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 buyerâ€™s reluctance to provide one may stem from some lenders inserting the amount the client is approved for, thatâ€™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 donâ€™t agree to the showing request. What is the risk to you? Turn away a qualified prospect that doesnâ€™t want to follow your rulesâ€¦. Comes back to the question of how bad do you want to sell your house?
Some of the Realtors I work with wonâ€™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 â€œweasel clausesâ€ like, subject to review of the borrowerâ€™s income documents, that indicates the Loan Officer hasnâ€™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. Donâ€™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 doesnâ€™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, â€œwhat recourse do I haveâ€ 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 donâ€™t blame the agent if you havenâ€™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, donâ€™t blame them, work with them. Good luck,
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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.