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I guess the main reason is that it was not the norm. I looked at probably close to 30 houses and none required it. So if someone did it would have been a hassle. And there was plenty of inventory to look at. It actually would have just helped me scratch one more off the list.
Would I have done it if everyone required it? Sure. Because I wouldn't have had a choice.
And regardless of opinion on it, I absolutely would not want a letter that said higher than what I was going to offer.
manderly6, it looks like you didn't read the part of my post (and a couple of others) that says that the letter that you would be giving to the seller along with the offer would be for the amount you are offering, NOT higher than you are offering.
I believe some people are misinterpreting the OPs question.
He's not asking if BUYERS agents prequalify their buyer clients. I think we all understand that's an integral part of the process for most agents & home seekers.
The question is, do you, as the SELLERS AGENT, demand to see proof of financial ability to purchase before you let the buyer in to see the house.
Thanks Bill. That is exactly what I was asking opinions for.
My buyers agent always had me submit a pre-qualification letter & or proof of funds with any offer. Because I looked for over 2 years (yes years!) before I bought my house it was a pain as the letters were usually only good for 90 days if I recall. I always worried about any dings to my credit score by running the report so often. Quite often it expired but as mentioned in a previous post it took literally 1/2 hr or so of my time to get a new one if I wanted to make an offer.
Now, as to the OP's question if I would be "put off" by the seller requiring I present a letter before allowing a showing......absolutely! Not gonna happen. My agent knew what I could swing and if her word wasn't good enough to allow me the "privilege" of seeing the home then all I can say is....Next!
It is perfectly understandable for a seller to require a letter or proof of funds with an offer, but a showing? Good luck with that.
Tryin2buy, that is how I feel as a buyer with such a selection of homes. I thought the majority of buyers would feel the same way as I did.
I agree with RJCM. Why even waste your time looking unless you know what you can spend and that you are good to go? A pre-app takes 10 minutes over the phone. If you find something you like you already have it and you're good to go.
Brandon,
I am a cash buyer... no need to get a loan. I still think in this market that it is nuts if you are working with a buyer's agent to turn away any potential buyer because they don't have a qualification letter to just look at your house.
When we list our house this spring/summer we will require a letter of PRE-APPROVAL (different from pre qualification), before anyone sees the house. It is stupid to waste everyone's time looking at a house that they cannot obtain financing for. If someone says they are going to pay cash, they are going to have to prove that as well.
Selling a house is business. If someone cannot understand this than they most probably do not have the money or the credit/ability to obtain financing anyway.
I think it makes perfect sense.
20yrsinBranson
Then why work with a buyer's agent if their word means so little to the listing agents?
Let me turn this around and ask you a question; Why not? Why would you have an issue demonstrating to the owner or owners agent that you were financially qualified to buy the house before they let you walk through it?
Bill, because it so extreme for just trying to see a house. I have been looking for a house now for about 3 months, and I have seen a number of homes, and only one required the letter. It shocked me, and it was such a turn off that I decided not to go and see it. If you are working with a buyer's agent, and they are represnting you then you shouldn't need a letter of qualification just to look at a house to see if you even would like to make an offer.
Making an offer.... yes .. totally agree.
Now were getting somewhere. If RE agents weeded out the time wasters, i.e. those people who are not in a position to move forward either through not having financing in place, not sold their place etc. etc then there would be no need for these kinds of letters. IMHO this is where the system seems to have a squeaky wheel and where RE agents seem to be wasting their time.
About 1/2 the buyers coming through our currently for sale home are not in a position to move forward, even if they loved the house. I have told our listing agent to politely vet all agents coming to him for a viewing appointment to ensure they are qualified. No point in busting a blood vessel cleaning, decluttering and sanitizing for someone who will never buy.
- Tim
Tim, are they not represented by a buyer's agent? I am confused, because what good would it do any party to look at a house that they couldn't afford. Why have a buyer's agent to set up a viewing appointment?
[quote=TexasHorseLady;17698178]manderly6, it looks like you didn't read the part of my post (and a couple of others) that says that the letter that you would be giving to the seller along with the offer would be for the amount you are offering, NOT higher than you are offering.[/quote]
TexasHorseLady, I am just talking about trying to go and look at a house with my buyer's agent, and not making an offer. I ran into the first seller the other day that required a qualification letter just to view their home.
I am a cash buyer... no need to get a loan. I still think in this market that it is nuts if you are working with a buyer's agent to turn away any potential buyer because they don't have a qualification letter to just look at your house.
Well you're a cash buyer. That's a little different and quite relevant. You could simply get your bank to write a brief letter saying you have the assets available to pay cash for the home you want. It's even faster than a pre-app.
And to answer you're question-No, I as a listing agent would not require the buyer to present a pre-app just to see the home. The word of the buyers agent that you're a solid agent is enough for me unless my seller instructs me otherwise. After all, the agent works for the client.
Well you're a cash buyer. That's a little different and quite relevant. You could simply get your bank to write a brief letter saying you have the assets available to pay cash for the home you want. It's even faster than a pre-app.
And to answer you're question-No, I as a listing agent would not require the buyer to present a pre-app just to see the home. The word of the buyers agent that you're a solid agent is enough for me unless my seller instructs me otherwise. After all, the agent works for the client.
Brandon, that is an excellent point that I have not thought of until now. It clearly maybe the seller's making the request for the letter and not the actual listing agent. Thanks.
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