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Have professional courtesy but don't cross the line.

How professional is this? Hi folks. Let's talk a little bit about professional courtesy. I hear this term quite a bit on AR and in my business. Usually, it goes something like this:

"The listing agent should have told me he had other offers on the property, as a professional courtesy".

"Even though my buyer's offer was a low ball the listing broker should have gotten back to me before the offer expired, as a professional courtesy."

You get my point. Anyway, let me see if I can shed some light on this professional courtesy "thingie". First, I want to say, that anyone who has ever worked a deal with me will tell you that I am very professional in all that I do. I treat my peers with respect. I am always willing to help "newbies" in anyway I can and if I say I'm going to do something, I do it.

But, and it's a big but, sometimes what you are expecting me to do, as a "professional courtesy", is completely against what my customer/client is telling me to do or not do. Last time I checked, I work for my customer/clients NOT my peers.

My job, as a listing broker, is to look out for my Sellers and do everything I can to get their property sold in a reasonable amount of time and for a reasonable price. Sometimes, that may require my Seller and I to "sit on" your Buyer's offer. We may even choose to ignore it completely. We can do that. We may even use your offer to negotiate a better deal with another Buyer. We can do that too.

And you know what? I don't have to tell you I'm doing it. There is nothing unprofessional about that. Your Buyer is NOT my concern. What may seem like my lack of action or response, from your perspective, may very well be a negotiating strategy from my Seller's perspective. Don't jump to conclusions about my professionalism or lack of.

I completely agree that we should all work together and that we do not have to work in a disrespectful manner. We should be professionals in all we do. If you want to be a professional then please remember who you are working for and who is paying you. Your "professional courtesy" could very well jeopardize your customer/client's position. How professional is that? What say you?

Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.com

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Posted by Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc on 10/16/2009 04:43 PM

Comments (101)

Professionalism in the Training Channel

opinion, agency

Originally posted at: BrokerBryant.com: Have professional courtesy but don't cross the line.

Post is included in group: Realtors®
Post is included in group: Real Estate Rookie

101 Comments on Have professional courtesy but don't cross the line.

OCT

Reserved Parking For "The Lovely Wife"...TLW...ROAR!

Hun...

I can never take you seriously when you dress up like a pig. Oink :)

TLW...ROAR!

Bryant,

I can't think of a listing broker I respect more, but if I ask and you didn't tell me. tying up my client it would be the last time I showed your listings.

There is a diffrence between asking what the other offers are and asking if there are other offers. I could live with a lye if you said yes to keep me from knowing no one else wanted it, you'd be betting I write an offer any way, but I might not!

I realize you're not a fiduciary agency, but you hurt my client and we'll tangle.

Bill

I'm with you 100%. Too bad the other agent didn't get her way. As you say, "I work for my client", not my peers. I once had an other agent give me a tongue lashing, left on my voice mail no less, which I did share with my broker and had a good laugh, She was so mad with my counter, already had a very good offer almost signed, that she said if the sellers came back with another counter that she would REDUCE the offer by $20,000. I would have loved to see her face when the listing closed and she saw the price and the terns.

Great post BB. Not sure I get what the x means that TLW & William posted, or did I miss something? Anyways you are right on, as listing agents we have a fiduciary duty to our clients and they come first.

You don't go to your listing appointments in that outfit do you? Just kidding!

I agree with you as far as the professional courtesy 'thingie' goes. You are absolutely entitled to do all that, and more, and not tell us a thing.

However, I also think that, in some cases, and when your client OKs it, telling the other party you already have an offer, could actually work in your seller's best interest. It could bring you a much higher offer, as we see happen here many times. Sometimes people are willing to pay more, when they want the house badly, and there is competition already. They are not willing to pay nearly as much, if they don't think they have competition. I see it here all the time. You get one offer, and then the other one comes in at $50,000 over asking. I'd say it's worth the professional courtesy. :)

You are correct. You work for your client first, but that doesn't give a license for disrespect. I've always found a way to give professional courtesy without jeopardizing my clients position. It can be a challenge and it sometimes takes everything Dale Carnegie ever taught, but it can be done! Great food for thought.

