Have Pre-Approval Letter, Will Travel!

The phone rings and the person on the other end asks for information about one of my listings: one of the first questions I ask, after "Are you working with another agent?" is..... "For what amount is your preapproval letter written?"  Some don't miss a beat and quickly answer, detailing the amount and the lender whose signature graces the document.  Most, however, still say "Oh, I'm just looking at properties right now." 

There are a few things I think, but do not actually say, such as "And that's exactly why Realtor.com is so popular:  you can tour thousands of properties without a preapproval.   However, once you are ready to start crossing thresholds you must be ready to present that piece of paper. "  That usually comes out more like, "Today's market demands that you are able to prove to sellers that you are ready, willing and able to buy their home now!" 

In most cases I provide lender contact info and ask the buyer to call me back as soon as they are through the process.  I note their name and number and tell them I will keep them in the loop and let them know of other interest in the property. 

 
In some cases, however, I am met with righteous indignation as the buyer tells me they have had other agents show them properties without asking if they could afford it.  I never hesitate to explain that I am not just any agent, and I assure my sellers I will only bring pre-approved buyers. 

There have been at least two occasions where, after getting the buyer's name, and being met with resistance, days later I opened my email to find a contract with their name written in block letters upon it.  In each case the showing log proves the other agent brought them through, then they went for preapproval, and some time later the contract showed up.  Obviously those buyers were able to find one of those other agents and it worked out for them.

A couple weeks ago a young man was insistent about setting up a showing on a new listing:  when I told him he needed to be preapproved he balked and quoted the refrain about other agents.   I shot back "Actually I request that agents only bring preapproved buyers through my listings" and he said "Well, I'll find someone to take me through who doesn't think they're wasting their time!"  And he hung up. 

I decided to send him a text message and began "As I was trying to explain...." and I highlighted the fact that he could be wasting his own time as well, and worse yet, setting himself up for failure.  I explained how I've had people tell me they can qualify for $150,000 only to learn they can only obtain a mortgage for a $100,000 home.   If they have already been touring homes in the $150,000 price range they will never be happy with homes priced two-thirds of that number. 

About an hour passed and my phone alerted: text message from "non-preapproved buyer" (that was his name at that time) .  "Wow... I never thought of it like that.  I really appreciate you educating me and I will definitely wait until I have a preapproval.  And I shouldn't have hung up on you.  I am sorry." 

He has a preapproval letter and he called me.  His name is now "Ed... buyer."