So you’ve checked out homes on the Internet. You’ve narrowed down the neighborhood, checked out the schools & shopping, estimated the commute time, decided on the style of home, and you know how much you want to spend. You have avoided calling a Realtor as long as you can. Now you have to make the call.
The first thing the Realtor says is “…Show Me The Money…” Well, not in so many words, but that’s what you take away from the conversation. The Realtor wants you to have a lender letter, wants to know your credit score. You’re slightly offended. Don’t judge me you say to yourself. I’m not ready to speak with a lender and have them go thru all my financials. I just want to look at a few homes to see if there is anything out there I want to buy before everybody and their uncle gets into my business.
The Realtor on the other side of the conversation is thinking “….I’m not a tour guide, bro. You want to look, go to an open house… (LOL)” All kidding aside, there are reasons for the Realtor’s questions. Most potential buyers are unaware of the regulations and guidelines that Realtors must follow. I will try to shed some light on why we ask the things we do.
- Are you working with a Realtor? Ok, we’re not just being nosey or trying to convert you. We HAVE to ask, by law. We must know if you have an agency agreement with another Realtor before we can disclose detailed information about a specific property.
- Have you spoken with a lender? We know you know how much you want to spend, but do you really know if you are qualified to borrow that amount? We do not need to know your entire financial history, just that you are qualified to buy the properties we show you. Lending procedures and guidelines have changed greatly over the past year or so. People that qualified for a loan in the past may no longer qualify under today’s lender scrutiny. In addition, sellers do not want ‘lookie loos’ perusing thru their homes. They want to know that when a Realtor brings a potential buyer to see their home, they actually have the ability to buy it.
- Will you send me a copy of your lender letter? Ok, you just told me you spoke with a lender. The lender may have even told you that you qualified for the $$$. Now the lender needs to back that up in writing. Why? Just like in any industry, you got your good and your bad. There are some lenders out there that would say almost anything to get your business. If they are willing to put together a pre-approval letter, then you have a better chance of your loan actually going through. Some Realtors will ask you to be pre-approved through a specific lender or bank. That’s ok, no we do not receive kick-backs. We ask this because we have worked with that lender/back in the past and know their work ethic and know they can get the job done. Keep in mind, when you find the right home and put together an offer to purchase, you will need to supply a lender letter with the offer or you will not be consider a valid buyer.
- Will you sign a Buyer/Broker Agreement? This is no longer just an option. By law, Realtors are required to have a signed BBA prior to showing a potential buyer ANY property. This agreement states that should you decide to buy any of the homes this Realtor shows you or provides information to you that leads to you buy this home, this Realtor will be your representation. This agreement allows that Realtor to be paid at the close of the transaction.
Tiffany Jacobs
Advantage+ Real Estate
Team
RE/MAX Olympic
9214 Center Street #100, Manassas, VA, 20110
Direct: 571.209.8133
