Are they so shallow that they care only about their commission, even when they feed you the line of BS that they are only trying to find what's best for you?
2006-09-23 18:23:20 · 15 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
They hope you will fall in love with the house, decide you can maybe swing it, then you can make a lower offer, meet in middle, and they get more commision.
2006-09-23 18:31:42 · answer #1 · answered by Breezer_Ne 2 · 1⤊ 0⤋
Because they want the higher commission. They are idiots to do that though because even raising your house payment a little bit can make or break whether you can qualify for a house. Not to mention the fact that the bank might not prequalify you for that loan amount in the first place. I've worked in the mortgage business for ten years. We always try to preapprove people for more than they need, just as a cushion. Most of the time, however, when it comes to the time that they are house-hunting, we end up tweaking the loan amount down because of greedy realtors and greedy sellers. If they see they qualify for more, then they want more!! Hate to sound cynical, but there's a lot of really skeevy realtors out there. They couldn't help you with your mortgage to save their lives, but ask them to calculate their share of commission and they can do that for you in 2 seconds flat. So in answer to your question, find a better realtor. Ask your friends, ask your neighbors. Ask people that will give you an unbiased opinion. I would say ask your mortgage broker, but again, there's a lot of slimy people in my line of work too. I always do what's best for my clients, but it's not always indicative of the rest of the industry. Good luck to you!
2006-09-24 12:03:27 · answer #2 · answered by rckwygirl76 2 · 0⤊ 0⤋
If you fall in love with a house, they are hoping you can stretch the budget a little bit. Maybe they know you won't like anything that's in the price range you specified. And - yes - making a better commission might have something to do with it, but do the math and see how much difference it would really make if they sold you a house that's maybe $10,000 over your "limit." It's not so much that they would risk losing you as a customer by pushing you too far.
2006-09-24 01:33:45 · answer #3 · answered by Picture Taker 7 · 0⤊ 0⤋
Commission
2006-09-24 01:31:01 · answer #4 · answered by debbiethornberry007 2 · 0⤊ 0⤋
They know it is a big investment, but they figure a few thousand more is only chump change in their line of work. For those of us who do not make that kind of money, a few thousand makes a big difference. They want you to think about where you can find the money again and again and again -- even if it is a stretch. Once you see the difference in what they say you deserve compared to what you can afford, it is a psychological thing -- are you not worth what you deserve? Our minds can play tricks on us when we are tempted. We see the best case scenario and later ask ourselves what we were thinking! Stand firm so you do not end up having to foreclose like so many people are today.
2006-09-24 01:36:16 · answer #5 · answered by joyann 3 · 0⤊ 0⤋
The first guy got it right, very simple answer. commission. First time I bought property the realtor kept showing me properties above my budget. I was looking for 150,000 and below, and she kept showing me 180,000 and above @ 3% on 150,000 she would make 4500 and on for example 180,000 @ 3% she would make 5400 that's a big difference on 1 deal for her. She kept telling me to get a bigger loan, pft, I figured you can't be nice you tell me straight up this is business, show me what I want OR I will get someone else. Trust me she will work harder. Good Luck!
2006-09-24 02:21:22 · answer #6 · answered by Dispirited 2 · 0⤊ 0⤋
Any agent who does that is not doing their job. Warn them once. If they do it again, find another agent who will work with you properly.
An agent who does that is screwing themselves since you're not going to qualify to buy the home anyway.
Do keep in mind though that a home that is only slightly above your limit might be had for a price within your budget. Your agent should explain this to you in advance and justify showing you something above your upper limit. Of course, you can always stand firm and refuse to view the property.
2006-09-24 10:00:37 · answer #7 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Since the amount you are seeing is the asking price, through negotiations you can often get the price to drop. They are actually probably trying to get you a better house for very close to the same amount of money. Not all realtors are bad!
2006-09-24 01:57:53 · answer #8 · answered by n_liedl 2 · 1⤊ 0⤋
hey they dont get alot of money from commission and they need a sell to pay for food on the table if you dont like it find homes that are being sold by owner
2006-09-24 01:31:20 · answer #9 · answered by jettalady 4 · 0⤊ 0⤋
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2006-09-24 01:37:08 · answer #10 · answered by Anonymous · 0⤊ 1⤋