What can happen when the seller meets the buyer first?
Here is an example from this week:
I have been working with a seller getting ready to sell one of his rental properties. He has been in the process of evicting the current renter for the past couple of weeks and finally had the sheriff at the house to get the rest of the tenants' things out of the house yesterday. Tough situation.
In the process, a potential buyer was driving by and asked if my seller needed help. They got to talking and the buyer is in the market looking for a home to buy. My seller immediately called me, explained the situation, and handed the phone to the potential buyer.
First of all, this a good great client. Very good to protect himself and let the buyer know that he has an agent representing him. The seller did not reveal the price that he was considering for the property or what he intends to repair or replace. This keeps him out of trouble in trying to negotiate with this potential buyer later on.
The buyer let me know that he had not been able to get a loan from three different banks in town due to lack of credit history. Red flag. Suspecting that there was more to the story, I asked for all of his information and sent him to my best secondary market lender for approval.
Good news is she can get him approved for FHA financing. Bad news, she needs to be able to show that he has the minimum 3.5% down payment in order to move forward.
Also, the seller confided to me that the buyer's requests regarding the property made him uncomfortable when the buyer started asking about "seller financing" or "rent to own" options. Which my seller is not at all interested in, he wants to sell the home and pay off the loan. Once the buyer brought it up, it was time to call me to take over.
We will see what happens with this one. The house will be ready to go on the market in the next week. The buyer has a week to get his finances in order or he could lose it to another buyer that is able to perform.
As a seller, once the sign goes in the yard, there may be potential buyers that approach you while you are outside working in the yard. It is wise to refer all potential buyers to your agent. NEVER show your home to a "buyer" as you don't know if they are qualified to purchase your home and you can never be too careful.
If you are thinking about selling, please call me for a free home seller consultation to find out the market statistics for your home and your neighborhood. It may be the perfect time to make a move!
Keep smiling!
Karen
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