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A Doctor's Advice For Purchasing A Home?

By
Real Estate Agent with Classic Realty Realtor

I have a friend who is a doctor. We were sitting having lunch a while back and I was sharing about another friend of mine who has something going on physically. My doctor friend, after I paused for a moment, spoke up and said these words that I will never forget: "David, when it comes to physical concerns, NOT KNOWING IS NOT BETTER". I knew exactly what my friend the doctor was saying. "We can guess, we can speculate,  but the fact is, until your friend has a true diagnosis, until he/she knows what they are up against, we are only guessing and nothing can truly be properly treated!"

Why this story? I mean, after all, I'm a Real Estate Agent who seldom becomes involved with individuals in reference to health concerns.

The reason for the story is this: I am constantly running into prospective home buyers within Real Estate who want to purchase a house but they haven't come to grips with one specific absolute that MUST be dealt with. They stop by and sign up at my website to search for a home. They talk with me sometimes and endeavor to persuade me to take them out looking for a house! But when the subject of their CREDIT and MORTGAGE APPROVAL comes up, I hear things like, "I believe everything is fine David, let's just go house shopping first and then I will pursue the Mortgage!" Then comes the disappointment when house hunters who procrastinated find out they can't qualify for a Mortgage and there are things to work on which of course means there is a delay they hadn't counted on! The disappointment mentioned a moment ago is huge. All the while, this has happened because they didn't want to deal with the facts! You see, in Real Estate, like when tacking health concerns, NOT KNOWING IS NOT BETTER!

When you as a home buyer know up front where you stand financially, you can then begin to fix what is wrong, if something indeed needs to be fixed. Additionally, you will be able to find a house in your price range and when that house is found - You will be able to write a sound offer in an effort to purchase it!

The fact is, most of us, unless we are paying cash, will need a Mortgage and Mortgage Approval! Why not deal with it up front so that the path is clear for your next home purchase.

Comments(142)

Bethany Poole
Ski Utah Real Estate - Salt Lake City, UT
Bella Staging & Design SLC, Utah

David, you are so right! I think we have all learned the hard way that we shouldnt waste our time showing multiple homes before getting a client approved! Great post!

Jun 26, 2011 05:20 AM
Ranji Singh
Century 21 Heritage Group Ltd. - Newmarket, ON

Great topic David  ..................

Patient: Doctor, doctor, I need your help,something isn't feeling right

Doctor: Where does it hurt?

Patient: You are the doctor, don't ask me personal questions, I just need your cure.

Doctor: Hmm, let's see then.  I'll write you a prescription for Viagra. If that doen's work we'll try Lipitor. If that still doen't work try over the counter Vick's cough remedy.

Do professionals operate this way? Many real estate agents do.

Professionals should be showing only to pre-approved prospects committed to a BRA. Anything else is a lottery on your time (value).

 

Jun 26, 2011 06:09 AM
David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

Rob, you are right - Knowing is Knowledge...

Bethany, you are correct that we should all have learned by now - the right approach is pre-approval first and then we will show them any home they would like to see that they are qualified to purchase!

Ranji - I think you just stole the show!!! (smile) You are so right on that we need to be professional in our work and when we're not, showing houses to someone NOT qualified, it is a lottery on our time (value). Thanks for sharing your thoughts with us today.

Jun 26, 2011 06:22 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

An important part of our job, as Realtors, is to empower buyers so that they can make informed decisions.  Knowledge is king.

Jun 26, 2011 02:45 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

This is an important topic to be discussed with buyers up front... I rarely will work with a buyer until they have a pre-approval from a reputable lender.  When I frame the conversation in terms of how it will help them find their spendin comfort level.. and that they don't want to be disappointed if it turns our they can only afford less than they thought, it is usually well received.

Jun 26, 2011 03:16 PM
ASHEVILLE REALTY REFERRAL RESOURCE 828-776-0779
REAL ESTATE REFERRAL NETWORK - Asheville, NC
CONTACT janeAnne365@gmail.com

SO appreciate this thoughtful post

Jun 27, 2011 03:36 AM
David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

Sharon thankyou for stopping by and I agree - we need to empower buyers with knowledge. Zeal without knowledge can be dangerous.

Joan, I appreciate your thoughts, especially when helping people to understand you are concerned for them. It truly is ALL about the clients....

Asheville NC Real Estate... thanks for the kind words..

