Can a prospective buyer be discriminated against because of the price range of home they are looking to purchase? For example I feel that an agent I recently visited would not help me because I was looking for a low-priced home. I am a young, single, first-time home buyer and basically just wanted a roof over my head to avoid paying rent. The agent flat out told me that I needed to spend more money. I have called and left messages for him and he has never returned my calls. I think he is avoiding me becuase he knows I will not spend a lot of money on a bigger home. Should I press the issue or is this just something I need to get over? Thanks.
This is an easy one.
This agent did you a great favor. It sounds like he doesn’t handle that price range. You want an agent who specializes in lower end homes, or better yet, first time buyers. There are many loans available just for first time buyers that most agents, (including me) don’t have a clue about. It’s not that I don’t know the answers for all of your questions. It’s more crucial than that. I don’t know the questions you don’t know to ask — much less their answers. And that’s not a position in which you want to find yourself.
Let’s reverse this situation. What if you had asked a first time buyer’s agent to find you a million dollar show place? Would you have felt discriminated against if they had turned you down? Here’s the principle — Don’t use a wrench when what the job requires is a hammer.
I’m an expert in real estate investment, yet I don’t know about every single kind of investment real estate. For instance, I’ve never known much about industrial property. If you came to me wanting that kind of investment, I’d immediately fess up, then refer you to someone who is a specialist in that kind of property.
Believe me, you don’t want an agent who needs to reinvent the wheel because he wouldn’t turn you down as a first time buyer. I strongly urge you to spend some time searching for a local agent who loudly proclaims themselves as a first time buyer specialist. You’ll know the difference after talking with them for five minutes. There’s nothing like knowing you’re putting yourself in the hands of a real pro — specializing in exactly what you want accomplished. I’m willing to bet you will almost physically feel the weight being lifted off your shoulders.
Let’s go a step farther with this. We have so many contributors here at BloodhoundBlog, and we’re so strung out geographically, I bet one of us might be able to network a solution for you by locating an appropriate agent in your area. Send another email letting us know where you live, and we’ll do our best to find that perfect agent.
Good Luck!
Brian Brady says:
“This agent did you a great favor. ”
Great answer, Jeff. Successful agents can’t be all things to all people. It would have been preferable if that agent helped this young lady find a hungry agent specializing in first-time home purchases.
“We have so many contributors here at BloodhoundBlog, and we’re so strung out geographically, I bet one of us might be able to network a solution for you by locating an appropriate agent in your area”
Piece of cake. We’ll probably have 2-3 good choices for you.
May 16, 2007 — 10:27 am
Jeff Brown says:
And there you go. 🙂
May 16, 2007 — 10:34 am
Doug Quance says:
I’ll second that motion.
The Bawldguy knoweth best.
May 16, 2007 — 11:25 am
Chris says:
Well said. Heck where is this person located? I’m on the CT coast and would be more then happy to help them or refer them to someone who can.
Chris
May 16, 2007 — 11:51 am
Jeff Brown says:
Doug – Only if you say so. 🙂
May 16, 2007 — 11:59 am
Susan Jackson says:
As I read this question, I could not help but think about my own experience. I get so many calls from first-time homebuyers and it is frustrating to me as an agent that most of them call thinking that I am a miracle worker. They almost always want me to find them a $500,000 home for $150,000. I do my best to find them the best homes in their price range but because none of the homes they can actually afford are good enough for them, I get accused of doing a bad job. Well, it is not price that determines the level of service I provide. I protect my reputation of professionalism with a vengence whether I am working on a $150,000 client or a $500,000 client. I see no difference in the way I conduct business from one client to another. I can almost understand how some agents might decide not to work with the first-timers. It is just too hard and sometimes impossible to try and educate them on the realities of what they can get for their money. When our attempts to show them fail, we are the ones that end up with the bad name. We are real estate agents, not magicians.
May 16, 2007 — 1:00 pm
Jeff Brown says:
Susan – You’ve just reminded me of a couple reasons why I describe myself sometimes as a recovering house agent. 🙂
I noticed on you website you’re a luxury home specialist. Why would you ever take the time to deal with a first time buyer? Let’s see, do I want to show $150K condos today, or million dollar estates? 🙂
How do you do it?