Hi Bryant..Great Post, certainly a common issue in our industry, as a member of our MLS committee, our rules say we cannot lie if the other Realtor asks if there is an accepted offer,then on the other hand the Real Estate Act here says to protect the Seller and do not tell the buyer if your Seller instructs you not to. Personally my experience is if I tell the Other Realtor there is an accepted offer and it's still subject to several things they will Not Show the Home..who knows why. I do and often win deals with my Buyers, writing back up offers. It's hard, but I agree, we're working for the Seller.

Cheers

Mike...

You didn't miss anything. Sir William (Bill) and I are just saving our parking spots. It's just a little game Sir William plays with me. He knows I'm always the first comment. Someday, he's actually going to 'X' faster than me and swipe my spot :)

TLW...ROAR!

@ TLW..... ok I got ya.

Thanks :)

x marks a new spot on AR. Now the truth is out. I believe it will catch on.

I gotta say it took me a few sentences to focus with that pink guy staring at me.

I always try to be professional and courteous when I'm dealing with other agents. But I'm not going to give away the store.

Cheers,

Robin

I say Professional Squat. I am in no obligation to give anyone a "courtesy" however, I do that because I want it to be a pleasant to do business with me. Whether it is in this transaction or the next.

When I am representing a buyer, I expect not to hear anything if my client presents a ridiculously low offer. In this instance it would seem the buyer's agent is unrealic in all aspects, presenting an insulting offer and expecting a response to it. But, I am sure if he was a good agent and presented a fair offer, you would have had more of an impetus to respond in a friendly manner. It is a matter of respect for someone doing a tough job.

One of our fidiciary duties in Oregon to the other party is to be honest. So if someone asked me if there was another offer, I would honestly say "I need to ask my seller if I can disclose that." I'm not going to lie about it because it violates our Oregon fiduciary duties to the other party.

The challenge in real estate now is that the shift to buyer and seller agency has thrown many agents for a loop. Old systems and thoughts are in place and ways of doing business are slow to change. I know out here fiduciary duties are violated all of the time in the name of "getting the deal closed."

Professional courtesy can at times be in the eyes of the beholder. I have had agents send over offers without calling me first, usually lowball, then call to complain a week later that I we didn't respond to it.

Broker B, I think agents need to get the professional courtesy thing really early in their careers.

Hay Guys!

This is why I don't deal in "pork bellies!"

Before we smoke the ham, we need to remember: BB is a transactional not fiduciary broker! Witch complicates the issue even further! As a transactional broker owing his allegiance is to the "deal" is with holding information maintaining that trust or sabotaging it?

Bryant, As of this week I'm officially a Texan, driver's license, car plates, and registed to vote here, so more apropreitly I should be thinking about BBQ!

Bill

Bryant,

I will always respect another agent, I will always help a newbie if asked. But I work for my customer/client. Period!! No disrepect intended.

Bryant, It's all about positioning your client to get the best advantage. If that means delaying an inspection, then delay an inspection. I had an agent get upset that I waited until the last day of the inspection period to ask for what he thought was unreasonable. He said that if I would have told him sooner, he could have rejected it while he had a back up buyer interested in the home. Now that backup buyer moved on and his seller is stuck trying to make it work out with my "unreasonable" buyer. Was it wrong for me to string it out to get my leverage for my buyer?

Hi BB - I do think that some agents think that we are all supposed to work as a team - us against the clients - to get our transactions closed. I do try to work with agents on the other side of a transaction, but my loyalty is to my client. If I receive instructions from my client and they are not illegal or improper, I will follow them and not ignore them to appease another agent.

I never disclose an offer without my seller's consent. Sometimes my sellers actually choose not to disclose the existence and that is their right. Why do agents get so so so mad about that? When I am representing a buyer I always tell them that if another offer comes in, the other agent does not HAVE to tell us. Of course, so many agents have forgotten what their duties are to a seller that they are spouting off about an offer before I have even shown the house. Too bad for their sellers and good for me. Is "professional courtesy" just another way of saying it's o.k. to break the rules for you if you break them for me?

Bryant,

I am also in Florida, and I am also acting as transaction broker, and I am missing something in this discussion, when the term fiduciary is used.

I may be wrong, but my understanding is that fiduciary is only to your Principal, not to the other party and not to the agent representing the other party.

Ao why is that we are demanding all that to the parties to who it does not apply?

It is about representing who hired you. And understanding who we are working for.

