How amazing it must be if all potential buyers who were gushing over your home during showings were just as enthusiastic about putting in a competitive offer. If that’s the case, selling your property would be a breeze. But that’s far from reality, whatever housing market you are in.
This is why it’s important to distinguish between house hunters who are just shopping around and those who are serious about buying your property. After all, only a few of them are willing to take the plunge and commit to a major decision such as a home purchase.
Not sure how to tell if a buyer is serious about sealing the deal? Here are three crucial signs that indicate you may be dealing with somebody who may be indecisive, disinterested, or even deceitful. Keep each in mind to avoid wasting your time and resources, and to not get your hopes up whenever a buyer’s commenting how they would love to live in the house.
1. The buyer came without a real estate agent.
The first indication that a buyer probably isn’t serious about shopping for a home? It’s when they came to the showing by themselves. A serious buyer who is ready to buy a house should have a real estate agent by their side. Since it’s the seller who typically pays the buyer’s agent and it costs the buyer nothing, knowing that they enlisted free professional help is enough to show that they’re motivated to start putting papers in motion.
The real estate process is complicated and demanding, and it requires real work from experts. Their knowledge of the housing market and their insights about the listing greatly contribute to a fast and successful transaction. Unless they are agents themselves, very few buyers are capable of negotiating and dealing with all the legalities and paperwork. Hence, a buyer who comes for a viewing without an agent is probably not serious and just window shopping or getting a feel for the market.
2. They have no pre-approval from a lender.
Despite telling you how much they would love living in your home, if the buyer fails to include a pre-approval letter when they submit their offer, it’s an indication that they probably aren’t serious about purchasing your property. A pre-approval letter is a letter stating that the buyer has been pre-approved for a mortgage and will be granted a loan to purchase the home. Without one, they may not even be able to afford the home.
Having their pre-approval papers ready is a surefire sign that a home buyer is aware of their budget and has been checking listings they know they can afford. They’ve already done their research to increase their likelihood of getting the home they want, especially since a pre-approval increases the likelihood that the seller’s lender will approve their mortgage.
3. The buyer gave an unreasonably “low” lowball offer.
Everyone wants to get the best deal, especially if it’s for an investment as huge as a home. But if a buyer submits a crazy low offer, it’s a sure sign that they don’t want the property. Serious buyers in today’s competitive real estate market will make sure to put in a legitimate offer —one that is at least close to the asking price and shows that they genuinely want to purchase the home. As a seller, it’s better not to entertain buyers with ridiculously low offers since they are probably just out there testing the waters and likely making offers to many other sellers, which means wasting time since they will not likely move forward with your property.