Archive for the ‘do realtors try and sell the most expensive home’ Category

Do Realtors Try to Sell Buyers the Most Expensive Home?

Monday, December 26th, 2011

by Sean Hess (Sean@StAugTeam.com), Broker and Manager for St. Augustine Team Realty (www.StAugustineTeamRealty.com). Join us on Facebook.

We love it when you buy the bling, but it usually doesn't happen that way.

We love it when you buy the bling, but it usually doesn't happen that way.

Do Realtors try to sell buyers the most expensive home?

No, but I think I can speak for the industry when I say “We love it when you do buy the most expensive home.”

I would say that Realtors as a group are more interested in transaction volume, in other words, the number of sales vs. the amount of each sale.

If a Realtor is working over the course of a year and sees that his/her average sales price is below the market, they might try to step up into selling a higher price range (of homes), but they typically won’t steer a person to a specific home that ‘s more expensive than another.

I would even go so far to say it’s nearly impossible to steer a buyer into a specific home.

The way it works is that a buyer comes into our office with a set amount that they can spend (either in cash or with an amount set by their lender), and a specific criteria of home they are looking for, or specific needs (a specific school district for example), or a specific location, or any combination of those.  We then help them find that home…sometimes there are several that meet the criteria, sometimes just a few, but in any case the buyer gets to see them all and makes their own decision.

Once the buyer has made a decision and elects to pursue a home we try and make sure that they get it.  We put our two cents in when the buyer elects to make a decision that we believe will prevent them from getting the house.

For example, a buyer looks for a week and falls in love with a property and then makes a lowball offer.  If we know that the offer has no chance of success for various reasons, or if the offer will be competing against other offers, we’ll advise the buyer to raise the offer price.  Not because we want them to pay more, but because we want them to get the house.  You hired us to help you get that dream house, didn’t you?  Well, that’s what we’re trying to do for you…make sure you get it.

The only exception I can see is on rare, rare occasions there are salespeople skillful enough to sell their own listing.  Let’s say you see an online ad for a condo and you’re paying cash.  So you contact the listing agent, you go into the condo and fall in love, and you offer full price.  If you never ask to see other condos (or at least ask what the market price is) you could overpay, because the listing agent will never just volunteer that information if you make an on-the-spot cash offer.  And if you are paying cash there is no appraisal.

That being said, if you’re really interested in overpaying it’s not the listing agent’s fault if they help you buy something that you say you want, if you don’t at least ask if list price is market price.

Contact St. Augustine Team today to get the most home for the money, or just call Broker Sean Hess at (904) 386-8327.