Home Selling in Seattle>Question Details

d, Home Buyer in Tacoma, WA

My house is for sale. What recourse do I have when my broker send people to my house that do not qualify or have been pre-approved. 80% fail

Asked by d, Tacoma, WA Sat Jan 18, 2014

Help the community by answering this question:

Answers

15
What type of recourse would you like to have, D?
2 votes Thank Flag Link Sat Jan 18, 2014
Ticked,
Your recourse would be to request your broker do a more thorough evaluation of the qualifications for the next party who writes an offer. PRE-approved is not final approved. Have the income and asset documentation been reviewed by the loan officer or better yet, an underwriter? If not, kindly suggest that their offer will not be responded to until they have.
Even then there are no guarantees. I had a well qualified buyer get laid off in the middle of a purchase. No one saw that coming at the time. He got a better job later, but not in time for that home.
Comgratulations on having a popular home, the right, well qualified buyer will be along soon.
1 vote Thank Flag Link Sat Jan 18, 2014
Don't accept their offers if they make them
1 vote Thank Flag Link Sat Jan 18, 2014
You want to sell your house so you list it publicly for sale and then your unhappy when the public comes to see it? There's no where that says that when you list your house for sale only serious qualified people will come to look it. Take the approach that all publicity is good. perhaps one of the people that sees it will pass it on by word of mouth to their friend that is also house hunting. Or perhaps the showing broker will put in a good word at his/her office meeting and someone else will show it also.

My point is simply that it is terribly inconvenient to have your house on the market for sale. It's no fun. But, it is what it is. People will come at the worst times. People will write offers that have a pre-qualification letter from a lender that is useless. There are thousands of things that can go wrong with a house listing/sale. Unqualified buyers are just one of the issues. You just have to live with it.
1 vote Thank Flag Link Sat Jan 18, 2014
If I may ask how are they failing? And at what point? Is it after you have contracted with te buyer? 80% is really high, most Brokers typically will have their client preapproved before they even go out looking at homes.

I would definitely talk with you broker give them the benefit of the doubt, these are possibly even people that are just calling from off the street that want to see the home.

Good luck

Kjell Bock
Coldwell Banker Bain
1661 East Olive Way
Seattle Wa 98102
Cell: 425.268.2627
Office: 206.322.8711
HomesOfGreaterSeattle.com
0 votes Thank Flag Link Sun Jan 19, 2014
Kjell Thanks
I use the 80% because if the same people come back 3 times that can't qualify for the property they are looking at (mine) I think someone has failed. I'm not even asking for a prequalify just a pre screening. The property is not listed as two lots but as multiple uses. My broker knew from the start that I will sell them separate. Without digging deep you would not even know there is more than one. The property always comes up as one tax lot.

Kjell Again thanks
Flag Sun Jan 19, 2014
Susan, asking for a pre-approval letter on houses priced below $1M would probably eliminate almost all the showings.

Dan, I agree on the 24 hour showing, but there's another element too. For agents that like to preview a 24 hour notice doubles the problems, and makes it even less likely that the property will be seen.

d, as to the dogs, if they are locked in the back yard, and the buyers can get in through the front, I would think a better solution would be to just restrict only the access to the back yard to some sort of notice. I see dogs in the back yard all the time, and if the gates and doors to the back yard clearly state not to go out there if the dogs are there. But if the dogs are particularly dangerous, maybe that isn't a solution.

As to the offers that came in, I think it's hard to keep contingent offers from coming in, but that could be stated in the agent remarks. As to the other buyers, not clear how your agent listed the property, but if the main house was priced at including both lots, and said both lots had to be sold, seemingly that would solve your problem. If, however, there was a separate listing for the other lot, I could see that would cause confusion.
0 votes Thank Flag Link Sun Jan 19, 2014
Have your agent ask for a pre-approval letter befor showing your property.
0 votes Thank Flag Link Sun Jan 19, 2014
Susan thanks Don't want to go that far just want the property shown and sold.
This question and answer has been great and I thank all you you for jumping in.

Again Thanks Susan
Flag Sun Jan 19, 2014
- I'm not new to the industry. 26 homes two apartment buildings 30/64 units, property management and 9 1031 exchanges.

