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Qualifying Buyers

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wendydk

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So, this might be a Bob Feuhr question...but here goes.
We have had a flood of inquiries, website hits and realtor contacts about the B&B since it has gone on the market, and an average of a showing a month. Nearly every one was disqualified...mostly in terms of money. With this Inn, cash for asking price or private financing would be necessary. Within minutes of meeting people and showing them around, I could see it was never gonna happen.
An Inn broker recommended that I concentrate my efforts on selling as a residence as the chances of it selling as a B&B are slim and none. SO, if I keep both listings, how to qualify a B&B buyer....ask them about their finances? Have them fill out a form? I'm at a loss. I don't want to clean my arse off and sweat it for every single showing, just to be disappointed each time by some shmoe just out sightseeing.
 

Samster

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Your realtor should be pre-qualifying buyers. That's their job. Is your price the same for a residence as it is for a B&B? Or will you lower the price if it's sold as a private home? Since your place is small, you may not have enough income from the business for someone to be interested in it as a B&B. Is that why the Inn Broker recommended that you focus on selling it as a residence? All things to think about..... :)
 

Innkeeper To Go

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Your realtor should be pre-qualifying buyers. That's their job. Is your price the same for a residence as it is for a B&B? Or will you lower the price if it's sold as a private home? Since your place is small, you may not have enough income from the business for someone to be interested in it as a B&B. Is that why the Inn Broker recommended that you focus on selling it as a residence? All things to think about..... :).
Samster said:
Your realtor should be pre-qualifying buyers. That's their job.
Ditto.
If you've got a realtor bringing in unqualified buyers, it's time to get a new realtor. If they're not even doing that, what else are they not doing?
 

EmptyNest

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Really..... your property price is so low.,..in comparison to most b & b's on the market..... that if they can qualify any way to make payments that should be all that is necessary.
If someone wants to run it as a B & B, and they can't afford what you are asking..then that is bad news. Again people who cannot afford that price should not even be looking. What do they think you will do...give it to them???? GHeez..what nerve.
Your realtor sounds like they are grasping for straws as well and showing it to just anyone who is interested. They probably just want to see your house and that is it.
 

Morticia

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No one should be showing up to view your place without the broker verifying they can afford to even look. And this applies to selling as a home or a business. I'd dump the broker if that's not what they're doing.
Now, if this is FSBO then you need to have a good, long chat with the potential buyer to explain that this is a working business and to protect everyone's interests, including your guests, you will need to ask for their financials before showing the property. If that means they get pre qualified at a bank and show you that, so be it. Not that anyone is going to want to tip their hand as to what they can pay, but it is a business and you need to protect your business.
We were told by a few brokers that we could not afford the properties we wanted to see. That was because those properties were not making enough to cover the mortgage we would have needed. Good info to have in advance. We were insulted, but ultimately glad we didn't buy there.
 

seashanty

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my gut reaction is that the realtor is showing the property to anyone who expresses interest so that you feel that your realtor is doing his/her job.
but if they are not qualifying financially you are not being fully served by the realtor. he/she has the tools at hand to do this for you and is part of earning that commission. definitely time to have the pre-qualifying talk with your realtor for exactly the reasons you give.
you are the boss of this sale. a showing with no possibility of a sale is not a showing.
i have seen this statement many times. 'BROKERS, PLEASE PREQUALIFY YOUR BUYERS BEFORE SCHEDULING A SHOWING.'
 

Morticia

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my gut reaction is that the realtor is showing the property to anyone who expresses interest so that you feel that your realtor is doing his/her job.
but if they are not qualifying financially you are not being fully served by the realtor. he/she has the tools at hand to do this for you and is part of earning that commission. definitely time to have the pre-qualifying talk with your realtor for exactly the reasons you give.
you are the boss of this sale. a showing with no possibility of a sale is not a showing.
i have seen this statement many times. 'BROKERS, PLEASE PREQUALIFY YOUR BUYERS BEFORE SCHEDULING A SHOWING.'.
I know we saw a few places because they were 'in the area' where we were looking and not because they were good matches for us. I'm sure the brokers wanted it to look like they were bringing in qualified buyers. We were qualified but never would have picked those places on our own.
 

