Now that it is time to show your home, you will soon need to screen prospective buyers. You do not want to simply accept an offer from the first buyer who meets your price. There are times when buyers will make an offer on a home which they simply can’t afford. The last thing you want to do is waste your time going to contract with a buyer who, after several months, cannot get a mortgage in an amount sufficient to complete the deal. When that happens, you go back to square one showing your home all over again. So what do you do?

First, information is always helpful.  You should not be reluctant or shy about asking important questions.  For example,

• Ask the buyers what they do for a living. The answer may give you a comfort level that they have a solid job, can get a mortgage and complete the purchase.
• Do they have a home to sell? If so, has the contract been signed?
• Ask for 10% down (paid on contract signing), settle for 5%. There are times with qualified buyers who are going for an FHA mortgage when 3% down is acceptable.

Second, ask the buyers for a pre-approval letter from a qualified lender. Be aware that this does not mean that they are approved, just that it is likely that they will be approved. In order to issue such a pre-approval letter lenders will typically run a credit report to insure that, all other things being in order, the buyers will qualify for a firm mortgage commitment.

Third, discuss the proposed buyers with your attorney before accepting that offer.

Fourth, if the buyers are acceptable, give them a verbal acceptance and have them schedule an inspection of your home with a qualified inspector as soon as possible. Be aware that sometimes the results of the inspection require further discussions regarding (a) a possible reduction in price, or (b) repairs to be performed by you prior to closing. Only once you have agreed on these issues can we proceed to contract.

It is the practice of our office to deliver contracts to the buyers’ attorney within 24 hours of your final acceptance of the offer. The reason is simple. Until both buyer and seller sign there is no deal. No one is bound. The buyer can move on and look at other homes. We want you to lock in your deal as soon as possible and so our office will proceed diligently to get that done.