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Giving Away the Farm

Ever have a buyer or seller express frustration over not being able to "talk" to the other party? Occasionally, I have to remind my sellers it's not a good idea to be present during a showing, because you just don't want to let something slip to the "other side."

storm coming My sellers, as smart as they are, don't believe they would be so foolish to let "the other side" know personal motives. But I know better...

As a showing agent, it's very easy to get a seller to talk. In fact sellers they stay at home are usually very chatty wanting to make a good impression on the buyers and me. Sometimes without even trying I can learn things they shouldn't be tell me.

What kind of things? Helpful negotiating tibbits. Tidbits that can strike right at the heart and soul of the deal.

Knowing how easy it is to learn "goodies" from the other side, my suggestion to Not Talk to the other side stems more from wanting to protect my clients than keep something from them.

After all we don't want to give away the farm.

Posted by Kristal Kraft ~Denver Real Estate~303-589-2022 on 09/26/2006 12:48 PM

Comments (23)

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Originally posted at: Denver Real Estate & Relocation: Giving Away the Farm

23 Comments on Giving Away the Farm

SEP

2006

Another reason to ask the sellers to leave during showings.

KK, its hard not to draw out stuff the seller's agent would be appalled to have me know when the sellers are present and I am showing a home. As well intentioned as they are, sellers who stay during showings are their own worst enemy.

BTW you are 7 posts away from 200. I can't keep up with reading you (or anyone else). You keyboard is on fire, Ms. Kristal.

200! Pssst. that's 2 days work for a Bloodhound or Ardell.

KK, just sent you an email off list. Looks like my phone is playing tricks on me with email. Funny.

NO MF, It's not you, it's on my end. I got that and actually thought it was MF! (no glasses on...)Anyway had I seen the right initials I would have put 2 and 2 together...

Yes. A colleague recently had his seller contact a buyer to tell them that the offer was crappy but he accepted it anyway. How is that going to help, I ask?

Guess the seller figured he let him know he wasn't happy but that's ok. Somethings better than nothing. who knows.

Seller's don't even realize what they do to themselves. I try to explain to them that the most innocuos comments can come back to haunt them,

Moo

We had a seller that demanded an Open House every Sunday and she stayed home (always had freshly baked cookies in the kitchen). It was impossible to show her home with her and her husband there. They wanted to "lead the tour". It didn't work well for us.

Jay and Linnea Hanley

Keep them as far apart as possible until settlement, which in Maryland is in the same room. I have rarely seen any benefit to buyers and sellers getting together before the deed is signed and keys passed. I do like for sellers to give a final tour of the house after settlement.

I'll bring the home inspector at my expense to show the buyers how to operate the systems before I let buyers and sellers get together before settlement.

I've had contracts ALMOST fall apart because:

The buyer tried to get the seller to leave his beloved tractor.
The seller objected to the buyer mentioning that they planned to replace the (carefully planned and expensive) landscaping in the yard.
When walking around the house, the seller mentioned that the spot with the little rock under the dining room window is where they buried their dog after he was hit by a car in front of the house.

Anything can happen. Best avoid direct contact until after settlement. And at all costs, avoid post-settlement and pre-settlement occupancy agreement. They can be deadly and traumatic.

Lenn Harley, Homefinders.com, http://www.homefinders.com

Serving home buyers in Maryland and Virginia

I had quite the opposite experience when I bought a house in Sunnyvale, CA. The sellers were in their late 70's and in less than good health. Having them out of the house was not an option. The mid-centurry modern "Eichler" home needed some fix-up and deferred maintenance, but was in otherwise sound condition. Perfect for me and my family!

We went to see the house with our agent and we learned from the sellers how much they loved the place and hated to leave after 30+ years, but health reasons are forcing them to move closer to family accross the country. They really loved their house. After the showing, we worked with our agent to write an offer. Unfortunately, 5 other offers were to be heard, including ours, on the same day. We were distraught because we oferred as much as we could and knew there would be other higher offers.

