Why and how does my agent "pre-qualify" buyers?

Since it could be a waste of your time to negotiate with an interested buyer who could not afford to buy your home, your agent is trained to politely ask buyers the right questions about their finances - a far easier task for an agent than for a homeowner.

Factors that determine a buyer's qualifying situation include:

- The buyer's employment, including job title, length and stability of employment.
- Income and general financial position.
- Debts.
- Cash for down payment and settlement or closing costs.
- Maximum affordable monthly payments.
- The existence - or not - of another home to sell.
- The time period during which the buyer must reach settlement or closing, and the buyer's urgency to buy.
- Other homes the buyer may be interested in and the primary reason for buying.

The sum of this information makes it possible for you to negotiate effectively, should the buyer make an offer.