Broker Bryant, I agree with you. I also agree with TLW; it's hard to take seriously a guy in a pig outfit. ^_^

OCT

Sorry but the piggie and the pork belly cracks are cracking me up! Leave it to you to be sincere on what you're writing about but making it entertaining too lol

Now...we are being professional when we're thinking in the best interests of our seller.....and that requires negotiation...especially with a couple offers...multiple offers on the table.

Seller has a right to reject, accept, counter or ignore...and that's that.

We live and work in many jurisdictions and abide by different rule books.

Melina is correct about the Oregon rules. We work for our own client but owe honest and fair dealing to all parties.

Bryant, excellent post, very well said, and that's the correct way to do business. At least it's the rules in Florida.

I ALWAYS learn something reading your posts. Time to subscribe now. What have I been waiting for, for Pete's sake?!

Tanya in Montreal

I sometimes believe that agents think they work for each other and it is about what the other agent thinks, that there is absolutely no understanding that there is a client and a client's wishes out there. I hear from agents I know I didn't want to do what my buyer wanted because the other agent will think I am nuts. I have actually had someone tell me that. It's a club. You are so right.

I do agree with you. But I also have some thoughts about how an agent's behavior towards his fiducaiary oblogations to his/her client may burn some bridges withother real estate agents. I guess that's kind of your underlying point?????

Professional courtesy is one thing, as you say, reprsenting your client is another. I think we should undertsand the difference. And, you make a "ham"dsome looking pig! I guess the pink is in support of Breast Cancer Awareness....what is next red in support of the holidays?

Bryant - We cannot disclose the existence of another offer without the seller's permission. I may, however, mention to an agent that someone else has "threatened" to write an offer if I don't actually have one. Only if true, of course:)

Interesting discussion...

I believe it's important for Agents to understand each others position when they're co-broking a transaction together. If everyone understood each other's duties, we'd see much less adversarial attitudes. The attitudes are not in the best interest of the Consumer. They're also not in the best interest of any of us. Our 'tudes do not belong in the middle of a transaction. Yah. I know. Not something you want to hear :)

TLW...ROAR!

My typos...

Have much to do with that stupid pig outfit :)

TLW...ROAR!

This is very interesting. Our listing agreement back in MD/DC/VA had a place to initial where you either did or did not have permission to disclose to other agents the existence of another offer.

I don't see anything wrong with what BB said. His Seller has the right to do whatever he/she wants with YOUR client's offer. To set up any other expectation with your client is not BB's fault, it's the buyer's agent's fault.

Thanks Hun for manning my post for me. Been very busy mailing out to preforeclosures and trying to pull money out of my.......

The point of this post is just to remember who you work for and to remember real estate deals are between the buyer and the seller. Don't take everything so darn personal.

OK I'll be back. I have to go help my son write his first TWO real estate deals!!!

As always thanls for stopping by.

Congrats on your sons first two deals - I'm sure they will be memorable escrows...all positive , of course.

As far as your 'professional courtesy' it kind of goes back to the discussion I started a couple of weeks ago about buyers agents and their multiple offers on multiple homes...simultaneously. Regardless of the position, it certainly does not give any professional courtesy, now does it.

John

OCT

Bryant, I've had as many as 8 offers come in on one short sale this year. I've presented them all to the seller, but never received back confirmation and quite honestly, overlooked calling some buyer's agents to let them know their offer was a "low ball" offer. I normally get right back with the agent, as a professional courtesy.

I've been yelled at, hung up on, and cursed at this year by "professional realtors." All because of these short sales. I'm threatened with "the buyer is backing out" and wants a mutual release, so now I require at least $1000 in earnest money and let the buyer's agent know the mutual release will be signed when the seller agrees to release them. (Usually when another offer is received).

And there's a difference between 'professional courtesy' and 'disclosure' right? :)

First, congrats to Nathan..chip off the ole block! We work for our clients or if transaction agent then for the transaction itself. It is amazing to me still some of the questions other agents ask me concerning my clients..such as "Why are they selling?"... So you have another offer you are looking at.. how much is it so I can beat it? (Not a Short Sale).... Courtesy is important so I nicely say, not telling you or you know I can't tell you. Usually get, "I know but I thought I would ask!"

Several years ago, I took an ethics class where the teacher actually advised us to be sure to "play fair" with the other agent since we'll probably have to work with them again. As I recall, the conversation was about whether or not to use a "first-come first-served" policy when dealing with multiple offers. The teacher said that we SHOULD always work with the first offer received (which is not required in Colorado) out of "professional courtesy" to the other agent.

