From Listed to SOLD - How to Sell Those Listings You Work So Hard to Get!

I would not show homes to buyers that I knew were not qualified for that price range. 

That said, I don't require that buyers be pre-qualified by a lender before touring.  A few simple questions to detrmine a qualifying price range is sufficient for a tour of homes. 

Once we know the buyer is serious, time to get a letter and tour seriously and be ready to write.

In all of the years I've sold real estate, I've had only two listing agents require that a financial statement or pre-qualifying letter be reviewed before showing and the homes were in the $6 and 12Million price range.  We refused and we showed the homes anyway.  We know our buyers are qualified but that doesn't mean we're going to provide financial information to a seller or their agents before even looking at a property. 

I'm going to go around the barn the other way on this.  As a buyer's agent (under designated agency), I will only take buyers who are pre-approved out to look at homes.  This is not to be conceited, but it is a disservice to my clients to "tease" them with homes that they can't (or shouldn't) afford to buy.  If time management is important (and it certainly is for me,) then by knowing a price range that the client is pre-qualified for, I don't waste their time, nor mine.

From the listing agent side, don't we all have a responsibility to our clients to discuss which offers, in our professional opinion, are better than others?  Doesn't this include having an offer from a buyer that includes a pre-approval letter?

I always discuss buyer verification with my sellers.  In today's day and age, where mortgage companies are still folding, changing commitments at the last moment, or simply not wiring the funds at closing, I strongly recommend that we use our Gold Service Partners to provide a back up pre-approval so that they can step in at the last moment if needed and salvage the deal.

I heard of a situation a few years ago where the buyers were qualified up to $250,000, but were seriously hoping to stay closer to $150k - so their agent showed them houses from $150k - $250k. The seller of one of the $250k homes somehow found out the details of the situation and created a huge fuss that he'd been inconvenienced by a showing that probably wouldn't result in a sale and then insisted that all potential showing REALTORS be grilled by his listing agent.

Another time, I previewed a house in preparation for a nearby open house I was doing (which is very common here). When I provided my feedback to the listing agent, I was honest about my intentions (that'll teach me!), and got lectured, again, for inconveniencing the seller.

Hey, I get it that being on the market is inconvenient, but that's just a FACT!

I'm not saying anything about buyer agents not pre-qualifying their buyers - that's a different topic. But I don't think that listing agents should promise their sellers that they can control whether or not the buyers who look are qualified. And I don't think sellers should worry too much about it - every warm body that crosses their threshold increases the chances that the house will sell. And I believe the listing agent should make this clear to the seller.

I always tell my sellers "Everyone who comes to that door is our friend, even if they're early, late or not very pleasant."

I job is to sell a house,  how many times have tire kickers become serious buyers when the have a house they love ( but not have become Pre-qualified for)  Activity gains sales.  No activity gains aggravation.  I think its more important to have activity than the pr-approval down to the last penny.   I have never had anyone express an interest in buying a house that could not afford one.... why woul dthey bother?  Thats just me...

Jennifer,  You're asking a very good question and you make some very good points.  We've had sellers ask us to do the same thing and it can be difficult especially if the buyer is not yours, which in most cases it won't be.  I agree with what you said; any activity is good activity.  If it's a great house or a good buy sometimes getting buyers and agents in is the best thing. At least it's exposure.

Pre-qualifying buyers for homes in the stratosphere, several million and up as Lenn suggested, might be reasonable.

But, pre-qualifying for lesser prices sounds like a road-block to sales.

The buyer's agent is doing a disservice to the client by showing them homes in a price range that is beyond their means. But, if the buyer wants to look at something more expensive, what's the harm. Who knows, maybe the are friends with more affluent people who are also in the market.

No snobbery in sales.

I believe that is the buyers agent responsibility to do that.  And open houses how do you stop somebody at the door.

You do have some control over who sees the home, and should pre-qualify, screen. Lookey loos with upside down debt ratios and negative credit scores should not gain entry to the kingdom you hold the keys too..especially when the seller lives there and the invasion, hub bub the showings are anyway to some. If the no credit/no bank buyer has a parent who will buy the place for them, or they hold the winning lottery ticket on the power ball from yesterday, get them inside pronto.

