I'd say No -- NEXT!

02/11/2008 04:55 PM

by Lynchburg, Roanoke & Danville Area Nannette Saunders ASSOCIATE BROKER (Bradner, Farmer, Towler and Associates)

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Hi Fran,

It is very simple to explain to the client that if they are not pre-qualified then how do we know what price range we should really be looking in?

Michael A. Caruso

02/11/2008 04:57 PM

by Michael Caruso Real Estate Group

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I would not show a home to someone who isn't pre-approved.  Its a waste of time unless of course, they have cash.  Then I ask for a bank confirmation.  ;)

02/11/2008 04:58 PM

by Kay Bennett, Realtor® MILLION $$ PRODUCER (First Realty Company)

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After asking if they are working with a Realtor, the very next thing is "are you pre approved"? A family friend or associate, maybe, but I always tell them, as soon as you have your letter faxed to me, we will start looking. However, I have been working with a couple who had trouble getting their letter, but they knew it was coming. We looked at homes and of course they found one they wanted and I told them they needed that letter for me to put in an offer.This tends to eliminate some of the people who just want to see the insides of a house for decorating purposes!   Otherwise, I do not understand why someone would want to look if they don't even know how they will pay for it!!! Or what they can afford!

02/11/2008 05:03 PM

by Karen Hurst ~ Real Estate Broker ~ Warwick ~ Rhode Island (Storm Realty LLC)

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This is a good point to bring up, I had heard that a few years ago some home decorator on TV was telling people to call Realtors to go see homes to get decorating ideas.  Im sorry but how rude of someone if they are not in the market and are willing to waste your time.

02/11/2008 05:03 PM

by Chris Frantz (Hernando County Real Estate - Exit Success Realy)

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I usually try and explain to the client I would hate to show them a house and have them fall in love with it only to find out they are not qualified to purchase, and how  I would hate to see them disappointed.  It seems to be the only way to politely tell them to go talk to a lender...

02/11/2008 05:11 PM

by Darci Gullett (The Michigan Group)

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I have . But the person has been e mailing and working with me as there credit score grows. I know that she is dead serious about buying a home. And she will use me. I have showed her a few homes just because they where close and she wanted to see what you get at this price. I have received refferials from her and become a close friend. You have to give and take. But if this guy just refuses to lend you any explanation of his story say next..

02/11/2008 05:12 PM

by Sharon Harris (AllQuest Real Estate)

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There's something we are all forgetting. We can charge them a fee. Give him an alternative. He can pay for your time. If he wants a sight-seeing guide he can pay for one. $50 per property sounds fair to me.

02/11/2008 05:13 PM

by Karen Luke - Henry County Real Estate (Keller Williams Realty )

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Nannette: Absolutely, hence the picture of the rear view mirror. :)  Seriously, I am a firm believer in everyone needs a home and should be entitled to get one........ but let's follow the process.

Michael: That's it right there...... if they aren't pre-qualified how do they know they can afford it?

Kay: Cash is good, but not likely in this price range.. but cash is good!

Karen: There are exceptions and you know those and feel those.... I didn't feel this one.

Chris: Decorating ideas?  Buy a magazine!

Darci: Good explanation! I like it !!

Sharon: There are situations where one can ..... but there has to be evidence of possibility!

Thanks to all of you for stopping by and giving me your input!  I appreciate it!

02/11/2008 05:18 PM

by Kansas City North Real Estate :: Fran White 816-682-3897 (North Kansas City Real Estate, Reece and Nichols Residential)

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Karen: UNIQUE idea.......... and how do you present that in conversation?

02/11/2008 05:19 PM

by Kansas City North Real Estate :: Fran White 816-682-3897 (North Kansas City Real Estate, Reece and Nichols Residential)

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Fran, I would show them one property if it were my listing. This would give me the opportunity to speak with them face to face about getting them qualified. But it would have to be at my convenience. Sometimes we have to meet with folks in order to get the whole sccop.

