Home sellers need to be careful when considering who's coming to look at their property, and thankfully, there are signs that will give buyers away. Most buyers will reveal their true characters in one way or another. Look for these red flags before jumping into serious (and time-consuming) negotiations with the wrong person.
The Buyers Are Just Getting Started
People who are just getting started or show up to an open house without a real estate agent are extremely unlikely to make a serious bid on the home. While some people choose the first home they see and attribute the purchase to fate, it's generally unlikely.
The Buyers Have Unreliable Financing
These are usually the biggest red flags, and the most common reason for a home sale to fall through during escrow. Sellers should ideally be looking for a preapproval letter rather than a prequalification letter. The preapproval is a sign the lender has taken a deep dive into the seller's finances, while a prequalification is just a general assessment of assets. No matter what letter a buyer gives the seller, there's no guarantee of financing until the loan clears.
The Buyers Make Too Many Requests
Sellers should pay close attention to the buyer's behavior:
- Attitude: Are the buyers consistently unimpressed with every part of the home?
- Demands: Do the buyers seem to expect that every repair will be made before moving in?
- Do the buyers point out every flaw to the seller as they go about the home?
There's nothing wrong with buyers taking an interest in the home, but overly demanding people will give themselves every reason to back out of the sale right before closing. There's a general balance owners have to strike, but expecting too much is a serious red flag that the sale will progress poorly.
The Buyers Make Frivolous Offers
Pricing a home can be subjective for sellers, so this one is a little difficult to gauge. Still, if the buyer is putting in an offer that is far below market price, this is not necessarily the seller's cue to begin raising the negotiation process. Sometimes, it's easier to just let the buyer go then to waste time with someone who (very likely) doesn't want the home.
The Buyers Show Little Interest
While buyers who are overly concerned with every aspect of the home should be avoided, so too should those who ask very few questions about the property. If the buyers barely even glance at the different rooms and have no idea what the neighborhood is like, it probably means they're also uninterested in the sale. Whether it's because they don't have the money or because they're just getting started, sellers can use this red flag to avoid putting too much time into the wrong buyers.
It's not just wasted time that Mount Juliet home sellers need to watch out for when it comes to these red flags. Some home buyers will simply wear sellers down over time. It's important to know these flags before getting caught up in the process.