All Forum Posts by: Michael L.

In NY state there is a new regulation so everyone get fair treatment. The brokerage must choose if they are going to require a bank pre approval before showing houses to buyers.  If the brokerage does, then every agent under them has to follow the guideline. This means they are required to get a pre approval letter from the bank or a proof of funds statement if you are using cash, from the buyer before showing the house. Also the Listing side may have this requirement so when an agent goes to show the house they will be required to provide the documents before scheduling a showing.  I'm sure this varies from State to State. It's easier for everyone when the buyer has proof and seriously it takes maybe 24-48 hrs to get approved.

Preapproval, proof of funds, or they can pay my hourly billable rate of $350. One of those three items or I dont show the property.

They just want to make sure if the client is qualified and how much can they qualify just to assure the legitimacy of the client, so that they don't waste too much time on it.

@Albert Bui @Carlos Valencia

 I have learned communication is key. I have some clients that tell me they are not qualified and do not have the money for another year or two. That is okay! I encourage them to still have me send them listings or my off-market deals so they can start to get a feel for the market. I think it is important to know the market and start running numbers even if you are some time off from buying. Who knows I cold call every week and I find owner-financing deals sometimes that would allow someone who might not be bank-qualified to get into the game. All that being said, know what you want to do, know how you want to do it, and communicate that clearly. 

While yes, some agents are not the most courteous but the reason that you may have gotten that answer for a couple reasons. The main being, when an agent shows a house, the buyer must be "ready, willing and able".

This protects the agents time from just opening doors for fun to someone that isn't qualified to buy the home. It also protects the sellers time too because if you're asking a seller to vacate their home for a showing with no intention or means of buying it, you are essentially wasting everyone's time involved. Also, if there is no proof of what the buyer is qualified for, how would the agent know what price point to show the buyer? You never want to start showing houses to a buyer at $700k because they "know they will be approved for that much" then all of a sudden, the pre approval letter comes in for $550k, now all of the houses that the agent showed the buyer in the $700k price range blow the doors off what the buyer can actually afford and makes the homes that the buyer can actually afford less appealing because they still have the more expensive homes in their head.

Some are, who knows about this one, blow it off and don't cry about it...nobody can stop you but yourself.

https://www.youtube.com/watch?v=7Oxz060iedY

Good Luck!

Buyers waste the time of agents. I believe that the average buyer looks at 18 houses prior to making an offer. If you can show proof of funds or pre-approval, have a specific criteria that you are looking for in a property, or have a track record/portfolio of other properties to refer to, then the chances that an agent's time will be completely wasted is lower. A high producing agent does not want to give any more free advice or hours...he/she probably spent years working with anyone that would talk to him/her starting out. Any business is the same...I'm 7 years into a traditional business and I only want to work with a specific profile of customer. 6-7 years ago, I'd take on anything because I needed the money so badly. 

The more that you can show that you are ready and serious, the more time and attention that a successful agent will spend time working with you. 

I think they mean pre approved buyers not working only with a bank. I'd ask them to clarify. As an agent we want to make sure A) you can afford the home and B) you aren't wasting our time. There are many people we talk to who want to buy but aren't serious or won't take the steps to get financing squared away. Now as an agent it's good to help buyers walk through the process so everyone is on the same page.