News & Media
TALLAHASSEE, Fla. – Even as the home buying market has slowed, over 50% of Americans still browse home sale listings weekly and about 33% look at them daily.
While the interest in becoming homeowners is present, real estate professionals must be able to identify the homeowners who are in financial distress so those potential buyers don’t get over their heads financially and the professional doesn’t waste their resources on sale that is unlikely to close.
Poor credit scores are a major indication that bad financial decisions have been made or that the potential buyer has unhealthy financial habits. Real estate professionals don’t often pull credit reports, but a conversation about client goals and finances is a good place to start in determining their creditworthiness.
Another warning sign of financial distress is when a client wants to look at homes before seeking mortgage preapproval, a sign that they are not serious about buying or they are hiding their true financial situation.
Serious buyers will have money saved for a down payment and closing because it makes it easier for potential buyers to obtain a loan. Without these savings, clients are unlikely to be on solid financial footing.
Finally, a lack of responsiveness from potential clients could be a sign of financial distress or a lack of commitment to buying a home.
Source: Inman (02/01/24) Babich, Luke
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