Who Pre-Approves/ Qualifies a potential buyer and when?

I want to know when prospective buyers come to see your house through an appt only listing, who's responsibility is it to pre-approve or qualify the buyer and at what point in the process does it get done?

For example...if a buyer come with their own agent, does the agent get the approval or does the listing agent look into it?

Is it done before the buyer actually goes out looking or is it done once the buyer makes a serious offer.
I also know that one of them is better (qual vs approval) I am spekaing about the important one...which one is that btw?

Just trying to get some info.

Thanks!

Re: Who Pre-Approves/ Qualifies a potential buyer and when?

i may be wrong here, but i didn't think potential buyers needed to be pre-qualified to look at homes. it's a good idea so they know what they are able to afford, but by no means necessary. i know lots of people who begin looking before they are actually ready to buy. annoying to the sellers i bet though!

Re: Who Pre-Approves/ Qualifies a potential buyer and when?

THe buyer should have a pre approval before they put in the offer. I was told that a seller would not take us seriously without one.....but I did not need one just to look at a house.

Re: Who Pre-Approves/ Qualifies a potential buyer and when?

The agent who is working with the buyer would have to make sure the buyer had a preapproval letter before submitting an offer on that buyer's behalf. Otherwise, the offer isn't worth anything. Once the preapproval is submitted with the offer, it is up to the listing agent whether he or she wants to take it at face value or verify the information in the letter.

If I am the listing agent and I am not familiar with the lender, or the letter looks weird or vague or whatever, I would not hesitate to call the person who signed the preapproval letter to confirm the buyer's financial qualifications. In that case, it's my job to protect the seller. If I am working with a buyer, I will often call the person who issued the preapproval to ask follow up questions, if I think it's warranted.

In most cases, a preapproval is not required to just view a house, but in certain markets or for certain high-end properties, I've seen remarks on the listing that the buyer has to be preapproved before looking at the home. But where I work (mostly south shore and central Nassau), that is not a prerequisite to scheduling a showing.

But that being said, if I am working with a buyer, I will not repeatedly take them out to look at homes if they don't have a preapproval (I might take them out once if they have agreed to get preapproved but just haven't gotten it yet). There's no reason to delay getting one (the buyer isn't locked into using the lender who issues the preapproval). I wouldn't want to waste anyone's time (the buyer's, the seller's, or mine) by showing homes to someone that they may not be in a position to buy.

Re: Who Pre-Approves/ Qualifies a potential buyer and when?

Re: Who Pre-Approves/ Qualifies a potential buyer and when?

Posted by Serendipity

Ok thanks for explaining.
I figured it wasnt usually needed to view homes (or not the norm at least).
Feels like we are getting a lot of people who say afterwards, they dont have the funds to buy...it seems odd to me. Then why are you wastng my time looking...reshowing...etc.

Re: Who Pre-Approves/ Qualifies a potential buyer and when?

Posted by Century 21 Dallow - Christine Braun

Posted by Serendipity

Ok thanks for explaining.
I figured it wasnt usually needed to view homes (or not the norm at least).
Feels like we are getting a lot of people who say afterwards, they dont have the funds to buy...it seems odd to me. Then why are you wastng my time looking...reshowing...etc.

Yes, that is really annoying. I don't know why people do it, and I don't know why a professional real estate agent would allow a buyer to do it. I always want a buyer to get preapproved before we look at houses. If they won't, then I think they are not a serious buyer. Those agents who don't discuss financial qualifications upfront are just essentially unpaid taxi drivers for people who either really have no intention of buying now OR who are completely unrealistic/in denial about what they can buy. Hang in there!