It all happens....if a buyer's agent is wasting their time without moviing the buyers down the pre-approval path, that's too bad. It's a dance in the beginning, I don't like my buyers to feel I'm pushing them and don't want to talk to them unless they are READY to buy, but also, if they are wanting to actively look and can't get me a pre-qual at least, they need to talk to my lender.

I agree with Lenn...unless I'm writiing an offer, I am not going to do anything other than assure the listing agent that I am doing my part.

But in the real world... should I put a notice in the MLS that "PRE-QUALIFIED BUYERS ONLY" and force buyer agents to contact me prior to showing to plead their case? NOT GONNA HAPPEN. If I saw something like that in an MLS listing, it would be quickly NEXT'ed!!

I agree that upper end homes might attract true lookie-loo's... although I'd still argue the same point - you just never know! I'm previewing a $1.3 house today for a buyer who doesn't want to go above $1M - do you think the listing agent would want me to preview or not?

I can see the point for ultra expensive and exclusive properties. But because of the tire kickers and time wasters, I understand listing agents wanting to make sure they are looking out for their clients. Why would a seller want to take time out of their day to vacate their home for a showing to someone that cannot afford it?

Why would any listing agent do that? I guess unless we are talking about luxury estates, I guess. If it's not, then drop the subject and move on to the next house. That's what I'd tell my buyers. We are not disclosing anything before we decide we like the house.

I think putting a restriction on showings sounds very haughty and buyers - both represented and unrepresented - will pass by you because it's offensive. I think it's a bad move. In a good market, it's a bad move, and in a bad market, it's a death wish for the listing.

Let the buyer's agent do their job and manage their client accordingly. I may not have as much experience as some of the other agents on ActiveRain, but I have been doing this for 10 years, and have sold close to $90 million during that time. I've never had a seller get mad about a showing. I think that even if the home might be more than the buyer wanted to spend, if they see it and fall in love with it, a few adjustments in their financial picture may be motivation enough for them to afford and buy the home.

Showings sell homes, plain and simple.

Once in awhile I see this notice in the MLS.  I asked a listing agent about it and he said the seller requested it and that he had no way of enforcing it -  nor did he care.

I think limiting showing to only pre-qualified buyers limits a pool artificially, and that's especially detrimental especially in today's market.

This indeed is a Catch 22 question. Do your homework ask questions, but there are alot of first time Homebuyers running around out there now that do not understand how the process works. They look to us for guidance. If we preset limitations in the listing notatations, you may very well scare away these folks who need your help in going forward.

People are smart they have heard the news and understand they can not get credit if they do not have a blemish free credit history. In this market I would not alienate any showings you may have. Even consider the poker players who are experienced at home shopping they do not show there cards until they are ready !

This has been my experience anyway . Work Smarter not Harder .

Lillian Fierro

Re/max Mid Michigan /Brooklyn

Your sellers are right to want their home shown as much as possible.  One never knows what will happen with buyers.

In today's market I believe it is very foolish to ask that as a listing agent or seller. The job of the listing agent is to get people in the door, It is the job of the Realtor showing the home to feel out there buyer.  Some you can tell right away that they will be happy to get pre-qualified and others you can tell that you could push them away and seem to pushy from the start. As far as the seller being inconvenienced that is just life and they have to understand if they want to sell there has to be showings. Now as far as me I will show the home and as I am doing so I slowly work into about talking to lenders and so on if they really like the home they do it fast and if they want to look at other homes on a later date They almost all ways have a letter by then.

Hi Jenn, to answer your question, I would NOT put anything in the MLS.  I would hope  that the buyer's agent would be doing their job to make sure that the buyer can afford the home. 

If you get activity without a buyer's agent, then I would with ask your qualifying questions.  In this market expecially, any exposure is good exposure. 

i try to never discourage showings.But I also believe that you just don't drag any tom, dick or harry throught he front door either.

I think another key element here is to hold open houses often enough that tire kickers have the opportunity to see the house  without putting the seller through the extra work required for a showing. I don't care if they are prequalified or not at an open house. The more people who know about the property the better, and there is no harm in helping peoples ee what is on the market for what price. That's educating buyers.

