We all know what a definition of assume is don't we!
Well I fell in the trap.
I have been talking to couple for a while now who have been slowly working towards buying a house in Los Angeles, and have been sending them listings slowly in two of the more expensive areas, Brentwood and Beverly Hills.
What they have in mind in those areas is unattainable within their price range, around $1.5M and they have finally come around to opening their search to a neighboring area, Westwood, where they may be able to get the kind of home they want.
Finally, I have moved them towards thinking of making an offer on a house that they saw last week in Westwood. It is not exactly what they want but close enough that they are motivated to see how much they can get it for. The price was just dropped to $1.6M.
My feeling is they need to get used to actually making offers instead of waiting for the perfect home to fall in their lap. It won't.
Well, long story short, being comfortable with these people, and knowing that they have bought and sold property before, I "assumed" that they knew what to do.
Imagine my surprise when I mentioned the pre-approval letter, and they said "do we need a pre-approval letter to make an offer". And, they don't have any lender contacts.
So, now we have to take a huge step backwards. I referred them to a broker who told me he is not sure they are going to qualify in the $1.5M price range! I will know more tomorrow.
So, their buying power is anything less than $1.5M or $1.6M because the type of house they want in the areas they want it, at anything less, does not exist.
Jane Peters, connecting you to the L.A. real estate scene
Buying or selling real estate in Los Angeles can be an overwhelming process. Contact Jane Peters, Los Angeles realtor specializing in absentee owners, out of town buyers, and those who need that extra attention, in order to make the transaction a smooth, trouble-free, and fun experience.
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Jane, don't you just hate that! I always ask a buyer to contact their lender first before we even start the search... otherwise how do you know what price range to look at.
What I tell them is to get the pre-approval so that when they find the house they love they will be ready to make an offer right then and won't have to wait on the loan officer! It seems to work for me and it doesn't look like I'm questioning their ability to purchase.
I've recently been working with some buyers who wanted something they could not afford... it took a lot of patience but they were finally grounded and found a home they were happy with.
Good luck!
Hi Jane, I used to go through the same frustrations....not only are the buyers let down but so are we as agents. Now i always have them get pre approved, especially in todays market. As long as we know up front we can show them numbers, not hopes....good luck
Angie, the silly thing is, I know all this. You let your guard down and then this happens. Hopefully, they will qualify.
Lori, I most certainly won't make this mistake again.
Like you said Jane, we all know it, but all of us can let our guard down. You won't do that again anytime soon :) Hope your Buyers qualify and you close quickly.
Thank you Lee and Carol.
Before I became a Realtor, I had no clue how important it was to be pre-approved or at least pre-qualified...None of the Realtors I worked with for my purchases even seemed to really care, they put in an offer for me without asking if I had the means to by either my condo or my home...
The longer I'm in the business the easier it becomes for me to make sure the people I work with are pre-qualified...In the beginning I was scared I'd make them mad...But now I realize, I'm only helping them and everyone else in the process by making sure they are pre-qualified...
Anyway, I hope it works out for you so they can find a home they will enjoy!
Chanda panda
Thank you, Chanda. I think part of my resistance is getting them pre-approved too early so that they don't have to go through the process again when the approval has expired.
Hi Jane! Uh Oh!! Well, I have been driving folks around who say they have cash -- and will pay cash -and they have bought and sold several homes, I hope they're not blowing smoke. But in the absence of a pre-qual letter, sometimes we do let our guard down a bit, I'm not inclined to ask to see their bank statements.
I have a funny story ( not really) but I showed a couple the same home twice last year, they decided not to buy. Several months after, the lady called all upset because the town Realtor would not even show them a home until they got the pre-qual ... and they really wanted to see his listing up here. I agreed to show it to them, and when we were at the house explained why the pre-qual letter was important, and that they would need to get one before they made an offer on any home.
....and I haven't heard from them since. :-)
Mary, that is sad. But a good lesson. I am with you. I would not want to ask for their bank statement, but I think you need to. You could tell them that any offer they make is going to have to be accompanied by that and it would be good to have it ready.
Ah yes ! But thats a lesson you typically learn once ! ... then never forget again :o) One of my very first followup questions is to ask if they have a preapproval already and have discussed their financial position with a mortgage broker. Hope those buyers find a way to buy with you ! Nice price range :o)
... oh and cute little ass donkey you got there ;o)
You like the price, Sheldon. We have plenty more. Normally I would ask for the pre approval but these guys have been kicking tires so long that I was not expecting them to settle on a house for a while.
Sorry to hear that, Jane...but I also understand giving them a bit of slack because they have bought and sold property before, plus people usually have their stuff together when they are looking in the $1.5M price range. Unfortunately, in today's times, getting qualified for a >$1M loan is not very likely for most people!
Leilani