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Buyer Wants to Over-Pay for the House to Keep the Comparable Sales Up

By
Real Estate Broker/Owner with Franklin Homes Realty LLC

Buyer Wants to Over-Pay for the House to Keep the Comparable Sales UpThe other day I was contacted by a buyer. She was interested in seeing a house. I had previously shown this house and was very familiar with it.

The house she inquired about is over-priced and has been on the market for almost six months. The sellers have reduced the price 3 times for a total of $75,000. It's finally getting to a price where it might get an offer.

As I was talking to this buyer, I explained that I thought it could still sell for $25K to $50K less. I couldn't believe what I heard next, "Well, we actually live in the neighborhood. We want the house to sell high so it improves our comparable sales."

The buyers home is in a different section of this large neighborhood. It is about 3,000 square feet less in size. The sale of this huge over-priced home isn't really going to impact the sale of the buyer's home.

I tried to explain what she really wants to happen is to buy the new house low and sell her house high. That's a win-win for her. Unbelievably, she told me she was going to contact the listing agent directly because it sounds like she has the best interest of the neighborhood in mind. Say what?

No, that agent could give two hoots about the prices in the neighborhood but she absolutely wants to get the best price for the seller. Have you ever heard of such a thing?

Buyer Wants to Over-Pay for the House to Keep the Comparable Sales UpThe buyer wants to over-pay for the house to keep the comparable sales up. I will have to admit, it's a first for me.

Buyers need to understand you should always be working with your own agent. Someone who will represent your interests. The listing agent works for the seller. It's her job to get the most money for the seller. Don't be fooled by what the listing agent tells you. There is no chance you'll be better off going with her.

When you are ready to buy a Franklin TN home, contact Tammie White at (615) 495-0752. We can help you buy and sell your home and make it a win-win for you.

Posted by
Tammie White, Managing Broker/Owner
CLHMS, CRS, GRI, SFR
Franklin Homes Realty LLC
Franklin, TN
(615) 495-0752 
GET REAL. GET LOCAL.
 
This posting with the content written here and photographs displayed are the intellectual property and opinions of Tammie White of Franklin Homes Realty LLC. Any party who uses this material without the written permission of Tammie White is subject to copyright infringement and possible lawsuit.

Comments(50)

Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Tammy, buyer contacting listing agent directly itself is a 'STOP' sign for me! And want a sale to go at higher price? Great - however, one sale in big neighborhood does not change the overall market dynamics.

Jul 20, 2014 01:25 PM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Kathleen - True.

Mike - No kidding.

Carla - She thinks this is going to have the reverse affect.

Evelyn - I'm confused.

Mary Ann - It happens.

Paula - At least, they think they are.

Praful - You and I know that but she doesn't.

Jul 20, 2014 01:45 PM
Kathleen Vetrano
RE/MAX Gateway - Falls Church, VA
Helping YOU Achieve YOUR Dreams

I'm sure that's on every ones mind but the market is the market.  You got it right Tammie, buy low sell high and have an agent representing your interests.

Jul 20, 2014 03:56 PM
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

That's a new one for me too Tammie.  Wow!  I've never heard of such a thing.  What an interesting game we play...  

Jul 20, 2014 10:31 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Yes I have not only heard of such a thing, but have seen it done a few times. Developers who are going to build in an area employ this tactic of overpaying to "up" the comps

Jul 21, 2014 12:47 AM
Gerard Gilbers
Higher Authority Markeing - Asheboro, NC
Your Marketing Master

I have not heard of this before and it makes no sense. If they knew how the comparables and appraisals actually worked they would or at least should understand. 

Jul 21, 2014 01:08 AM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Kathleen - Not everyone in our market has that option but at price points above $600K, there is more negotiation room.

Jared - In this case, the would-be buyer may be a loser.

Richie - You're the second person to mention this tactic.

Gerard - Agreed.

Jul 21, 2014 01:25 AM
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

Tammie,

We can guide a horse to water but we can't force it to drink. This buyer is confused and will be  mislead by the listing agent. What is the quote..."only way to learn is from their own mistakes."

Jul 21, 2014 02:39 AM
Mercy Colberg
RE/MAX Best Choice - Sappington, MO
Colberg Team RE/MAX Best Choice Listings

Interesting! You have fantastic stories that happen to you. 

Jul 21, 2014 03:00 AM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Sarah - Unfortunate.

Mercy - I wish it weren't so but I seem to attract the uninformed who don't wish to do it the right way.

Jul 21, 2014 03:37 AM
Curt Hess
ExecuHome Realty - Annapolis, MD
Luxury Home Consultant, Team Leader & CEO

That buyer needs to have her meds adjusted. 

Not only is it silly, but seems quite irrational. 

Very possibly someone with excess time on her hands who likes to tweak up real estate agents. Just for the fun of it.

Jul 21, 2014 08:10 AM
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

Sounds like the buyer knows just enough to be dangerous....to herself.  Wow.  I cannot believve that she thought working with the listing agent was a better idea.  

Jul 21, 2014 11:38 AM
Josh Gidcumb
Keller Williams Realty - Champaign, IL
Real Estate - 217-202-0571, Champaign, IL

Wow, I have never heard of that before, but there is always a first I suppose!

Jul 21, 2014 12:40 PM
Jill Watts
Realty Pro, Inc. - Vancouver, WA
A Luxury Experience at Every Price Point!

Hi Tammie! Another great thoughtful post. I've NEVER heard of a buyer wanting to overpay to keep the comparables up in a neighborhood. Especially since their own house wasn't even a comparable.

Jul 22, 2014 02:37 PM
Catherine Ulrey
Keller Williams Capital City - Salem, OR
Equestrian and Acreage Property Specialist

Well, that is a new one, isn't it?  We just never know what we are going to hear in this business.

Jul 22, 2014 02:50 PM
Chandler Real Estate Liz Harris, MBA
Liz Harris Realty - Chandler, AZ
#ChandlerRealEstateAgent

Great post today, was a pleasure reading it.  Look forward to your next one.  Liz in Chandler

Jul 22, 2014 03:06 PM
Scott Larson
BHHS/Utah Properties - Park City, UT
Park City, Utah Real Estate News

Hi Tammie, now that is an interesting story, I have never heard that one before, haha.

Jul 23, 2014 02:20 AM
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

Tammie, I will follow most here I have not heard of this type of strategy. 

Jul 23, 2014 09:30 PM
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

I've never seen that happen Tammie, sounds crazy!  Some folks are just not smart when it comes to making financial decisions.

Jul 28, 2014 06:41 AM
Debbie Malone
Londeree's Real Estate & Property Management - Lynchburg, VA
From Lynchburg To The Lake (434) 546-0369

Wow, that's a new one! I hope her neighbors throw her a party for all she's doing for the neighborhood!

Jul 29, 2014 02:34 AM