It's up to the agent working with the Buyers to know whether they are able to buy or not. How many times have I personally worked with someone who was pre-qualified in one price range but moved up to another price range to find what they wanted? Are you going to say, "Now, I know you want to look at this house while we're out today, but first you have to contact your lender and qualify for this price range and then we can make an appointment to see this house." RIDICULOUS! At the least, you have seen the house for another buyer and they have seen it to tell a friend. Putting up road blocks in this market: bad idea. (unless of course it's over $3 million; then you don't want tire kickers)

No question, unseen is unsold. Not to mention the opportunity to convert that possibly unqualified buyer into a buyer of a different property.

The time to insist on pre-qualified buyers is when you are talking about offers the seller  will consider.

What kind of world would we have if car dealerships insisted on running your credit BEFORE you got to test drive the car or even sit in it?

What would happen if Macy's advertised that only people with approved Macy's cards could walk though their door?

Sellers could insist on this, but it would certainly have a negative impact on the marketing of the home. This is the wrong economy for that.

I guess I understand this for very high end homes, but I don't disclose any financial information about my buyers to other agents when we are looking at homes. When we decide to write an offer, of course, a pre-qual or pre-approval will accompany this. Most good buyer agents know their clients and don't show a bunch of homes people just looking around with no intent to buy.

One never really knows whether a luke warm party can be turned into a "let's write" party, until it occurs.   Realtors are the clean and shiny pipes between the seller and the buyer, and unless the buyer views, nothing can happen.   

Jennifer, I agree that as  a listing agent it is not your job to police other agents. But the buyers agent should have done some homework prior to showing homes.  I see that mistake made all too often. First off: showing homes to some one that doesnt qualify is a waste of time. But the other side of it is if you show some one a home that is above a price range they can qualify for, it will be awfully difficult to find them a home they will like in the range they can afford.  In many markets a $50,000 swing in price can be a night and day difference, and I have seen many buyers get discouraged because of the champagne taste and beer budget, but if managed correctly it would not have been a problem

My million dollar & up listing clients require that any buyers be pre-approved before an appt to show the home is confirmed. Personally, I don't think it's unreasonable for the higher-end listings especially.

Great comments here.  It seems we are all in agreement, to get the buyers through the door.  If they are writing an offer, that is a completely different story.

I always feel SO guilty viewing listings for a new listing I am taking...(I guess not guilty enough to stop, however, lol.) 

I'm so glad you all mostly agree with me. I saw a post on this topic awhile back, with the opposite viewpoint, and, as often happens here in the Rain - everyone who commented agreed with her opinion that the listing agent should try to screen out buyers.

If a seller does make this requirement, it may just be that they don't understand how our system works - and our system IS set up to efficiently sell houses. Trying to glom up the system by making the buyer agent jump thru an extra hoop or two just isn't worth the potential downside, IMO.

I've never worked with high-end homes, so I'll defer to the experts there.

Elizabeth - so do I!!! But I'm so glad our market allows previewing - some don't!

Your house needs to be seen to be sold so I see no point in limiting traffic.  Besides, many a time the buyer who can't afford the home may love it enough to tell a more qualified friend about it and Voila! a sale!

Personally I will NOT work with buyers who are not pre-qualified. Even in a down market I do not see why I should spin my wheels with buyers who only want to look and still do not want to commit.

I will let another agent, who does not have a pre-qualified buyer, show the home but when it comes to making an offer I will not take an offer unless it has a pre-qualification letter with it and that I make this part of my listing contract and I also explain to the seller why I do this.

If you were to enforce this on your listings, the listings should be pretty exclusive properties IMHO.  Doing this on something for say $150,000 doesn't make a lot of sense, but properties above say $2 or $3 mil would be entirely appropriate.  However what constitutes pre-qualification is the trickier part.

If a big hitter agent in your market wants to show your home and you know they sell a lot of properties in that price range it probably doesn't make sense to ask him/her to pull out a financial statement on the client or for that matter asking him/her if their client qualifies.

If its a junior agent without a track record I think it makes sense to get a feel for the agent as well as the client before allowing the property to be shown.

