Agents Who Upsell

Why are there agents showing buyers who are approved to 200K homes that are close to 300K in hopes of making a low-ball offer for acceptance?

You can waste your time, and your buyer's time for that matter, but don't wast the seller's time and listing agent's time with it. Pulling this stunt 90% of the time leads to an upset seller who then turns to the listing agent to ask why this happened. The other 10% of the time just leads to rejections where the seller knows you are being an idiot.

You aren't helping anyone, and you are doing your clients a disservice when it's your suggestion. Things are confusing enough for buyers and sellers in this market, so don't make it worse.

I've seen many buyers who thought this "300K house for 200K" was going to happen for them because their agent promised it, and they ended up so disappointed they didn't buy at all. Is it ethical to be showing buyers homes priced this high when they are approved for far less?

When a client asks us to write an offer, we are obligated to do it, and I fully understand that. What I am talking about is encouraging low ball offers by showing homes way out of the approved price range.

Agree or Disagree? I know everyone wants a deal, but I'm talking about the agents who bring this about themselves without a buyer asking for it.
  • March 31 2011 - US
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Answers (2)

Seems like common sense.  I think you can go up 5% above what a buyer is approved for, if the buyer is comfortable with it.  My question would be are you really serving your buyers best by stretching them to the limit?  Isn't that how a lot of homeowners go into trouble, by buying more house than they could really afford?
  • March 31 2011
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Steve, you make some great points. Let's say the buyer ends up getting the home that stretches them (but was 25K less than asking price). Did they get a good deal or a nail in the coffin?
  • March 31 2011
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