Do you pre-qualify a buyer's agent, before you set up an appointment?

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Real Estate Agent with Berkshire Hathaway HomeServices 01238708
https://staging.activerain.com/droplet/52HZ

Do you pre-qualify a buyer's agent, before you set up an appointment? Or to be clear do you ask pointed questions?

www.endrebarath.com

This post was inspired by a Q & A tread on Active Rain, where an agent was taking a position that I totally disagreed with: The disagreement is about the fact, that I have no problem questioning the buyer’s agent about the qualifications of their buyer prior to providing access to the property.

Just for the record, a listing agent has numerous fiduciary responsibilities to their sellers. Sadly, some agents do not get this and wonder why they are not listing agents.

 Sellers, in the greater Los Angeles want agents to represent them and look out for their interest. I will take a leap of faith and guess, that not only do sellers in the greater Los Angeles want their agents to represent them, but all over the country this is a common tread. There are many listing agent responsibilities, but I will focus only on one in this post.

One of the primary responsibilities a listing agent is to bring Pre-Approved at the minimum Pre-Qualified buyers to their seller’s properties.

So, what do you understand under that requirement?

We as listing agents want a seller to have their home “show room ready”! Why? To give the best impression to the potential buyers, this takes energy and effort. We ask our seller to put their pets in a place that does not interfere with the showing. We ask our sellers to leave during the showing in order the buyer can take their time and peacefully enjoy and observe the home and visualize themselves living in this home. It takes a lot of work and preparation to make a home “showroom ready”, most listing agents get this and many experienced buyer’s agents get this as well and appreciate it.

Another one of the Listing Agent’s responsibilities is to shield the sellers from “lookie-loos”. I always advise my sellers to have a Broker’s Open House and a Sunday Open House in the beginning of the listing period. Why? To get the neighbors and ‘lookie-loos’ out of the way. After that we can show the home only to “Pre-Approve or at the minimum Pre-Qualified buyers”.

This is not discrimination as some agents like to say it is purely elimination of non-qualified buyers.

There are some agents who do not get this concept and fail to comprehend that it takes a lot of effort to prepare a home for a showing. Why would we want to put a seller through the emotional roller coaster ride and the physical preparation of showing their home to unqualified buyers? Just because a buyer’s agent has not done their job of pre-qualifying and pre-approving their buyers does not lessen the burden of responsibility and commitment a listing agent gave to the seller of “bringing qualified buyers”.

www.endrebarath.com

Now to those who have the arrogant approach of saying “you are discriminating because your listings are in the millions” show a lack of understanding on a much deeper level. The principals are the same for inexpensive homes as well as expensive homes. Price and Geography does not mater Listing Agents have the same responsibility to sell the home for the most amount in the shortest amount of time.

I have listings in my inventory from $49,000.00 to all the way to $21,500,000.00 how is that possible?  I apply the same principal to the small transaction as I apply it to the large transaction: I look out for the best interest of the seller when I am their listing agent” I do not bring them unqualified buyers, period!

To those agents who think this is discrimination, I feel sorry for their lack of understanding of what this Fiduciary Responsibility is to the sellers.

Now if you are looking for an agent who will make sure that your interested are protected, please reach out to me directly!

 

If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 (m) or homes@endrebarath.com or visit one of my websites at  http://www.endrebarath.com.  I am a Pet Friendly Realtor and I contribute a portion of my commission to local animal rescue organizations.

 

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Lynn B. Friedman 04/05/2017 01:47 PM
  2. Debbie Reynolds 04/08/2017 01:00 PM
Topic:
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Location:
California Los Angeles County Beverly Hills
Groups:
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The Ninety-ninth Percentile
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Tags:
listing agent responsibilities
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Rainmaker
2,324,644
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Lou Ludwig  seems to me if the buyer is preapproved this should not be a point of contention, Endre

Apr 07, 2017 11:58 PM #95
Ambassador
3,105,868
Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Hi Endre, Excellent post. This is my business practice too. I know enough to ask the right questions like we did in the old days to find out if the buyer is a real buyer. Why waste eveybody's time?

Apr 08, 2017 06:57 AM #96
Rainer
348,511
Anna Hatridge
Goodson Realty - Bonne Terre, MO
Missouri Realtor with Goodson Realty

Yes, they need to show they are a qualified buyer, if they want decorating ideas they can go to the box store or home show.  The same regardless of price point.  

Apr 08, 2017 12:13 PM #97
Rainmaker
611,403
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Endre Barath, Jr. - Congrats on the Feature! You are right. We have an obligation to protect our seller. 