Quite often clients in these higher price ranges don't want to share their personal financial data, however its usually not too difficult to do some limited due dilligence on them as a buyer's agent.  Googling the client will usually bring up info on the client whether its a board they sit on, the position they have with a major company or a new piece on something they are involved in.  I remember years ago I wanted to check out a guy who talked a big game from Birmingham Alabama (I'm in Bellingham Washington).  He claimed to be an investment banker from Birmingham.  I looked up his name and couldn't find anything online.  However I decided to call a major stock brokerage firm in the area and I talked to the branch manager.  He knew this person, had a lot of respect for him and let me know that he was a substantial person.  That was my due dilligence.  It turned out he did close on a nice size purchase, but I didn't push him directly for information, I simply verified what he had told me.

The last part of the challenge is how much work will it be to enforce such a provision as the listing agent.  Maybe it would be easier to just go the property, be there for the showing and not ruffle the feathers of agents who may have clients who could purchase the property.

As far as being a buyer's agent and showing clients which I have done a lot of.  If our first meeting is to go look at a couple of houses, I don't prequalify the client before going to show (for the most part).  I've usually had a chance to visit with them on the phone, and online and I have a good sense of who can and who can't.  Even if they can't my intial job is to learn about them, take them through a couple of houses to find out what they like and don't like and to establish myself as their REALTOR.  After that I will ask about getting pre-approved and getting them started on the process of being in good shape to finance a property.  It's a style thing for me.  I don't think there is a right way or a wrong way, its just my way.  I personally feel that I have a better opportunity of landing the clients now as well as helping those who aren't financially ready now in a way that is non-threatening and non-pushy.

I totally agree with you, Jennifer.  Don't limit your potential buyers by demanding that they be pre-qualified.  But, don't show them something outside their price range, either.

Hi, Jennifer,

I see many agents here have their own reasons in believing what they should or should not do with the pre-qualified, pre-screen buyers thing.  Yes, don't we all just want pre-approved buyers?  But it is not going to happen this way in reality, for those agents who insist they will only work with pre-approved buyers and still get tons of businesses, good for you.  I "pre-screen" them by talking to them and just see how their credit is and determine to show or not, if they can even buy anything.  I don't get any problem from any buyer that way, I explain the process and they understand, and they won't even insist on looking at the house once they find out they have to work on their issues.  Personally, I won't put it on the MLS, because I won't even show the house if I see that on other agent's listing.

Haven't had sellers ask for buyers to be "pre-qualified" -- but when taking buyers out we want to know they are qualified to buy , otherwise it can be an afternoon of wasted time "touring a street of dreams".

Well, once again I can see both sides.

As an Accredited Buyer Rep., and one who wants to know my market inside & out, I always (I repeat, always!) preview homes in the immediate surrounding area that my Buyer's are interested in. I know that it impresses them to be able to sit across from the table with them with detailed knowledge of the market before we even step foot inside a house.

When I call to schedule previews with our showing service, I clearly state that I am previewing, not showing.....and that I do not expect the Seller to leave while I preview. This to minimize the inconvenience to them.

I would have done the EXACT same thing as the previous posted agent who showed the Buyer's approved from $150-250 (but who wanted to stay in the lower range). I do not ever encourage people to purchase too much home, but in my Dallas market (depending on the area), there is more often than not, a significant difference in homes from $150-$250.....and if the Buyer's are not shown a sampling of everything in that approved range, they cannot really make an educated decision.

What I will not do is spend countless hours showing houses to people who have not begun the pre-approval process. It's hard to believe they are really serious if they do not take that necessary step.

When I have done that it the past, and showed houses to those who were not ready, willing & able, I have looked back at the brief experience as "previewing" homes for future Buyers! :0)

Happy Selling!

Edith

When I visit with someone about a showing, I ask some general questions as to what financing arrangements they have made or resources available to purchase.  If they are not paying cash and have not even bothered to visit with a lender to check on financing possibilities, I ask them to go ahead and do that.  If they insist that financing is not a problem, I go ahead and show. That has only happened once. 

I know here in Georgia with all the bank owned properties and foreclosures in general, they are requiring on MLS to fax the pre-approval with any offer.  I don't think you should restrict on MLS to only show the property to pre-approved buyers.  As a buyer's agent, I personally don't take clients out until they are pre-approved.

Jennifer,

Great question. It seems this was a hot topic! I must say, I can clearly see both sides, but I, for arguments sake will have to fall on the side of showing vs. not. You can not sell it if you can not show it!