Jun 27, 2011 03:52 AM
Marsha Cash
RE/MAX Advantage - Stockbridge, GA

Amen!

Jun 27, 2011 09:03 AM
David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

Thank you Marsha....

Jun 27, 2011 11:45 AM
Deb Espinoza
Stage Presence Homes, San Diego Real Estate - Ramona, CA
GRI, Broker, SRS,ABR ePro, SFR, CNE

David- what a great way to put it! It not only saves everyone from disappointment but also saves your precious time!

Jun 27, 2011 12:06 PM
Jordy Brisbin
Sutton Centre Realty - Vancouver, BC

I run into this all the time, and am dealing with it right now. I met a buyer, who was not yet pre-approved and heard exactly what you stated. I decided to take her out house hunting, but insisted she call a mortgage broker, which she did, although not immediately. Turned out there was a minor defect in the credit, which prevented the approval. It has taken months to get this straightened out, but it is an example of what often happens. Many many times, there is a minor issue that must be dealt with, and not everyone has the perfect credit they think they have. I do have a policy of taking these people out once anyways, so I don't completely lose them, but they must get approved promptly.

I subsribe to a credit monitoring service through my bank, which will notify me immediately of any credit applications, or other credit related issues. I am also sent quarterly reports showing my status... I think this would be a good idea for most people.

Jun 27, 2011 01:39 PM
David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

Thank you Debbie for your positive words. You are right, following a simple procedure like talking with a lender first can save a client from a lot of disappointment.

Jordy, I'm glad you stopped by and left some comments. I appreciate your thoughts about the bank and an individual's credit.

Jun 28, 2011 12:26 AM
Kimberly Brandon
Smart Moves Real Estate - Venice, FL
Broker/Owner

Great post - It still amazes me how difficult it can be to get some buyer to get pre-approved - and in my experience - the more difficult - the less likely they will be able to purchase...

Most are just dreaming and don't want to face reality.  But see no problem in waisting the seller's time or our time.

Jun 28, 2011 04:27 AM
David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

Kimberly, thanks for stopping by and sharing. You are right - the process to get someone to secure their pre-approval is a challenge! When the challenge is met though and we finally meet at the closing table, it truly is worth all of the frustration along the way, especially that of pre-approval.

Jun 28, 2011 08:06 AM
Karen Bernetti
Southington, CT

This is such a great analogy David - and I think the same is true for home sellers who don't want to face up to the obstacles getting in the way of a successful home sale.   Not knowing is NOT better - it's time to get your head out of the sand! 

Jun 28, 2011 04:17 PM
David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

Thank you Karen... I appreciate you sharing.

Jun 29, 2011 12:53 AM
Ana & Melissa SW Illinois Real Estate Brokers
RE/MAX Preferred - Belleville, IL

I always tell prospects that calling the bank for a pre approval is like going to the doctor... no one ever really wants to go but it's the most important thing we can do.. then I ask them to please call and make contact prior to our appointment.  Loan reforms make it harder for folks with perfect credit and cash on hand to get a loan.  Better to uncover issues before finding a home they love!

Sorry if I'm repeating something someone said prior to me... Saw your post and wanted to chime in!  It's really a great analagy and buyers seem to get it when it's put this way.  99% of them call right away. Thanks for the post and Congrats on the Feature!

Jun 29, 2011 10:53 AM
David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

Melissa, I really like your first line. That is excellent!!! It is true, who wants to go to the doctor? But then, there are moments when we must do so. Thanks for stopping by and sharing your thoughts.

Jun 29, 2011 11:19 AM
Beverly of Bev & Bob Meaux
Keller Williams Suburban Realty - West Orange, NJ
Where Buying & Selling Works

This should be said as we look in the mirror. NOT KNOWING IS NOT BETTER. When we as real estate agents put someone in our, meet someone to show a home, and we have ALLOWED ourselves to ot know whether they can even afford to buy.

 

It's our fault, not there's. So say it to yourself before you go on your next appointment.

NOT KNOWING IS NOT BETTER.

NOT KNOWING IS NOT A BUYER.

NOT KNOWING IS NOT PAYING A MORTGAGE.

NOT KNOWING IS NOT GETTING ME BUSINESS.

NOT NOWING IS NOT BETTER.

Jul 01, 2011 03:25 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

What Bev said...you don't know, you don't grow....and you don't go looking at houses...not with us.

Jul 08, 2011 12:40 AM