Red Flags Sellers Should Spot in a Buyer

Home sellers are often treated with a certain amount of distrust from the home buyers. This is partially because the buyers have been heavily cautioned by their real estate agent to take what the seller says with a grain of salt. But sellers also have to be careful when they're negotiating with buyers. Here are a few red flags to watch for so sellers are less likely to waste their time.

No Backup

A buyer who just started home shopping and doesn't have a real estate agent yet is likely someone who's just looking around for the moment. It's not to say that they won't unexpectedly fall in love with the home immediately, only that it's unlikely they'll make a serious offer. As a rule, most buyers take about three months, so the first seller's home they see will almost certainly not be the one they close on.

Shaky Finances

Most buyers know enough to bring some sort of letter from their lender to show they have the financial means to purchase the home. However, sellers should understand the lending process before they make final judgments on a buyer's finances. Neither a pre-qualification or pre-approval letter is a guarantee that the buyer will secure a Canadian mortgage. A pre-approval letter is better, because lenders have to do more research into the buyer's assets, but sellers shouldn't consider anything a done deal until they're handing over the keys.

Too Demanding

A buyer who makes dozens of contingency requests may very well be too difficult to please. When it comes time to seal the deal, they'll have dozens of reasons lined up as to why they want to back out of the sale. Buyers who are demanding tend to reveal themselves at the very beginning of the sale giving sellers a heads up as to what they're in store for. Calling it off before it has a chance to progress can save everyone a lot of headaches.

Low-Ball Offers

An exceptionally low-ball offer isn't always a sign that a person is ready to engage in negotiation. More often, it's a sign that they aren't serious about the home. This red flag could be an extension of being too demanding or just a personal experiment to see how far they can get in the deal. Even in a buyer's market though, sellers should expect fair market offers on their property.

A Lack of Interest

There are plenty of reasons why buyers may say they're interested when in fact they have no intention of ever following through with the sale. One way to spot them is to measure how much interest they take in the home and its grounds:

• Do they ask questions about the home?
• Have they done research on the neighborhood?
• Are they rushing to leave the tour?
• Do they seem concerned with the improvements the home needs?

Serious St. Albert home buyers don't necessarily need to ask endless questions, especially in a seller's market, but they should seem invested in the basics of the home sale.

Buyers have to watch out for sellers who misrepresent the condition of their property, while sellers have to watch out for buyers who overrepresent their interest or their assets. Use these clues to find a buyer who has both the funding and the will to make the sale happen.