As a buyers agent, I will plant the seeds as quickly as I can about getting an approval ahead of time, but I am not going to restrict any activity. Thanks!!

Making the requirement that the buyer demonstrate they are pre-qualified prior to showing the home might be an indicator of a difficult agent or seller and I may reconsider showing the property. As with some previous comments, as a listing agent, the job is to generate traffic and get prospects in the house. It would be agreed that it would be ridiculous for an open house prospect to show proof they are pre-qualified for before they walk into an open house (which is just as inconvenient to a seller), why would we create such a limitation on a showing? It is unfortunate that too many agents don't properly counsel and qualify their customers before taking them in their car. We can't always control the buyer's agent. The best time to start discussing the qualifications of the buyer are at the time of the offer. A little inconvenience from a showing is part of the process, however executing a contract with an unqualified buyer is a different story entirely.

I couldn't have said it better myself Jennifer.  There are some interesting comments above.  I see both sides of this argument but, I agree, in the lower price ranges you shouldn't ask for this as a seller because it could limit your showings.  The timing of this post is pretty good because I was going to show a restaurant/bar (with real estate) to someone yesterday and it had those comments on the MLS sheet.  I totally understood in this situation. I could see how the sellers wouldn't want just anyone who wasn't serious coming through during business hours and possibly causing concern for the customers. Thanks for the post!

I agree with the more exposure the better.  When they get serious they should have a strong prequal and submit there highest and best. 

I print "QUALIFIED BUYERS ONLY" on high end homes. But I don't ask the agents to PROVE IT TO ME. I assume they read this and understand. Asking them if I could review their "proof" would be an insult.

Hi Jennifer.  I am with you.

I hate when listing agents question the worthiness of my buyers...

Thanks for writing,

Ken

Great discussion. I am listing a home in the upper range and this has been a debate for me. I see many homes in my area with this stipulation in the MLS.

I will have to come back and re-read this thread. I think that most listing agents in this area and in my listing's price range will be able to determine the worthiness of their buyers without a prequal. letter.

Jennifer:

I beleive a showing is an OPPORTUNITY.  If the buyer is not qualified their agent may have another that is. So who lost, maybe the buyer agent who wasted his/her time and than again may be not.

Agents who are working with buyers need to know that they are not wasting their time. Leave it to me to make that decision with my buyer clients. Sellers need to understand the business and only worry about the home showing well!

I think they should be approved to look, but only in a select (elite) price range would I get picky about it.

Jennifer - Well I don't show homes myself unless I know the buyer is qualified, but that's not true of everyone. You do see this requirement for some very high end homes (usually above $5 or $10 million). While I can undestand a seller, or their agent, not wanting to waste time, I would not want to share the financial details of my buyer before we even know if they wish to pursue an offer on a high end home. I have never seen proof being required for other homes although many agents request qualified buyers.

Jeff

I've seen this requirement in the MLS and it may become more prevalent as agents get more desparate and show homes without having them even pre-qual'd. I work more with sellers and can tell you it's extremely frustrating for sellers to receive feedback reports that "buyer isn't qualified for the price" or "buyer just starting to look and need to get pre-qual'd".

It's especially frustrating when the seller has little kids and a dog and has had to cruise the neighborhood with them all in the mini-van while the showing took place. I find this is more a problem with new agents who are so eager to load a buyer in the car that they don't want to risk losing a client by insisting they get pre-approved first.

If the house is vacant, then it's not an issue ... just possibly a waste of the buyer's agent's time. I've never used the term in the MLS, but have had sellers ask about it.

I agree with your answer.  While I do get my buyer client to qualify for an amount before I spend my time showing them property I do not restrict my listings.  You never know when an agent shows it to someone who might turn out to NOT qualify, that agent may also be working with other qualified buyers and be more likely to recommend a nice house she'd seen with other buyers.  My sellers have never asked me to pre-qualify lookers.

Great post Jennifer!  Again!

1) I think most Realtors do not realize that a prequalification letter is not proof of qualification and really is only worth that the potential buyer has as least started the process of considering a loan.  It does not really prove they are qualified to buy a house.

2) I still contend, as I have written before, that many Realtors use the need for proof of pre-qualification as a lazy way to try and qualify buyers.  We buy property and never have such a letter.  Guess they won't want to show us property.  That's fine, their loss.  We can easily find a great Realtor that will ask enough things to know we are "mutually qualified" to work together.

