Over the years I’ve spent too much time showing unqualified buyers properties, which is not uncommon in the industry. There’s nothing worse than taking a buyer on multiple extended home tours, only to have them get denied by a lender after they have found their perfect house. That happened to me once about 14 years ago. I still remember the buyer and the day she finally called her lender: it was a sunny Sunday afternoon in Sausalito. Suddenly she was out of the market and she never did buy anything with me. We had done four or five 3 hour tours, plus I had to spend time setting up the tours, analyzing the micro markets and communicating with the buyer. I probably spent 25 hours working on finding the right house she ultimately could not afford. Like 99% of Realtors I work 100% on commission, so I spent half a work week working for free. After 16 years selling real estate I still I love my job, and I love it even more when I get paid.
I was a Zillow agent for 11 months and sometimes I would meet buyers at properties before I knew if they were pre-approved. I never did well with most Zillow buyers anyway, and in general I wasted a lot of time and money advertising on the website. I wanted to give it a try though because I knew the site attracts a lot of buyers. I don’t generally work with buyers anyway unless there’s a special connection. I do best with family, friends and referrals. It’s really hard to develop a good relationship when most internet buyers don’t recognize the assistance agents are trying to provide. Internet buyers tend to work with several agents, sometimes at the same time. It’s like internet dating. Also like internet dating, there a real risk of virus exposure.
When an agent shows an unqualified buyer a property these days the house has to be prepared by the listing agent and/or the sellers. Windows and doors need to be opened prior. Commonly touched surfaces need to be wiped down before and after the buyers leave including light switches and door handles. It’s a time consuming process and lots of listing agents are asking that only pre-approved buyers preview properties in our current COVID environment.
There are some listing agents who won’t even allow their listing to be shown without a pre-approval letter. One goes so far as to ask for proof of funds, which I think is overly intrusive. The best practice is for the buyer’s agent to make sure their buyers are pre-approved before taking them out. Lenders verify funds before issuing pre-approval letters, so asking for proof of funds is redundant. When the market is working most efficiently only serious pre-approved buyers are looking at homes.
If a buyer is not serious and qualified they should really stick to previewing homes, and dating options online.
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