Missy- I never understood why buyer agents feel as if they are intruding on their buyers by making sure they are approved for their loan. This is about them, it is to help them! The buyer that is.

Bravo Missy!  So many people think we are doing it for our benefit and our benefit only, but it is just the opposite.  Fabulous example.

How right you are-there is no worse feeling.  Plus you save everyone time yourself and the buyer.

I could not agree more....but disagree a little :) YES, it is for them, but for us too, early in my career, I wasted time with people who were not even qualified..and yes, their heart were broken..and I learned a valuable lesson... :)

I love this post Missy.  It really is all about them.  So many posts I have read recently were about comissions, what other Realtors might think, this that and the other and it makes me wonder if we have lost sight of what it is all about, which is THEM, our clients!!  Do right by them and you won't have to worry about commissions, what other Realtors think or anything else, it will all be good!

Missy~ You are so right.  It saves the buyer a lot of heartache and it puts them in a much better bargaining position! Besides that, if youshow them something out of their price range and they fall in love with it, it ruins it all for them because they will compare everything to the house they couldn't have!  I say spare them the disappointments if you can.

Missy-So...so...true, just had this talk with my buyer on Wed morning and come to find out she has some credit cleaning to do. I told her not to lose site of her dream and to stay focused in taking care of her business and she will own a home sooner than later! Best to you~

Some buyers are offended and clam up when I ask them early on about their financing. They rarely discuss that with me first. It's just how things are now.

Hi Missy

Working with preapproved buyers is the only way to work today.

Good luck and success

Lou Ludwig

I feel bad for her,  if the agent had done the pre-qual first, she would not have fallen in such love so fast.

Hey Missy,

I completely agree, it is about them in many ways. My first r.e. instructor said "take care of the people and in the long-run the will take care of you"...30+ years later...it's always worked for me.

I'm so glad you wrote this. I couldn't have said it better. My heart gets broken, too!

Hey Missy,

     You are doing them a favor to get them pre-approved.  You don't need to waster their time, your time or the sellers time getting ready for a showing. 

Missy I have had three buyers call me in the past two weeks wanting to look at a particular home and I said they need to be preapproved before we start the looking process.  I explained we needed to know what price range they could look in so we didn't look too high then have to look at lower priced homes and they'd be disappointed......never heard back from any of them and they won't answer when I call.  I can only assume that they aren't really ready to purchase or they can't purchase, but I have to wonder why they would think I'd take time out of my day to meet them at a house they won't really or can't buy??

Hi Missy!

I am an agent who works almost only w/Buyers - especially now with alot of First Time Buyers (due to the $8000 tax credit, low interest rates and very affordable housing here in the DFW area!).

I really do enjoy working w/the First Time Buyers, but I'll admit that I am surprised at how very frequently these "would-be Buyers" are not aware of what their credit actually looks like....and it's never better than they expected it would be!

Based on that, I do not want them to be more disappointed by spending even a day looking at houses....only to find that a mortgage is not in the foreseeable future.

Thank goodness I have great lenders who, when they see some potential in these folks, work together with me to assist the hopeful Buyers in getting corrected what they can and keeping them motivated to do so. It is often workable, particularly when these folks have a stable rental & employment history.

In many cases, they just need someone to help them by providing good information for them to work with & the motivation to get on track, so that a mortgage is doable in the not-too-distant future!

Keep up the good work!

Edith

My heart is broken for them.  How sad!  You are so right though we don't do it for ourselves.  BTW I would have reblogged this if it had been available to do so:)

Missy - I always let my buyers know that the pre-approval is for their benefit, not mine.  That I would hate for them to fall in love with a house only to discover that they can't afford it.  So far I've not met anyone that didn't accept the logic behind that.

Chris, there you go, reblog away.

Katerina, Pat, Kristina, yes it is for them.

Konnie, I did mention it helps save us time too. Second to last sentence.