HUH????? Even that early in my career, something sounded fishy to me. Last time I checked, I legally represent my seller and I really doubt my seller is too terribly concerned about my reputation in the real estate community as a pushover nice gal.

Now, don't get me wrong, I do have a good reputation in the community as a good agent to work with, but not at the expense of getting my client the best deal for him or her.

It just seems obvious.

Amen to this. Im not sure where agents think it's our right or duty to look out for their buyer or them. Dont get me wrong I will ask those questions for my buyer that might gain them a leg up but I know the agent doesnt have to tell me and understand if they dont but if they have loose lips it only helps me:)

A response may not be required, but it sure is nice in some cases. Recently, I made appts. and showed a foreclosurer house twice to a young couple, and gave feedback that they were going to submit an offer. I submitted their offer the next day, only to find out that an offer had been accepted several days earlier...and not from the listing agent when I kept trying to call, but his broker. We wasted a lot of time, and a simple email or call from the LA would certainly have been appreciated.

Bryant,

Great post. I agree with you. If the buyer's agent hasn't heard back as the deadline is approaching or past, one would think he/she would call you. I do view agents as my customers as they are trying to sell my listings and I am trying to sell theirs. I hope to do many other transactions with them. I am a transaction broker and try to treat all customers with respect (sellers, buyers, and agents). But if my seller has instructed me to do or not do certain things, I must and do honor that agreement.

Wow! i am from Canada and our board actually requires us to disclose if there are multiple offers. It works to everyones advantage as it drives the price up. It seems the kind of tactics you are describing is what has gotten Realtors the bad wrap from the public. They think we are dishonest and only out for ourselves. I believe building relationships with fellow Realtors is a must in order to be the best for your clients. This CAN be done withour compromising your client in anyway....Maybe you want to rethink your strategy....after all don't you have to deal with your fellow Realtors on the next deal?

I also want to say....yes we are required and must follow the instructions of our clients, but we are the professional aren't we? I know my clients almost always look to me to help them with those types of decisions....so what are you suggesting to them, that they choose to go that route?

Bryant, yes we have to be courteous to one another. Also we need to take our Egos out of the transaction sometimes, myself included. I believe we, meaning Realtors, make the transaction harder than it should be.

When representing Buyers I always call to see if there is another offer on the property. The other agent my or may not tell the truth for any reason. I ask because in most cases my buyer and I don't want to waste time and kill more trees on a wasted offer. We don't want to make multiple offers on multiple properties like the "seminar buyers."

Everybody has thier own way of doing business. If you're representing the seller and can't or don't want to tell me if you have an offer just tell me, "I can't or won't disclose that." What really gets me is when you say "We don't have any offers and then tell me later you accepted another offer that came in before mine."

Again it's your choice, but it will be my choice about doing business with you again.

Just my opinion.....

Bryant,

Help us out here. Are you a fiduciary office brokerage? Yes or No answer please.

If you are not a fiduciary office then calling your seller your client is a blatant lie accidental mistake right?

I know in our market agents are lying to buyers and sellers all the time related to their agency status, their broker's agency status, and the fiduciary responsibilities they have and their brokerage has. I just saw a contract this week where two different agents from the same brokerage labeled themselves and their company buyer agent and seller agent on the same transaction.

Please clarify for us. Are you a fiduciary company or only a transactional brokerage per Florida law?

I find it interesting that those who "require" professional courtesy, often don't provide it.

And, to those who say, "I won't show your listings if ...," I'd be looking over my shoulder for the licensing commission - you will hurt "your" customer more than an unresponded to offer will. When people find out you aren't showing them properties because you have a grudge, "your" will move to a broker who actually works for the customer, regardless of past insults and improprieties.

Past business conduct of others should not affect or effect showings. A professional does use those experiences in closing the deal for a customer, though.

[We may even choose to ignore it completely.]

Reminded me of that song by Rush "And if you choose not to decide, you still have made a choice."

My thoughts are this: If an offer sent is rejected, the principal may return with a new offer.

If it is ignored, and dies via the 'drop dead' on the offer with no response... dead may also be the chances of receiving a better offer.

Best to at least respond that there is no current response.

Communication is a top professional courtesy and an indication of future cooperation by that principal during an escrow.

Is that really you in there????

