What is a Pre-Qualified Buyer? Well, simply put, it is the initial step in the mortgage process and is a simple determination of the creditworthiness of a potential buyer. It’s fairly simple; a potential buyer provides a lender, either online or on the phone, with an informal (not based on credit report) overview their finances (Income vs. Debt). A lender then provides the buyer an idea of how much mortgage they may qualify for. So, Mr. & Mrs. John Doe now know what price range they should look in (ex: $200,000) There are no costs involved in prequalification. The procedure is quick and easy and based solely on the information the buyer provides to the lender, a pre-qualified amount is not a sure thing, but it does let the buyer know what their limits are.
So, let’s say Mr. & Mrs. J. Doe did not pre-qualify, but they are ready to buy and just love your home in that neighborhood. So they call a Realtor and ask to view the home. Your home is currently listed for $275,000. You get a one hour notice from Mr. & Mrs. Doe’s agent that the family will be traipsing through your home this morning. Inconvenient, however, you don’t want to lose a prospective buyer. But did you?
In this economy, a showing requirement should be preapproval to ensure the people entering your home are shopping in the range they can afford. (Some Realtors won’t put a buyer in their car and drive them all over town with these gas prices, without knowing what they qualify for, but some do). You can request your Realtor to not show the home to unqualified buyers. Your agent is working for you and your best interests and will advise you whether or not it’s a good idea, or a bad idea, depending on the specifics of your home and local market.
While written proof cannot be obtained, your Agent can request that other agents not show your home to unqualified buyers. This is perfectly acceptable if the request is coming from you, the client.
Call our office and speak to a Realtor® for more information!
Next Mistake……..Limiting Your House Showings