3) My thought is that the honest way to do this is to talk about money, prices, expectations early and often.  This helps you help the client and the others involved far more than a prequalifcation letter.  But, it requires effort and skill to ask the right questions and properly listen to the answers.  Not everyone wants to make that effort.

Thanks! G

Let me ask some silly questions.  What is "pre-approval"?  Who does it?  If it was done yesterday, is it still good today? Is it in writing?As a listing agent how are you going to determine if the showing agent has a qualified buyer? By your office staff asking on the phone when an appointment is made?  Are you going to require a fax or e-mail prior to the showing from a lender or a bank account verification from a bank?  As a buyers agent, are you taking the clients word or are you requiring something in writing?

After 36 years in the business, in this market, I feel like I'm working with rules that are too simple.  As a sellers agent I want as many showings as possible; you don't hunt pheasant with a single shot 22, you use a shotgun.  As a buyers agent, if I spend 30-45 minutes chatting and using visuals, maps, MLS print outs, comparative listings and virtual tours, I show only 3 or 4 homes that the buyer would like and can afford and they buy one.

What am I doing wrong?

As Realtors, previewing property so we know what's out there for sale in case a buyer comes along that may fit that other house is fine.  I don't see why a listing agent would get mad that you were previewing his/her property?  Maybe they are new or feeling the effects of the economy and thought you were trying to poach?

Jennifer, setting the expectations is the way to go.  Require it for offers.

Jennifer,

In these tough economic times it very important that we have our buyers qualified but i had this

happen to me a few years ago had buyer that was already prequalified and going to look

at our properties he saw this one listing that he liked i knew it was more than he had been

qualified for we looked he fell in love and bought he got funds from his 401k that he had

not planned on using in his prequalifying process i know this it is rare when something like this happens but it did.

Hi Jennifer -- I have sometimes had non pre-approved buyers end up falling in love with a listing of mine, hurrying up to get pre-approved, then buying it.  No easy answers, but one needs to treat everyone the same to avoid any fair housing.  While some people may end up ultimately not being able to purchase, one never knows.  If the seller requests it, I follow their direction.

Hello Jennifer!

Well, girl...you hit a nerve and I love it!  I think I remember this topic in your excellent book!

Here's my two cents:

I think agents need to learn how to qualify their buyers and their colleagues.  Yes, the buyer's agents need to answer some of my questions before they show...oh, the questions are material to showing the property and you know, almost all of the time those buyer agents are working with what they believe to be qualified buyers!

You are right...tell the seller that you will do your best to qualify the buyers and their agents when they make the showing appointments.  In the end, your responsibilty is to be truthful (soulful), honest and ethical with everyone, right?

Now, I qualify my buyers and you should consider that your new role, too!  What does it mean to bring a qualified buyer to a showing?  They can afford it.  Use your calculator and estimate the affordability for them.  Need a FICO score?  Ask them to pull the report and show you before your start hauling.  huh...

Who needs a lender's permission to see a house?   The sellers' should be lucky to receive so much feedback on their overpriced homes.

If you are new, you will most assuredly show homes to people who can't buy them.  Your loss, not the seller's or the seller's agent.  Honest feedback moves the sale of the home closer to reality.

Ken said,  "I hate when listing agents question the worthiness of my buyers..." 

Hate is a strong word, Ken.  Careful when agents are asking you questions about your buyers, they might be querying you to see if you are worth the effort in a multiple offer situation.  Be kind and considerite to all in this business if you plan to go the distance!

Jennifer...keep stirring the pot!  You are doing a great service to the real estate industry.  So many need to hear your wisdom!  Just loved that book cover to cover!

Best wishes to all!

I agree a home unseen is unsold, but I always ask the buyers agent if they are qualified. On short sales I put a pre qual letter with each deal.

Why would you waste your time showing homes to someone that you have not had prequalified? Then once you have determined their buying criteria why would you ever take them to a home they cannot afford?

I guess in some areas there is no buyer agency, but in my area I don't know of any agents who don't get buyers prequalified first.

I agree. The more exposure the home gets the better it is.

