Prequalifying Buyers

4 Replies

Yes, I find it to be a waste of time otherwise. In addition i want to know what they can afford before i show them and  what are their must haves. It allows me to evaluate their expectations and whether they will be a good fit with me.  

The majority of the time, yes. There are very few exceptions and as Johnathan mentioned, I want to know what they can afford as well as if they have realistic expectations. Before I ask what they're looking for in a house, I ask them if they've chosen a lender.

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Yes you absolutely should.

Feel them out on the phone or email 1st. Make sure they have the ability to close deals and that their price expectations are accurate to what the market has to offer.

You definitely need to prequal them to some degree before committing any real time, but be careful not to make the prequal the focus of your conversation.  Needing to understand their expectations vs purchasing power is a given, but that information should be only a footnote to the conversation.  If all an agent cares about is what the (potential) client can do for them, they will pick it up in short order.  I can't tell you how many clients I have picked up because they "talked to other agents and all they cared about was how much I could afford and if I was prequalified".  Consider that even if they need to do some work before they actually qualify to buy a house, they still have friends and family they can refer you to in the meantime.  Care about your clients needs first, and the money will follow.