Buyers and Big Red Flags - Why should I waste my time?

AMEN! That is so true. I have been running into that as well. They want you to go broke taking them to see houses on your dime and your gas. You would think people would be a little more hospitable when your trying to help them out.

I agree, here pre-qualified doesn't mean anything.  Pre-Approval has alot more pull, so I agree with you.  Too many people think we have all the time in the world for them and I guess we need to educate them on the facts and the fact "we have no time to be wasting on you, if you don't have time for Pre-approval".

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RIGHT ON, ADAM!  Quite honestly I've never understood why any agent would EVER show a customer a house without a mortgage pre-approval or a bank statement showing enough money to pay cash!

If you enable re-blogging, I'd like to reblog this into our Group, "Got Money?" or would love to have you post it there.

Everyone needs to read this, consumers and agents alike.

Thanks,

Donna Mitchell, Home Loan Consultant, www.donnasgotmoney.com

Blog:  Donna's Got Money

Group:  Got Money?

NICE!  I like the way you handled this customer!  I will surely take your advice and start doing to same.

Lately, I have been getting applicants that weren't pre-approved and had signed a PA only for me to deny the borrower. Ratios are a major issue right now. Clients had a 765 Fico and the agent relied on this alone. Really a credit score is not as important as savings and debt ratios. Don't get burned, get them pre-approved always!

I fully agree with the policy of pre approving clients for their loan prior to a showing and will add on , know i dont take on buyers with out signing an exclusive buyers agent agreeement. I am sick and tired of showing properties and educating the buyers to find out they head to another agent when the deal need to go under contract so they can get a % of their comission back

Adam, I agree with you! I will not show a property until the customer sits with me for a consultation. If they are serious they will meet with me.

A lender (a manager at that) just got yelled at by a prospective buyer because he was waiting for his pre-approval... thinking it is just a piece of paper, who cares the buyers finances look like!

I totally agree if I can't get a prequal letter out of them then they should not be riding around in my car.  I also for a safety precaution ask for people I don't know to meet me at my office for a quick buyer presentation prior to us going out if they are not interested it is a red flag to me and I don't want to work with them.

Hi Adam I added you as an associate as well.  I agree with your post.  In years past we became somewhat

lenient about pre-approvals.  But in today's market, you really do need that pre approval ( and that sometimes has so  many conditions, that even the pre-approval doesn't guarantee a commitment.)  It seems like the a lot of buyers are really only dreamers and wishful thinkers.

This is very true. The people who protest the most are the ones who usually are the least qualified. No point to wasting time.

For me, it kind of depends on how they come across on the telephone.  If they have any hint of an attitude, I don't go out of my way to pursue them as a client.  I'll either refer them to another agent or just give them the listing agent's name and number.  I do ask them about prequalification but I don't make it a big deal.  I'd rather initially err on the side of being too trusting than being to skeptical.

I'll take them to see a home or two and basically do a buyer consultation out in the field. 

If they see a home at the top of their stated price range and they seem pretty indifferent, I know it's going to be  a tough sale.  If they get all excited about a home in their price range, I know at least there's a good possibility I can find them a home that they'll be happy in.  If they aren't ready to talk to a lender then, that's when I will cut it off.

I have found that a buyer  really gets motivated once they have seen a home that they can get emotional about.  You can't get emotioal until you see the home in person.  I want to be the agent with that buyer at that time.  I guess maybe  I just like looking at homes and initially I take people at their word.  I might lose some time and money, but at the end of the year, I'm usually in the top few percent in my office.  The high rewards usually out weigh the small risks.

Exactly. Well put. If that 'customer' is this obstinate from the get-go it won't get any better from here! I don't know about home prices in your area, but $50,000 income doesn't qualify you for much home.

I can understand not wanting to give up all of my info (as the buyer) to a 'stranger' on the phone but she should have a least came into the office for a consult.