Question: What can buyers’ agents do to protect themselves against “serial home visitors,” or people who act like they are interested in buying a property, but actually have no intent on buying anything. 

Answer: This can be a common experience for buyers’ agents. You may have already fought half the battle by simply recognizing the possibility that there are people out there who may have no qualms about using you as their buyer’s agent to look at homes, even though they have no genuine interest in buying anything. Here’s are some suggestions to consider:

1. Ask Lots of Questions.
Whether it’s upfront all at once, or perhaps little by little over time, there are a ton of questions that you should ask to see how serious your clients are about buying. What are they looking to buy? Why are they moving? Who is making the decision? What do they think about the house they previewed? Will they need a loan to buy? And if so, are they preapproved, and can they give you their preapproval letter? You want to delve deeply into your clients’ motivations and qualifications. Make sure that their answers make sense to you, and gauge how forthcoming the clients are with you.

2. Observe Your Clients Carefully.
Perhaps it’s not that easy to differentiate the conduct of a serious buyer as opposed to a non-serious one, but it can’t hurt to keep a watchful eye on your clients. How carefully are they previewing a home? Are they mentally visualizing themselves living there? Are they willing to listen to your advice, go to your office for a buyer presentation, or go to a lender to get preapproved? Are they more interested in the home and homebuying process, or maybe more interested in you, or the sellers or furnishings or other things?

3. Ask for a Signed Buyer-Broker Agreement.
There’s probably nothing as effective for prescreening buyers as asking them to sign a buyer-broker agreement (C.A.R. Form BRBC). If it’s your own fear of rejection that prevents you from asking, just remember that, if nothing else, you want to know where you stand. If, for example, you’ve spent a lot of time showing properties to a client, and that client nevertheless refuses to sign your buyer-broker agreement, at least you know exactly where you stand with that client. And that’s a good thing for you to know, in case you want to reprioritize your time and energy.

4. Watch Out for Fair Housing Issues.
It’s one thing to prescreen clients for their interest and their ability to buy, and quite another thing to discriminate against them based on their race, age, gender, religion, family status, or other protected characteristic. Do not ask clients questions concerning their protected characteristics, and do not refuse to do business with them because of their protected characteristics.

-Thank You to Lee Schoenbart (San Diego Central Office) for suggesting this week’s legal tip!

Copyright© 2023 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of March 6, 2023. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals. Written by Stella Ling, Esq.