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My Open House Made The Buyer Cry | Alexandria VA Buyers Can Toughen Up With A Mortgage Approval

By Tamara Inzunza

Real Estate Agent with Realty One Group Capital MovingToNova.com

May 14, 2010 05:18 PM

My Open House Made The Buyer Cry |
Alexandria VA Buyers Can Toughen Up With A Mortgage Approval

Crying For A New Home

We never mean to do it! We never want to do it. Honestly, we're not in the business of making buyers cry. But it happend to me. And although I wish it didn't happen, it all could have been avoided.

I was conducting an open house. And any agent can tell you how thrilling it can be when a buyer walks in and is captivated by the house and just falls in love with it.

As a listing agent, you instantly feel the rush of being able to surprise your seller with a great offer. You've met the buyer, so you can convey to your seller how much they really like the home. You can't wait to make the call to the seller and make the appointment to present the offer.

You're in the open house, and you observe how the buyer is 'claiming' the house, by confirming where their furniture is going to go, asking when the seller wants to close, and confirming whether or not there are any offers on the table.

All of these things happened, the buyer was excited, I was excited...then the buyer called back in tears because they went to a lender to get approved, and found out that they didn't qualify to buy the house. The house, the one they fell in love with, the one they spent so much time in, the one that was a perfect fit for their family, their furniture, their commute, and their lifestyle was out of their price range.

I wasn't in tears, the seller wasn't in tears, but the buyer was.

Even though it's a buyers market and there are more choices, it's a sellers market in certain price brackets when it comes to buying a home in Alexandria VA. With all of the information online, we all know that over 80% of buyers are starting their home search on the internet. But the one thing that some buyers are still neglecting, is the importance of the mortgage approval before starting their Alexandria VA home search in earnest.

Buying a home shouldn't bring you to tears. Toughen up, and be smart about your real estate purchase. Talk to a local lender and get your mortgage approval. It's free, and there's no obligation.

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Buying or Selling Real Estate in Del Ray or Old Town Alexandria VA? Looking for short sales in Alexandria Virginia? Contact Tamara Inzunza, Associate Broker of McEnearney Associates, Inc. Realtors to list and sell your home, or purchase a new home. I specialize in Old Town Alexandria, Del Ray, Kingstowne, and Manchester Lakes condos, townhomes, and single-family homes for sale.

Call me at 703-623-8759.

Visit my website and Search MLS Listings of Homes For Sale in Alexandria VA at www.MovingToNova.com/. If you're thinking about selling and would like to know how much your Alexandria VA home is worth, visit http://www.confidentialcma.com/ for a complimentary market analysis of your home. Not selling but curious about the homes for sale in your neighborhood, visit http://www.movingtonova.info/ for FREE Market Snapshot reports and stay informed whenever a home is listed or sold in your neighborhood.

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Denise Hamlin, Broker/Owner

Cardinal Realty ~ 319-400-0268 - Iowa City, IA

Helping Happy Clients Make Smart Choices

Hi Tamara ~ Nicely put. You had us all hooked with this story. Bottom line is that it is totally depressing for buyers to be looking at homes they can't buy. Often the pre-approval letter is touted as leverage for buyers making an offer as it shows a strong buyer. As you correctly point out, it's much more than that, it's emotionally damaging for buyers to be looking at homes to find out later they can't afford them.

Denise

May 29, 2010 03:27 AM

Joe Pryor

The Virtual Real Estate Team - Oklahoma City, OK

REALTOR® - Oklahoma Investment Properties

Let me dissent just a little bit. For those of us who have been in the business awhile and have benn involved in closings in the four figure bracket there is a danger. Doing something over and over again in houses can make it a commodity. We can treat this like a bsuiness deal, talk about tax deductions, future appreciation (we hope), and miss the fact that their has to be an emotional connection. I hope you took these people under your wing. I would love to tell them that I would be glad as a professional to assist them with getting help on their credit. I do this daily with short sales and talk about emotion folks. I see a house in their future with your help.

May 29, 2010 03:30 AM

Rob Lang

At Home Kansas - Shawnee, KS

Local Expert in NE Central Kansas Real Estate Home

Tough deal. I hope you were able to work with the buyer to find something they loved and were able to work with financially.

