I got an email the other day after sending a list of homes I thought would work for my customer:
“How come when you give a realtor a budget to work with they always kinda wanna "push it" a little? If I tell you that I'm good up to X amount then don't show me $20,000 OVER that amount. That annoys me. I wasn't full of (swear word) when I gave you my number and I know you work on commission and all but still. It's off putting. I'm not a moron and I know what I can afford so don't try to push me into more. I promise...I KNOW what my numbers are.”
Since the buyer forwent the initial "buyer sit down" they missed the information that I often look at the "higher" priced homes, as in a buyer's market, there may be room to negotiate. 20k sounds like a lot of money, and it is, but it equates to very little in commission. I have to discuss the potential perception issues with first time buyers..... I don’t just unlock doors, remember?
Every market's different, but in ours, properties sell for an average of 90% of list price. So, it's not wrong to show a buyer a property that is LISTED for about 10% more than what their top price is. So, with a $200,000.00 budget, showing a property listed at $220,000.00 is doing the right thing for the client.
Because every list price can be negotiated downward, if it’s within range, that’s what we do for our buyers, negotiate on their behalf for a better price among other things.
This person needs help in educating them as to the process. They likely believe the list is set in stone. I show them sold data that shows less than list sales and tell that’s how we earn our commission.
Yes, I will respond to them so that they can hopefully perceive me as a trustworthy source of information. You never know where that may lead “smile emoticon”.
I don't try to upsell people however. I want people happy with their purchase, not stressed and angry a year later.
According to Vermont Realtors for May 2016 in Windham County single family homes are selling for 86.2% (YTD) of original list price. Townhouse / Condos are selling for 92.1% of original list price.