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Buyer Policy - do you make your buyer's get preapproved before you take them out to see homes?

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Real Estate Agent with Smith & Associates Real Estate BK3194803
Just curious about what other agents policy is on taking clients out before they've been pre-approved.  On one hand, taking them out gets them excited about the home-buying process, but on the other hand, with the price of gas these days, it can be a waste of the buyer's time and mine to show them homes they may or may not qualify for.  I got burned a few times after I took some clients out who were ready to make an offer, and the next day when they tried to get approved, the lender informed me of their 400 credit score - yikes.  Is it rude to tell your clients that you have a policy that they must be pre-approved before you take them out?  If you do have this policy - how do you explain it to your customers so as not to offend them? 

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Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re
It is in the office interview I have with buyers we talk about the benefits of the pre-approval process. My only exception is with my past clients I may not be as demanding.
Jan 07, 2008 12:59 AM
DDR Realty
DDR Realty - Newburgh, NY
Orange County NY
It is the policy of my office for buyer-clients to obtain pre-approval before showing them property. 
Jan 07, 2008 01:50 AM
Matthew Zgonc
Aksland Real Estate - Modesto, CA
Realtor, CFS, CVS

After being burned a few times. I will only take clients out if they have been pre-approved for a loan. It is nothing personal, but my time is as precious as theirs and I don't want to waste it.

Jan 07, 2008 03:00 AM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth
Pre-approval comes a little after the relationship with a buyer is developed, but early-on for sure with a favorite lender.
Jan 07, 2008 03:03 AM
Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL
Liane, With buyers that I pick up on the net, I send them information on how I work and what they can expect from me and how the process works.  I tell them  if they are not paying cash, the #1 most important thing for them to do is to talk to a lender and explain to them that they have to know what they can afford before we can get in the car.  It's working and no one has had a problem with it. 
Jan 07, 2008 03:19 AM
The All Pro Team
EXIT Realty Leaders - Crystal River, FL

Liane, I absolutely do!  I am not wasting my time with them if they can not get a loan!

Melonie Haag

Jan 07, 2008 03:21 AM
LaNita Cates
REMAX of Joliet - Joliet, IL
It depends on each buyer but 90% of them have to be preapproved before I put them in my car. Some of them I know enough about that I feel confident. Some I've actually gotten in my car and then call my lender and hand the cell phone over to them to get preapproved!
Jan 07, 2008 05:54 AM
Chris Pollinger
Berman & Pollinger, LLC. - San Diego, CA
Consulting for Luxury Teams and Brokerages
You have to make it about them and not you.  Explain that it is in their benefit to talk to a qualified lender with a good reputation prior to looking at homes so that when they find the one they want they will be in a much better negotiating position.  Let them know that your reputation within the industry works in their favor and when you set-up showing appointments you start the negotiating process by positioning and posturing them as well-qualified buyers who have been pre-approved by a major brand name bank.  By having this done initially it will work to their advantage for thousands of dollars (up to hundreds of thousands in higher end markets). 
Jan 07, 2008 06:39 AM
Latonia Parks
Top Bragg Realty, Fayetteville NC, Home of the 82d ABN DIV - Fayetteville, NC
Certified Military Relocation Expert
Agree with everyone else.  You don't get paid to transport them all over the city.  You get paid to close.
Jan 12, 2008 03:38 AM
Bill Somerset
Re/Max Realty Group - Dover, NH
ABR, e-PRO - Realtor - NH Real Estate Agent
I thas always been, and will continue to be a policy of mine to have a pre approval prior to showing property.  In my initial office consultation I let my buyers know this and give them "homework" to do.  "Homework" being the pre approval.
Jan 14, 2008 12:15 PM
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Liane Jamason

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I specialize in Residential Real Estate in all areas of Tampa Bay - South Tampa, Tampa, Riverview, Gibsonton, Brandon, Lithia, New Tampa, Apollo Beach and more!

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