What is a qualified buyer and could it affect your property sale?

When selling a home, you’ll find that not every interested party is truly ready to buy. Viewing properties as a way to gauge the market, before making any real decisions, is not an uncommon practice. However, for you, as a seller, it means wasted time and effort.

So, how to know if a home buyer is serious or just browsing around? This is where the concept of a qualified buyer comes into play.

A qualified buyer is someone who shows a real intent to buy a property. This typically means that they have been verified as ready to make a purchase, whether that’s from a financial or a practical point of view.

For example, a first-time buyer may need to provide evidence of their financial stability, including the funds needed for a deposit and a pre-approval for a mortgage, also known as a mortgage agreement in principle.

Similarly, if finances are not an issue but the interested person needs to sell their own property first, a confirmation of their status might make them a qualified buyer. E.g.: their current property is on the market or, even better, already under offer.

Having lots of interest in your property is all well and good, but only if there are enough qualified buyers in the mix. A buyer who’s actually serious about buying is far more likely to follow through to completion.

This minimises the likelihood of the sale falling through at a late stage, ensuring a smoother and more seamless transaction for all parties involved. It gives you the much-needed confidence when planning your next steps, too, with a more predictable timeline for your move.

Additionally, for sellers, working with qualified buyers can help reduce time on the market. In the property market, the time a home spends on the market can greatly affect how buyers perceive it – the longer a home struggles to sell, the more red flags it raises in the buyer’s eyes. Most crucially, extended market time weakens your negotiating power, possibly forcing you to accept a lower offer than initially expected.

Now that we understand their importance, what does it mean to qualify a buyer in practice? Here are a few key indicators to look out for:

The biggest telling sign that a buyer is serious will come from their financial situation. A qualified buyer will usually be happy to provide supporting evidence, such as a mortgage agreement in principle, bank statements with proof of funds, and other documentation. They’ll also have a realistic sense of budget that reflects their actual financial position.

Another important thing to consider is where the potential buyer sits in the property chain. A chain-free buyer is every seller’s dream, but you may also come across buyers whose current properties are already under offer or in the final stages of the sales process. You’ll find that a qualified buyer will be transparent about their position and, just like you, show interest in a fast, efficient process.

Serious buyers tend to ask all the relevant questions about the property, seller position, timelines, and the next steps. They’ll also be much more willing to respond promptly when any information or verifications are requested. Although it can be tricky, a seasoned agent will often spot genuine intent from a buyer’s attitude and level of engagement.

If you’re considering selling your home, working with an experienced agent who knows how to qualify buyers is vital. At Beresfords, we go beyond just marketing your property. Our knowledgeable team checks each buyer’s position carefully, ensuring that we bring you genuine offers and a smooth path towards a successful sale.

Get in touch or visit your local Beresfords Estate Agents branch for a friendly chat.