May 29, 2010 03:46 AM

Kathryn Maguire

GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA

Serving Chesapeake, Norfolk, VA Beach

Great post. I always tell my prospective buyers, "Before we go out and look at houses, have you talked to a lender?" If they haven't, I give them a list of ones I can recommend. As soon as they are qualified, then we can start looking.

May 29, 2010 03:55 AM

Irene Kennedy Realtor® in Northwestern NJ

Weichert - Lopatcong, NJ

Tamara,

And to think some agents get annoyed when I ask if their buyers are pre-qualified! Knowing what one can afford saves time - and tears!

May 29, 2010 04:01 AM

Aaron Poling

Long & Foster - Martinsburg, WV

Working to get YOU the BEST Deal!

Most buyers seem to think that the pre approval is for the agents sake or the sellers sake, it is actually for the buyer. If you look at houses you can not afford, it is hard to accept the ones that you can. Its all about expectations.

May 29, 2010 04:07 AM

Michelle Fradella-Barfuss

Broker, Marketing Coach, Trainer - Red Rock Real Estate - Salt Lake City, UT

Author of "Top 10 Mistakes Agents Make When Market

I don't ever write up an offer without making sure that the buyers are pre-approved for a loan. It's bad business to take up your time working a deal with someone who can't buy, not to mention the fact that you get the buyer's hopes and seller's hopes all caught up, and the emotions fly high.

BEFORE you start showing people houses, or write up a contract with one that you met at an open house, be SURE to get them in touch with a lender and get them pre-approved. You'll save yourself and your clients a lot of time and heartache.

May 29, 2010 05:19 AM

Evelyn Milton

Property Executives, Inc - Washington, DC

Awesome Tamara! You should see about publishing this in the Washington Post's RE Sunday section. A real wake-up call!

May 29, 2010 05:21 AM

Leslie Neiss

Barcroft Realty Group - Fairfax, VA

I let the buyer know that with lender approval in hand they are in a better position to quickly act on an offer for a home they find that they do love!

May 29, 2010 05:28 AM

Rene Fabre

ARFCO Media - Renton, WA

Practicing Philosophical Eclectic of the Arts

Tamara, great read, thanks... I'm with Leslie, I wouldn't even go looking now days without a letter of approval from a lender. What's the point. And to chime in on Debe's comment... Even 2nd time buyers are having challenges around here. So many of the rules have changed you'd better see how far through the maze you can get first, then start looking for that 'perfect' home... Nice blog...

May 29, 2010 05:41 AM

Rhonda Burgess

Southern Living Realty Partners - Smyrna, TN

Moving to Nashville TN Real Estate Specialist

You do feel bad when someone gets disappointed like that. Just like how I will not put a buyer in my car until they are approved, I advise buyers not to go to open houses too if they are not pre-approved.

May 29, 2010 06:11 AM

John Elwell

CENTURY 21 Bill Nye Realty, Inc. - Zephyrhills, FL

You Deserve a Full-Time Agent, Not Reduced Results

That is one of the problems with openhouses. The people that enter the home often have no idea of the price and also are often not qualified to buy it. The audience is not targetted. Even then you would think that you might be able to convert some of these looky lous over to see other listings, but how often does that happen? I have yet to hear of very many agents here being able to pull that off. And frequently the buyers are already working with an agent and are just out hunting on their own. Open houses here are a dead issue pretty much.

May 29, 2010 06:21 AM

Aaron Silverman

SuccessfulRental.com, Bluewater Property Management, LLC and Lowcountry Turnkey Properties, LLC - Charleston, SC

Improving Real Estate Experience through Education

Getting a mortgage approval letter should be the first step in the process for a buyer. Plus a buyer will also have time to improve their credit score based on feedback from their mortgage lender while they search for a home. It may take them several months to find a home, and by paying down a few bills, the buyer could save tens of thousands over the life of their mortgage.

May 29, 2010 07:51 AM

Anna Swihart

Long and Foster - Sykesville, MD

Tamara, great blog. The qualification is so important!

