Requested a 90% letter for a showing and got........?

Question

I am FSBO, offering 4% to a selling agent. Since I got sooooooooooooooooooo sick of showing my home to lairs, cheats and window shoppers, I started requesting that a 90% letter, prequalified verification be sent prior to showing my home. Realtors do it all the time before they take someone out for days to show homes.

Anyhow, one lady in particular forwarded me a copy of an email she get from Lending Tree through Amerisave. It states

"Dear Mrs. Smith,
We still have not heard from you regarding your application to Lending Tree. Your conditional approval with Amerisave is valid for 60 days from the date of initial inquiry, and it has been 45 days. Please take the time now to contact me or one of my team members to proceed with your loan request. We are here to help."

Should this be considered the same as a 90% letter, or is this just some cheap internet pre-approval crap they rubber stamp everyone with to get you hooked in? I only want qualified buyers here. Thanks!

Answer 1

I don't know where this term "90% letter" came from. I've been in this industry for 10 years, mortgages and real estate sales, and never heard it before.

But to mandate a preapproval letter before showing your home is too much. If I haven't seen your home yet, why on earth would I want to give you any information regarding my financial status?

The letter you got means she applied online 45 days ago and never called them or sent them any documentation. It's pretty much meaningless.

And why you chose to save 1% by dealing with all this hassle, I'll never understand. It's not hard to find a realtor for 5-6% right now.

I highly recommend you find one and list it with them. Without trying to sound insulting, you seem pretty snooty, yet barely informed. Not a good combination, and your attitude likely reflects to your prospective buyers. As I read your question again, I can't help thinking that you'd be a nightmare to try to negotiate with. Not a good nightmare-tough negotiator type. I mean too smart for his own good but not informed enough to know a good deal if it smacked him across the face type.

Good luck.

Answer 2

That letter you've got ain't worth the paper it's printed on! Unlike one of the others who answered your letter, I see nothing wrong with asking for a pre-approval letter (unless they've got cash!). With gas at 3 bucks a gallon, I won't drive someone around and show them houses unless they show me they can afford to buy and are serious about buying.

Like the other writer, I don't see why you would want to be bothered with all the hassle when for 1 or 2 more percent you can get a realtor to do all the work for you.

Again, unlike the other realtor, if you find someone willing to do the job for only 5%, then you'll be getting what you pay for. I won't take a listing for under 7%. By making the commission a percent higher, you're offering an incentive and a bonus to the selling realtor to bring you a qualified buyer and show your home.

The difference between a 5 and 7% listing is only $2000 on a $100,000 home. You'll spend more then that in time, interest paid on your current mortgage, insurance, property taxes and utilities by the time you realize it's difficult to sell the home on your own. Only 20% of FSBO's successfully sell their own home AND a realtor, on the average will net you 24% more on the sale of your home. That more then makes up for the 2% you pay in commission.

Good Luck!

Answer 3

No, realtors 'don't do it all the time before they take someone out for days to show homes.' Where you got that information I will never know.

We DO qualify buyers property to show them homes, but I have NEVER requested a letter of approval verification prior to showing.

If you expect someone to be approved for a mortgage PRIOR to viewing your home, be prepared to sit on it for a decade or so.

As far as a 'pre-approval verification' goes, pre approval letters are NOT verified by lenders. They go on whatever information the buyer verbally provides to them. If you think they are lying to you, they can just as easily lie to a lender and get a pre-approval letter.

Answer 4

I understand your frustration. However, being practical, you need to have someone like your house and want it.

Some, who will be qualified to buy it, will not have prepared the letter you ask for.

So it sounds like you risk throwing the baby out with the bathwater by requiring this first.

If you have shown your house to many people with no real buyers, the question that is on my mind, is price. If no one has bought it after many showings....probably no one will buy it after many more at the current price, with or without financing letters.

Examine the price, and ask for the letter on the second showing.

John Herman