As a member of NAR and a REALTOR, you should be abiding by the Code of Ethics when dealing with other REALTORS. That is the least amount of courtesy that every member should expect from each other to remain professional.

Standard of Practice 1-15

^®

with the sellers' approval

Where disclosure is authorized

if asked

Well said indeed. It's kinda like you asking the Buyer's agent, "I see you offered XXX for the home. What is your Buyer really willing to pay to get the house so we can structure our counteroffer accordingly."

Not everyone plays the same game in real estate, or plays by the same rules.

Well spoken Bryant. I've had that same situation, with the [losing] buyer's agent standing in my office doorway screaming at me and threatening all kinds of lawsuits, etc. Now that was professional behavior... ;)

Sharon, I completely agree. And that is basically the point of this post. It's the seller decision NOT ours. Jon Boyd, go back and read the post. I used customer/client on purpose. In Florida it could he either one depending on whether or not I am an agent or just a representative. This post is not Florida specific.

This is quite a good discussion! I too, agree that if my buyer found out that, I missed a good-fit property that was obvious to him/her, due to the availability of info on the web, that they SHOULD be looking for another agent. It is regardless of my hurt ego of a previous transaction.

If you are treated in your opinion less than professionally, make a note of it in your file you keep on the competition and how they play with others. Change your tactics the next time you have a dealing with the other agent, but do not lose sight of your all in all: your CLIENT.

Oh, just so you know Bryant...since the game yesterday, you cannot wear a pig suit in Florida anymore. :) Oh the irony...

all the best to Tutas-empire realty...

I see this all the time. Many times the listing broker and his seller will not meet the terms of the acceptance date and my buyer and I move on. WAITING FOR A TURN AROUND IN THE ECONOMY? Sometimes the offer they FINALLY ACCEPT is tens of thousands less than the one we offered. Takes two to play.

Hi -- Remember the saying, "Buyers and Sellers come and go." Agency relationships are of the utmost importnce, and if you think of your peers are your clients and customers as well, you will give them what you call "professional courtesy." I call it ethical...

Seller has a right to reject, accept, counter or ignore... That is what I tell my buyers. (That will DO PIG!!!! LOL "babe")

When you operate as a transaction broker, you have to do what is right to make the deal work without hurting any party.

When you operate as a single agent you have a fiduciary duty to your client and work exclusively in their best interest and can use any information given to you by the other agent against the other party to get the best deal for your client.

See my blog on this subject.

BB, you said it like it is. Sorry if the other agents feelings got hurt and hid behind the words 'professional courtesy'. Waaaaaaa, says the other agent. BB, you meanie!

You are absolutely correct I work for my client and in his/her interest; no one else.

As always you hit the nail on the head. Easy as 1,2,3, be ethical, be respectful and be responsive to others, with your clients best interest and request leading the way.

We always have to represent our clients and their best interests, no matter what that means unless it is illegal. However, with that as a given, we should be as honest and commnunicative with the other agent as possible. If we do not do this, as well, we could have a negative effect on this potential deal, or deals in the future with other clients. And, in the end, we would not be representing our clients as well as we could be.

I like Tim's comment #20. "Timing is everything".

What always surprises me is that the agents that get most upset by my "working for my seller" mentality are the agents that have been in the biz for a long time. The thing is, we long-timers used to all be sub-agents to the sellers in Northern IL so they should be more understanding.

Hi Judy,

Is that what it is. I have been chewed a couple of times and, yes, it has always been by "more seasoned" agents.

My guess was that it was a seniority thing but I hadn't thought that "back then" I would have been working for that agent. I am glad times have changed.

I tell buyer representatives that unless I have been told by my client that I can release information about other offers that I cannot. I only ask my clients if I can release that information if I think it is in their best interest. Sometimes we do it and it helps get higher offers but often, in our market, letting other agents know there are existing offers can discourage them from showing the property.

Of course, as a team leader, I always encourage my buyer representatives to get as much information from the cooperating agent as they can even if it is the very information I would not give out <g>.

Howard

You are right on the money. There are agents who act like this is a social club and they share info that they shouldn't. Of course I listen when it is to my client's advantage! They will sell out their clients by thinking that "this is how deals get done."

OK let me respond to a few of these comments.

Ben #62 said "When you operate as a transaction broker, you have to do what is right to make the deal work without hurting any party."