02/11/2008 05:21 PM

by Bryant Tutas-Tutas Towne Realty, Inc

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I don't show a property unless I meet someone face to face first, in a safe place. That is basic safety. And if a person is willing to accept that common sense, they are usually able to accept the common sense of getting their financing in order. It takes very little time to get them a pre-qualification. And then, you know how committed they are by how long it takes them to get qualififed :)

02/11/2008 05:43 PM

by Sarah Nopp, REALTOR(R), CRS. RE/MAX Four Seasons, Olympia WA (RE/MAX Four Seasons)

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Fran,

In my market here on Drummond Island, Mi. it is unheard of to ask for a Pre-Qual.  However since taking my ABR class last year I learned to do so.  Well I did ask when my biggest competitor on the island asked to show my listings.  I told her and she got very indignant.  

Too Bad!, it is my clients request, not mine.  In the future though I intend informing all my clients that I do not want to show their properties with out a Pre-Q.   AND it is an inconvenience for my sellers to vacate their homes just for shoppers of decorating ideas or someone wanting to fill in a couple hours while on vacation. 

I am just starting out, my time is extremely valuable doing all the things a personal assistant would otherwise do.  There needs to be about 48 hours in a day for me.

AND, to Kay's suggestion, money for a showing would be very nice! 

02/11/2008 05:46 PM

by Vivienne Seaman (RE/MAX Eagle Properties)

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I would meet with them - talk about the process - but we are looking at homes until they are Pre-Approved.

I am also confused about several comments talking about "Pre-Qual".  No offence - but my dog can "Pre-Qual" someone!  A Pre-Qual means nothing in my world.

Pre-Approval is a must.

  

02/11/2008 06:20 PM

by James Downing - REALTOR® - Washington DC Real Estate (Coldwell Banker Residential Brokerage)

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As a rule, usually not. But there are always exceptions to every rule. Pre-approval is so key to establishing the basis of what we will be looking for. It drives the whole process. But there are times when simply going out to get a sense of the area can be time well spent, and also time becoming better acquainted with the clients and their likes/dislikes.

02/11/2008 06:39 PM

by Rich Jacobson ~ ActiveRain Community Builder (ActiveRain Corporation)

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NEXT ..... If they aren't willing to get pre-approved they aren't worth your time.

Sean Allen

02/11/2008 06:43 PM

by International Financing Solutions

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OH OH OH ...... I forgot to comment. Is that you putting on makeup in the rearview mirror?

Sean Allen

02/11/2008 06:44 PM

by International Financing Solutions

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It is wasting your time but, maybe the parents are going to gift money that might make a difference.  Loan approval makes a seller feel a buyer is serious...so get serious and get the approval.  Nice post Fran.

02/11/2008 06:46 PM

by Gary White~ Grand Rapids Real Estate, FlexIt Realty, a call or click away! (Flexit Realty~Serving West Michigan)

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If they are not pre-approved, or at least pre-qualified then I can't spend time showing them anything.  When they get irritated with that personal rule, I explain to them that it is for their benefit.  I don't want to show them homes that they fall in love with only to be disappointed when/if they can't afford it or can't qualify.  I also make it known that once they have done their part with the financing that I will be happy to devote myself to finding them the home of their dreams with terms to match.  Usually ends the squabble right there.

02/11/2008 06:48 PM

by Carol Smith (Soon to be Keller Williams Preferred Realty)

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I would not show a home to someone that has not given me the information to get them approved.  It is not worth your time.  You want the person to have some commitment.

02/11/2008 06:48 PM

by Dave Cheatham (INC Financial )

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 I would get them set up with tools to shop online,I don't know if I would flat say I'm not showing you homes unless your preapproved because even though it makes sense to you, It may make it sound like you don't want to waste your time with them unless your getting paid and some people may take this as a used car salesman type attitude. They may buy but won't work with you because they think your intent is only to treat them like a paycheck. I build my business on relationships and everyone is different.

Team Quintana Real Estate - Spokane Home Finding Expert

visit www.TeamQuintana.com if you would like to exchange links with me Fran

02/11/2008 06:49 PM

by Spokane Realtor - Rick Callaham (Team Quintana Real Estate)

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DUE to the death and murder of a recent collegue in Vancouver bc. One can never be too safe.( I am in Washington where there have been a few reports of a suspect luring agents to vacant home here too) An agent was murdered here 1-2 years back and left in a vacant home.

Any serious buyer will understand qualifying them or checking them out.  Legitimate buyer that is. 

I think once the public knows that qualifying them is a safety net, most are willing .

I do work with agents who do FLOOR time that will go to meet people that call in for in inpromptu showing.. they feel that a potential buyer, deserves one "freebie" showing... Some in the industry are getting away from that for safety purposes. I am one of them.

