There are so many great deals to be had with historically low interest rates. Yet there are buyer agents running around having buyers present ridiculously low offers on properties priced to sell. These buyers never do get an accepted offer.
Is the buyer agent representing the buyer in a professional and ethical way? I don't think so. Not if the buyer is looking to occupy this home with their family. Interest rates are bound to go up. Inflation is on the rise. Have you bought corn or eggs lately? Inflation is all around us. It just hasn't hit the indicators that measure inflation.
Lets take a $200,000 mortgage at 4.5% for 30 years. P&I = $1013/mo. A 6.5% mortgage equals a $1264/mo payment. $251/mo x 12 months = $3012/year. In five years it would have cost you over $15,000 in increased payments for the same home. The professional buyer's agents points out that terms can be more important than price.
Most buyers work around their budget. They make a decision to spend $1500 a month on their mortgage payments. As the buyer's agent you want to get the most house for their monthly payments. Stop nickel and diming the transaction. The buyer gets a great deal with a low fixed rate mortgage in a community that they want to live in. Make it happen and don't get in the way of the transaction. Don't advise them to make a such low ball offer that they will never buy a home.
Don't get greedy!