That's not necessarily true. It would be true if I were a transaction broker (TB) for BOTH parties. TB IS a form of representation. It is:

TRANSACTION BROKER RELATIONSHIP.--A transaction broker provides a limited form of representation to a buyer, a seller, or both in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent.

If I am only representing one party then all I owe the other party is:

1. Dealing honestly and fairly;

2. Disclosing all known facts that materially affect the value of residential real property which are not readily observable to the buyer.

3. Accounting for all funds entrusted to the licensee.

I am not representing them in any manner at all.

Tim #20 Great example of looking out for yor buyer.

Here are two interesting points of view that show how opinions differ depending on what side of the fence you are on. My opinion is that disclosing multiple offers MAY result in getting a higher price and it MAY result in losing a good buyer who doesn't want to participate in a bidding war. It depends on the situation. Check it out.....

Jeanette #46 states "Wow! I am from Canada and our board actually requires us to disclose if there are multiple offers. It works to everyones advantage as it drives the price up."

Does it? According to.......

Dale #49 who wrote "When representing Buyers I always call to see if there is another offer on the property. The other agent my or may not tell the truth for any reason. I ask because in most cases my buyer and I don't want to waste time and kill more trees on a wasted offer."

So by disclosing multiple offers to Dale you may very well have cost your Seller a lost transaction at a higher price.

BUT...this post is not about when, how and where to disclose multiple offers it's about doing what our customer/clients ask us to do regardless of whether or not we feel it will upset our peers. AND it's about being professional enough to understand that the other agent's responsibility is NOT towards you and your customer/client. Quit taking it personal.

Your posts always garner extreme opinions...You work for your client first. You need to do what is in their best interest and what they have authorized you to do. You don't have to disclose the existence of other offers on the property. That isn't in the laws of agency. I too call to find out about other offers on a property, and yes, some agents will tell you and some buyers won't want to bother, so their offer couldhave been better than the other ones, but you'll never know. Good points and great post!

Brian, it's a tricky proposition to read your rather on point comments about professional courtesy while you are pictured wearing a pig suit complete with nose next to your blog While this may all be great fun for you, and you may have some clients who think of this as quaint, I think you do the real estate industry a disservice by emulating the behavior of Texas's used care salesmen or by trying to be the "Crazy Eddie" of your market...Would I trust my surgeon if he advertised in this fashion? Probably not, nor, would I think would many consumers out there would either...and this is not even mentioning your lovely wife dressed as a dominatrix complete with whip. What is that about? Sooooo, as a professional courtesy, why not try to don a tie and coat and look like a "professional" (at least for Halloween)?

Coat and tie? I live in Floirda. It'll never happen. Thanks for the suggestion though. Lighten up. I'm a broker not a politician.

Is it time for a "redneck counter offer"? ;)

I agree completely. for comment #2, I used to think that put me in a little bit of a pickle. If they don't ask then I don't disclose. But, if they ask, I don't want to lie and be unethical, and sometimes I would stumble over my wording... But, in a post written by BB in the past, he helped with this and now I use his a playoff of his phrasing... " I am sorry but if we did have other others, that information would be confidentially, however, currently, the property is not under contract and is available for showing..." LOVE IT!!

First and foremost you have to know who you represent in the transaction. If it is in your client's best interest to do or not do something, then that is what you should or should not do. If you can also do that while at the same time be courtesy, professional, and respectful to the other party, then you should strive to do that. I've found that most of the time they are not mutually exclusive.

Very funny Bill!!! I think you are right.

Well thank you Jennifer. "As we speak this property is still available"

Don you are spot on. We can do both. Our job is walking this line without crossing it either way.

Great post BB.

As far as creating good relationships with other agents, Professional Courtesy would be great in an ideal world. But we don't live there.

We can not step over the line of agency or duties that we owe to our current client. We can not be concerned that we have to be offering this courtesy because we have done deals with an agent before or may have to work with one in the future on another deal. Your current buyer or seller that you are representing want to get the best terms and conditions in their best interest today. They most likely don't care what kind of deal you will get for the next 100 clients that you will represent.

For those buyers that don't get a response to a bad offer, make a better one (reasonable) the next time you get a chance.

Great thread.

I agree with BB that we work for our sellers and must do what they tell us to do. However, as far as responding - or not - to offers, my feeling is to acknowledge every offer that comes in with a "Thank you for your offer. I will present it and do what my client asks me to do." I do it with a smile and a pleasant voice.

