Can you ask for a "reduced" preapproval?

[Diana Holbrook]

Originally Posted by MikeJaquish

Of course.
But, you now agree that you don't expose buyers' full capabilities to the sellers' side of the transaction.

That is fundamental to the conversation.

So fundamental I never would have assumed anyone believed otherwise.

I would have said "Well duh!"

[JOinGA]

Originally Posted by MikeJaquish

I've not heard of a seller asking for more, simply because they can see that the buyer can afford it.

I have. Of course, the seller or agent are not going to tell the buyer, "You qualify for more, so let's have more."
But, are you certain that a counteroffer from a seller is not formed because they see that the buyer has a ton of headroom?
Probably should not be certain of that, methinks.

If no one is bidding against you, the seller can ask for the moon and you can just say no. When I bought my current house, the seller asked for Best And Final, which I gave, and then came back asking for more. That was annoying. I told my agent I gave BAF. They can take it or leave it. They took it.

[KJMoves]

Originally Posted by JOinGA

If no one is bidding against you, the seller can ask for the moon and you can just say no. When I bought my current house, the seller asked for Best And Final, which I gave, and then came back asking for more. That was annoying. I told my agent I gave BAF. They can take it or leave it. They took it.

Exactly. When you think about it, it's kind of bizarre that someone would assume they can ask a buyer to pay more money than they are offering 'just because they can afford it'--if the offer is already over their ask price. I have seen sellers come back for more in those situations. It's greedy and it can & does backfire. But also, sometimes, they get what they want!

If there are competing bids, then the buyer can decide to increase or not, if asked, depending on the value they place on the property. If there are no other bids, then where's the leverage?

[TarHeelNick]

Any LO worth your time would be able to put together a pre-approval letter specific to the property on which you are offering and stating the offered price. In the event that there are competing offers (or not); LO worth your time would also be able to send an email/text/call the listing agent to reassure them of the buyer's financial strength and they, the lender's, ability to close smoothly and on time.

This isn't meant to/doesn't convey that the buyer is spending at "the top" of their limit....but rather to show that they are working with a lender who will be involved throughout the process and is aware of the specifics.

Calling up or going to the website of a big bank and entering your info for them to run your credit and spit-out a number they think you can spend....and then sending that regurgitated generic pre-qual letter with your offer...is NOT the way to go about things, IMHO.