Is it $62K overpriced?  Has it been on the market for any length of time?  If your answer is No then you might explain to her that unless they can qualify for $62K more (and they might, they just might of thought they didn't want to go any higher) then you don't want them disappointed if they fall in love with this house and they can't afford it.

Jana

Like Jana, I would talk to them about their ability and desire to purchase at the higher price. I think it would be a great oportunity for you to have an indepth conversation with them about why they should/shouldn't consider these homes. Plus this will allow you to find out more about your client (assuming they aren't old friends) and also opens the ball for future discussions down the road.

Quite often, we find out too late about a buyer's true ability to purchase!

Howard, I would show it in a heartbeat. She already knows what it is listed at right? If she thinks she can offer that much less and get the house she will probably have some waking up to do. Show it, she probably has extra money.

Yep!

Ditto, I'd show it.

Reiterate the list price. Reiterate what they are currently qualified for. Explain they'd need to get re-qual'ed if they want to offer over $400K and show and sell that baby!

Absolutely...I would show it!  If they can can afford $400K they can afford another $62K.  It just an extra $300 dollars a month.

Good Luck!!!

www.calgriffin.com

Edisto Beach-Now That's Heaven!

I would show it too! I had customers that went way up on their price when they fell in love with a home priced much more than most we had looked at and once I personally spent much more on an investment property that I fell in love with so good luck because it may just be that one special house they fall in love with!  

My earlier comment was meant to be along the same lines as every one else here but I am not sure it came across that way. Now is a great time to find out if they can afford a little more.

How many times have we had a buyer that just couldn't find what they wanted at that price only to find out later that they could actually afford to pay more but thought they could find a bargain.

I would talk to the client about whether the higher price point is an option for her I I would certainly SHOW IT... if you don't show it to her, someone else might ... if you can work it into your showing schedule with the homes that are in her target price range, then why not. It happens all the time that buyers don't find what they'd like in their price range and look a bit higher.

I agree. I would show it no problem. I was showing properties up to $350...what they said they could afford. While out we looked at a $439 townhouse in the same development and bought it for full asking.

Let us know if she buys it!

I would make sure she can afford it first.  If she can't you may have a very disappointed buyer and the ones she can afford will be compared to the one she can't.  Worst case is she won't find anything else she likes or is 'as good as' and you just lost a sale.

And you may want to talk payments rather than approval price.  I see clients turn white when they hear what the monthly payment is at 5% for $450k. Unless you want to resell if they lose it....

In our market I definitely would, people are willing to take a lot less than what properties are currently listed for also you do not know sellers current motivation, sometimes things change which make their reason for selling more urgent.

Usually when I get a qualified buyer, I receive a pre-approval "up to a certain amount". Do they issue pre-approvals with such a wide range?

Anyway, you show the 462 home and it'll make the homes in her range look like efficiencies.  You don't show the 462 home she'll find someone else to show it.  So if this is your only client, show her the home.  If it's not, tell the client that the listing agent is requiring only qualified buyers see the home.

No questions about it.....show the client the home.  Affordability is only one issue.  If the client were not to be able to afford the home it may still be worth the "exercise" to see what the extra $$$ will buy.  Future showings may go that much easier after this "basis for comparison" and a contract may come quicker.  Either way you have nothing to loose but a little time. Be cautious only "if and when" this trend were to continue.

Cost vs Benefit

Cost = your time to show the home ... 1 hour @ $?

Benefit = sell the home ... $450k @ 1.5% = $6,750

Hmmmmm

Howard, I just had a thread similar to yours.  I did go ahead and show the home my buyers wanted to see that was $149K over their qualifications.  I dragged my feet on it and my buyer somehow got approval from Lending Tree for the amount. The house was a real bummer-We had expected so much more!  Needless to say, with that out of the way, we are now focusing on where they should be with the original amount.

Show it, buyer might have more to spend you don't know about.

Put it in the bank.

Hi Howard, I would show it to them, I don;t know how many times I have had a buyer want to spend 300-400 and ended up spending much more. I would have the conversation and see if they like would they be able to swing it, but as you know many people think they can find something in the 300-400 range, and once they see what they can get at that they decide to go for more. Good luck...

PS I have several listing in Mt. P in the 300-400 range, Let's MAKE A DEAL!!!