Ozaukee & Washington County Real Estate: Just So You Know...You Won't Be Making Much Commission on This One

Find out more about Ozaukee and Washington County real estate, including the cities of Grafton, Belgium, Cedarburg, West Bend, Jackson and Germantown.

Just So You Know...You Won't Be Making Much Commission on This One

A couple of days ago I received an email out of the blue from a buyer I met at an open house about four or five years ago. When we first met he had just started looking, and I think he had decided it wasn't the right time for him to buy. So we lost touch; I didn't do a good job staying connected to him, so to receive this call from him is flattering, to say the least.

$100000 buyer

He said he's looking for a house, has a few he saw on the internet he'd like to see, and would like to buy something sooner rather than later.

Then he told me that I wouldn't be making much commission on this sale. Huh???

He explained that he really wanted to stay close to $100,000 and possibly buy more of a dream home down the road. Do I still want to work with him? He said he realizes real estate agents don't make much on a $100,000 sale so wanted to be sure I was okay with this.

He reminded me of a comment I had received from another buyer the previous weekend. That buyer called me asking to take a look at a fixer-upper I had listed. When we met at the house, which was listed at $103,000, he told me he called because a friend of his in the business wasn't returning his call. His girlfriend quipped it was because this is "only" a $100,000 house.

I will never understand that mentality of not wanting to work with a "$100,000 buyer." I will be the first to acknowledge that if that is the only price point an agent works in, it will take many, many sold units to be able to keep up with the bills.

selling houses

But at the same time, these buyers need my help just as much as a $200,000 or $500,000 buyer does. So if they can demonstrate to me that they are serious about and commmitted to buying a house, you can bet I will work with them. Hopefully one day they will call me when they are ready to move up to something bigger or maybe they have a friend or relative who needs my services.

And besides, I was a $100,000 buyer several years ago. To think an agent would have thought less of me because of my price point -- well, I don't ever want someone to feel they're any less important than someone who may qualify for a more expensive home.

 

Peggy Wester
Phone: 262-370-1757
Email: pwester@realtyexecutives.com
Website: peggywester.com
Blog: peggysblog.com


Peggy Wester - Realty Executives Integrity

Comment balloon 11 commentsPeggy Wester • February 19 2012 06:05PM

Comments

I too remember was a first time home buyer and I still try to assit those buyers, it's not about the money as knowing that feeling we had and wanting to give that to someone else.

Posted by Kim Logan, Kim Logan - Keller Williams Lake Oconee Realty (KELLER WILLIAMS LAKE OCONEE) over 8 years ago

Kim -- Well put. Seeing the excitement these buyers have over these houses is one of the best parts of this job.

Posted by Peggy Wester, Real Estate Agent Ozaukee & Washington County (Realty Executives Integrity) over 8 years ago

I am in this buisness to take care of people....Not price points!   I treat all my buyers and sellers equally and if that would ever change it would be my sign to get out of the business because it was changing me.  Good for you-  Blow them away with your Million Dollar sales service no matter what the Price point!

Posted by Amy Gutschow, Professional Real Estate (RE/MAX) over 8 years ago

I am also shocked people feel this way.  I say help them all because you never know who is going to refer you to that next million dollar homebuyer.  Treat everyone as if they are your biggest client and they will reward you nicely.

Posted by Jeff Reynolds (Utah Commercial Real Estate Connection) over 8 years ago

Amy -- I can't help but the think, too, that word will get around that this agent or that agent will only work with buyers in a certain price point. Just doesn't seem like a good thing.

Jeff -- I think so, too -- future referrals are sure to be yours if you treat your buyer with respect regardless of the houses they are looking at.

Posted by Peggy Wester, Real Estate Agent Ozaukee & Washington County (Realty Executives Integrity) over 8 years ago

Great insight... and should be obvious to all, but it isn't.  I used to have my own financial planning firm and still keep my credentials as a Certified Financial Planner Professional (TM).  I found that the people that actually needed and appreciated my help the most (and benefitted the most) were middle class people and young people without much money.  For most people the purchase of a home is the biggest financial decision/committment they will ever make and all buyers can benefit from a skilled, knowledgeable, and honest agent.  I also know another thing, people in $100,000 homes frequently have friends that live in $300,000 homes and in a business where networking and referrals are king... who in their right mind would not want to give the best service they can in every potential transaction!?

Posted by Paul Royal, Seacoast NH Premier Service (BHG RE / The Masiello Group) over 8 years ago

Peggy, in our area, if we aren't working with a $100,000 buyer then we aren't working with too many people. That's where first time buyers, or people recovering from a financial loss not too many years ago.

Posted by Ed Silva, Central CT Real Estate Broker Serving all equally (RE/MAX Professionals, CT 203-206-0754 ) over 8 years ago

I agree with Ed.  Under $100,000 is what is moving in my area, I would be out of a job if I tried to predetermine the price point I would work with.  It is pretty sad that a client would think that.

Posted by Mary Jo Green, ABR, BPOR (Century 21 Smith Realty Group) over 8 years ago

Great blog post Peggy! Half of the homes in Janesville are under $100k.

I sure would be limited if I didn't help those home buyers :)

Posted by Michael Collins, CDPE, SFR , Wisconsin Short Sale Specialist Realto (*ROCK REALTY|Broker|Realtor|Real Estate|WI Short Sale Agent*) over 8 years ago

Perfect.  Great attitude.  And, you just got a new subscriber.  I am going to check out your other posts when I have some time.  Thanks, Peggy.

Posted by Suzanne McLaughlin, Sabinske & Associates, Realtor (Sabinske & Associates, Inc. (Albertville, St. Michael)) over 8 years ago

Hey! When did all these comments come in?? Sorry I'm just responding now!

Paul -- I agree! I truly believe that if we provide the best service we can -- regardless of the price of the home -- referrals will come our way.

Ed -- It's like that in our area, too. I really don't know how anyone can afford not to work with these buyers.

Mary Jo --It's very sad that a buyer encounters an agent who won't return their call/emails because of price. Not a very flattering reflection on the industry overall.

Rock Realty -- I hear ya! So much of our inventory is slipping to that $100K point -- you gotta work with these buyers to survive!

Suzanne -- Wow! Thank you. You made my day.

Posted by Peggy Wester, Real Estate Agent Ozaukee & Washington County (Realty Executives Integrity) over 8 years ago

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