Most buyers see a listing in the newspaper, or see a listing online, and their first reaction is to call that agent and set up a showing. After the agent takes time out of their day to show the listing, the buyer THEN tries to figure out how to pay for it. This leaves the agent chasing the buyer around and encouraging the buyer to get an approved loan from the bank. Then the agent finds out that the buyer isn’t eligible to borrow the amount needed for that listing. As you can imagine, this can get very annoying, and is a huge waste of time for everyone involved (the agent, the seller, the bank, and even the buyer).
Buyers, I am speaking to you directly. If you know you are looking for a home or property to invest in, make the correct move by visiting a bank first. After visiting the bank and getting pre-approved for a certain amount, ask the bank to give you a Pre-Approval Certificate. This certificate is a tangible note processed by the bank that shows exactly how much you are eligible to borrow from them. Once you have this certificate in your possession, you can show it to the real estate agent you’re working with so that they know they are working with a serious buyer.
To the buyer’s advantage, this pre-approval certificate alone gives them the power to negotiate. Think about it like this. If you have a pre-approval certificate for $290,000, and you see a listing for $300,000, you have the power to put in an offer at $290,000, and the agent would know that you are eligible to pay that amount. This will give the agent the incentive to negotiate with the seller since you can actually prove that you can pay the $290,000. The pre-approval certificate will actually MAKE the real estate agent WANT to negotiate FOR you! Would you look at that! This piece of paper just saved you $10,000!
Also, with an agent knowing that you have taken the time out to get pre-approved, you have essentially just put yourself on their “high priority” list. This means that they will set aside time to show you homes, and do their best to make sure they find you the home of your dreams. Isn’t that what you want from your real estate agent?
So, now that you know you should get pre-approved, you may be wondering how exactly you go about doing that. Luckily, I have written an article about a campaign that RBC Finco is running until November 30th, 2013. You can find that article here.
I hope this article has helped, and if you have any questions you want to ask, or are thinking about buying a home, feel free to contact me–Your Bahamian Realtor.
W: (242) 677-8255
M: (242) 477-0266
Tristan White | Your Bahamian Realtor