When you want to sell your home fast, not every buyer will do. If you accept an offer, for instance, from someone who has yet to be approved for a loan — your offer is more likely to fall through during escrow. You can protect yourself and streamline the process by choosing to work with a qualified buyer.
What is a qualified buyer? There are a few different measurements. Read on to learn about what makes a qualified buyer and how you can choose the right buyer as a home seller.
The main use of the term “qualified buyer” has to do with being approved by a financial institution. Some buyers think being pre-qualified means they’re ready to make an offer, but it’s not so simple. Getting pre-qualified only requires a cursory review of a person’s finances. What you really want is a buyer who is pre-approved.
When a buyer is pre-approved, that means the bank has run a full background check and verified income, etc. A pre-approved buyer has a letter from their bank promising to lend a certain amount of money. A buyer who has been pre-approved is considered to be a qualified buyer. They have the funding in place and it is less likely to fall through. This person has also gone to more trouble to fulfill paperwork with their bank, which may mean they are a more serious buyer.
Some real estate professionals, including selling agents, may also implement the BANT criteria strategy when finding an ideal buyer. This method was developed by IBM for sales prospects, but it can apply to finding a home buyer. Here is how you look for a qualified buyer using BANT:
B = Budget. Does the buyer have a pre-approval letter that meets your asking price? If not, do they have enough cash to supplement the difference. You don’t want to take an offer from someone who is just hopeful about getting a bank approval. A letter in hand proves their budget is appropriate.
A = Authority. Are you dealing with the person who has the authority to make an offer, or a proxy? While working with the buyer’s agent is necessary, you want to make sure they are not overselling their client’s interest. Likewise, a family member may be checking out the home for someone who lives out of town. They aren’t in the position to make an offer, so they’re not a qualified buyer.
N = Need. What is the buyer’s need? Are they asking lots of questions about the potential for changes in the home? Do they seem intimidated by the price or by the maintenance required of your pool? You want a buyer whose needs will be met by your home.
T = Time Frame. How soon can a buyer close? Qualified buyers are ready to sign on the dotted line and transfer the property without delay.
Selling to an all-cash buyer
If you can’t find a qualified buyer the traditional way, selling to an investor or all-cash buyer may be the way to go. California Family Homebuyers purchases homes in Sacramento in all sorts of conditions. We are qualified buyers who have cash to close fast — we may be able to buy your home in just a few weeks. Even better, you can choose the closing deadline. Call us today to see if we’re the right qualified buyer for you!