Every real estate transaction involves a buyer and a seller, but not every buyer is a cash buyer. This fact is obviously inherent in the recent question posed in a letter by a local reader: "When you are selling property how can you eliminate offers from buyers who are really not qualified to buy property? I mean by that, the people who make the offer do not have the money for a bank loan, and/or they do not have even the income to make the payments? Sometime if the seller accepts the offer and he doesn't know the buyer isn't qualified, it may hold up the sale for months. This situation is more than an inconvenience, it may put a seller in a very bad position and even cost people a lot of money for the delay."
There is so much unfortunate truth in the above statement that it has been quoted in its complete, unedited version, because it conveys so much reality, result and consequence reflected in real life. This is particularly a concern dealing with offers in the midst of the current "Short Sale" mess. So what is the answer?
Sellers, if you chose to not have an agent as your representative to protect you in the transaction and the business relationship and keep you from becoming trapped in an agreement of which you should not be a party and which you really want no part for the very reasons given in the threshold question above, then you must wake up, face reality and require that the buyer prove financial capacity and accountability to assure reaching settlement and closing before accepting the offer, or find yourself victimized and jerked around on the string of uncertainty and inconvenience by the buyer who obviously knows more about negotiation and contracting than you while you wait to see what turn of events play out during the escrow period.
The steps and the process are not that difficult. Here are some pointers. ( 1 ) Be in a strong enough position as seller that you can demonstrate and exercise patience to not panic with the hint of an offer and rush into acceptance without sufficient justification and due diligence. ( 2 ) It is true that an offer may be made contingent upon loan approval, but there is nothing that says you have to be taken for a ride other than by your own impatience or lack of counsel or good judgment and lack of exercise of measures to protect your position; grant only a short, yet reasonable time for approval. ( 3 ) Require that the buyer have pre-loan approval. I did not say pre-qualification which really carries no clout other than the fact that a buyer has had an initial conversation with a loan officer who has basically asked about income and made a simple calculation that the buyer could likely make a monthly payment of a certain amount. Loan approval is given after credit has been checked and all verifications completed satisfactorily to the lender and loan underwriter's approval; a condition such that lender can take the buyer to settlement subject to the appraisal and approval of the property as collateral for the indebtedness.
Covenants and conditions of a contract must be carried out to the benefit of the parties involved. In order for a real estate contract to be enforceable and meet the "statute of frauds," terminology in the law, it must be in writing. When it is, a phrase I really like that was given by a family member during a business discussion comes into play: "The document disciplines the relationship." So enforce it. Or you might be a folly of a fool.

St. George REALTOR® Jim Coleman is Associate Broker and Partner/Owner of ERA Brokers Consolidated. He Specializes in Residential, Investment and Commercial Real Estate, holding National Designations of Accredited Buyers Representative (ABR), Certified Residential Specialist (CRS), Resort and Second Home Property Specialist (RSPS) and Seniors Real Estate Specialist (SRES), as well as being a GREEN designee. You can contact him by e-mail at Jim@RealtorJimC.com. Call: ( 435 ) 674-0600; or write: Jim Coleman, 201 East St. George Boulevard, St. George, Utah 84770. This and other columns are available at www.RealtorJimC.com/articles.