I think we all know the importance of financially prequalifying buyers before we start spending a lot of time and energy on them.
I'm learning its important these days, to prequalify buyers intentions regarding having realistic expectatons. I find that because of all the media out there, buyers think people are giving properties away. They can definitely find a great deal, but they're not necessarily going to steal the property!
I try to explain to buyers that selling prices on average, are 5 to 10% off the asking prices in general, unless a property is extremely overpriced to begin with. But if a property is reasonably priced, it typically sells no less then 90% of asking. And on Foreclosure properties, if priced right, there will be multiple offers and often a property will go out for more then asking. I think many buyers are a little shocked to hear this.
The challenge I have, is clients will have a budget of say $500,000, but will want to see properties that are listed around $800,000. They are expecting if they like it, they'll be able to get it at their budgeted price. Trying to educate them, is turning out to be a challenge. Some clients just refuse to believe me...and in some cases, I'll just have to play the game and let them submit a couple of offers that they have no chance of getting, for them to finally accept reality.
Curious how other agents deal with this situation?
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