Are my buyers for real?!?!? (year)

[GigiBowman]

Originally Posted by totallyfrazzled

Tom and Gigi, why do you think most people don't get them? Seriously. Is it because the difference between being pre-qualified and pre-approved isn't explained to them? and if not, is it because most realtors don't realize those terms do mean different things? Is it because the buyers are reluctant to spend the $400 or so on the mortgage application fee before they absolutely have to? I mean really, they're going to be paying it anyway, whether it's to get pre-approved before find their house, or as soon as they go to contract on something. It doesn't cost any MORE to get pre-approved than to wait to apply until you have a house in hand! I can understand why looky-loo buyers wouldn't do it, but if someone is TRULY looking to buy a house (i.e. the "serious buyer") within the next 12 months.... why DON'T most buyers get one? Is there any reason for them not to? If so I can't think of any; can you? Being pre-approved is all upside, both for the buyer and the seller. No downside at all.

Honestly, I won't get in my car and drive anyone anywhere without one

[totallyfrazzled]

Originally Posted by jamibit

Perhaps I should have demanded a pre-approval letter or at least a glimpse of the credit scores, but I thought 20% down and the knowledge that both husband and wife were in good professions were enough.

If you had demanded a pre-approval that would have been great, but I bet in most cases you'd have been handed a pre-qualification letter. A pre-approval document says right across the top in big dark letters "CONDITIONAL APPROVAL" (well at least ours does!). It says "We are pleased to inform you that your mortgage loan application for the amount of XX dollars has been approved."

The 'conditional' means that it's subject to the bank receiving a fully executed contract of sale for a property, subject to the house appraising, etc etc. But the buyer/applicant has already been put through the wringer, um I mean "thoroughly vetted" by the bank as far as financial qualifications.

A pre-qual letter will be full of disclaimers in the last paragraph saying that it is NOT a mortgage approval, NOT a mortgage committment, and is subject to verification of all the information that the bank has received. As a seller, in our opinion, a pre-qual letter is just one step above toilet paper.

[totallyfrazzled]

When we listed our house in the early part of this year, these were our requirements as far as showings:

1. No public open house.

1. By appointment only, no lockbox, no giving out of house keys to anyone

2. One of us was there for all showings (we do not leave)

3. Prospective buyer must fax copy of pre-APPROVAL document to our agent before setting up appointment for a showing. If what the sent was a pre-QUAL letter, which happened several times, our agent explained that this was not what's required and she'd be happy to arrange a showing after getting a pre-APPROVAL document.

4. If buyer claims to be all-cash, our agent needed to see something from their bank verifying access to funds in the amount of at least 70% of the current listing price before setting up a showing (anyone can CLAIM to be all-cash so our attitude was, put your money where your mouth is..)

5. Our agent took a copy of photo ID for anyone brought to see our house.

6. We didn't ask for credit scores because if the buyer had a pre-approval in place, the bank has already done all that kind of work.

The house sold in 33 days with a less than a 2% reduction from the original listing numbers, to the third buyers who saw it. They were 75% cash and had a pre-approval for the remaining 25% financing.

[GigiBowman]

TotallyFrazzled....I think you have missed your calling as a Real Estate agent lol

[TomMoser]

Originally Posted by totallyfrazzled

When we listed our house in the early part of this year, these were our requirements as far as showings:

1. No public open house.

1. By appointment only, no lockbox, no giving out of house keys to anyone

2. One of us was there for all showings (we do not leave)

3. Prospective buyer must fax copy of pre-APPROVAL document to our agent before setting up appointment for a showing. If what the sent was a pre-QUAL letter, which happened several times, our agent explained that this was not what's required and she'd be happy to arrange a showing after getting a pre-APPROVAL document.

4. If buyer claims to be all-cash, our agent needed to see something from their bank verifying access to funds in the amount of at least 70% of the current listing price before setting up a showing (anyone can CLAIM to be all-cash so our attitude was, put your money where your mouth is..)

5. Our agent took a copy of photo ID for anyone brought to see our house.

6. We didn't ask for credit scores because if the buyer had a pre-approval in place, the bank has already done all that kind of work.

The house sold in 33 days with a less than a 2% reduction from the original listing numbers, to the third buyers who saw it. They were 75% cash and had a pre-approval for the remaining 25% financing.

Your home must have been exceptional and priced very very well. With all those restrictions I am surprised that you got any showings at all.

[jamibit]

TotallyFrazzled.....I agree with Tom Moser. In this market, I'm very surprised you had so many restrictions. I know someone else who did that and their house has been on the market for 6 months and they don't understand why they haven't gotten an offer.

I have two small kids (and tons of toys around) and I was totally willing to pick up and leave my house at a moment's notice if someone wanted to see it. I ended up with a ton of traffic and 7 offers!

[OhBeeHave]

Is it possible that TotallyFrazzled was in an area which commanded a higher price, was sought after by people of a certain means -- sort of a niche market? Or maybe her time is very valuable and by making the requests weeded out 'tourists'?

I had my house on the market briefly a couple of years ago. Everytime there was a showing, I would have to load up my dogs and leave for a length of time. If it were myself only, I could head to the library, but with all the dogs I was stuck in my car in a local parking lot. I have a rather unique home and I came to learn that a fair number of people looking were local people who wanted to see what we had done with the inside of the home (when we purchased the house was in terrible disrepair.)

Ultimately I backed out of the house we were looking to buy and took my house off the market after 3 weeks. We were contacted 2 weeks later by a couple who had seen our home and wanted to make an offer, but were leaving on vacation the next day. They figured they would make the offer when they returned. By that time the property I backed out on had an offer so there was no going back on the market for me.

[Kbinspections]

Originally Posted by TomMoser

Your home must have been exceptional and priced very very well. With all those restrictions I am surprised that you got any showings at all.

I was thinking the same thing......glad it worked out for you, frazz!

[Danomul]

Totally agree, With those restrictions I would not even THINK about going to look at that house if I had all that was " Required". BTW, 50 % down? If this was the rule, only those making 200K plus a year would ever be able to buy a house. using your logic, a family making 100K would have to put away over $20,000 a year for 12 plus year to even think about buying a house. After paying taxes, rent, food, and everything else tht is very unlikely, if not impossible.

[totallyfrazzled]

Originally Posted by OhBeeHave

Is it possible that TotallyFrazzled was in an area which commanded a higher price, was sought after by people of a certain means -- sort of a niche market? Or maybe her time is very valuable and by making the requests weeded out 'tourists'?

Yes we were definitely in a niche market. Waterfront property in a recognized very desirable area and a large (4000+ sf) house as well. And we had no intention of wasting time with the 'tourists'.

I should mention that requirements number 3 and 5 are also the standard policy of the realty firm that we used. We didn't know that at first but found that out later. Also, we've learned that this same realty firm requires everyone who comes to any of their PUBLIC OPEN HOUSES to show a photo ID. The sign saying this is clearly displayed at the front door. We've never seen another LI realtor do this but this firm does. They are known for dealing with high-end properties.

About staying/leaving for showings, I have NEVER left my house for a showing and I have sold 3 homes on LI in my lifetime so far. I have also never agreed to a lockbox or to leaving a key. And I've never had any realtor complain to me about either standpoint.

Our house was priced fairly for the market and was in absolute pristine condition. We literally went over the house with a fine-tooth comb, touching up every single mark or nick on every piece of door moulding, window moulding, etc. We were just as fussy about the way our house would look to a buyer, as we are fussy about how a seller's house looks to us! We had our inspector come in and check it over before putting it on the market just in case there was anything we "missed". (there wasn't)