02/11/2008 06:51 PM

by sheryl clark

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Hi Fran - I always ask that question, and usually won't unless I get a good sense from the conversation that they're legitimate and likely well-qualified.  And then I ony show one, maybe two, and continue building rapport.

Ann

02/11/2008 06:52 PM

by Portsmouth NH Homes Condos - Ann Cummings New Hampshire REALTOR® (RE/MAX Coast to Coast - Portsmouth New Hampshire)

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I am a mortgage broker and I find myself in similar situations, where a borrower will call and request a rate quote and good faith estimate with little or no information. It is absoultely amazing that a major, 30 year investment,is taken so light heartedly.

02/11/2008 06:53 PM

by Keith Barnes

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Yes I probably would go see one house and get a chance to speak to them in the car.  Not all buyers understand all the pieces of the puzzle, sometimes an explaination as to the why's are necessary.  I could then judge the next step.

02/11/2008 06:54 PM

by Miriam Bernstein,Westchester County Real Estate (RE/MAX Prime Properties)

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First of all, I don't own a cab company....I'm sure you don't either.  As far as getting pre-qualified/ pre-approved, in NC, the laws changed DRASTICALLY in Nov. of 07. 

Several things come to mind:

1.  Mr./Ms Prospect- if you are not qualified by a lender, and I take you out to see home in the 500K range, and you qualify for a 250K home, then you are not going to LIKE any of the 250K homes, because you've already seen the 500K homes.

2nd. If you are pre-qualified/ pre-approved, then whatever offer you tender will have  a much STRONGER degree of consideration, as another offer that may come that is not pre-qual'd, isn't as strong...

3rd. If you decide not to get pre-qual'd/pre-approved and make an offer and CANNOT close the deal, then you may lose your earnest money.

4th. If you want me to work for you, then work with me. Your choice. If none of these terms are acceptable, then may I refer you to someone in an opposing company (J/K!)

We run into people everyday that want something for nothing....As my daddy would say," wish in one hand...."

02/11/2008 06:57 PM

by ONLY THE SUN COVERS CHARLOTTE BETTER! Michele Latham, Broker,ABR,GRI,CRS (Allen Tate Realtors)

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It's a Red flag if they refuse to get one. I would give them the number of a local lender and have them meet with the lender ASAP. I won't say I haven't shown property to buyers that haven't been pre approved. We are in a resort area, and sometimes people get the itch to buy and didn't plan on it. I don't want to miss them.

02/11/2008 06:58 PM

by Steve Hirschler, Big Bear Real Estate (Coldwell Banker, Mountain Gallery Realtors)

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Yes, I would show them the house.  I think this could potential be a client, after I meet with them I can gather info to guide them in the right direction.

02/11/2008 06:59 PM

by Marvin Thomas (Allegiance Mortgage Corparation)

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Never meet someone you don't know at a vacant property if no one else has seen them.  I carry pepper spray with me, since most of the houses I show up here on the mountain are vacant.  I won't meet someone without meeting them in the office first.

Once that's established, the first one is a freebie, if I have the time.  If they haven't spoken to a lender or are receptive to speaking to one, I won't show another property unless I have that lender contact or letter in my hand.  Just not worth the waste in time.

02/11/2008 07:04 PM

by Amy Steele

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No, but an agent of mine would.  One of them makes quite a bit of money for her and me by doing things the wrong way.

02/11/2008 07:06 PM

by Elite Properties

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There are plenty of folks who will jump at the sound of their phone ringing and run to show a house.  I'm not one of them.  For two reasons safety AND professionalism.

02/11/2008 07:08 PM

by Cindy Jones-Northern Virginia Real Estate & Military Relocation Services (RE/MAX Allegiance #1 RE/MAX Company in the World)

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Nope, I wouldn't show it.

a) it's a waste of my time to take buyers around who aren't prequalified;

b) it's not fair to the seller to show the home to unqualified buyers. 

02/11/2008 07:23 PM

by Sharon Simms St Pete Florida CRS CIPS CLHMS (RE/MAX Metro)

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Times have changed...none of us Buyers Sellers or Agents can afford to be spinning our wheels.

If they refuse to do it..they aren't serious!

