Keeping Your Mouth Shut When You Know Buyers Are Getting A Crappy Deal???

Follow the Golden Rule but also keep in mind that everyone has different taste.  If it has to do with pricing yes, if it has to do with style, no.

If they are my buyer client, I feel I have a duty to give them my honest opinion.

I have read some of the comments. Remember that we can only stick to the factual evidence. I saw one post about steering them- we are not allowed to steer them in or out of one community or another. I stick that rule because I value my license and don't want to lose it. I am up front with my clients and let them know that I can provide them with factual information, such as school district test scores, but can not tell them whether an area is a good area, bad area, etc because we are not allowed to steer. If we were, agents could determine the socio economic, ethnic make up, etc of any given area.  I know this is tough. I have had some buyers buy in places I questioned (my own sister did despite much of the factual knowledge I gave her), but in the end, like someone else said, we are dealing with adults.  Great post.  Good luck. 

While I know there are things about a neighborhood we can't talk about, resale in that area is certainly NOT one of them.  Show them the data, the slow sales, the lack of comps and suggest other areas that do better.

I always give my opinion, but would back it with factual data such as past sales, comps in the area, etc... In my opinion, it is why they hire you- because you are the expert. It is tricky though.

I would be darn tempted, but yet at the same time I would be scared anything that I said might be misconstrued as stearing!

Ethics!   If it's a bad choice, tell them.  Present the facts and let them know how you feel.

If it is is a REALLY bad decision (a Medical Waste Incinerator is being constructed across the Street, or similar), then put your "Warning" in writing and have them sign off.

Melissa

Seems to me you need to tell them what you know, and suggest they look at the total picture before they make a decision. Obviously the final decision is theirs but they need to make that choice based on all the information.  Bryant makes and excellent point - I don't need to repeat it.

Jeff

I don't think "keeping your mouth shut" is always the best policy for one's clients. I don't lead but do get them all the info I can. And I too like your blog wall paper.

It's our duty to give them the good, the bad, and the ugly. I don't hesitate to tell someone of the neighborhood is a piece-o-crap. :)

Melissa:

You have to give the buyers all the facts including your opinion.  Let them look at other areas then if they still want to buy the house let them do it.  But be sure to give them all the facts about the neighborhood.  That is all you can do.

Melissa, I feel your pain!  Here is what I do in this instance...It is unlawful to "steer"...with that said...I tell my clients when they find the house of their dreams I then put on my "listing agent" hat.  This is what I say, "I am hoping that you are so satisfied with my service that when your needs change and you go to sell this property, I am hoping that you would call me to list it.  Here are the facts that I would tell you about listing this property and what the downfalls may be in the future to sell it."  Then I go about telling them the comments they may receive from potential buyers...example: 4 big bedrooms would suggest that a family with kids would be interested in this property, but it has no yard for a swing set. While the decor is attractive, keep in mind that paint and carpet are relatively cheap in the scheme of things. There is only one bathroom and it doesn't come with a tub, so you may have a future buyer that likes bubble baths, what do you do? You are shrinking your buying audience unless you add a bathtub and to what expense? While it is a convenient location, what does the traffic from the highway sound like when you are having a backyard barbeque?  Gosh, the new kitchen cabinets are great, but there isn't much counterspace, where does the microwave go? If the market continues at its same pace, properties in this subdivision are losing value due to the amount of foreclosures, so you may be stuck here a while longer than you plan for. Nice 2 car garage but how does one jockey around that bend in the drive without hitting the house? In short, find the flaws and make them think about it. Ultimately they will make the decision that they feel is best for them but not without you piping up and showing them the WHOLE picture. ;) It may be that your buyers are hung up on having a brand new shiny first to be lived in house....ever consider that new construction has some bugs that may need to be worked out?  Give them lots of questions to help them consider all aspects.  Good luck

Melissa - just a few thoughts: Your conscience is already providing you the answer since you are asking the question. Never go against your conscience.
I see too many agents think in such a short-term oriented manner and they end up losing lots of money (and goodwill) in future referrals - you always need to think about future streams. If you tell them in no uncertain terms that you are giving them information in order to protect them, they will not leave you but will be a customer for life. And, you will then attribute future referrals back to this couple. Just my humble opinion.
Wishing you every success....

I would definitely state facts but be very careful about expressing any opinions that can not be backed up by published fact. To me it would be okay to say, "It doesn't seem to meet your criteria." or "homes on busy streets are harder to sell" and of course to disccuss the comps. But I would say nothing about that particualar new home complex in case it comes back to haunt me in the form of defamation charges.

I guess it all depends on who you represent.

If you are a buyers agent I would think you have to tell them those thoughts.

In this area we are seller's agents - so we cannot talk them out of a house. It would not be in the best interests of the seller, our client.

Meliisa, Comedians and Realtors should be able to ddeliver the lines the same way.  For instance, Dennis Miller, would say, thats Just my opinion, i could be wrong.  Or maybe just triple speak them in the genre of Abbott and Costello, so they have no idea "Who" even bought the home.  Its incredible the counterintuitve position that a buyers agent is forever in.  Great post.

I have taken the road to advise clients on the facts on a property even if it's a "crappy deal" which I don't have a problem pointing out.  I do my best to educate clients so they can be informed before making a decision and so far no one has purchased a problem property.  I dig deep to figure out what a client wants so I can steer them away from bad deals.  Believe me that maybe previewing a lot of homes on my part, but the deals get done and no one's time is wasted.

It's best to get your opinion across with market statistics!