Why You Need To Verify Buyers

Let’s talk about pre-qualifying buyers for high-end properties. How can you tell if a proof of funds is legitimate? Many agents love to take the easy way out and take other agents or buyers at their word, but as a luxury marketing (listing) agent, you have a fiduciary responsibility to make sure that pre-qualified people are coming through the door, especially with these multi-million dollar properties. What you should do is trust…. but verify. 

Recently, I got a showing request for a $6.5 million listing, and it came with a letter that immediately sent up red flags. There was no official letterhead, no website, and the email address was a simple Gmail account. I let the agent know ahead of time that I’d be verifying and contacting them person on the letter.

I tell buyer’s agents all the time to provide us with proof of funds or a bank statement. Whatever they provide me, I’ll call to verify that it’s legitimate. If the agent doesn’t want to provide that because their client is a big-name celebrity, I’m happy to sign an NDA so that I can do my due diligence. However, make sure you’re consistent with this or you could run into Fair Housing issues.  If a buyer calls me directly and doesnt want to provide that….they most likely are not qualified.

As an agent, there’s a lot you can do to build credibility on your own. One of the fastest ways to become a leading authority is by writing a book. The second fastest way is to do a lot of public speaking. The third fastest way is to borrow someone else’s credibility from your office or team until you have your own track record.

If you have any questions about today’s video, or if you’re considering a change in your career to another firm or team that specializes in luxury real estate, please call or email me. Don’t forget to jump on our “Luxury Fridays” on YouTube each Friday. Check it out by going to www.LuxuryFridays.com and clicking on the “Luxury Friday’s On YouTube” button.

Michael LaFido
Founder & CEO | Luxury Listing Specialist Designation (LUXE)

Click HERE to see where Michael is speaking next or where his next LUXE class will be.


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