May 16, 2007 — 2:18 pm
Susan Jackson says:
Well, believe it or not, I actually do this because I love it, most of the time. I love the people I work with,most of the time, whether they want a 150k condo or the million dollar mansion.
May 16, 2007 — 3:04 pm
Jeff Brown says:
Susan – I suspected that was the case.
Before I retired as an umpire (college) I had just as much fun, if not more, doing Little League All-Star games for a Coke and a hot dog than some of college level games – because I loved it.
I remember one time I had been imported to be the plate umpire for a local LL all-star game because the local umps wanted no part of the two teams involved.
I brought along two of my NCAA ump buddies to do the bases with me. The best part? When the first pitch was thrown, I bellowed out my usual strike call, “UH!” with a following right arm shooting out. The 12 year old catcher, as he’s throwing the ball back to the pitcher, says, “That’s so cool.” Gotta love it.
May 16, 2007 — 3:23 pm
Stacey Macioszek says:
Jeff,
That’s a wonderful analogy!
May 16, 2007 — 5:09 pm
Austin Realtor's Wife says:
I was waiting for a baseball allusion as my invitation to weigh in, so here we go… 🙂
First, it is a sad truth that people base an entire industry upon a single experience. I do the same- as I’ve mentioned before I am an easy going Texan but if I’m shopping for a Ferragamo sandal at Nordstrom’s, I expect they will show me the model I specifically came for (and bring out two other suggestions) and wear the perpetual smile as I dawdle making my decisions. If instead I got a spiky haired jerk who sighs with every question I have, I will certainly substantiate in my head that the entire Nordstrom’s chain offer bad service and I will never come back (oh, and I will tell all of my friends that Nordstroms sucks). This would never happen though because they know me at Nordstrom’s, but you get my point. The same goes for Realtors- one bad apple can plant a seed in someone’s mind that the industry sucks.
The OTHER unfortunate truth is that consumers don’t know that if someone tells them no or ignores their calls (disgustingly common, see Doug’s Article earlier this week), they can seek out a better match! Like shopping for shoes, if I get bad service at one Nordstrom’s location, I will simply huff off to a non-Nordstrom’s store- I won’t accept being ignored and I WILL get my Ferragamos.
May 16, 2007 — 5:13 pm
Jeff Brown says:
Hey Austin – What you and all our clients want – bottom line – is results.
If you come to me looking to by industrial property, you’re outa luck. Though I’ll not only return your call, but do my best to hook you up with someone who knows industrial props.
How much would it have taken for the agent this person called to have said, “I don’t handle that price range” and passed them to somebody who does?
May 16, 2007 — 7:26 pm
Jeff Brown says:
Thanks Stacey.
May 16, 2007 — 7:30 pm
Austin Realtor's Wife says:
The problem with the two truths I outlined above is that not enough Realtors (or any business person actually) stop to think what to DO about these issues.
Overcoming objections is crucial not only to negotiations but simply to the industry’s survival.
I hope others take pause as you do to refer OR AT LEAST answer the phone/call back/refer to someone else. Hell, many agents will let you have up to a 25% cut for referring- if you aren’t motivated by what’s right, maybe dollars speak.
Oh, and if said person IS in Austin, you know who to call! 🙂
May 16, 2007 — 7:38 pm
Doug Trudeau says:
Why try to work with someone who won’t give you the service you deserve? How many stories have we heard about the waitress, mechanic or garbage collector who can’t afford much, but gives great referrals?
I look at it this way, it’s the agent’s loss and the buyer’s gain by getting a willing and able Realtor to help.
May 16, 2007 — 8:23 pm
Kris Berg says:
Lani, You can afford Ferragamos? Oh, wait, not the point. Good response, Bawld One, and I think it brings us back to the importance of a buyer interviewing agents. With a gazillion choices, there are good matches out there. Find the agent who takes the time to listen to your needs, is willing to commit the resources to helping to reach your real estate goals, is honored and eager to earn your business, and comes with a proven track record (happy past-clients vouching for his/her abilities). As I always tell my children, don’t settle. And, to be a doormat, you have to lay down.
May 17, 2007 — 8:02 am
Jeff Brown says:
Amen Sis – You said it perfectly.
May 17, 2007 — 8:09 am