May 29, 2010 03:32 PM

Christine Donovan

Donovan Blatt Realty - Costa Mesa, CA

Broker/Attorney 714-319-9751 DRE01267479 - Costa M

It's so important to get pre-approved and know what you can buy before falling in love with any home.

May 29, 2010 07:53 PM

Tamara Inzunza

Realty One Group Capital - Alexandria, VA

Close-In Alexandria and Arlington Living

Wow! What a great surprise to have a Featured Post! Thanks for all of the comments.

May 30, 2010 03:21 AM

Tamara Inzunza

Realty One Group Capital - Alexandria, VA

Close-In Alexandria and Arlington Living

Thanks Cheryl: You're right, the pre-approval should be the first step. I just can't understand why buyers are still skipping out on this important and necessary step in the homebuying process.

Thanks for the thumbs up Dave: It was hard to see the buyer go through that emotion indeed, especially after witnessing how much they really liked the house.

Thanks Chris: As a Realtor, we can definitely help a buyer with a pre-approval, but the buyer has to let us help them through the process. It's one thing to try to buy a home on your own, but if you're going to do it that way, do it right.

Thanks Pat: Maybe because the lending was so relaxed a few years ago and everyone/anyone could get a mortgage, some buyers are thinking that's still the case. Much like the seller who knows the market is down, but wants to list their house above market value and expect multiple offers.

May 30, 2010 03:26 AM

Tamara Inzunza

Realty One Group Capital - Alexandria, VA

Close-In Alexandria and Arlington Living

Thanks Denise: You know, it's one of the things that I don't like about open houses. The majority of the times the buyers that come though like the house you're holding open but can't afford it. So they're starting their search by having to bring their criteria down a couple of notches.

Thanks Joe: These buyers were working with a Realtor, but they weren't approved yet. They were definitely in the early stages, but still put the cart before the horse. I always do my best to get my buyers to do their approval quickly if they can't come into my office to meet my lender. All of my lenders accept telephone appointments so it can be done within one business day.

Thanks Lawrence: They were working with a Realtor, but I'm sure that the house that I was holding open will always be known as 'the one that got away'.

Thanks Kathryn: Let me add to your script, "Should I have my lender give you a call after we hang up so that we can get you pre-approved today?"

May 30, 2010 03:33 AM

Tamara Inzunza

Realty One Group Capital - Alexandria, VA

Close-In Alexandria and Arlington Living

Thanks Irene: Fellow agents shouldn't get annoyed, but you do have to ask to make sure. It's part of our duty to our sellers.

Thanks Aaron: You hit the nail right on the head.

Thanks Michelle: A great way to transition into that dialogue at an open house is to have a lender sheet already prepared and have the pre-approval conversation right there with the buyer.

Thanks Evelyn: I'll do what I can to make that happen!

May 30, 2010 03:38 AM

Tamara Inzunza

Realty One Group Capital - Alexandria, VA

Close-In Alexandria and Arlington Living

Thanks Leslie: I'm with you. However, I still hear, "We're sure that we'll be able to get a loan." or "We know we won't have a problem getting approved." *ugh*

Thanks Rene: You're right, but I don't think buyers understand that the rules for lending have changed. And even though they may have income, there could still be something that prevents them from getting approved. Anything from a 30-day late from a mortgage two years ago, an error on their credit report that is bringing their score down, a judgment that hasn't been paid, etc.

Thanks Rhonda: Many buyers use open houses to 'get a feel for what's out there'. Problem is that when they see something they like, and fall in love, it can ruin the process for them when they find out that they can't afford it.

Thanks John: Our area is very pedestrian-friendly, so often buyers who come in to our open houses buy our listings, we are able to pick up lots of buyers, and we are able to get listing appointments from neighbors because of our presentation and knowledge of the market. You may be sitting on a gold mine and not know it. There was an ActiveRain daily drop a couple of weeks ago that was all about open houses (or do an AR search on open houses). I'm sure that if you're able to implement some of those nuggets, that you would benefit from the ideas while your colleagues continue to think that open houses are a dead issue in your area. Find something that can make YOU and YOUR OPEN HOUSES stand out.

May 30, 2010 04:00 AM