02/11/2008 07:31 PM

by Joan Mirantz- Concord New Hampshire Realtor (Keeler Family Realtors)

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I'll apologize now.  This is going to be a "Rant". Barring the security issues which are unknown unless you have a face-to-face (preferably in your office) there is no reason to assume that this potential client won't get an approval, just that he does not have one now and wants to see a house.  It doesn't take a rocket scientist to find out what he can afford and whether the house he wants to see is within that price range.

What's wrong with taking 10 minutes and pre-qualify them yourself?  A few financial questions - monthly income minus what their outstanding monthly debt payments (credit cards, car payments, child support, etc).  Income minus debt = Available Net.  Now take 35 - 45% of that figure and you have a good idea what the bank will allow (barring any judgments and such).  There are also websites that figure it for you - i.e. www.mortgage.com, click on mortgage calculators then to "How much House Can I Afford?"  It does the work for you.  Or better yet, get out that Financial calculator you got in Real estate school and total your PITI limit and figure backwards.  Show them a house in that price range and assist them in finding a mortgage banker. 

Don't be so quick to give up on them.  Meet them in your office for a consult before the showing.  With the housing market the way it is in many areas, I don't think there is anyone that is soooo busy that they couldn't find an hour out of a week to do a little extra to help or at least clarify something for a potential client.  Show them the house and set up an appointment for him at the bank and let him know you will talk more once he has his approval letter.  Just make sure you have him under contract before he leaves.

I don't want to sound bitchy, but, OMG, I seem to hear alot of people willing to walk away from so much business for so little problem lately.

02/11/2008 07:39 PM

by Rita Narragon (R3 REALTY, LLC)

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Fran, I would have to disagree with Rita.  Realtors need to be Realtors, and Loan Officer be Loan Officers.  Unless a Realtor is able to pull someones Credit Report, they CANNOT know what someone qualifies for.  Just asking about income and debt does not get it done.  They could make $200,000 a year and have just a couple of thousand dollars in monthly debt, and have Credit Scores that are in the 400's.  Or they could have had a foreclosure within the last two years.  There are a number of things that a Credit Report will show up that a Buyer will not tell you.

The position you took with the Buyer was absolutely the right one in my book. 

02/11/2008 07:58 PM

by George Souto (McCue Mortgage Co.)

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I'd probably show them one after asking them a few questions. Good point Rita.

02/11/2008 08:02 PM

by Craig W. Barrett - Hughesville MD Real Estate (RE/MAX 100)

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I'll show one or two houses without a pre-approval but this is only so I can meet the client face to face, see if I want to work with them and get a buyer/broker agreement signed.  I won't take someone out a second time with out being prequalified by a lender.

02/11/2008 08:24 PM

by Tracey Thomas Calabasas, CA Real Estate (Keller Williams Realty)

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I can certainly understand the idea of working with a buyer who's pre-qualified and not wasting your time, but how much business are you losing by doing that?

Some buyers are 12 months away from buying and at this point, they're just not ready to get pre-qualified.  A savvy buyer knows what they can afford.  Some of these people want to get familiar with neighborhoods and developments.  Some want to see what types of homes different areas offer.  Maybe now they're not serious, but it's on their mind and you need to nurture them until they're ready to move forward with the purchase and when they are ready, they will use you for their purchase, because you were there along the way.

I have buyers who contacted me in June and we're now 4 weeks away from settlement on a $500K property.  We've seen about 15 properties and they never got pre-approved.  They got pre-approved 1 day before we put an offer together.  After talking to them, I got a pretty good idea of what they could and could not qualify for.  If I asked them to get pre-approved back in June, I know they wouldn't use me as their agent.  They would contact another agent in the area who would show the house they found online.

I would never turn away someone, just because they're not ready to get pre-approved.  The business is so tough these days, so why not just work a little harder and smarter.  Most of my business is from online leads that my website generates and these people are just in their early stages of house hunting.  It's on their mind.  They're researching different areas.  They're familiarizing themselves with different home styles and features.  If they find a home online that they wish to see, I would never ask them to get pre-approved before showing a house.  I would meet them at the house and have a pleasant and friendly conversation and get a pretty good ideas of what their situation is like.

I'm a strong believer in building a pipe line of leads who eventually, will turn into prospects and eventually into sales.  By turning them away now, you might be turning away a sale 12 months from now.

