How do I get qualified buyers to see my home? (documents, clause)

[ShellyR]

What steps can a seller take to make sure the purchaser can afford to purchase a house?

I'm tired of showing my house to people with pre-approval and pre-qualified letters that ultimately cannot obtain a mortgage. How do I get around this?

ShellyR

[SaraSatin]

In this market I don't think there is anything you can do. Eventually the person with the pre-approval letter that can actually complete the financing process will come along.

[DanielChang]

I am assuming that you go under contract and then fall out of contract? Shorten the contract period That way you don't waste as much time figuring out if they can get financing or not.

[ShellyR]

jinxor, in NY the buyer can extend the contract twice without my approval. The attorneys have the power to do so. I can tell my attorney no extensions unless certain documents are in place.

[joeymarine]

Originally Posted by ShellyR

What steps can a seller take to make sure the purchaser can afford to purchase a house?

I'm tired of showing my house to people with pre-approval and pre-qualified letters that ultimately cannot obtain a mortgage. How do I get around this?

ShellyR

Shelly,

That is the million dollar question!!!

Your Realtor can put in the Member Remarks (viewable by Realtors only) in the MLS listing "Please bring Pre-approved buyers only." Most Realtors work only w/pre-approved buyers. When I begin working with a new buyer, I will sometimes take them out for the first time w/out a pre-app because some buyers are put off by asking for something from them before giving them something.

Unfortunately, you can't really do anything to make sure that the buyer will be able to qualify for a mtg on YOUR specific home until after a loan application is filed. The reason for this is because the taxes, insurance, or homeowners fees can make a would be affordable home into a home that the buyer no longer qualifies for.

I hope this helps!

~Joey

[joeymarine]

Originally Posted by ShellyR

jinxor, in NY the buyer can extend the contract twice without my approval. The attorneys have the power to do so. I can tell my attorney no extensions unless certain documents are in place.

That is not 100% correct. In any general contract of sale, a good Seller's attorney will put in a clause that requires a mortgage commitment in say 30 days that if not provided, gives you the right to cancel the contract.

What you may be thinking of is if an "on or about" closing date has passed, you technically have 30 days after that before you as the seller can send a "time is of the essence letter" which gives you another 30 period before that renders the buyer in default of contract and in a spot to possibly forfeit their deposit.

You can get around this by requiring the closing date to say "on or BEFORE" vice "on or ABOUT".

Hope this helps!!!

~Joey

[LinusK]

Originally Posted by ShellyR

What steps can a seller take to make sure the purchaser can afford to purchase a house?

I'm tired of showing my house to people with pre-approval and pre-qualified letters that ultimately cannot obtain a mortgage. How do I get around this?

ShellyR

Lower your asking price.