All Hat No Cattle
There is a funny saying, which comes from Texas that is “all hat and no cattle.” It refers to people who pretend to be big time ranchers, but really do not own much of anything.
When selling a home the biggest time wasters are the “looky-loos.” Looky-loos are people who pretend to be interested in a property, but really have no intent on buying. They find it fun to look at other people’s properties as a kind of “window-shopping,” which they might do in a mall.
Additionally, there are some that visit homes that are for sale to “case” them and then later send a criminal affiliate to rob them. It is easy to think of a scenario that could cause this problem.
For example, a real estate agent enters a home using the master lock key to open a metal box hanging from the doorknob. Inside the metal box are the keys to the home. Criminals can get one of these keys.
The realtor enters the home with the potential buyers close behind them. The agent walks right to the home alarm system, turning the alarm off by entering the pass code. Clever criminals easily see and remember these pass code numbers.
The “casers” set up an ironclad alibi for the later time that a different person(s) robs the house. Even if questioned by police the “casers” can deny any knowledge of the robbery.
How to Avoid These Problems
Real estate agents and the real estate brokers they work with, have an obligation to conduct background checks on potential buyers. Some think this is a rude way to start a new relationship with a potential buyer. Nevertheless, successful realtors not only conduct background checks of the potential buyers, they also help the buyers become pre-qualified and/or pre-approved.
Pre-Qualification and Pre-Approval
Serious buyers who work with great realtors know that being pre-qualified buyers and pre-approved buyers makes them have a stronger negotiation position in the transaction.
There is a difference between pre-qualification and pre-approval. Pre-qualification means a lender has reviewed the information on a basic application, does not verify all of it, but gives an opinion of the loan that the buyer may qualify for, once they select a property.
Pre-approval is a lending commitment for a certain loan for a certain period. That is very strong and those are very serious buyers. They already submitted financial information to a lender, verification of the information occurred, and they are ready to buy a home.
It is highly unlikely that a “looky-loo or criminal will go through the pre-qualification and/or pre-approval process. In legal terminology, this pre-qualification process means the potential buyers have been “vetted.” They are capable buyers, who are ready and willing to buy a home.
Owners of properties, especially high-end luxury homes, can limit the viewing of their homes to this type of pre-qualified and/or pre-approved buyer. There will be less viewing of the home by potential buyers, but those who do view the home are highly qualified.