JBloggs

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People! Prequalifying should be a prereq for a 5 million dollar B&B to keep the lookie lous out. I have never ever been asked to prequal to see a house that is listed, NOR A B&B! To see the FINANCIALS of the business, SURE THING, not to see it.
 

Morticia

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People! Prequalifying should be a prereq for a 5 million dollar B&B to keep the lookie lous out. I have never ever been asked to prequal to see a house that is listed, NOR A B&B! To see the FINANCIALS of the business, SURE THING, not to see it..
We were prequal'd to look at $100k properties when we were buying a house. We were both on our 3rd or 4th house and 40 years old! No one wants to clean and make everything pretty for people who just want to traipse thru to see what the decorating is like!
Altho, right now a seller might take anyone just to get some buyers in the door.
But you know how this is...'We're not really ready to buy for another year, but we want to see what's on the market now.' Yeah, so you or I bust our butts getting the guest rooms cleaned, kitchen spotless, our OWN qtrs neat & tidy for what? Someone who isn't even thinking about buying?
Me? I want prequal'd buyers only. Even if I were selling as a private residence, I want to know these people can afford to buy the place and are not just wishful thinking.
I don't want to get all excited that someone is coming to look only to find out they couldn't afford the place at half the price, they just wanted to look around and see what it would be like. We were vetted before being shown around and that's what I expect down the road.
 

Don Draper

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People! Prequalifying should be a prereq for a 5 million dollar B&B to keep the lookie lous out. I have never ever been asked to prequal to see a house that is listed, NOR A B&B! To see the FINANCIALS of the business, SURE THING, not to see it..
We were prequal'd to look at $100k properties when we were buying a house. We were both on our 3rd or 4th house and 40 years old! No one wants to clean and make everything pretty for people who just want to traipse thru to see what the decorating is like!
Altho, right now a seller might take anyone just to get some buyers in the door.
But you know how this is...'We're not really ready to buy for another year, but we want to see what's on the market now.' Yeah, so you or I bust our butts getting the guest rooms cleaned, kitchen spotless, our OWN qtrs neat & tidy for what? Someone who isn't even thinking about buying?
Me? I want prequal'd buyers only. Even if I were selling as a private residence, I want to know these people can afford to buy the place and are not just wishful thinking.
I don't want to get all excited that someone is coming to look only to find out they couldn't afford the place at half the price, they just wanted to look around and see what it would be like. We were vetted before being shown around and that's what I expect down the road.
.
I would agree with this. When we were purchasing here we met with the innkeepers and toured the guest facilities first. We didn't get financials or to see the owners' quarters until we were ready to make an offer. We thought that was more than fair.
 

