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Based on advice seen on this forum I should not let them know the most I can pay and my pre-approval letter does just that.
I've told them I'm approved for the price range I told them. That range should let them look around.
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Another agent when I view listings on their website they know I've looked and they always send me a text "noticed you looked around on our site are there any areas you are looking for?" (they don't ask for anything but my interest in any home on their site)
You seem fixated on the idea that you can't disclose how much you have in your pocket, to anyone. That's unnecessarily limiting.
You need to give your agent all the information they need to work for you. And that includes how high you might be willing to go, as you are discussing your offer. Your agent doesn't need to give all that information to the seller. That's the distinction.
We have only communicated by text messages. There is nothing to offer on. They want my approval letter before they start looking for properties that might not yet be listed.
Do you want them to work for you? Then give them proof you're qualified to buy in the range you want to be shopping in.
That's it. When you actually get to the point where you're making offers, they should be tailored for each offer.
Status:
"I didn't do it, nobody saw me"
(set 13 hours ago)
Location: Ocala, FL
6,484 posts, read 10,357,154 times
Reputation: 7925
I agree with Diana's thoughts completely. No agent wants to waste your or their time showing you homes that you won't be qualified to finance so they want to confirm if you are a serious buyer and to put your money near your mouth.
I am a former realtor. One strategy that I used to use with my clients would be to get their bank, who pre-approved the buyer for a loan, to create a letter confirming that they were qualified for only the exact amount of the offer and if the seller counter-offered to create a new approval letter for the adjusted amount. The key is to not say that client x is qualified for y dollars (client x is qualified for an amount of $175,000 instead of $190,000 that they may be approved for).
I have bought 10 properties and while the letter states how much I am qualified to buy I have never once spent that much. I only buy what’s comfortable and don’t want to stretch my budget. Unless the market supports it a seller won’t counter with a price up to your maximum budget which is what I think you are worried about.
I have had some agents wanting me to spend the maximum I can afford and I tell them I am not doing that and don’t want to look at homes outside of my budget. If they don’t respect that decision I find a different agent.
Right above... and I also usually have the client's trust to talk directly with their lender like you say...
When I am qualifying a new client I will talk to their lender. I don't need a letter, if I can talk to the lender and ask... So... they are wanting me to search for properties up to $X, are they qualified to do that? Yes or no.
When we find a property that is worth less than $X, while we're working on the offer paperwork, one of us calls the lender and gets a letter for the exact amount we're offering.
If we find a property that is more than $X, then we need to call the lender and see if they can qualify for it.
If we find a property that is competitive or stale and we should make a higher or lower offer, it is time for honesty and openness, not secrecy, between client and agent.
There needs to be trust because you won't win if you can't even tell your agent what you are willing and able to spend.
You need to be able to trust your agent. In 3 of my 10 purchases I’ve replaced my agent fairly quickly as it didn’t take long to realize they weren’t a good match. Since they don’t get paid until you buy I’m very concerned about wasting their time. I’m all 3 cases I replaced them because they weren’t listening to me or trying to push me to buy a more expensive property.
My last agent came highly recommended and he was worth every penny because I ended up having difficulties on both selling my house and buying a condo. He worked hard to keep both deals intact. None of the problems were due to anything I did and I stayed flexible and listened to his advice.
I did pay 10k more for my condo than he thought I should because I got in a bidding war but he understood why because it had everything I wanted and I probably wouldn’t find that again. I also plan to never move again being a senior. Within a year prices went up enough that I didn’t overpay. Even if the market crashes it doesn’t matter to me. I have referred him to other people.
We have only communicated by text messages. There is nothing to offer on. They want my approval letter before they start looking for properties that might not yet be listed.
Yes this is normal. We don't want to waste time with off market sales with buyers that can't perform. The agents doesn't want to talk to a potential seller unless they know you are ready to buy.
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