How to DENY a showing because the buyer is not qualified to buy but the buyers agent has no idea.?

Asked by Jogi Juergen Gerner, Los Angeles, CA Thu Feb 2, 2012

We have several listings the buyer and his agent wants to see, but a close contact and very trusted source we have knows for sure that the buyer has not even half of the sum available to purchase and will not be approved for financing. A real tire kicker with a history.

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Annette Law…, Agent, Palm Harbor, FL
Fri Feb 3, 2012
Just imagine how that would change the environment.
"Dear buyer, homes listed by area real estate professionals, at the request of the owner, can not be shown without proof of funds or a pre-approval."

If you KNEW the listing agent was going to require such proof before scheduling, how would that change the world for all of us? After all, is that not part of the service promised to the home owner, the home won't be on the entertainment circuit but shown only to qualified buyers?
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2 votes
Phyllis McAr…, Agent, San mateo, CA
Thu Feb 2, 2012
Show the home.

My dad wears torn sweatshirts and drives an old 75' El Camino, looks like he's ready for a soup kitchen.

He lives in Beverly Hills.

Don't judge, and don't believe your "close contact"
2 votes
John Souerbry, Agent, Fairfield, CA
Fri Feb 3, 2012
In my weekly blogs "Top 10 Luxury Homes for Sale in Napa Valley" and "Top 10 Luxury Homes for Sale in Silicon Valley," I include the note:
"Presentation of written purchase qualifications may be required prior to visiting estate properties."
The word "may" is a subtle way of saying "you better believe they're required, Mr./Mrs. Buyer." These are my two primary markets and I don't want to get a reputation for being the schlub who gives free tours of mansions. Even if the listing agent doesn't require written qualifications prior to a site visit, I do. This is so common in the luxury market that it's easy to say "Mr. Buyer, we need to have a qualification package ready for the listing agent before we schedule a tour." Whether the package is ever transmitted doesn't matter, at least I know I have a buyer qualified for the property I show them. If they can't/won't pre-qual, it's easy to say "I can't schedule a site visit without the pre-qual."
1 vote
Jeanne Feeni…, Agent, Basking Ridge, NJ
Fri Feb 3, 2012
It is not uncommon on high end homes for the seller to ask for his/her agent to see some sort of verification fo funds prior to close. If there is any concern about security - ie, just curiousity seekers or worse yet a concern that someone might be staking out the house, this is a good idea.

So much falls on the buyer's agent side to be sure they've got a qualified buyer in their car - but I'm as guilty as the next guy in not practicing what I preach and spending hours with the unqualified, unmotivated, unfocused... good reminder to do better due diligence so as not to waste our precious spring market weekend time!

Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
1 vote
Jogi Juergen…, Agent, Los Angeles, CA
Thu Feb 2, 2012
Thanks for the help. This happened before:
The clients already looked at 4 homes last WEEKEND. I cancel a nice family meeting for that and staged all of them. The buyers agent made me believe that they are only here on the weekend which was not true. One home was rented but the tenants where not there. Property manager could not help to inform the tenants so I called the owner. Tenants cold not be located. Owner and I arranged to have the security guard be present at the showing. Tenants are good friend of the owners. The "buyers" where informed about it what we are doing. Next day they went back before I could inform the tenants. They knocked on the door asking to see the house again and ask questions how they like the home and what it is wrong with it. I was so embarrassed when the tenant called me to ask what is going on....
@Mack, I understand but I would take the risk.
@Phillys, I know what you mean as I'm the same type as your father, the contact I have I trust a lot, he speaks french as the clients and he is one of our agents.
The best is that the clients work as agents in real estate in Quebec Canada
1 vote
Karen Dean, , Visalia, CA
Thu Feb 2, 2012
You can put notes in the MLS requesting that agents must provide a copy of the buyer's pre-qualification letter from a reputable and local lender before setting an appt for showing, per the seller's instructions. Most reputable Realtors make sure their buyer's are pre-qualified before starting the showing process.
Once you have a copy of the pre-qual letter, contact the lender for as much information as they can provide to insure that you do have a legitimate home buyer. Tire kickers do end up buying just want to make sure they are qualified ahead of time so they don't waste your seller's time or their agents time as well. You will be doing everyone involved a favor.
Good luck!
Karen Dean
Keller Williams Realty
Visalia, CA
1 vote
Anna M Brocco, Agent, Williston Park, NY
Fri Feb 3, 2012
Don't simply rely on heresay, does this trusted source have access to all the potential buyer's already mentioned ask for a mortgage pre-qualification letter....
0 votes
Don Tepper, Agent, Burke, VA
Fri Feb 3, 2012
Best approach probably is to ask for a pre-qual letter.

You can't block the supposed buyer unless so directed by the seller. (Otherwise, you're possibly inserting your judgment into the case. Further, you could open yourself up for charges of discrimination.)

The more confidence you have in your source and his information (and in this case, it appears you have a lot), the tougher you probably should be on asking for information. If your source is right that the buyer isn't qualified, that'll come out.

Good luck.
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Fri Feb 3, 2012
Very simple, the Realtors I work with the most won’t show a prospect a home unless the buyer gives them a pre-qual letter from a lender. No reason a listing agent can’t request the same thing before setting up a showing.
0 votes
Dorene Slavi…, Agent, Torrance, CA
Fri Feb 3, 2012
Dear Jorgi,
This is a tough one, because there is so much heresay involved.

If it were my listing, I would offer the buyer agent a viewing during one of my scheduled Open Houses on the weekend. This usually works out the best for all parties involved. The buyer agent can show the property, the "tire kicker" need not be confronted about their financial situation and you can remain neutral and cordial by allowing the home to be seen.
P.S. I personally never go out with any buyer who is not Pre-approved by at least one lender.
0 votes
allan erps,A…, Agent, Pearl River, NY
Fri Feb 3, 2012
Annette & Jeanne have the approach I would most probably take.
0 votes
Jennifer Bla…, Agent, Basking Ridge, NJ
Fri Feb 3, 2012
I agree - show it! Maybe he's previewing for a rich uncle.....
0 votes
Mack McCoy, Agent, Seattle, WA
Thu Feb 2, 2012
This is not your call, of course.

Your seller can instruct you to tell the agent, "Look, they don't want dis guy in their home."

But if you do it, and there's a cocktail party next year that "dis guy" is hosting and your seller is also invited . . . and it turns out "dis guy" paid more for this house than your listing . . .
0 votes
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