Our MLS requires pre-approval or qualification with a contract and our luxury listings generally require the same for a showing. BUT, we take the word of the buyer agent that they have the proper documentation from their buyer.  

Apr 08, 2017 12:39 PM #98
Ambassador
2,888,205
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

                                Thank you Endre Barath, Jr. 

Apr 08, 2017 05:42 PM #99
Ambassador
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Hi Endre!  First, I want to say that I love that you treat all clients the same - regardless of their price point. I do the same thing and I think that is SO important in our business.

As for pre-qualifying a buyer or their agent, I think I'll pull an Endre Barath - I'll write a post!  ;-)

Apr 08, 2017 08:47 PM #100
Rainmaker
2,443,787
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce - Short Sale

Nothing wrong with eliminating the "Lookie Lous and Lois's" !

Apr 09, 2017 05:42 AM #101
Rainmaker
2,531,542
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

good morning Endre. You have done an excellent job with this and you remind us that is more to listing than throwing a sign on the lawn and ptting a listing into the MLS.

Apr 09, 2017 06:28 AM #102
Rainmaker
2,324,644
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Diana Dahlberg  not the first time we are on the same page:)) thank you, Endre

Ricardo there are a few who do not have as thick of a skin as you and I have:)Endre

Kimo Jarrett  my point exactly respect for the Seller's Time as well as mine:)Endre

Apr 09, 2017 10:12 AM #103
Rainmaker
2,324,644
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Marte Cliff  yes that word really rubbed me in the wrong direction too, needless to say I am glad this post has generated such a spirited response:)Endre

Apr 09, 2017 10:13 AM #104
Rainmaker
537,841
MaryKay Shumway, YourDoorCounty
The Kellstrom Ray Agency, Inc. (Est. 1948) - Sister Bay, WI
Door County Wisconsin's Real Estate Expert

I work with an agent in this area that pre-qualifies so thoroughly she left me with a physician and his family who spent $800,000 with me.  She thought they looked "too young".  A little Googling can go a long way, but I do pre-qualify if I'm going to be an ABR, no different than doing a title search and finding out if someone is underwater on a house before I would think of listing.  Great post.

Apr 09, 2017 10:19 AM #105
Rainmaker
2,324,644
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Libby Beckwith  if gas was $10 a gallon many buyer's agents would take a different position:)Endre

Apr 09, 2017 10:50 AM #106
Rainmaker
2,324,644
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

William Johnson  thank you for the kind words nice to see you stopping in, Endre

Apr 09, 2017 05:51 PM #107
Rainmaker
2,324,644
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Praful Thakkar  thank you for the kind words as well as the inspiration to this post, I understood your point, what set me off was the other comments that were on the tread....as you and I know it is not about discrimination it is about Pre-Approval, I am just as consistent about low price points as on high price point. I do not even show land to agents who can not give some information about their buyers. Endre

Apr 09, 2017 06:07 PM #108
Rainmaker
2,324,644
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Rose Mary Justice  my point exactly, well said, Endre

Apr 09, 2017 06:09 PM #109
Rainmaker
2,324,644
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Julie Larson Realtor® Sarasota FL 941-882-0322  interesting approach and I guess we have different thought processes if it works for you and your sellers are prepared good for you. I like to be able to tell my sellers what we agreed to at the time of the listing still holds,  only approved buyers will see your property and the lookie lose can come on the Open House...Endre

Apr 09, 2017 07:39 PM #110
Rainmaker
2,324,644
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

John Wiley  based on your comment you would not have an issue if I asked a few questions about your buyer before we would agree on a showing time? Endre

Apr 09, 2017 07:43 PM #111
Rainmaker
2,324,644
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Nina Hollander  when I was in Boston, MA it was the same, everything by appointment hence the only time a Lookie Lose got a chance to wonder around with no questions asked was at an Open House, Endre

Apr 09, 2017 07:47 PM #112
Rainmaker
798,653
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Totally agree with you on this one. I'd prefer a pre-approved buyer enter that door.  Otherwise it's a waste of everyone's time!

Apr 11, 2017 08:20 AM #113
Rainmaker
1,375,107
Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Rockledge, FL
... a small office, delivering big service!

I ask the other agent. If they (buyer's agent) are dumb enough to waste their own time they should be in another profession.  I do not request preapproval letters or a proof of fund for a showing though.

Apr 18, 2017 05:43 AM #114
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