I don't think it is right to leave the buyer's agent and their buyer "hanging" after an offer is presented, I don't care how low or "insulting" the offer is. That buyer's agent is only doing their job in presenting their client's offer. So it goes both ways - as listing agents, we shouldn't take an offer on a personal level. Just acknowledge it and move on.

That, to me, is professional courtesy that doesn't hurt anyone and everyone is validated.

OCT

Our clients need to be our priority, and I can understand many of your points.

Interesting how it tends to lean trowards personal when it is really all about business.

I often send my clients an email, outlining how I would like to proceed when we receive offers and detailing the steps I expect to take on the client's behalf. I then ask for their permission to follow those procedures and save the email. One never knows when one might need it.

Sometimes, buyer's agents get a bit testy with me on the phone, citing instances where they operated differently and demanding that I do the same. I say professional courtesy is a 2-way street, but I always follow the instructions of my clients.

There are a few things.

First of all, at least in California, If asked if other offers have been submitted, you must disclose the number of offers received and the names of the brokers who submitted those offers. You do not have to give them more than that.

If you are a member of NAR, then you agree to abide by certain rules. One of them is cooperating with the other broker in the transaction. No it does not mean you do something against what your principle has instructed to do.

You almost got what your responsibility is, on a listing, you are to obtain the best offer, not the most reasonable one.

I you ore representing a buyer and their offer is a low ball, as their agent/broker, you should let them know that in your opinion it is a low ball and very possibly the seller may not give any response (which is their right). As the listing broker, if a buyer is asking about an offer submitted that your seller does not want to respond to, you do need to tell the broker their seller is not responding. You can't just ignore the question

I see two sides to this. One side is the buyer who wants a good chance to get a offer accepted. When the buyers agent asks is there another offer, it may be trying to get an idea about how much to offer. If the lister says no, when they really do, they may be missing an opportunity to get more for their seller. If the buyer thinks there are no offers, the offer may be below list price. If they know there is an offer, & they really want the property, they may offer full list or a little more.

I had this experience earlier this year. My buyer was putting an offer on a REO listing & we were told nothing about any other offers. The buyer decided to offer a little less than list & then after the fact several days later, we were told the seller went with the other offer. Turns out the other offer was about $1000 over list. I think my people would have beat that if they had known & they were cash buyers. So the listing agent did a dis-service to his client by not telling us. IBoth myself & my buyer were really upset. They lost a great property & I lost a 4% commission. My buyers felt I should have known & I lost them too. Do you think I'll put in offers on that agents listings again? I'm not sure, but I'll think twice.

Re: your response to Jeannette from Canada - I already sent you a copy of the law in Ontario that mandates we disclose the number of competing offers to all parties making an offer.

This is in our clients' best interest as any party making a low offer may well offer significantly more once they know there is competition.

It is also in the consumer's best interest (including the best interest of the Buyer Agent's client) as they do not unnecessarily lose the opportunity to offer more for a house before someone else snags it.

You asked Jeannette "according to..." but I just sent that to you last week.

As I read through the variety of interpretations possible in other jurisdictions I'm quite impressed with the job RECO has done in Ontario tightening up agency law to protect the consumer and simultaneously ensure we have clear grounds for representation in the clients' best interest.

Great post! I have been on both sides of this coin, business is business....at the very least I like to know that the seller has seen my buyers offer and also that a buyers agent knows that his offer has been seen by my seller by getting initials on the offer so I/they know it has been properly presented to the other party.

We have a multiple offers form we use which will require the "best and highest" offer be submitted by a certain time and date. The timeline levels the playing field and allows a seller to get even more offers by stretching it out a bit. Besides, as we all know, terms can be as important as price, sometimes better terms will beat a higher offer.

Barbara

Newport, Oregon

Bruce good to see you again. Yes I understand this is Canadian law as it relates to agents. My point in referring to her comment was actually tro relate it to the comment from the other agent stating that he would take his buyer else where if he knew there were multiple offers. So...I completely disagree that disclosing multiple offers always results in getting more money for your seller.

There are many buyers that would walk if they knew this. Now I guess this could depend on timing as well. My thought is why in the world would we disclose multiple offers to a buyer that hasn't even made an offer yet. I can't see where it would be any of their business.

But again this post is not about multiple offers. It's about taking instructions from our customer/clients.