seashanty

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People! Prequalifying should be a prereq for a 5 million dollar B&B to keep the lookie lous out. I have never ever been asked to prequal to see a house that is listed, NOR A B&B! To see the FINANCIALS of the business, SURE THING, not to see it..
Joey Bloggs said:
People! Prequalifying should be a prereq for a 5 million dollar B&B to keep the lookie lous out. I have never ever been asked to prequal to see a house that is listed, NOR A B&B! To see the FINANCIALS of the business, SURE THING, not to see it.
what does the price have to do with it? there are people who can't qualify ... for any amount. they are just browsing, dreaming.
here is some FSBO info. even though it is for sale by owner, i thought it was relevant to this conversation.
'Finding qualified ... buyers is not as simple as it may seem, but with a few steps potential you can begin to distinguish the difference between buyers and browsers.
Pre-qualified is an informal process where a potential buyer obtains basic information about how much they can afford without actually applying for a loan. The lender will ask a few questions about income, current debt obligations and credit but the information hasn't been verified.
Pre-approved buyers have actually completed an application and know what they are qualified to borrow. It still doesn't guarantee an FSBO buyer will qualify to buy the house; rates, credit or employment can change quickly especially over a period of several months while searching for a home. Pre-approval is an indication of a serious buyer but there are no guarantees.'
and this is very interesting:
FSBO Browser: Get to know this type well because you will spend the majority of your time dealing with browsers - not real buyers. Some browsers are bored and enjoy spending their time "window shopping" for homes with no real intention of purchasing. Others are scoping out the amenities and price in order to compare with other listings. Of course, there are the curious neighbors from down the road who just want to peek. Browsers come in all ages, shapes and sizes but they have one thing in common...they take up a lot of your precious time.
FSBO Bargain Hunter: The bargain hunter is on the prowl for desperate sellers. They will buy at the right price but be prepared for extremely low offers that border on insulting. Don't take it personally because most bargain hunters are simply playing a numbers game.
FSBO Brats: These potential buyers enter your clean and tidy home like a swarm of locust destroying everything in their path. They track muddy shoe prints down the recently cleaned carpet, touch everything in sight and allow the children to run loose like they already own the house. Brace yourself.
FSBO Beware: These aren't buyers at all but rather predators posing as potential FSBO buyers. They use the open house or tour to take stock of the home, find out your schedule and then later rob you blind. The ability to retain confidentiality and discretion of your private schedule is a tremendous privacy benefit of using a traditional real estate sales agent to sell your home. If you decide to go it alone then privacy and security are paramount concerns.
FSBO Burdens: Every FSBO seller should have a strong nerves before showing their home because it won't take long before you meet a sad story. These people may or may not have a real need but the end result is the same - a plea for help. It can be tempting to lower your price, take a small deposit or otherwise fall victim to their plight so establish your criteria in advance. It's for your protection as well as theirs.
FSBO Buyers: These are actual qualified buyers who are seriously contemplating a home purchase'
http://www.homesandland.com
 

Morticia

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People! Prequalifying should be a prereq for a 5 million dollar B&B to keep the lookie lous out. I have never ever been asked to prequal to see a house that is listed, NOR A B&B! To see the FINANCIALS of the business, SURE THING, not to see it..
Joey Bloggs said:
People! Prequalifying should be a prereq for a 5 million dollar B&B to keep the lookie lous out. I have never ever been asked to prequal to see a house that is listed, NOR A B&B! To see the FINANCIALS of the business, SURE THING, not to see it.
what does the price have to do with it? there are people who can't qualify ... for any amount. they are just browsing, dreaming.
here is some FSBO info. even though it is for sale by owner, i thought it was relevant to this conversation.
'Finding qualified ... buyers is not as simple as it may seem, but with a few steps potential you can begin to distinguish the difference between buyers and browsers.
Pre-qualified is an informal process where a potential buyer obtains basic information about how much they can afford without actually applying for a loan. The lender will ask a few questions about income, current debt obligations and credit but the information hasn't been verified.
Pre-approved buyers have actually completed an application and know what they are qualified to borrow. It still doesn't guarantee an FSBO buyer will qualify to buy the house; rates, credit or employment can change quickly especially over a period of several months while searching for a home. Pre-approval is an indication of a serious buyer but there are no guarantees.'
and this is very interesting:
FSBO Browser: Get to know this type well because you will spend the majority of your time dealing with browsers - not real buyers. Some browsers are bored and enjoy spending their time "window shopping" for homes with no real intention of purchasing. Others are scoping out the amenities and price in order to compare with other listings. Of course, there are the curious neighbors from down the road who just want to peek. Browsers come in all ages, shapes and sizes but they have one thing in common...they take up a lot of your precious time.
FSBO Bargain Hunter: The bargain hunter is on the prowl for desperate sellers. They will buy at the right price but be prepared for extremely low offers that border on insulting. Don't take it personally because most bargain hunters are simply playing a numbers game.
FSBO Brats: These potential buyers enter your clean and tidy home like a swarm of locust destroying everything in their path. They track muddy shoe prints down the recently cleaned carpet, touch everything in sight and allow the children to run loose like they already own the house. Brace yourself.
FSBO Beware: These aren't buyers at all but rather predators posing as potential FSBO buyers. They use the open house or tour to take stock of the home, find out your schedule and then later rob you blind. The ability to retain confidentiality and discretion of your private schedule is a tremendous privacy benefit of using a traditional real estate sales agent to sell your home. If you decide to go it alone then privacy and security are paramount concerns.
FSBO Burdens: Every FSBO seller should have a strong nerves before showing their home because it won't take long before you meet a sad story. These people may or may not have a real need but the end result is the same - a plea for help. It can be tempting to lower your price, take a small deposit or otherwise fall victim to their plight so establish your criteria in advance. It's for your protection as well as theirs.
FSBO Buyers: These are actual qualified buyers who are seriously contemplating a home purchase'
http://www.homesandland.com
.
Amazing how quickly that list relates to callers looking for rooms!
 

