One would think that it would be wise to talk with them. It would not be advisable to start showing properties until they are qualified.

I'm okay with buyers not having a prequal letter, but before I show a property I at least direct them to several lenders and ask that they call before we go out.

Because with the seller, there is only one focus property. With a buyer, one home suddenly becomes three or four and still unqualified. A day later, and where are you? Still driving the unqualified buyer around because you have invested already too much time and are afraid to lose them.

Good morning Tammy. You ask a great question, I suppose it would have something to do with your available time. I know many that would spend the time and many that would not.

well it depends what you mean as for time , i meet them and talk to them

see what they like but i will not show homes without a prequal and with the market that is hot in phoenix it would be a time wasted . just what i think

and remember the listing client you are not going to show them homes

A seller who calls you to their house does not need to be qualified in order to sell.

An hour of my time to meet with a buyer ? Sure.

An hour of my time to show them property without a PQ? not a chance. It is not just an hour...it is more time to research and set appointment.

Besides I will never waste another agents time ( or a sellers time) to set an appointment or call me back to answer questions or even have to meet me at the property for a buyer that I am too chicken shit to get a PQ on, up front.  That buyer may be a total flake with two nickels in their pocket.

Agents that just show without knowing the buyers buying capabilities are UNprofessionals. They waste another agents time no differently than the buyers that have no problem wasting your time.

Eve

I do. 

I will, it is the only way to turn potential buyers into buyers. 

I call it tangible evidence Tammy. Hopefully we've taken the time to confirm that the potential listing is owned by the same person we're talking to. The potential Buyer on the other hand is an unknown entity. After getting to the point where they need financing, a redirect is in order, you should know within minutes if it's necessary. I do this for their sake, not mine! 

I use that time to explain what to expect and be sure they will take the time to get that letter.  Without it you may be showing them a 200K home when they only qualify for a 80K home.  

Great question. I meet with potential buyers, prior to showing them listings. I inform them on the process and what they can expect and what is expected of them. After they are comfortable with the process and they still want to see a home, I will show it to them. However, I always let them know that they cannot submit an offer without a prequal, so they may be disappointed if they see a home of their dreams without being prequalified. 

I absolutely do give a prospective buyer that hour of time and also make sure they are introduced to the right people to get pre-qualified. That up-ront investment in time has garnered me lots of sales in future which I wouldn't otherwise have gotten with little investment of my time in the interim.

Because it could be years before they qualify and a crystal ball of what is required by then...there is no accurate information.. You can put them on a mailing list and keep them informed and let the lender tell them what they need to do with current programs....and be aware of a change of programs or circumstances....ie USDA if credit is rasied etc.

My market is primarily second homes and investment properties on the Outer Banks of NC, so most of my buyers are coming from out of state.  They typically find me on the internet, and once they reach out to me, then the conversation begins.

Early on, I ask them to get prequalified over the phone with a local lender.  I have two reasons for doing this.  First, talking to a lender quickly separates the wheat from the chaff - meaning, if someone is serious. they are ready to get prequalified...if they just want to spend a fun day at the beach touring houses with no intent to buy, they will either make an excuse or outright refuse to call the lender.  I sell houses; I'm not a tour guide, so this tells me who I should be spending my time with.

The second reason I want the buyer to speak to a lender early on is so we can know with certainty what price range to look in.  Frequently, buyers don't know what they can qualify for as a second home, and I need this information before we begin looking...

Buyers require far more time throughout the transaction than sellers do, and I want to get off on the right foot, a) knowing they are serious and b) knowing the right price range to search in before they make a trip down to look at homes.

I have no problem meeting them up front and showing them homes the first time without being prequalled.  Knowing what you know as an agent, would you want to give your prequal to an agent you don't know if you were relocating?

I always discuss the home buying process with the buyers and do not expect them to be prequalified when I talk to them. 

I do a buyer consult with buyers average meet time 45 min. to 1 hour.  Then the lender comes in to speak with them and get their application started.  It works and the buyers are happy!

Hi Tammy -- it depends and I often will spend time explaining the process or showing one or two properties to a buyer who has not yet been officially "approved".   

Because I would not know if that buyer could purchase in a particular price range without a prequal.  I will prequal them emotionally, and let my lender prequal them financially.

I would be fine with sitting with a buyer for an hour and discussing what needs to be done prior to seeing properties....and then discussing what the buyer wants to see after the pre-approval letter is in hand.... it's called a free consultation.....just as we give a free market analysis.... it's always a wise decisions for both buyers and sellers....

I like Hank Dugie response, Basicly, my 'contract' with the listing agent is that I will bring ONLY qualified buyers into the seller home. That IS the listing agents and sellers EXPECTATION. 

Now, of great importance is the SOURCE of that buyer. If from an agents referral network, there is signifcant reason to assume they are qualified.

If this is a lost Zillowite, an agent would be well advised to introduce them to a preferred lender to complete 5 mintues interview. 

My question would be, if the Zillowite buyer is unwilling to invest 5 minutes in a telephone interview, the red flags are telling me the HOUR that is suggest an agent spend should have other pruposes besides business.

This is a business, not a hobby.

True.

Talk with them for an hour - yes. No Prequal, No Buyer Broker Agreement = No showings...

Happy Holidays, Merry Christmas and a very Happy New Year!

Great question! Many great answers. Locally, there is not prequal system in place.

Tammy Adams ~ Realtor Maricopa, AZ - good question. I always meet unqualified buyer before we go and see a single home! And that's for couple of hours....

People think they can afford more than is actual. Hoping and wishing and dreaming.  Not on my clock.

Tammy Adams ~ Realtor Maricopa, AZ Buyers expectations are always higher than what they can really afford. Why spend time showing homes out of their price range? The preapproval letter will tell you and them what they can afford. We have to work smart.