How can we help you?
0 votes Thank Flag Link Sat Jan 18, 2014
D,
I read your responses and have a couple of suggestions. Your agent can post in either the general marketing remarks which the public sees, "Parcels not to be sold separately". If you have no room in the public remarks they can be added in the "Agent Only" section. This will reduce some of the interest in trying to break them apart.
The other suggestion is to reduce the time necessary to plan for showings. 24 hours will scare off some agents. We often work on short notice with buyers, not that we want to, but when a buyer wants to see something and we have an opening, being able to show on short notice will really help.
If you can either remove your dogs with 1 or 2 hours notice or have them temporarily housed elsewhere so the home can be seen on very short notice, you'll see in increase of activity. Realize, once you have the "right" buyer, you're back to normal.
0 votes Thank Flag Link Sat Jan 18, 2014
Dan thanks I think my frustration comes when the a buyer only wants part of the property they qualify for. I think my agent could stop the second and third showing by letting the agents buyers know that I'm not interest in selling only part of my property. The listing only states multiple uses and is one tax lot.
I took the advice of the agent for the 24 hr notice. As for the dogs they are outside and the inside doors are posted. Any buyer has free access to the entire house just not the backyard. With the proper notice I can lock them inside the garage while I'm at work.

Dan Again thanks for the input Have a Great Day
Flag Sun Jan 19, 2014
How do you know they don't qualify? Are you just talking about the one that wanted to make a contingent offer? Typically a seller wouldn't know whether or not the buyers seeing the house qualified.

I would also mention that the 24 hours notice for showing your house is hurting your chances of selling. You're probably cutting your traffic by more than half with those showing arrangements.
0 votes Thank Flag Link Sat Jan 18, 2014
Kary I posted this to get feed-back and thanks.
I'm not new to the industry. 26 homes two apartment buildings 30/64 units, property management and 9 1031 exchanges. Not looking to get top dollar and I'm not greedy. Just looking to move forward and sell my home. More than anything I'm sensitive to my time wasted. My time is limited and I would rather spend it with my kids. Single dad

Once again Thank You
Flag Sat Jan 18, 2014
Kary thanks for responding.
I am talking about the contingent offer and two others. I happen to be at home when they showed up. The buyers and agent had a couple of questions before I headed out the door. All of the buyers wanted the house and 1.5 acres but not the back acre. I did not ask they told me they could only afford house but not the back acre. That for me is not option. Lot split, lot line adjustment and about 6 months down the road if it could even happen per the city. All this was discussed before the listing with the broker.
About the 24 hr notice. That came from the advice of the broker because of the dogs. I do keep the doge outside and in the garage with some kind of notice. They could enter anytime but would need notice for going outside in the backyard.
I understand the buyers agent is new to the industry 6months and would love to get a sell under his belt but this property looks like more than his buyers could afford per their information.
Again Thanks
Flag Sat Jan 18, 2014
Ticked of in Tocoma,
You have many options.
However, I am curious regarding the 80% failed statement. How many offers have you had? How did they fail? What was the cause, if any, that was provided. "Could not get financing" may have noting to do with the buyer and everything to do with the appraisal, inspection, price or condition.
-
You should feel fortunate that your agent and broker are getting eyeballs on the lising and feet in the house. What that means is you do have choices. No showings means you have few choices.
-
What can you do?
#1. Confirm the reason for failure is not on your side of the equation.
#2. Compel your agent to SEE the qualifications of the buyer before showing the house.
#3. Evaluate those qualifications and if the outcome is know (i.e. another Wells Fargo pre-approval) require approval through a source that you know will finance your home through the methods you indicated.
-
Be very aware, such action will result in a higher quality buyer, but few of them will subject themselves to such scrutiny without overwhelming cause. Is your house that 'SPECIAL?" If not, the result will be no body looking....but the good news is the weak buyers will be gone too.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://FirstLookHomes.us
Palm Harbor University High School distirct
http://annettelawrence.mfr.mlxchange.com/?Page=-1
0 votes Thank Flag Link Sat Jan 18, 2014
I would ask my agent to require the prospect to provide a pre-approval letter from the lender they intend to get the loan from. If they have not started the mortgage application process they should not be looking at your home, simple as that. A buyer’s reluctance to provide one may stem from some lenders inserting the amount the client is approved for, that’s understandable. I put in my letters the borrower is approved per the loan application and a revised letter containing the loan amount will be provided once a purchase contract is submitted.

