As millennials approach the period where buying a home becomes financially feasible, the competition for homes continues to grow. Interestingly, a Zillow report showed that homes now spend an average of six days in the fast-growing real estate industry. While this appears to bring a smile to the seller’s faces, one worrying trend persists — identifying a serious buyer.
We understand how important your time is, which is why we created a list on how to vet your potential buyer!
Get Them Pre-Qualified
A pre-qualification letter is a document issued by the lender which contains the amount of the loan a lender is willing to provide. While the pre-qual letter does not ascertain that the loan is guaranteed, it is evidence that shows the realtor and/or home seller that the potential homebuyer is a serious client. With that said, pre-qual letters often carry an expiration date that could be within 30-60 days. If it takes a little longer with a buyer to find the perfect home, make sure to request a new pre-qual letter to send to the seller’s agent!
Here at Rosegate, we want to help you vet your buyers! As soon as a new client comes your way, send them your Loan Pro’s information, and we can get you a pre-qual letter in 24-hours or less. We know your time is valuable, so the faster you get a pre-qual letter, the faster your client can begin looking at homes in their price range!
Level of Inquiry
You’re not going to do a tour of a home which requires a large amount of money, and in which you’re going to spend many years, without asking several questions. So, it’s going to be a difficult interview experience, even with a relatively reserved homebuyer. They are likely to raise questions concerning the different features in the house while thoroughly checking the rooms and the closets. Serious clients often ask questions, such as the cost of heating or cooling the home. Serious homebuyers also ask their realtors or agents several other questions to ensure they’re getting a good offer. Failure to show any sense of inquiry or properly check the house could mean that the client isn’t significantly interested in the home or is not a serious client.
An open house is the first time your buyer will step foot in their potential home. At this stage, you will see two different types of buyers: those who are serious and those who just want to take a look. However, you will find serious buyers do an intensive follow-up on the offer by requesting additional details. The desire to follow up on the home separates the serious buyers from those who are not serious about the home.
Weight of Offers
One very reliable way to identify a serious homebuyer is the weight of the offer they’re bringing to the table. Unserious buyers are not in desperate need of a new home, so there are chances they’ll only jump at ridiculous offers or make proposals with a low offer. Or you may have a serious buyer at the top of their price range who ends up losing the home in a bidding war. Make sure you set expectations for your client from the very beginning, especially in a market this hot!
Ultimately, most of us have a gut feeling when our client isn’t serious about homeownership. If you have any hesitations, please remember your partners at Rosegate have your back and will help you navigate every step of the way!
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