Should I try to enforce a 'pre-qualified buyers only' requirement on my listings?

By
Education & Training with Sell with Soul

QUESTION: "Should I try to enforce a "pre-qualified buyers only" requirement on my listings? If so, how?"

JA's ANSWER: Every once in awhile I'll hear an agent say that he (or she) restricts showings on his listings only to buyers who are already pre-qualified for the purchase price. His rationale is that it's inappropriate to inconvenience a seller by allowing showings to buyers who in all likelihood cannot or will not purchase the property.do not enter

I disagree - I think it's simply a matter of setting appropriate expectations with a seller. In 12 years, I have never had a seller ask me to screen buyer showings, probably because I warn them upfront I have no control over who looks at their home. Some will be real buyers, some will be agents previewing the competition for their upcoming listing and some will be buyers out for the first time who won't buy for six months. 

"However," I continue, "any activity is good activity, even if it doesn't result in a sale, because the home has been exposed to one more (actually probably two or three more counting the Realtor & buyers) and exposure is always a good thing. We should do everything we can to encourage showings, rather than look for ways to trim them down. I'd much rather risk your being a bit inconvenienced by lookie-loo's than miss a previously lukewarm buyer who suddenly turns into a red-hot one."

My sellers ALWAYS say - "Of course! We want as many people as possible to look at our home!"

As a wise (wo)man once said... "Unseen is Unsold!"

 

Referral Network

 

 

 

 

www.SellwithSoul.com

Posted by

It's Here!

 

The More Fun You Have Selling Real Estate, the More Real Estate You Will Sell! 
(True Story)
Order Your Here!

 

 

 

 

 

 

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Sales and Marketing
Groups:
Real Estate Rookie
Rookies Turning Pro
Learn to be a Top Producing Listing Agent
Selling Soulfully
New Agent's Fasttrack to SUCCESS!
Tags:
sellers
all blogs

Spam prevention
Show All Comments
Rainmaker
2,485,287
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.

I agree a home unseen is unsold, but I always ask the buyers agent if they are qualified. On short sales I put a pre qual letter with each deal.

Mar 12, 2009 12:32 PM #64
Rainmaker
67,649
Walter Grewe III
Long and Foster Realtors - Roanoke, VA
Realtor, SFR, A-REO, Roanoke Homes and Real Estate

Why would you waste your time showing homes to someone that you have not had prequalified? Then once you have determined their buying criteria why would you ever take them to a home they cannot afford?

I guess in some areas there is no buyer agency, but in my area I don't know of any agents who don't get buyers prequalified first.

Mar 12, 2009 12:41 PM #65
Rainer
44,689
Olena Osipov
Maple Ridge, BC

I agree. The more exposure the home gets the better it is.

Mar 12, 2009 12:49 PM #66
Rainmaker
83,032
Vanessa Calhoun
PalmerHouse Properties & Associates, LLC - Atlanta, GA
Your Greater Atlanta Marketing Guru!!

I work with both buyers and sellers in the Metro Atlanta, GA area. As a Buyer's Agent, I ALWAYS have my buyers pre-approved with a DIRECT lender prior to showing them properties. As a Listing Agent, I ALWAYS have any potential buyers pre-approved prior to my showing my seller's property. If the property is being shown by another agent, I trust that they are doing their due diligence with their buyer. The reason for this is simply for security purposes only. We recently had an issue where a condo owner was robbed and beaten to death by someone posing as a "buyer" to preview her midtown home. We've also seen issues with potential "buyers" touring homes and coming back later to rob the homeowners. A common criminal will be less likely to commit a crime when he/she knows that they've given someone their information. It has nothing to do with not wanting to be bothered with those who cannot purchas at that time....that doesn't mean that they will never buy, It's about protecting my clients and myself.

Mar 12, 2009 01:39 PM #67
Rainer
43,585
Bryan Crabtree
Bryan Crabtree, The Real Estate Expert. - Mount Pleasant, SC

Yes - but it has to be the seller's requirement so it's important to make sure the seller is on board!

Mar 12, 2009 02:51 PM #68
Rainer
205,587
Sylvie Conde
Sutton Group-Associates Realty Inc., Brokerage - Toronto, ON
Broker, Toronto Real Estate

I don't really care if the buyer is pre-qualified or not. 
There are no guarantees that someone pre-qualified is going to buy the house.
Expose the house, as much as possible (always assuming every agent is doing their due diligence, of course, and they know who their clients are).


I would prefer everyone to be pre-APPROVED with a commitment letter (not just pre-qualified), but that's also limiting the showings, and that's not a good idea.

One never knows who will end up buying the house, and one thing is for sure ... they will have to see it first, pre-qualified, or pre-approved, or whatever... they will have to see it before they can decide.

(If they are my buyer clients, under contract, then they will be pre-approved for sure - which is always the first priority - but that also doesn't mean we'll show paperwork to the seller or the seller's agent, without seeing the house - and until we have an offer.)

Mar 12, 2009 03:03 PM #69
Anonymous
Jeff Trevarthen

We all know that open houses are not for finding buyers.  Rather they are for finding prospective future clients!  Why limit your prospects?  You never know who you're going to meet.

Mar 12, 2009 03:30 PM #70
Anonymous
Anonymous

Here in Florida almost everyone is a real estate agent. You can tell by all the foreclosures that qualification is a huge issue.