Janie, thanks appreciate it. We never do wrong if we focus on our clients.

Vicki, absolutely it does hurt them. Find a bigger better house and can't afford it they mourn and then nothing looks as good.

Mary, a good lender can set them on the right course for cleaning up their credit.

Lizette, I don't ask them about their finances I aske them to talk to a lender and recommend three. I want them prepared when the negotiating begins. They are in a better position. I have found IMO if they dont want to get pre-qualified it is either, they are not serious or have issues they know about.

Lou, absolutely.

Tina, I do too....

Carol, yes if they understand it is for them, why be offended.

Edith, yes a guidance is so important especially for 1st time home buyers.

Connie, thanks for the comment.

Sandy, IMO they were not buyers but lookers. Why be offended when you are trying to set them on the right path.

Lynda, (((smiles)))

Dawn, me too. It was sad.

I have never understood why Realtors become timid about asking for a pre-approval. The buyers butt doesn't hit the car seat without one:)

The devils advocate here:

I think as professionals, many commenting here are selling themselves short when they write that requiring pre-approval is "good for the buyers".

Baloney!  It's better for you! 

Your time is valuable and should be respected.  If buyers don't understand that, let them waste their time on the internet or at open houses.

Attorneys get retainers, doctors verify insurance & utility companies verify no outstanding balances!

Realtors need to have the same mentality and not sell themselves short:)

Bill, you crack me up.

Drew, it is for both but this email was from a buyer whose heart fell in love with a  house and then didn't qualify. I agree it wastes time for everyone but this was about THEM. We don't take them out either until they have spoken to a lender.

Hi Missy!  You are so right--it's NOT about us!  The heartbreak that is REAL when they don't qualify really does set them back a bit and I'd rather them know up front so that they can begin the repair process, THEN be anxious and ready to start looking when they're qualified.  Not only that but, it gives them more confidence in knowing just what price range they should be shopping as well as giving them the power to 'adjust' according to their financial behavior. 

However, it's great for us too--we don't have to search in one price range in 2009, then put our search on hold for a year for credit repair, then search in the REAL price range in 2010!! 

Saves them heartbreak, saves us frustration!!  Great post, Missy, as always!

It's a good and timely thread...especially in this "buyers market".  I don't mean this to sound harsh or insensitive BUT...If you're showing houses to someone who is not preapproved and/or not comfortable discussing their finances with you...THEY ARE NOT A CLIENT and something is wrong! 

Rapport + education/information = trust/respect and ultimately a really great client.  We all know the rest is easy :)

Tom it wasn't my buyer, she only contacted me today. I sent her to my lender ASAP.

Debe, yes it does give them confidense !!

Missy - I wish I had a dollar for every buyer who called me wanting to look at a home without even knowing what they could afford.  It's heartbreaking that some agents don't take the time to make sure they qualify a buyer with a lender first.  I am in no way afraid to ask a buyer at the get-go if they've spoken to a lender.  No ticky...now washy in my book. :)

We ask for the buyers to get pre-qual, and you know something is fishy when it takes days or more to talk to a lender. and then there are some who get offended, only to find out that they have old student loans etc. and they can't qualify! Sigh. Rita

Lately I have been having a lot more traffic to my website (Listing Router) and I ask right away if they are preapproved - some ask me to refer someone and are quite willing and then there are those I never hear from again and that's OK because I have so much I can be doing with my time than showing people homes they can't afford & can have their heart broken.

The heartbreak of losing a home that you have already fallen in love with very difficult, but I do have to ask... Did you find them a home on owner financing as they requested? They should like a perfect candidate for it and in two years they can refinance the home in to an FHA loan.

Sadly this still happens all too often.  That poor family.  I hope you're able to find them something on land contract Missy so that this family can realize their dreams.

Misssy that is the only way I conduct my business. Have I lost clients because they didnt want to listen probably, but that doesnt matter. I dont waiver on my standards and part of my explanation is just what that buyer said you dont want to fall in love with something you cant have nothing else seems to compare.

You are right its about them..and why show houses that are only a pipedream.. the email you received was heart wrenching to think you can but you can't.  I think all buyers should be pre approved regardless of how anyone feels..this isn't about feelings at all but about buyers achieving their dreams.  Missy you just make me smile! :)

Hi Missy, many sad stories these days, sometimes even when everything is done properly. Too bad not everyone puts 'in the clients' best interest' first and foremost.

Missy,
Saves a lot of time, frustration and heart break, doesn't it?

We never ever take anyone anywhere without a pre-approval...and taking that one more step...from a recognized lender...not the Bank of the Blogosphere !

NONSENSE, of course.

It IS TOTALLY for the agent. How many of your cheerleaders also said, at the end of 2003 NOW is the time to buy.

And again in 2004?

2005?

2006?

2007?

haha

The only people who believe the baloney you guys spin anymore are people who have a financial stake.

I'm a buyer. I found a realator who will show me ANY house that comes to me via email daily w/out ANY qualification.

You can cherry pick an example that shows how your ONLY interest is in to keep the buyer 'from having his heart broken' but the rest of us just laugh our butts off at you.

BTW, I will NEVER deal w/an agent that forces me to pre-qualify before I'M ready.

There are plenty of others. Can you really afford to LOSE customers out of your transparently OBVIOUS greed in a market like this??

CORRECTION: I'm a buyer. I found a REALtor.

And that's the only thing remotely connected to REALITY in this blogpost. haha

TD

PS And no, I'm not a bitter homebuyer who lost his shirt. And no, I've never been burned by a real estate agent before. In fact, I'm not anything you guys, in your cognitive dissonance, will ascribe to me to try to militate the truth of the point I'm making. Not that it won't stop you from trying. lol

I don't begrudge you for wanting to pre-qualify people. I probably would too if I were a real estate agent. Saves YOU from wasting your time on deadbeats. A good business practice if you ask me.

But to DELUDE  yourselve and even worse, try to delude the public that it's for them is hysterical.

As an agent who supposedly cares for the buyer, THE VERY FIRST THING you should tell your clients is NOT to fall in love w/any house.

That's the CRAZIEST thing a buyer can do - be it a car, home or Mac Laptop. If they want to get the best deal, that is.

Who am I? Just a  First time buyer. Like Millions of others. But I listened to all your criminal hype about the markets the last few years. And I learned.

I hope you guys realize you are a laughingstock in the business world.

Somewhere on the credibility scale btw Jim Cramer and.....Bernie Madoff.

And this clueless "It's for the children" post just cements your reputation...

Missy - This is a good post for the newer agents, but also for the potential buyers who don't understand the frustration of looking and finding a great home, and then finding out that they can't buy it.

In today's credit world, that letter is golden for all the reasons mentioned.

TD, First let me say I appreciate you coming here, opposing views are welcome. As you said in your comment, you would not work with a Realtor who wanted you to get pre-approved and that is your choice. I have no doubt you will be able an agent who doesn't require it.

Let me just say as a lender, I can't tell you how many people come into my office to buy a house that is twice as much as they qualify for and have to now adjust their dream house to half what they can afford.  A women came into my office that wanted a $152,000 condo, that she was told the taxes would be $200 a month, and I explained to her that it was brand new, so the taxes weren't fully assessed, after we reviewed her information,

she neede to pay off debt, save up her downpayment

and then she would qualify for an $85,000 condo.

This is after she went and met with the sales people and had the plan picked out....I am sorry, it IS in the borrower's best interest to see a lender so their expectations are realistic.  If you fall in love with a $300,000 house and you can only afford a $150,000 one

it's hard to get excited about a house that is worth half.

Just my two cents!

Missy - I'm working with a client (probably not for much longer) who doesn't seem to understand that concept. It's a waste of her time and mine if she finds a house she loves but can't qualify to buy it.