EmptyNest

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People! Prequalifying should be a prereq for a 5 million dollar B&B to keep the lookie lous out. I have never ever been asked to prequal to see a house that is listed, NOR A B&B! To see the FINANCIALS of the business, SURE THING, not to see it..
Have to agree here...unless the property is in the millions...who has to prequalify to look? We certainly did not...we had cash to pay..but no one knew that until we were ready to tell them. I wouldn't share any business information with someone who is just coming to look. Let them look and go away. If they can't afford it, you will know because you won't get an offer. I really don't think people even think about pre qualifying these days to buy a home...they hear it is a buyer's market..so they think they can buy...yeah...until they try and find a mortgage.
 

JBloggs

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People! Prequalifying should be a prereq for a 5 million dollar B&B to keep the lookie lous out. I have never ever been asked to prequal to see a house that is listed, NOR A B&B! To see the FINANCIALS of the business, SURE THING, not to see it..
Have to agree here...unless the property is in the millions...who has to prequalify to look? We certainly did not...we had cash to pay..but no one knew that until we were ready to tell them. I wouldn't share any business information with someone who is just coming to look. Let them look and go away. If they can't afford it, you will know because you won't get an offer. I really don't think people even think about pre qualifying these days to buy a home...they hear it is a buyer's market..so they think they can buy...yeah...until they try and find a mortgage.
.
catlady said:
Have to agree here...unless the property is in the millions...who has to prequalify to look? We certainly did not...we had cash to pay..but no one knew that until we were ready to tell them. I wouldn't share any business information with someone who is just coming to look. Let them look and go away. If they can't afford it, you will know because you won't get an offer. I really don't think people even think about pre qualifying these days to buy a home...they hear it is a buyer's market..so they think they can buy...yeah...until they try and find a mortgage.
The fact of the matter is if you have your place for sale, you have to be ready and available to have walk throughs on a days notice, it is what it is.
YES dollar amount has everything to do with it. You would not have every tom dick and harry wanting to see a lower priced home just for the fun of it, vs a multi million dollar place (home or B&B) who is unqualified to purchase it.
Having a statement or realtor who knows to show it for "serious buyers" is another thing altogether. I will guarantee a few on this forum have puchased a vehicle they did not orig intend on buying after a 'test drive' that is what this in, you get excited and want it! So show the place...that is what SELLS THE PLACE!!!!! A description on a website doesn't sell it, we all know how much greater it is in person! SHOW IT OFF!
If they are interested then the stats and info can be made available to them. I will never forget one place we had earnest $ on after the owner gave us the blueprints and county information so we could see the flood plain and other important info to make an educated purchase, I will always appreciate that he did that for us UP FRONT and not make us have to work for it all. But he did this after we were serious with him.
 
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