There is nothing worse in real estate than working with buyers that refuse to get pre-approved with a lender.
What should you do when your buyer won’t get pre-approved? Should you continue to show them property hoping they will and hoping they approve for a loan?
The experienced answer is no. However, it is not that simple.
The question is ‘Why’ are they not talking to a lender?
I started my career in Lake Chelan and for 4 years, not once did I ask a buyer if they talked to a lender. In fact, we rarely ever included a pre-approval letter. What we asked was this…
…What do you do for a career? Or what did you do for a career?
Based on their profession and how long they were at the career I could estimate their income.
Follow-up questions. What other real estate do you currently own?
If someone owns property right now, they have already proven they can qualify for a loan and purchase a property. Not only that they have equity and collateral.
But, what about the person(s) renting or buying for the first time.
They should contact a lender to see the property. You might give them a 1 or 2 showings but, after that, they are potentially wasting your time.
The best script to explain this to the buyer…
Mr. or Mrs. Buyer, when I set up showings with the listing agent one of the first questions they will ask is if the buyer is qualified. This means have they talked to a lender. In fact, 99% of all offers will require a letter from a bank before they will consider accepting. Before we can look at homes again we need to make sure you have talked to a lender. Does that sound reasonable?
Nick McLean
Nick McLean Real Estate Group
PS. How do you feel about 2022? Do you want it to be the best year ever in real estate for you? Reach out and let’s talk business.-