If your agent refuses to provide you the pre-approval letter, then don’t agree to the showing request. What is the risk to you? Turn away a qualified prospect that doesn’t want to follow your rules…. Comes back to the question of how bad do you want to sell your house?

Some of the Realtors I work with won’t even show a prospect a home unless they provide a pre-approval letter. At times, they will require the prospect to chat with me EVEN if another lender has issued a pre-approval letter. The reason for that is the quality of the approval letter; if it contains a dozen “weasel clauses” like, subject to review of the borrower’s income documents, that indicates the Loan Officer hasn’t done a very good job.

I can see both sides of the street, the more people that look at your house the higher the probability it will sell. On the other side, how good are you as a selling client? Ask yourself why it is a pain in the neck to show your home. It could be your lifestyle needs some modifications, at least temporarily while selling the home. If you are scrambling around trying to get the home ready to show because it is typically a wreck, then pretend it is going to be shown every day. Don’t toss your socks in the middle of the kitchen floor when you get home from work.

If the problem is you have listed the home with a Realtor that doesn’t care if the prospect is credit worthy or not, it could be you have hired the wrong agent. But the way you worded the question, “what recourse do I have” implies you are not approaching the task the way I would want my clients to work with me. It signifies you and your Realtor are not on the same page, both of you are to blame for that problem. I bet this was not a topic PRIOR to listing the home, but now you want to insert it in the rules. Nothing wrong with that, but don’t blame the agent if you haven’t had the discussion. Make an appointment to drop by their office, have a chat, reach an understanding, but listen to them, it is a two way street. No matter how much you think you know about the real estate business, it is nothing like HGTV and if your agent has experience it is valuable so listen as well.

Communicate with your agent, team with them, don’t blame them, work with them. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Sat Jan 18, 2014
Jim thanks for your reply.
Don't thing I can get on the same page. Sometimes people are not a match.
Most of my frustration is not opening my house to brokers and their showing is is having my house shown to the same people three times that don't qualify. I did sit down with my agent prior to listing and talked about some of my concerns. I would not except a contingent offer based on the buyer putting their house on the market and I would not spent the time and money to split my 2.5 acres because the buyer only wanted/qualify for the house but not the extra acreage. If the buyer had their house in escrow and ready to close that would be a different story.
She understood before the listing because I tried this before and it wasn't.
working.
Jim not much to get my house ready for showing I live alone. 2400 sq feet all hardwood floors bla bla I did ask for 24 hr notice to make arrangements with my two dogs. Didn't thing that was too much to ask.

Thanks and keep up all the goo
Flag Sat Jan 18, 2014
You could probably ask your broker to not show your home unless the prospective buyers were in receipt of a pre-qualification letter, or a pre-approval letter.....but realize that the harder it is to show your home the less you'll have of showings. Your call. It is nice to get the word out.
Why aren't the 20% that are qualified buying your home?
0 votes Thank Flag Link Sat Jan 18, 2014
Your agent (the listing agent) is tasked with giving your home the maximum exposure. He or she will market your home to widest possibly audience in order to attract qualified buyers. However, not all buyers are qualified. Some buyers may be pre-approved for a mortgage. Other buyers may be pre-qualified, but not approved. Some buyers may be qualified for a 5% down mortgage. Other buyers may be qualified for a 10% or 20% down mortgage. Some buyers may be in the early stages of looking for a home and have not yet met with lender, so their qualifications are unknown. And, remember this; mortgage guidelines are changing. A buyer who was qualified in the past, may not be qualified in 2014. One final comment; your agent is representing you and the majority of buyers will be represented by their own agent. As a listing agent, I assume that buyer's agents are working with their clients to help them become approved for a loan. However, your listing agent has very little control over the actions of buyer's agents.

Your agent is working hard to attract the widest possible audience to come and see your home. The more people that see your home, the better the odds of a sale to a qualified buyer. Why not have a conversation with your agent about your frustration? Find out if he or she is encountering any special challenges in marketing your home. Your agent can explain the dynamics of the current real estate market, and their strategy for marketing your home. I believe better communication would help in this situation.
0 votes Thank Flag Link Sat Jan 18, 2014
Typically it is other brokers bringing buyers. Your Broker's job is to promote the home and get people through the door. You will always have people just looking around. Once you get an offer, THEN it's time to make sure they are pre-qualified!
0 votes Thank Flag Link Sat Jan 18, 2014
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer