Tips for dealing with clients whose expectations are unrealistic?

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The best thing would be to look for an option really close to what they want, this way they will not see that they are being given a refusal but that they have a solution available.

It's not easy, but you can present the realistic option before telling them that what they are asking for is really impossible.

This is where you have to be a bit cunning imo. Suggest other cheaper/more realistic options but don't necessarily tell them it's because they're expectations are too high and see if they fall in love with another property

Yes, if you tell them straight up they can't afford what they want, that might hurt their ego, and you risk losing a client. Tact is key

What exactly are these unrealistic expectations that they have?

Really depends on the client, so you need to get a read on them. Some people like to be told things bluntly and clearly while others might have to be coaxed into accepting they might not be getting what they expect

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