You can imagine we have to ask the buyers agent some questions about who they are working with and how much they know about their client.

I also like to know that the agent is looking out for their client and not working with a predator lender (they exist) or some other fly by night.

It's all about protecting the homeowner and making sure the showings are to those that the agent has made some inquiry into their purchasing situation.

Good luck to all  -

Mar 12, 2009 03:40 PM #71
Rainmaker
20,841
Linda Just
Leibowitz Realty Group - Palm Beach Gardens, FL - Lake Worth, FL
SFR

 

I forgot to sign in above..

Here in Florida almost everyone is a real estate agent. You can tell by all the foreclosures that qualification is a huge issue.

You can imagine we have to ask the buyers agent some questions about who they are working with and how much they know about their client.

I also like to know that the agent is looking out for their client and not working with a predator lender (they exist) or some other fly by night.

It's all about protecting the homeowner and making sure the showings are to those that the agent has made some inquiry into their purchasing situation.

Good luck to all  -

Mar 12, 2009 03:45 PM #72
Rainer
15,942
Paul Caparas
Pacific Sotheby's International Realty - San Diego, CA

Pre Approved or not, in my opinion show your listing.  I mean who knows, a buyer who isn't Pre Approved yet might know some who is and may refer your listing to that person.  (Especially in this market)

Mar 12, 2009 07:45 PM #73
Rainer
60,099
Norma Brandsberg
Marks Realty Co. Inc., Lynchburg, VA, 540-586-9496 - Forest, VA

It's up to the seller. I would explain it to them and then ask them what they want me to do, but you are right that you never know where the sale is coming from, jut as we don't know where our next prospect is coming from.

Mar 14, 2009 06:54 AM #74
Rainmaker
488,012
TIM MONCRIEF
Tim Monciref - Austin, TX
Over 2,000 homes sold…..

Absolutely.  The last 5 offers that I have had whereby the buyer's agent did not prequalify their client and I told them that we would reply after seeing a prequalifcation letter, EACH buyer did not have better than a 560 credit score and one was at 408.  This is in the $500k to $900k range.  Hopefully, that will motivate you.

Mar 14, 2009 10:46 AM #75
Rainmaker
151,731
Carol Lee
Dilbeck Real Estate - Oak Park, CA
Realtor - Agoura, Oak Park, Westlake CA Homes

Showing homes to some one that has not yet been qualified is one thing.  But I will not wirte an offer for a buyer until they have spoken to a lender.

Mar 15, 2009 05:32 PM #76
Rainmaker
76,691
Shantée Haynes
Berkshire Hathaway HomeServices PenFed Realty - Washington, DC
Your Congress Heights Resident Agent

"Unseen is unsold"

 

 

.....that about sums it up!

Mar 16, 2009 08:41 AM #77
Rainmaker
183,897
Janet Guilbault
Platinum Home Mortgage Company - Walnut Creek, CA
San Francisco Bay Area Direct Mortgage Lender

Hey Jennifer: I didn't know if you knew that I lifted a few comments from this post and wrote a piece surrounding those comments.

There was a pretty interesting dialog...

Mar 18, 2009 03:38 AM #78
Rainmaker
485,057
Jennifer Allan-Hagedorn
Sell with Soul - Pensacola Beach, FL
Author of Sell with Soul

Thanks for that, Janet! I enjoyed your blog - smart stuff!

Mar 18, 2009 08:53 AM #79
Rainmaker
32,431
Craig & Sue Guffin
Coldwell Banker Monsees Realty - Sedalia, MO
Sedalia Mo Real Estate

You never know who (your yet to be qualified) person may talk to. I would though have them put that task on there very soon to do list while I continue to show them property. 

Mar 21, 2009 02:11 AM #80
Rainmaker
235,927
Patricia Beck
RE/MAX Properties, Inc., GRI, CDPE - Colorado Springs, CO
Colorado Springs Realty

i imagine it would be difficult to ensure only pre-qualified buyers view the home.  The most important factor is exposure, that's why sellers want open houses.  These agents who only want pre-qualified buyers viewing their listings probably don't hold open houses!

Mar 26, 2009 01:45 AM #81
Rainmaker
485,057
Jennifer Allan-Hagedorn
Sell with Soul - Pensacola Beach, FL
Author of Sell with Soul

Patricia - Whenever I heard this advice in the past, my very practical mind always asked that question - "How exactly would I go about confirming this?" Yeah, that's what I want to do - spend all day harrassing buyers agents - that'll win me friends!

 

Mar 26, 2009 01:48 AM #82
Anonymous
Anonymous

I totally agree.. I too have noticed sellers want their house shown....even if it is an agent previewing, a curious neighbor or a qualified buyer. You do never know who might see it and recommend to someone that eventually buys.

On the buyers agent argument, I never like to take buyers out all day to look at houses prior to them talking to a mortgage broker. It just doesn't make sense. Until they talk to someone they will have no idea what they are qualified to buy or which kind of loan is best for them (maybe they want only a conventional so we forgo seeing the dilapidated REO).

Most buyers agree to make that 10 minute call prior to heading out so it is rarely a problem for me.

 

Apr 30, 2011 05:48 PM #83
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
485,057

Jennifer Allan-Hagedorn

Author of Sell with Soul
Ask me a question
*
*
*
*
Spam prevention