I remember years and years ago taking a college class on Business Ethics.  I always found it interesting how students with different backgrounds could argue over an ethical debate based on their different life experiences and morals.

It is a agents job to represent their client to the best of their ability.  To get their client - the best deal and to follow (within limits) the instructions of their client. 

These things being said; when is it OK, if at all, to 'bluff' or use 'white lies'?  Now my Grandmother always said, a lie is a lie and they are always wrong. When and where should an agent draw the line?

Of course time and time again I have negotiated real estate deals for clients.  Getting them the best price and terms on a home sale or purchase is an art.  Of course I know when my seller will go down another 10K or my Buyer would go up another 15k - but I don't tell the other side this.  A Lie?  No - I am just withholding information.

Now what if I say; "There absolute max is $x" and I know they can go higher?   A Lie.  Instead I would say something like, "This is the offer we put together, and If you counter, I will present it and we will see what happens."  Answering a direct question with a direct answer - requires truth or lies.

Probably every Realtor has heard (or said) the phrase; "Well there are other offers coming in on this property."  Truth? Bluff? Lie?  If I had a dollar for every-time I was told an offer was coming in - I would have long ago retired!  How about; "I have had x-number of agents tell me there are other offers coming in."  That sounds a bit more truthful.  ---If it IS true!

Telling another agent; "There is another offer coming in"; if in fact their is not - is a LIE.  Right?  Or is it BLUFFING in hopes of the 1st set of buyers will raise their offer or accept the counter offer --- is it?  

What if your client tells you to "LIE" or "BLUFF" ?

Every business person makes these decisions everyday.  Real Estate agents are no different.  I have had clients ask me to say things that are not true, in hopes of bluffing the other side of a transaction.  I simply say; "I can't lie - let's say this instead"; and always offer an alternative response that does not give away our position.  

If the other side of a deal every catches you in a lie - the whole rest of the transaction (and your reputation) is in for a rocky ride.

How we choose to do businesses and how we decide to interpret the ethics and standards of conduct is important.  Not only for the shear purpose of showing the general public we are above reproach, but the fact that bad Karma - can bite you in the butt !

This post is dedicated to the agent who may or may not have "bluffed" this week on that infamous "other offer".  Can't wait for the Home Inspection!

Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!

Office: 202-362-5800   Cell: 703.244.3971

Licensed in Washington DC, Virginia & Maryland.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100 * Washington DC 20016