Ehat I do is send them everything in that price range and explain this is what the market is bearing right now for this price range. Once thay causally glance online I up the price range a little higher to where there taste is and ask if they are able to get a gift letter (after they are intrested in a property).
When the buyer "finds" a home that did not fall within those parameters, we discuss why it did not meet their needs, budgetary, size, style or whatever. Then we as a team can decide to adjust the search, see the home or move on.
The 97% rule is good, although it doesn't fit in every case. It really depends on how hard you are willing to work for an unreasonable client. If it is one house that is overpriced, stagnant on the market I might have a word with the listing agent to see what I could learn about the sellers motivation. That said, I sure wouldn't exceed my clients budget on a regular basis,.
What is your limit? How far above their price point are you willing to show them? Do they want to risk falling in love with a home only to find that the seller will not negotiate to meet their price?
Southern Nevada Property Management
Typically from what I've seen is somewhere in the 97% Sale to List price ratio.
You might also do a seller net sheet for them....
I've done this to show buyers how much the seller will net after it is all said and done.
Then look up what they owe.
I think in most cases here it is unusually for a seller to bring a check to $10,000 or $20,000 or $30,000 to help a buyer get in a home. Some can, but ask your buyer if they could do that to help the next buyer?
They probably just don't understand the process.
I would agree with Akhila about being blunt and courteous at the same time. This is of course based on the buyers pre-qual, assets, credit and time on the job. It can be daunting as some buyers feel they can or should be able to negotiate a purchase for ridiculous lowball numbers. The concept of a "buyers market" is sometimes unrealistic but we try our best and we always earn our commission through hard work. I wish you all the best.
Licensed Associate Broker
Accredited Buyer Representative
Are the buyers coming with their preapprovals? If so let them know that the sellers are asking for copies of the preapproval before making their homes available. That is what I would do as a seller in this market. HUD, FNMA & FHLMC REO requires this, so if the majority of your sellers don't show only REO and explain to them why you must show preapprovals. The preapproval show the maximum they can get a mortgage for. So if the buyer has a preapproval for $150,000, they cannot view REOs for $300,000.
While this is a buyer's market there are not many seller's who are willing to give the home away and potential serious buyers need to understand the market. Take the time to educate them upfront and they will have the knowledge to make good informed choices and not waste their time or yours.
REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
A real important role play involves acknowledging they are looking for a deal. Yes, I want to find them a deal, I don't want to be forever looking.
Assume we find the home listed above their price point at XXXXX. We do the research and the value of the home is XXXX. The buyers offers XX. The counter is XXXX. What will you do next dear buyer? Ah, perhaps you should be looking at REO and short sales. However, if they respond to the counter with X, the previous suggestion is optional.
It's a business, not a hobby.