The Importance of Buyer Prequalification

Having offers come in for your property can be a wonderful thing. Especially if said offers are near, at or even above ask! But all parties making offers are not necessarily equal. A great offering price is important, but the qualifications of the buyer themselves is equally important.

Why?

No matter how good that offer may be, if the buyer is on shaky ground, you may not make it to closing and will lose valuable time. For example, if you select a buyer who is later turned down by the board because they are not financially qualified, you will not only have lost your sale. You will also have lost all the time that your property wasn’t on the market because it was listed as “in contract.”

So what do you need to know about buyers?

  • You should verify that the person has the financial means they claim to have, especially if they are offering to do a large down payment or all cash purchase.
  • You should verify that the person can actually get a mortgage.
  • If you’re dealing with a co-op, you should verify whether or not the buyer is likely to meet the co-op board’s financial requirements.

Fortunately, there’s no need to do this by yourself. Your agent can help you screen all interested parties by working with the prospective buyers and their agents to obtain all the information necessary to figure out the items above.

Have more questions about selling your home? Feel free to contact me. I’m always happy to help!