02/11/2008 08:30 PM

by Russell Volk, REALTOR® - Bucks County Real Estate (Mid-Atlantic Real Estate)

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I've ran into clients that are very closemouthed on their finances.  Telling them to get pre-qualified was almost an insult to them.   I usually take them out once, reiterate the importance of presenting an offer with a preapproval and that usually works. 

02/11/2008 08:30 PM

by Sandra Workman ABR, CNHS, QSC, RCC (Speckman Realty Inc., GMAC)

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Thank you all for saying NO to that non-pre-qualified buyer. I met with him, showed him a house or two, and helped him get prequalified.  He bought a house within a month.  I guess he was just going from agent to agent until someone would HELP him.

Again, Thank you for telling him NO. And continue to send the rest of your non-pre-qualified buyers my way, I would love to help them buy a home.

02/11/2008 08:48 PM

by Steve Hermann (Coldwell Banker Heritage REALTORS)

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I'm going to do my best to answer each and everyone of you individually, only because I always try to do my best.

What I didn't include in the post was that when I told him we needed to get him pre-approved he said, "They show us houses all the time without being pre-approved."  That was a key to me that he does this on a regular basis.  Then is when I said, "No REALTOR® I know would show someone a home without being pre-approved."

BB: With the addition of the above statement that I inadvertently left out earlier.....that was what really made me decide that a pre-approval was needed in this situation.  With that being said, I understand your and others points about showing them one or two. :)

Sarah: THere are responsibilities to preparing to buy a home... and pre-approval is one of them. :)

Vivienne: You are right, we aren't doing our sellers any favors by showing their properties to non pre-approved buyers........ and it was MY listing he was calling about.  :)

James: This person wasn't interested in meeting and talking about anything ... he only wanted to see the home and PRONTO.  :)

Rich: Absolutely correct, there are times when going out can be beneficial and I can feel those times, this wasn't one of them :)

Sean: NEXT is right........ and how do you like my new mascara?  (batting eye lashes) :P

Gary: Thanks for the vote of nice post... I truly appreciate it. :)

Carol: Absolutely... I agree.  Would you seriously go out to buy a dress without knowing what size was going to fit or the known ability to be able to pay for it? So if one  doesn't know what they qualify for how serious can you be?  I like to use the analogy of "getting pre-approved is another way of knowing what your comfort zone is as far as the price of homes to look at."  It's worked in the past, I'm going to keep using it.... and it's true. :)

Dave C.: Totally..... we need to know our clients are serious and getting pre-approved is also a form of showing ownership in the process. :)

Rick Callaham: I wasn't rude to the individual.  I explained the process and why. I'm generally a very caring person and believe everyone should be able to get a home... and I always want to help.  I just have a keen eye for situations when the real committment isn't there. I honestly believe that not a client I've worked with in real estate wouldn't offer to donate blood if I needed it.  That may sound extreme to you, but I believe it to be true.....  in the future you want to be careful linking and promoting yourself in others blog posts, some people would really come down on you for that.  :)  ( I did not mean that nastily, just what I have seen. :)

Sheryl: Safety first is always a wise decision. :) 

Ann: Good policy! :)

Keith: Sometimes it's the nature of the business. :)

Miriam:  Great thinking! :)

Michele:  My daddy used that "wish in one hand" line too.... great minds think alike!

Steve: Tried that...... he told me he had a banker.  So I asked if he'd discussed with him about getting pre-approved.  Nope!

Marvin:  If that works for you.... I've gotten burnt several times doing that....just didn't work for me.:)

Amy: EXACTLY! :)

John:  That cracked me up.... is the wrong way worth it? :)

Cindy: Absolutely! :)

Sharon: SO TRUE!!! :)

Joan: My thoughts exactly! :)

Rita: I invite your rant and value your opinion... thanks for giving it!  But honestly, I'm a REALTOR®. It's not my business to qualify individuals, or to do inspections, or to look for termites.  I leave that up to the professionals who specialize in it.... :)

George: I'm grateful to have you pipe in here..... because I don't feel that my specialty is qualifying folks for loans and I can't certainly call for a credit report. :)

Craig:  I asked a few questions and got all the red flag answers.  It's difficult to pass on business these days, but sometimes it is a necessity.:)

I want to thank each and everyone of you for your valuable input and for stopping by my hangout. :)

 

 

 

 

02/11/2008 08:50 PM

by Kansas City North Real Estate :: Fran White 816-682-3897 (North Kansas City Real Estate, Reece and Nichols Residential)

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Oh my.  I agree with Rita 100%.  It is not difficult to pre-qual someone yourself.  As a professional, I am surprised that you would not want to learn to do this.  I noticed your comment....

