make it part of my routine:
Are you working with a loan officer yet?
If yes...
Do you mind if i ask with who?
Did they prequailfy you?
If no ...
I work with a great loan officer, can i give you their number so you can get prequailified, the bank requires a prequailfication letter in order to submit an offer.
I can then guage by their response how ready willing and able they are to purchase.
SO HOW DO YOU HANDLE THIS DELICATE PROCESS?
Blog Updated: Oct. 3, 2010
Blog Written by:
Scott Godzyk
Godzyk Realty Group
Manchester NH
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