I work with both buyers and sellers in the Metro Atlanta, GA area. As a Buyer's Agent, I ALWAYS have my buyers pre-approved with a DIRECT lender prior to showing them properties. As a Listing Agent, I ALWAYS have any potential buyers pre-approved prior to my showing my seller's property. If the property is being shown by another agent, I trust that they are doing their due diligence with their buyer. The reason for this is simply for security purposes only. We recently had an issue where a condo owner was robbed and beaten to death by someone posing as a "buyer" to preview her midtown home. We've also seen issues with potential "buyers" touring homes and coming back later to rob the homeowners. A common criminal will be less likely to commit a crime when he/she knows that they've given someone their information. It has nothing to do with not wanting to be bothered with those who cannot purchas at that time....that doesn't mean that they will never buy, It's about protecting my clients and myself.

Yes - but it has to be the seller's requirement so it's important to make sure the seller is on board!

I don't really care if the buyer is pre-qualified or not. 
There are no guarantees that someone pre-qualified is going to buy the house.
Expose the house, as much as possible (always assuming every agent is doing their due diligence, of course, and they know who their clients are).

I would prefer everyone to be pre-APPROVED with a commitment letter (not just pre-qualified), but that's also limiting the showings, and that's not a good idea.

One never knows who will end up buying the house, and one thing is for sure ... they will have to see it first, pre-qualified, or pre-approved, or whatever... they will have to see it before they can decide.

(If they are my buyer clients, under contract, then they will be pre-approved for sure - which is always the first priority - but that also doesn't mean we'll show paperwork to the seller or the seller's agent, without seeing the house - and until we have an offer.)

We all know that open houses are not for finding buyers.  Rather they are for finding prospective future clients!  Why limit your prospects?  You never know who you're going to meet.

Here in Florida almost everyone is a real estate agent. You can tell by all the foreclosures that qualification is a huge issue.

You can imagine we have to ask the buyers agent some questions about who they are working with and how much they know about their client.

I also like to know that the agent is looking out for their client and not working with a predator lender (they exist) or some other fly by night.

It's all about protecting the homeowner and making sure the showings are to those that the agent has made some inquiry into their purchasing situation.

Good luck to all  -

Pre Approved or not, in my opinion show your listing.  I mean who knows, a buyer who isn't Pre Approved yet might know some who is and may refer your listing to that person.  (Especially in this market)

It's up to the seller. I would explain it to them and then ask them what they want me to do, but you are right that you never know where the sale is coming from, jut as we don't know where our next prospect is coming from.

Absolutely.  The last 5 offers that I have had whereby the buyer's agent did not prequalify their client and I told them that we would reply after seeing a prequalifcation letter, EACH buyer did not have better than a 560 credit score and one was at 408.  This is in the $500k to $900k range.  Hopefully, that will motivate you.

Showing homes to some one that has not yet been qualified is one thing.  But I will not wirte an offer for a buyer until they have spoken to a lender.

"Unseen is unsold"

.....that about sums it up!

Hey Jennifer: I didn't know if you knew that I lifted a few comments from this post and wrote a piece surrounding those comments.

There was a pretty interesting dialog...

Thanks for that, Janet! I enjoyed your blog - smart stuff!

You never know who (your yet to be qualified) person may talk to. I would though have them put that task on there very soon to do list while I continue to show them property. 

i imagine it would be difficult to ensure only pre-qualified buyers view the home.  The most important factor is exposure, that's why sellers want open houses.  These agents who only want pre-qualified buyers viewing their listings probably don't hold open houses!

Patricia - Whenever I heard this advice in the past, my very practical mind always asked that question - "How exactly would I go about confirming this?" Yeah, that's what I want to do - spend all day harrassing buyers agents - that'll win me friends!

I totally agree.. I too have noticed sellers want their house shown....even if it is an agent previewing, a curious neighbor or a qualified buyer. You do never know who might see it and recommend to someone that eventually buys.

On the buyers agent argument, I never like to take buyers out all day to look at houses prior to them talking to a mortgage broker. It just doesn't make sense. Until they talk to someone they will have no idea what they are qualified to buy or which kind of loan is best for them (maybe they want only a conventional so we forgo seeing the dilapidated REO).

Most buyers agree to make that 10 minute call prior to heading out so it is rarely a problem for me.