"But honestly, I'm a REALTOR®. It's not my business to qualify individuals, or to do inspections, or to look for termites.  I leave that up to the professionals who specialize in it.... :)"

What?  Seriously.  I'm all for for everyone having their own individual system, but it sounds like a lot of folks are walking away from buyers or future buyers for silly reasons.  Perhaps I am missing something.

 

 

02/11/2008 09:09 PM

by Curt Fletcher, aka "The Likeability Guy" ("How to Sell More Homes and Increase Your Income")

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I guess it all depends how busy I was at the time. It sure is not a great lead, but if I was available, I would do it. But generally, it is a waste of time.

02/11/2008 09:13 PM

by Tigard Oregon Real Estate >> Wayne B. Pruner, GRI (Oregon First)

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I take one particular buyer out regularly that isn't pre-qualified.  But she'll divorce me if I don't. 

02/11/2008 09:17 PM

by Lane Bailey - REALTOR & Car Guy (Diamond Dwellings Realty)

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Fran, 99% of the time, the answer is no, very rarely we will. But, ONLY if we find out if they will after the firest time, but no more than once. Hope that helps. And like I said it is very, very rare.

02/11/2008 09:50 PM

by Missy Caulk-Ann Arbor- Realtor(R)- Ann Arbor Real Estate (Keller Williams-Ann Arbor)

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It's also written in the listing agreement as one of the listing broker's responsibilities...to show the home to approved (ready, willing, and able buyers).  I had one person call me a few weeks ago to see a listing, and said that the seller was being a snob about only allowing pre-approved buyers in because it's a buyers market and buyers should see anything they want.  Really.

02/11/2008 10:03 PM

by Tamara Inzunza, Alexandria VA Real Estate Agent (McEnearney Associates, Inc.)

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No doubt this subject needs to be sugar coated when dealing with what sounds like a solid lead. In the end, no LSR, (Loan Status Report) then there's  no need to make an offer. The professional ethics of our business is diluted because the message isn't consistent on the street.

If you have a solid buyer presentation, which includes the pre-approval process explained, getting people  qualified and on a buyer broker is simple. Our time is precious. Respect it.

 

02/11/2008 10:25 PM

by Kevin Wood, Tucson, AZ Realtor (Realty Executives)

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No doubt this subject needs to be sugar coated when dealing with what sounds like a solid lead. In the end, no LSR, (Loan Status Report) then there's  no need to make an offer. The professional ethics of our business is diluted because the message isn't consistent on the street.

If you have a solid buyer presentation, which includes the pre-approval process explained, getting people  qualified and on a buyer broker is simple. Our time is precious. Respect it.

 

02/11/2008 10:25 PM

by Kevin Wood, Tucson, AZ Realtor (Realty Executives)

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Generally I would say no, but it also depends on my initial read of the buyer. It's possible they may not be familiar with the process, or could be a cash buyer, or may have other financial assets or advisors in place but just aren't ready to discuss that yet. In those cases it may very well be worth my time.

02/11/2008 10:35 PM

by John Novak - Las Vegas and Henderson NV Real Estate (Keller Williams Realty The Marketplace)

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When I have someone call on one of my listings, I ask them a series of questions and start up a conversation.  I know they're hesitant to spill much at first, but it's important to us to know about their situation and I'm not a POP-TART (a Howard Brinton phrase about agents who 'pop up' to show a home without knowing anything about a buyer).

Also, I don't pre-qualify a prospect over the phone.  That's the job of my preferred mortgage consultant.  I get permission for my mortgage consultant to call them as soon as we hang up.  If they reach them and do a pre-approval, then I know they are serious and ready to buy.

One of the problems with Realtors today is that the consumer sees us all as the same...we're a commodity.  You need to show your professionalism and unique qualities of being able to service your customer at a higher level than what's typical in today's market.

You need to explain how you work to prospects and how your services can benefit them...show them why you're different and how you can save them time and money versus working with another agent.