Bruce, I meant to add that I am not in favour of any law that would dictate how a buyer or seller must negotiate. These laws are to protect agents and do not protect the consumer in any way. Whether or not to disclose multiple offers should be the decision of the seller. Not the agent. And certainly not law. Unless I read the law incorrectly it only applies to agents. A FSBO in Canada can negotiate the way they choose. This alone shows me the law is to protect agents not the public.

Howdy Broker Bryant - appreciate the detailed responses again; you do foster good discussions, thank you.

You are correct the law does not apply to FSBOs. The purpose of the law is to protect consumers from Registrants who might otherwise behave illegally or unethically.

You are correct there would be no reason to disclose number of offers to a buyer who has not made an offer - the law requires us to disclose the number of offers to all parties that have made an offer. No offer? No info.

And no, disclosing the number of offers clearly does not always result in higher offers. From that perspective the law attempts to equally protect all consumers - Buyer and Seller. A buyer making an offer on paper has a right to a certain amount of information - they do stand to lose a potential purchase where they may well be willing to offer more if they know there are other offers. You're right of course some buyers will back off - but the theory is that Buyers negotiating in good faith and not under duress in a free market armed with up to date data about pricing in the market, will generally pay what they perceive to be market value. So they probably walk when they feel they will have to pay more than market value, and they probably raise their bid when they feel they are still getting good value. In this way the law also works in the consumer's interest.

Yup...

It's that time. And Hun please don't do the suit and tie. You would lose my respect. It ain't worth it :)

Video: Property of TLW and Roar Productions.

TLW...ROAR!

And this professional courtesy thingy plays out in other scenarios. There is an agent in my small town that almost every time I call to ask a question about a property (because info in the MLS typically sucks), she tells me to hurry up and write an offer because someone else is bringing an offer. Then I never see the status change in the MLS except for a price reduction or going expired. Hmm, wonder why all these "offers" do not come together? Don't try to BS me into pushing my clients to write an offer on this, thanks.

Another thing, I would never draw a line in the sand saying "I will never show your listings again" - how are you going to justify that position to your clients? Refusing to show someone else's listing that may be a perfect fit for your clients because of some history smacks of unprofessional indeed. We all have to deal with people that maybe we would rather not, but isn't this part of the territory?

Thanks, TLW...I needed that.

OCT

GREAT points made on this post. It is definitely something to think about. Professional courtesy and all the situations that it applies....

OCT

Well Bryant. I think that you have an obligation to get the highest and best offer. However, if you are already at the point of accepting an offer that is already at the highest possible price...then (maybe) let us know so that we don't waste our time.

OCT

Bryant, Well said. The idea that I am the buyers agent's personal assistant to remind them, cheer and inform them of the status of the offer on a listing. When I submit offers, I call them. Next I will resend if I do not hear back. I will put an expiration date on my offers. If need be I will put the proof of submission form in there too. As a listing agent, you want to solicit mutliple offers. Get your client the best deal. Some people saw a pig, I saw a professional. I hope this helps.

Tony Barker, Houston Texas Real Estate Broker

Premiere Home Realty Inc. 832-867-0835

Win-Win or No Deal

I agree with Verlyn. Our industry is best served when working at a "higher" level, and I think we can best serve our client's interest and still be respectful, professional and courteous at the same time. I think we should be appreciative of offers that are brought to us on our listings, and treat them accordingly. Courtesy and being a tough negotiator are not necessarily at opposite ends of the spectrum.

OCT

haha, between the pig comments and then @candacedonofrio throws in Rush and it all made it worth it for me to read thru all comments. Very interesting discussion. I believe in professional courtesy but also I believe in the goal of a client (a real estate seller) and the duties of a real estate agent to a seller and bottom line end goal....get the home sold.

OCT

BB, The Client is in charge! As long as it's NOT illegal/unethical, I'll do it! ( Well, maybe not EVERYTHING!LOL!) Kathy Opatka

NOV

Bryant,

Your posts have been very helpful to me as a new broker. There is a major difference in being an agent and a broker as far as liability goes. Your principals are right in line with the NAR code of ethics...not the good ole boy code of ethics. I have read your posts and the code of ethics and you are right on. Thanks for showing practical examples. You are only required to disclose accepted offers, and we do what our client's advise us to do, it is that simple.

Clayton Bonjean, Broker

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