We went to a local bookstore a bought the sellers a book to be included with the offer, entitled Eichler Homes - Design for Living.

The book was a celebration of the home they lived in and we wrote a note in the book cover how much we admired the house and would take care of it after they left.

We won the offer and were not the highest bidders. It was due to the sellers and us connecting on a personal level sharing love of a quirky style of home specific to our area.

This may be an exception, but don't underestimate the strength of a strong personal connection and shared values during a transaction. It is not "just business" all the time.

This rule also goes for tenants. I sold a duplex where the tenant hated her landlord. She stood in our way so we couldn't see things well, trying to make the sale hard on the seller. So I said to her, "you must be really glad your landlord is leaving and you're getting a new one". Her demeanor changed after that and she became so helpful showing us everything around the house that needed fixing, lol. She told us about the neighborhood and the neighbors. My buyer ended up buying the house, I think because he felt bad for her. She pointed out to him all the things she had to fix herself because the landlord refused to do it. My buyer told her he'd buy the house if she promised to stay. I could easily see it going the other way, though, having her point out too much work that needed to be done.

Generally having sellers in the house during a showing is a big NO-NO.

However, as a buyer's agent, I'll smile and hope that the sellers tell us something that we can use. And, generally, they do.

And, I've found that many times if the buyers write a letter to the seller to be presented with the offer, the sellers will accept that offer more readily. Of course, the letter says nice things about the house!

About 2 weeks ago we had a seller home who kept talking to me & my buyers, he was so chatty & followed us out and repeated twice "please buy my house". It was so funny. My clients were ready to offer more until I pointed this out & recommended a lower offer - which he took. He's been in the property since it was built so he's making a huge profit regardless & was ready to move back up north near family but it saved my buyers quite a bit.

We had a situation with a listing of an elderly customer who behind our back found the phone number of the buyer of his house and reduced the price by $100,000! As much as we explained what his house was worth, he could not fathom selling his own house at such an extravagant price (the buyer had already submitted a full price offer). Not only was it a nightmare, but all the neighbors' in that block now think that we underprice our listings and give them away.

Kristal, I whole heartedly agree with you,,, I wanna protect my clients as much as I can. And it's always best to use an objective strategy and not an emotional one and we all know that no one loves a house as much as the owners (sellers) do...

I tell my sellers about what happened with another agent's listing. Her sellers, elderly & original owners, were there for the inspection. Whenever the inspector noted some flaw, the seller said, "Oh, I'll fix that."

So the Remedy Request was 4 pages long and listed everything the seller 'agreed to'.

Paul, While your story is moving and very sweet, it is the exception to the rule. For everytime something like your experience happens tens of hundred don't. I am glad for you it did work out. Thanks for sharing it with us.

Lenn, you are so right. People get attached to the damdest things. One wrong remark, even made lightly can cut deep...

Jay & Lennea, Cookies at an open house are great. They should bake 'em and leave!

Crystal, your wise words certainly changed the tenants "reality". We need to remember that technique.

Ines, I wonder if your seller disliked his neighbors and wanted to "get even!" Funny story...it takes all kinds!

Dan, educating our clients even when they don't listen is our job...

Thanks for all the great comments guys & gals....

Elaine, I've had that happen too. I think it's a matter of pride, the seller wants to deliver a home that's absolutely perfect. It's a reflection of themselves.

SEP

2006

Yes, sellers that have to be in the home are impossible. Thats when you fire yourself!

Sellers aren't the only ones that give away the farm, agents do it all the time. If you stay on teh phone with me for more than 10 minutes I will get your clients bottom line out of you. Never fails.

Know what I am bloging about next.

Ken, you are sooooo right! Agents need to zip the lip. Go blog man!

I ALWAYS tell my sellers that they are best served not to be home when their home is being shown. I may have to print this post out and give it to a few of my sellers that want to be home for all showings! Thank you.

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