Are your viewers qualified??
You have probably heard agents saying, "We have a database of qualified buyers" in their pitch.
So what?
Why is it important?
What does it mean to 'qualify' a buyer?
You have probably heard agents saying, "We have a database of qualified buyers" in their pitch.
So what?
Why is it important?
What does it mean to 'qualify' a buyer?
Have they had to sit an exam to 'qualify' to be on the mailing list - no!
So what do estate agents mean when they say this, and why should you care?
To qualify a buyer means checking that they are in the financial position they say they are in.
If they say they are cash buyers, to qualify them, your agent would need to see that the cash a) exists, b) belongs to that buyer and c) is in available 'liquid' funds to purchase a property with.
If there is a property to sell, the agent will confirm what stage of the selling process the property is in. Is it on the market, or has there been an offer accepted?
When an offer has been made, there will be conversations with financial advisors to clarify that the buyer is eligible for the mortgage that they need.
And if there is a property that needs to be sold, there will be a chain. This chain will be qualified too, and all buyers/sellers involved will need to clarify how they are funding the purchase and how far along they are in the process.
Ultimately, you need to know if the buyer is actually able to buy.
Do they have the funds, or have they sold their property.
If they have sold their property, does their buyer have the funds, or have they sold a property. And so on.
Having pre-qualified buyers on a mailing list means that the agent has taken the time to ask these questions of the potential buyers when they are registered on their system. This will reduce the chance that you will have viewings from someone that is not able to buy.
Imagine cleaning and preparing for viewing appointments, only to find out that the viewers have no finances and can not get a mortgage. What a waste of time!
Imagine if you accepted an offer from that person before finding out that they had no way of paying?
What a rollercoaster of emotions!
One minute you are celebrating because you have accepted an offer. Making plans for your future move and negotiating offers to buy your dream home.
And then, you are back to square one.
Now imagine if no one uncovered that the buyer has no money.
Perhaps no one finds out until moving day when they have to pay for the property.
You are packed up, and the removals van has set off. You have done the final checks of your property before heading off to hand in the keys to your estate agent.
Only to get a call to say it will not happen because the buyers cannot pay for the property.
By this stage, you will have spent thousands on moving and packing up your entire home. And all for nothing.
The removal van will have to come back, and you will need to unpack all of your items!
This is why it is crucial to have your buyers fully qualified!
There are multiple occasions throughout the sale process that buyers have to prove their finances so it should never get to this extreme. But it is best to know that the agents have a thorough protocol to check these things.
If you have any questions about qualifying buyers get in touch!