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That wasn't the point of THL's post. If a lender has reviewed the buyer's financial info and provided an approval letter, then they've done the financial background work for us. We then know they are qualified up to a certain amount. The assumption is the buyer can afford that amount (or at least qualify to get a loan for it). Whether or not buying a home for that amount is a good use of their financial resources is not up to us to decide.
Well that was the point of the post that she responded too.
Well that was the point of the post that she responded too.
Wrong. The post that I responded to indicated that an agent should not care if the client they're working with can "pay their bills", which was a misconception. My response indicated that what agents care about is if the buyer can purchase the homes they are being shown, that is, if they can get a loan to purchase these homes or have the cash in the bank to do so. That's a very reasonable concern because a lot of time and energy can be spent by both the buyer and the agent (never mind the sellers' time, as well) finding just the right home, only to find out that the buyer doesn't qualify to purchase it. Something that a reasonable person who actually wanted to purchase a home would want to find out and convey to their agent as early in the process as possible.
We're not talking about a candy bar, or even a watch, here. We're talking, most times, about a purchase of over $100,000 up to several million. Someone who digs in their heels at the very idea that the person they are asking to assist them with this major purchase and who has a fiduciary responsibility to them and their interests might know that they can afford to purchase it is not going to be a good person to work with. That heel-digging is more likely than not to occur down the road, as well, during the process of preparing an offer, completing the loan, etc., and might very well crater a deal or more than one deal. Since agents are not required to work with anyone who walks in the door, finding this particular problem out at the get-go can be a good screening tool as well as saving everyone time and angst.
But the seller also benefits by having the people that see her house be qualified to buy it and not people who are casing the joint.
I think that when you are trying to sell a house the more people who see it the better. Even if the one set of potential buyers are not qualified, or just nosey neighbors, they may know someone who will buy the house.
I don't think worrying about the one in a thousand that is casing the joint is worth the OPs time.
And, yet, clearly, because the OP asked the question, she does feel that, for whatever reason, she'd prefer that only qualified buyers be shown the house, so that she is not inconvenienced by having to leave the house whenever a looky loo wants to kill an afternoon (yes, it does happen, more often than you'd perhaps like to acknowledge), for example, or for security reasons, or whatever her reason is. Her reason is no less valid than your reason for not wanting to take the most basic first step in looking for a home and/or to share important and necessary information with the person you've hired to represent you in a major purchase.
That some buyers don't want to show their own agent that they are qualified to buy the homes that they are asking to be shown doesn't change that.
We could get a preapproval for about 300k more than we WANT to spend. Do I want sellers to know this? No way.
Why would a seller ever know what amount was on a pre-qualification letter? It would be none of his business, nor the business of the seller's realtor. The potential buyer's realtor should not be disclosing that kind of information to any other party.
Why would a seller ever know what amount was on a pre-qualification letter? It would be none of his business, nor the business of the seller's realtor. The potential buyer's realtor should not be disclosing that kind of information to any other party.
Well, then how do you suggest that this seller get proof of "pre-qualified buyers" only viewing the home?
Why would a seller ever know what amount was on a pre-qualification letter? It would be none of his business, nor the business of the seller's realtor. The potential buyer's realtor should not be disclosing that kind of information to any other party.
Well the one house that we encountered where a pre-approval letter was required before showing the house, wanted exactly that. Our agent called the listing agent and said we were pre-approved and for enough to buy the house if we were interested. The listing agent said the seller required the listing agent to have a copy of the letter. Our pre-approval letter has been left open as that is how our lender does it.
Our agent called us and explained it to us and we said no we're not going to have the lender send another letter we'd just pass on seeing the house. He fully agreed.
Although I believe the seller has the right to put whatever conditions they want on showing the house as one seller we encountered who required 72 hours notice and only be shown during certain hours so he could be home along with no buyers agents showing the house without the listing agent being present.
The buyer though has the same right to not agree to the conditions, so that was two houses we passed on even seeing, if there are other buyers who feel the same way and I'm sure there are then the seller is limiting the pool of buyers.
When I look at a house that is occupied I feel uncomfortable enough opening cabinets and looking into closets without the owner of the house and the listing agent following me around.
Not to mention in my mind if the seller is making it be a headache just to see the house, how big of a headache are they going to be trying to buy their house.
Have to reiterate here on this approval/pre-qual discussion. I have NEVER heard of such a thing as a seller wanting to see that information prior to allowing a showing. There may be some odd local customs, but that is counter productive to selling a home.
The SHOWING AGENT/BUYERS AGENT is the only one who needs to know that the buyer is qualified to buy a home in a certain price range with a certain mortgage qualification, or cash/proof of funds.
If you are in an area of the country where there is no "centralized showing service", (where the buyer's agent calls for an appt. to show the home at a certain time, and normally the sellers get out of the house before a showing) .... then maybe they have to call the listing agent directly for an appt. At that time the listing agent could say, "do you have a pre approval/pre qual letter", "are they qualified?" etc. That is all that needs to be known.
Any Realtor worth his salt is not going to open his client's house for the general public to waltz through at their leisure if they are not qualified or seriously looking for a house in that price range.
Let me say again, the general public has a lot of mis-information, mostly via hearsay, about the responsibilities of Realtors. Rumor and innuendo abound. If you don't trust a Realtor to list or show your property .... try to do it on your own. Or, even better; take some courses, get your license, pay all the fees ... and get back to us on what the real deal is.
Have to reiterate here on this approval/pre-qual discussion. I have NEVER heard of such a thing as a seller wanting to see that information prior to allowing a showing. There may be some odd local customs, but that is counter productive to selling a home.
The SHOWING AGENT/BUYERS AGENT is the only one who needs to know that the buyer is qualified to buy a home in a certain price range with a certain mortgage qualification, or cash/proof of funds.
If you are in an area of the country where there is no "centralized showing service", (where the buyer's agent calls for an appt. to show the home at a certain time, and normally the sellers get out of the house before a showing) .... then maybe they have to call the listing agent directly for an appt. At that time the listing agent could say, "do you have a pre approval/pre qual letter", "are they qualified?" etc. That is all that needs to be known.
Any Realtor worth his salt is not going to open his client's house for the general public to waltz through at their leisure if they are not qualified or seriously looking for a house in that price range.
Let me say again, the general public has a lot of mis-information, mostly via hearsay, about the responsibilities of Realtors. Rumor and innuendo abound. If you don't trust a Realtor to list or show your property .... try to do it on your own. Or, even better; take some courses, get your license, pay all the fees ... and get back to us on what the real deal is.
+1. Excellent post, Quilter. This thread has opened my mind a great deal about the general public: a lot of people have little idea how buying and selling real estate actually works, and it's not all their fault either. There are so many mediocre/unprofessional/desperate agents that have given off a certain impression about the process that just isn't wise, and as some are hopefully seeing, also may not be typical. The tighter lending has gotten, the more screening has taken place on all fronts.
I'm also very surprised to continually see people confuse Pre-Quals and Pre-Approval - big difference.
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