In the real estate world there are many ways in which Realtors may choose to get an idea across or show a buyer how the real estate industry functions. One such way is to purposely show potential buyers homes that are above their price range, way above their price range, below their price range and way below their price range. Why would a Realtor do this? This is not something that is done with every buyer but rather is a situational strategy that is used when necessary.
The overall purpose of such a move is NOT to torment a buyer by showing them homes they cannot afford, nor is it about pushing them to buy something more than they should be able to afford. The real purpose of this type of tactic is to help educate a buyer on what is possible with their budget and what honestly is not possible within their budget. By showing them a house or two that is above their price range they are learning several key factors about the real estate business. The first is that they gain a unique knowledge of the pricing game and how their price range compares to homes in similar neighborhoods. They gain the understanding of what their budget would usually buy and what it honestly would not. They also gain an understanding of what elements are worth and how those characteristics compare with other homes in the area that do not have those characteristics and perhaps some reasons for the price differences.
Showing buyers homes that are below their budget also plays an important role in helping a new buyer understand the ups and downs. By showing them a home that is below their budget they can get a sense of what they are paying for and why. They can see for example that an actual garage is something that usually holds worth over a simple carport. For example, if they see a home that has everything they want and is within their budget, then they see a very similiar home but there is no garage, they will have a better understanding of why the listing price is different.
The best thing a professional Realtor can do is to advise their clients, educate them with their best interests in mind and be a source of honest feedback to their buyers. If a buyer is looking for a home with a ton of amenities and upgrades that are just not possible within their price range, they should be shown the reasons why. By showing homes above and below one's budget gives buyers a visual understanding of the business rather than showing them numbers and lines on a graph. Sure it may take a little bit more of your time, but it does help show the Realtors expertise within the business and gives him or her a chance to educate them on their unique situation.
Tim Brown Owner/Broker, Realtor®,
ABR,CRS,CDPE® Auctioneer NCAL#8560
Hines & Associates Realty
TeamHeidi
Direct Line: 704-619-1008
Client Care Line: 704-815-3208
www.CarolinaHomes4Sale.com
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