Can you do that?  If not, then work on perfecting that skill and you'll convert a lot more prospects into clients.

02/11/2008 10:57 PM

by Dan Weis - Cincinnati Real Estate (RE/MAX Unlimited)

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This was a timely topic for me. I had a "buyer" call this week requesting to see two of my listings (which aren't vacant). After discussing the features of the homes, I asked him to tell me about what his plans were ... where is he moving from, does he own a current home, is it on the market, etc.

Well, he lives in another town. His home isn't on the market as he's just "thinking" about moving, and no he's not talked to a lender. I suggested the steps he should follow first before he begins viewing homes. I started to tell him that I could recommend an agent in his town to help with his home, and that I could help with a very good lender ...

At this point he cut me off, and said he was VERY offended that I would ask him such questions, as he has never had any other agent ask those questions or not want to show him a home. Then he hung up.

I feel my first responsibility is to my sellers when the home is occupied, to not cause them to interupt their lives preparing for a showing with a buyer who is months away from being able to buy.

02/12/2008 12:19 AM

by Elaine Reese, REALTOR® in central Ohio (Real Living HER, Worthington Ohio)

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Fran- you have an obligation to yourself and to the sellers of any home not to show their home to anyone that has not been qualified.

02/12/2008 12:43 AM

by Mark Horan P.A. "The Resident Chef" at Keller Williams (The Resident Team at Keller Williams At-The-Lakes)

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No one has cash anymore? We should never assume that they dont.

If not......

I will, for referral clients, show  2 vacant homes that are within close proximity to my office if not prequalified. They must ride along with me and on the way to home #1, I call a lender, explain that we will be looking for homes and need a pre-qualification faxed to the office and then  hand the phone to the potential buyer. If they complete the call with the lender, we will tour both homes and then tour others that meet the pre-qualification. Not qualified or wont complete the call? 2 homes toured, got out of the office and met someone new that also has friends, relatives, neighbors, associates and others that they may send my way.

How often we forget that the one that just left because of an immediate attitude will return the favor by badmouthing you and your agency for days......a good thing?

You may want to rethink the way you approach this issue  as every single person is an opportunity to gain more business. THEY may not be your client but....chances are, they know someone who might or.....might not be....and it's all up to you!

We all need to be carful but, I have seen many an agent take the defensive on this subject for the wrong reason.

02/12/2008 02:44 AM

by Christopher Walker Hemet CA Real Estate (Mission Grove Realty - REO Homes & Investment Property)

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Fran

You have to go with your intuitive feeling.  The process helps us to help our customers.  I think that statistically the serious buyers want to know what their limits are. Conversely, the tire kickers could care less.  A cash buyer knows eactly how much they will spend period; and will disclose that to the REALTOR®. Since cash buyers are in short supply and lookers are in high supply anyone looking to circumvent the system is not putting themselves in the best possible position to make an offer should the perfect house be presented.  A large number of our local listings require "proof of funds or preapproval letter with offer"

02/12/2008 05:27 AM

by Allison Stewart REALTOR ®St. Cloud Florida (Florida Pines Realty, Inc)

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Hi Fran -

I am newly licensed (Jan. 2) and have shown lots and lots of homes without even asking about pre-qual or pre-approval.  Right now, I feel like I need to develop my instincts, as well as, develop my skills and abilities, while showing homes and meeting with customers.  Plus, I am trying to expand my SOI and if I can make an impression on these customers, maybe they will keep my card and when they are out in their world and someone mentions to them about wanting to buy a home, the customer will share my contact info with their friend.

 Down the road, as I develop my business, I can see where I might move into that mode of asking the pre-approval questions.

02/12/2008 08:21 AM

by Tonya Maxwell (Realco Pros)

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Fran,

 As an LO, I can tell you that I always advise my Realtor Partners to get their potential clients Pre-Approved. There's nothing worse than having your client fall in love with a home they absolutely cannot afford! Then of course when I can't get them approved for that home, we both lose the client to someone with unscrupulous sales tactics. We've all encountered them unfortunately...

My best advise for new agents is:
With the price of gasoline today, it only makes sense to have your clients pre-approved before they get in car!

