Preapproval

By
Real Estate Agent with Tropic Shores Realty

First let me say that I this is not my first go round.  I sold Real Estate from 1997-2000 and then got into the appraisal end of the industry.  I have been an appraiser since 2000 and have achieved the status of Certified Residential Real Estate Appraiser.  I however recently got back into Real Estate sales which is by the way my true love (professionally that is, my wife of 27 years takes the title otherwise).  So you would think I knew better than to take buyers out in Spring Hill Florida in Hernando County and spend a day with someone whom I knew was not preapproved.  I got the old statement "approval won't be a problem" well I am guessing it was a problem since that well has dried up and communication is silent. 

It is in every ones best interest to get an approval prior to even doing a search. For starters the potential buyers may actually be surprisedto find that they could afford a superior home to the ones they may have been looking at or they find their "dream home" only to be crushed by the realization that is well above what the bank says they can spend.  I did a disservice to my customers by letting them get their hopes up about a purchase they obviously could not make and to myself for not only wasting time but time that could have been spent with my family or in helping others who where qualified to make a purchase.  

It is our job as Real Estate professionals to advise our customers not only about a purchase but also how to get to the point of being able to make that purchase.  I recently had a conservation with a future customer about prequalification and the reasoning behind it, she reponded by saying that she had spoken to several agents recently and none of them had mentioned this to her but that it was in fact the most important information they had received.  People want to be educated and most will respond positively, those that don't probably are not going to buy anyway.  Window shopping is for Main Street.

 

Comments (6)

Tim Mancuso
Independent Coach, Trainer & Consultant - Gilbert, AZ
Elite Sales Coach - GROW SMART

Mark,

GREAT point, a solid reminder to us all. It's a shame on all sides when things don't work out. I like the line you wrote 'Window shopping is for Main St.'. Thanks for the post. TM

Jul 08, 2011 04:59 AM
Juan Bassett
Long & Foster - Germantown, MD
GRI

Good points Mark! Realtors should be prepared to ground themselves and their customers prior to going into the market unprepared/unapproved.

Jul 08, 2011 05:04 AM
Judi Boad
ACCURATE REALTY GROUP - Seattle, WA

Hi Mark~ Our team members are always conflicted when it comes to putting someone in the car with no pre-qual. We have all thought we were risking the loss of a potential client by not opening doors for them at their command!

However, I know from my own brutal experiences that you risk much more by not insisting folks put things in the right order. As a professional, we are there to guide them in the right direction. If they can't accept that from the beginning, they aren't a good fit! 

Your experience added a great ending to your story!

Best regards from Seattle,

Jul 08, 2011 05:26 AM
Mark & Maggie Marcotte
Tropic Shores Realty - Spring Hill, FL
PA, ABR, SFR, AHWD, Tropic Shores Realty

Thanks Tim, while I love people I don't like to shop just for the heck of it.

I agree Juan if we go unprepared we go prepared to fail.

Judi that is exactly what happened in the case I was conflicted but decided to give it a whirl anyway and while I really like the couple I could have lived without the ride.

Jul 08, 2011 06:14 AM
Jeanne M. Gavish
Jeanne Gavish, Keller Williams Realty Elite Partners - Spring Hill, FL
Keller Williams Realty Elite Partners - CIPS,GRI,S

Ouch!  Especially with the price of gas.  It is just not worth the risk.  Thanks for the good advice.

Jul 10, 2011 01:11 PM
Mark & Maggie Marcotte
Tropic Shores Realty - Spring Hill, FL
PA, ABR, SFR, AHWD, Tropic Shores Realty

Tell me about it Jeanne. Thankfully I do get 34 mpg but just the same it's money out of my pocket.

Jul 10, 2011 11:52 PM