I have a policy that I will take anyone house huting once in order to get a feel for what's out there. After that, I insist buyers at least begin the pre-approval process in order for me to spend more time with them.

I tell people like this, I will spend 2 hours with them and show them 4-5 homes. But that's it, until they get pre-qualified so we can really focus in on the right homes and budget.

I will do this to set up the relationship. But I won't spend a lot of time on it until the buyer's have talked with a lender and have started the pre approval process. 

I have a different take on the subject.  When we had our commercial real estate practice, I was willing to show different spaces in varying prices to tenants with great ideas for retail.  It made them feel that I had faith in them.

Some managed to find backers to make it work, and some took space that was affordable.  As they grew and needed larger space office or industrial property, we were the first they would call, because we had faith in them... 

In one case, someone was referred and made every indication that their budget was low, and wanted to see the high end areas.  I obliged because I liked her and loved her concept.  Turns out, all the other agents poo-pooed her, because of her budget.  She was an heiress to a substantial fortune, and ended up taking the expensive space, and we ended up with a nice commission.  LOL

I show homes once and explain that if they see a house they like they will need to show the pre qualification letter sellers at time of making the offer so it is good to have it.

Raoul Loustaunau yes, I do show - as long as they are referred to me by someone who I know very well.

At the initial buyer consultation, we discuss the importance of being pre qualified in order to even write an offer.  In multiple offer situation, buyers who have submitted docs are head and shoulders above those who have gotten pe-qualified, so they have to step it up if they are serious about buying a home.  

While I will take them out one time in order to get a better feel for what they are looking for and to get a sense of their motivation, desirable, well priced properties tend to go fast so not being qualified is a non starter. 

Nothing stops the agent from asking pre-qualification questions. You may not run the credit check but you will have some strong information and you can certainly ask about their credit as well.

Yes, it can start out that way, but soon the discussion about financing will be brought up.

My "rule" is to have a buyer's consultation in which I explain the importance of being pre-qual.  If it is a referral, or a strong lead I will show one home.  If they don't speak to a loan officer, I know they are not serious or motivated about purchasing a home-hence not worth my time :o)

No. Why? Because the listing agent will ask, "Is your buyer pre-approved?"

Followed by, "Let's not waste each others time."

No.

I always want to show homes!

Part of our job is to prepare them to get an accepted offer, insist on the preapproval.

I usually do not take customers to see homes unless they have a pre-approval.  If an appt. is last minute, I will ask questions and make my own judgment.  If the customer needs to sell their home first and they do not have means of all cash to purchase the home they want to see, then I will not waste my time or the sellers time.  If the buyer is a client of yours and is a referral from a great client, I would still ask some questions to determine whether or not you should be chauffeuring them around.  Many of my seller clients insist on a pre-qual. before the home is shown.

Normally I would rather not.

If the client is a referral from a very good client, I definitely would.

Referring anyone for anything is relatively the same. People don't vouch for failure. That just makes everyone look bad.

The only time I would do this is for Sellers wanting to go out and "see if there is a home out there for them", then list their home and get pre-approved for their purchase. 

Well, if they are cash buyers or repeat buyers, I would be happy to. 

Raoul, I think, it is not a good idea to show clients not pre-qualified for mortgage.