As far as cash buyers, and yes they do still exist... As a courtesy for any of my agents, I always pre-approve their cash buyers as well. Not by pulling credit, but by obtaining VOD's (Verification of Deposits). If the buyer is truely serious, (s)he will have no issue providing the information. Keep in mind that this is a one time process, including investors. Once we have been able to establish the capacity of the buyer, the agent can sell with confidence over and over again!

Anybody can call and tell you that they are a cash buyer. Are you willing to take the chance of driving them around for hours, only to find out they aren't serious? A serious cash buyer is usually a business person that understands that in order to establish a working relationship, at some point they will have to show proof of their ability to perform.

02/12/2008 09:43 AM

by Eli Mizrachi

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I had two such calls this weekend!  No I am not pre-approved.  My reply, may I have my lender call you?  No.  They both needed to see the house in a half an hour.  I was all the way across the city in Henderson for caller #1 and I was in between working with buyers for caller #2.  Lately it seems that they are expecting us to drop everything, including working with pre-approved buyers just to get them in the house!

Like you Fran, I am not so desperate to take an hour out of my day to show a non-approved, non committed buyer a home.

02/12/2008 09:54 AM

by Renee Burrows - Las Vegas NV Real Estate (Nevada Realty Solutions)

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Fran~You have it down to perfection on this post my friend. I refuse to show buyers homes without being pre-approved, because it is a waste of time otherwise. What was the result in your meeting? I have all too often seen other agents, especially in my past office take clients to numerous houses without being pre-approved. That's when the buyers set their expectations high for us to show them homes anyway. 

02/12/2008 10:23 AM

by Julie Neerings~Lifting Hearts ♥ Building Dreams~Utah REALTOR® (Keller Williams Salt Lake City)

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Curt: Thanks for your input and in reference to your comment: "Oh my.  I agree with Rita 100%.  It is not difficult to pre-qual someone yourself.  As a professional, I am surprised that you would not want to learn to do this."

I have to tell you Curt, I am a professional :) that's why I stick to doing what I am suppose to do as a REALTOR®.  I'm sure you weren't suggesting that I'm not professional... in my little piece of this country we leave mortgage consulting up to those professionals. :)

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Wayne: I see your point. :)

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Lane: Keep up the good work... it's Valentine's Week, show her a couple extra. :)

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Missy:  Totally agreed!

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Tamara: TOTALLY GOOD POINT!

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Kevin: GREAT input!  Thanks.

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John: In some instances it would pay off, rare instances.

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Dan: In regards to your comment: "Also, I don't pre-qualify a prospect over the phone.  That's the job of my preferred mortgage consultant."    My opinion exactly.

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Elaine: I feel responsible too!

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Mark: THanks and I take that obligation very strongly.

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Christopher: I appreciate your outlook.... and I'm very careful not to be defensive with phone prospects. You're correct in saying everyone is a possiblity to earn more business, but truly each individual needs to be ready and willing to follow the process of buying a home.

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Allison: Same here!

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Eli.... thanks so much for chiming in! Re: As an LO, I can tell you that I always advise my Realtor Partners to get their potential clients Pre-Approved. There's nothing worse than having your client fall in love with a home they absolutely cannot afford! Then of course when I can't get them approved for that home, we both lose the client to someone with unscrupulous sales tactics. We've all encountered them unfortunately...SO truly if they didn't qualify for the home that they were wanting to see then we have a disappointment from the get go.  Not a pretty situation.

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Renee: Our time is precious and we have to manage it carefully. Yes there seems to be an abundance of people here too that want you to STOP what you are doing right NOW and show me this house.  Granted, I am one for dancing to the clients drummer.... I do anything to please them....but they need to be pre-approved.

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Julie:  I don't know about perfection, but I wanted to get the general feel here in Active Rain from other realtors, loan officers and everyone.

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Thanks to each of you for giving of your time to comment here, your input, outlooks and opinions are appreciated and they lend to us all a growing environment where we can learn from one another.

Fran

 

02/12/2008 11:07 AM

by Kansas City North Real Estate :: Fran White 816-682-3897 (North Kansas City Real Estate, Reece and Nichols Residential)

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I have taken people out to look at property without a pre-approval.   Some people don't know the process and need to be educated.  I then immediately talk to them about a pre-approval and steer them in the right direction so they can have the letter before our next meeting.

02/12/2008 11:23 AM

by Joyce Jewell, GRI, ePRO, ASP, ABR (Jewell Real Estate Agency)