I was just reading a “Guide to Real Estate” app on my new iPad (from which I am also writing this blog). I was mostly curious to see the section about “dealing with real estate agents.”. Among the things this guide tells home buyers to do is to NOT tell your agent your maximum price when asked, “what price range are you looking in?” The author’s reason: the agent has “got you” and will try to sell you at the highest price to make the highest commission.
I have a few rebuttals:
1. Think about this for a minute- my check goes up about $100 for every $10,000 increment the buyer spends. And quite honestly, I had to calculate that for this post because that’s how little I think about it. Who knew, I really care about my clients getting the right house at the right price?
2. How am I supposed to help you find the house that best meets your criteria if you are not honest with me about what you are willing to (and by the way are APPROVED) to pay for? I know everyone wants a deal, but they want certain things that may only be available in certain price points. Let me also point out that for every $10,000 more you finance- that increases your monthly payment by approximately $50 (if interest rates remain the same from one calculation to the next.)
3. It has never even occurred to me to “get” one of my clients by selling them on a home at maximum price. There are a lot of things I think about- is maximum price a “deal?” Well, maybe and maybe not. That’s why I do a market analysis on each home a client is considering. Is the house overpriced and will it appraise? Unless you have cash, you won’t be buying the house if it doesn’t appraise.
Here’s the part that gets me, especially where buyers are concerned. I know you are smart. I know you have done your research. I know you have read articles on how to “reverse sell” your agent and outsmart them.
I also know the average person sells/buys 4 homes in a lifetime. Most full-time agents are engaged in the purchase or selling of a home 4 times a month. And, in North Carolina, the seller pays the buyer’s agent commission. So, the expert advice of a a buyer’s agent is essentially free to you!
Not every agent or salesperson is out to get you. Some of them truly do care about your life’s biggest dreams. Some agents actually even want to be your friend, despite what the app article I read says, “they are NOT your friend.”
But, this is what I do for a living. Just as you go to work and get a check for the work you have done. The difference is, I don’t get paid to show you houses or drive you around. I get paid when you buy one. And as long as you are honest with me about what you want and can afford- I’m in in it for the long haul- as many of my clients can attest. So, when I ask you about your price ranged whether you have talked to an agent, it’s so I can help BOTH of us. Oh, and I’ll answer any questions you have- day or night or on the weekends- for FREE! And I always try to do the right thing.
