Special offer

Sure I Trust. But I Also Verify.

Reblogger
Real Estate Agent with Platinum Realty SP00229578 2007027091

Verifying a Buyer's ability to purchase is paramount to selling a home. As your Listing Agent, part of my job is to assure that the Buyer actually has cash funds or a Letter of Pre-Approval from a reputable lender.

As J Phillip explains, Buyers need to understand that we need Proof before recommending that the Seller accept their offer to purchase.

Maria Morton [816-560-3758]    Leading Edge Society 2010

FireWater Kansas City 2011  ♪  ♫ The Rule of 72 ♪ ♫  Brookside Home Opportunity ♦  ♫

♫ ♦ Prudential Kansas City Realty . 435 Nichols Rd. 3rd Floor . Kansas City MO 64112 . Office 816-410-5499 Blog: www.MariaMorton.com

Customized Home Search     kansas city shcool infor      Senior Alliance Kansas City        Kansas City Realtor Maria Morton

For your convenience, the QR Code can be scaaned with your Smart Phone to capture my contact information. 

Original content by J. Philip Faranda License # 49FA1074963

Roadside signBuyers in this real estate market enjoy many more liberties and advantages with sellers than I have ever seen since I was first licensed in 1996. Not only do they have the lowest rates in half a century, they have far more bargaining power, and in Westchester County, where a starter home can cost $500,000, that is huge. It is a great time to be on the purchasing side. The one thing they don't get to do, however, is consider themselves exempt from reasonable scrutiny regarding their qualifications to buy. Simply put, I as the listing agent have to verify things, and no amount of annoyance or insistence to the contrary can change that. 

I have written previously how cash buyers simply have to show proof of funds if they want to be truly taken seriously. Today, I will reiterate that fact for buyers getting a mortgage. If you are going to submit a pre approval, or in today's case, a prequalification, it is part of my job to verify things, and that goes beyond your agent's "cross my heart" reassurances. It means in many cases calling the loan officer on the pre qualification letter and asking questions. Here are some that I would ask:

  • Have you verified the borrower's credit?
  • Have you verified income and employment? 
  • Have you run  the borrower through your underwriting software (an industry standard)? 

Today, we had an offer where it was disclosed that they were in the process of selling their current home, it was submitted with a pre-qualification from a mortgage broker, not a direct lender, and the amount on the letter was less than the offer. My question to the buyer agent was shrugged off with a reassurance that all would be fine because they had extra money. Perhaps that is all true, but my job is to verify, not take assurances blindly. Like I said, in Westchester, with the competing number of homes for sale, real estate mistakes can be very expensive. Having a deal die can cost my clients tens of thousands of dollars. 

SO...I called the listing agent on the property they were selling (under contract, strong buyer) and I also spoke with the loan officer. I heard what I needed to hear from those I needed to speak with. Without getting into too many details, this did not sit well with the buyer, who actually called me directly. 

Sorry, but that is how it is today. I have to verify the qualification of buyers before I can advise my client to accept an offer. Spending months off the market under contract with a buyer who cannot close is not acceptable. Buyers are the belle of the ball now more than ever, but they don't get a mulligan on basic due diligence from the listing agent. It is my job to verify, and the notion that I am invading their privacy is fallacious. It is absolutely our business to ascertain that the buyer can perform. If I wanted to take some perverse pleasure in sticking my nose in someone's personal business, I'd watch reality TV. This is business, and should never be taken personally. 

______________________________________________________________________________

Subscribe to J. Philip's Real Estate Blog by Email

Active Rain members-Feed your mind.  

NY, NJ and PA Rainers: How About a Triple Play Meetup? 

Memorial Day 2011: Giving Back to a Veteran in Need

  • We Are Westchester County & Metro New York Real Estate. Reach Phil at (914) 723-8900.
  • J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. Vice President, Empire Access Multiple Listing Service. 
  • I am one of New York's premier short sale REALTORS, serving Westchester, the Hudson Valley & Metropolitan New York.
  • Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
  • I am hiring agents. We offer outstanding support, marketing resources, and pasta. 
All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission
Posted by

Maria Morton,Realtor© Call 816.560.375Eight Mobile.     Google Maria 

  Client Testimonials  ♫  Market Reports  ♪  FAQ's    

*Information obtained from Heartland MLS is deemed reliable but not guaranteed. *This is an eclectic blog combining business with a little humor; please consult a licensed  professional before making life altering decisions. ♪♫  

Maria Morton of Chartwell Kansas City Realty is a licensed Real Estate Agent in KS & MO.  816-877-8200 Office 

4141 Pennsylvania Ave Ste 105 Kansas City, MO 64111   Maria Morton Copyright © 2008-2018 

Comments (3)

Lori Bowers
La Quinta, CA
The Lori Bowers Group

I also started to have all buyers on any of my listings pre- approved with my lender and provide proof of funds for downpayment. Even pre-approval letters are not what they used to be.

Oct 23, 2011 08:01 AM
Maria Morton
Platinum Realty - Kansas City, MO
Kansas City Real Estate 816-560-3758

Intero, a Dot Com letter is not acceptable; the Pre Approval Letter MUST be from a reputable lender.

Oct 23, 2011 08:09 AM
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com
Coldwell Banker Realty, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Great post.  As an agent if you aren't going to pick up the phone and confirm the information then make the recommendation to your seller to pick up the phone a verify and satisfy themselves that the information is reliable.    Good reminder to check and verify

Oct 23, 2011 08:31 AM