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Whose Business Is It Why a Seller is Selling?

By John Occhi

Services for Real Estate Pros with AZ Veteran Notary Services CA BRE 01444168

January 16, 2007 01:49 PM

Whose Business Is It Why a Seller is Selling?
By John Occhi, Hemet CA REALTOR
Hemet CA Real Estate

When a seller lists their home for sale in the MLS they are typically doing so with the assistance of a REALTOR who acts as their legal agent in the transaction. They are expecting a buyer to materialize, who will also typically be represented by a Realtor who will be acting on behalf of the buyer as their agent.

The transaction does not happen in a vacuum.

The buyer and his agent will want to do their due diligence on the property which very often determines the motivation or reason of the seller so that an offer can be crafted that will meet all of the sellers needs. After all, the buyer is buying real estate, not a magazine off the newsstand with a published price and value in the upper right hand corner.

Perhaps the seller is in a distress situation and would like to see a little more cash in the deal. Perhaps the seller is retiring and would appreciate carrying back a note and further securing their retirement.

So why would a seller, through his REALTOR tell the buyers Realtor that it was none of our business why the seller was selling? Either we liked the home or we didn't. Everything we need to know to write an offer is either in the MLS or can be found through the Title Company I was told.

I can just imagine trying to get through a 30 day escrow with these characters. After discussing the merits of the property and the attitude of the sellers we decided to pass and write on a much nicer home that just came on the market, right around the corner.

I wonder how many more homes will come and go off the market before these guys wizen up.

Now Have a Blessed Day,

John Occhi, Hemet CA REALTOR
http://www.johnocchi.com/

Comments(8)

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Wayne Sellers

Global Realty Marketing - Franklin Township, NJ

Hi John,

In reality, the seller has a right not to tell you why he or she is selling. I do think that the seller could have said "none of your business" in a nicer way. One reason why it is not in the best interest of the seller to disclose the reason is that there are alot of potential buyers that will attempt to take advantage of homeowners who are in distress by making very low offers. If the property is in foreclosure, then we as real estate professionals have ways to obtain that info and pass it on to our clients without approaching the seller.

The only other reason why I would see a seller disclosng why they are selling is if it is for any environmental reasons.

Take care

Jan 16, 2007 02:03 PM

John Occhi

AZ Veteran Notary Services - Marana, AZ

Mobile Notary Public/Certified Loan Signing Agent

Wayne,

Thanks for the comment and your thoughts and I agree the seller has no obligation to disclose motivation and yes, if the house is in foreclosure, I do have ability to figure that out on my own.

I know when I am the sellers agent, we alsways discuss the message that will be relayed - I refer to it as packaging.

However regardless of what side of the transaction I am on, I always want to have a dialogue with the other ogent that will help structure the deal before it is submitted. I believe by having open communication before hand we can usually package an offer that will go through the first time. No sense asking for something that won't happen.

Now Have a Blessed Day,

John Occhi, Hemet REALTOR
www.JohnOcchi.Com

Jan 16, 2007 02:14 PM

Kaushik Sirkar

Call Realty, Inc. - Chandler, AZ

If i'm representing the seller - loyalty and confidentiality are two of the tenets of fiduciary - I'm not telling! Now, if i'm representing the buyer - I want to find out as much as possible to give my prospective buyer the edge in negotiations. So you can bet i'll try to find out!

Jan 16, 2007 02:38 PM

Wayne Sellers

Global Realty Marketing - Franklin Township, NJ

I hear you. Usually when I ask for a preferred closing date, I can get a feel of their motivation. Here in NJ, the average escrow take about 45-60 days. So when I hear that they want a 30 day closing, that rings a bell. But when I do ask why they're selling, I usually get the same answer - RELOCATION

Jan 16, 2007 02:39 PM

John Occhi

AZ Veteran Notary Services - Marana, AZ

Mobile Notary Public/Certified Loan Signing Agent

kaushik,

I understand all about fiduciary responsibilites. As I mentioned earlier, I like to discuss the scenario with my client at the time I take the listing and discuss how we will package the position we will share wioth the public. I never want to lie, but I do try and spin whatever ths situation is in a light that will benefit my client.

Now armed with an acceptable scenario, can set up the negotiation to work the way we want it to. I would much rather have this scenario then walk in on a Monday morning with an offer in the office fax with an agent I never spoke to and get reach on the phone. Who wants to take an offer to a seller that you have no more knowleedge than what the paperwork says? Not me.

So you see, the exchange of information works both wasys.

Thanks for your comment, now have a blessed day.

john Occhim Hemet CA REALTOR
www.JohnOcchi.Com

Jan 16, 2007 04:47 PM

John Occhi

AZ Veteran Notary Services - Marana, AZ

Mobile Notary Public/Certified Loan Signing Agent

I just found another Blog post on a very similiar topic that you might find just as interesting as this one, so check it out.

now have a blessed day.

john Occhim Hemet CA REALTOR
www.JohnOcchi.Com

Jan 16, 2007 04:59 PM

Anonymous

Walter Armstead

I must add to this interesting post that, although many agents will ask the information and, some will provide it freely. When an agent does provide this information he or she is not only violating the "code of ethics" yet also violating the law. A breach of confidentiality is just the tip of the iceberg, even when "explaining" to a client what you will say to the other party in advance. The main flaw here is that "You" being the "agent" and being an "expert" (per se) and your principal "the client" being the novice are relying on your experience and understanding of "the process" to complete their transaction (sale) . Your client (the Novice) can not fully understand the implications of providing "confidential" information to another party to the transaction. You can. It is that basic principle which creates the need for the "code of ethics" and laws to protect the consumer. It is also that basic principle and the breach of duty that some must commit that gives the majority of real estate and other salespeople a bad name.

If anyone is providing this information to another party to the transaction and, the property is not sold at, or above the listed price, be prepared to spend some time and much of your "hard earned" money in court. You are breaking the law. Be prepared to lose your license. Be prepared, as many agents leave the business and many sellers become disillusioned and many buyers lose in the investing game. There will be many more prosecuted for violation relating to breeches in fiduciary responsibility and remember, many a Real Estate Commissioners staffs, with a leveling off in activity, are left with nothing to do. What will they be doing then? What will they do when they come for you?

Cost to obtain a real estate license - $150.00

Average cost of defense in a lawsuit - $35,000

Explaining how to get your client to "waive" their contractual rights - FREE

Being bold enough to post about it on the web.... priceless.

Everyone should understand that "Big Brother" is watching. He will use the information here to his advantage and, in the event that something goes wrong in a transaction or ??? the information here could be used to their advantage. This is a diary of sorts, for the entire world to see. Be careful out there! Better to seek legal counsel before a post than after.

Jan 16, 2007 05:39 PM

1SG (Ret.) David Kucic

Hawaii Military Realty, Inc. - Ewa Beach, HI

President and Owner

by David Kucic, Hawaii REALTOR

Hawaii Real Estate

John-You opened up a very interesting topic for discussion. As I read thru it and then read thru each comment one by one, I kept thinking to myself that each comment made some sort of sense. When I got to the bottom and read the comment by Walter Armstead it cleared everything up for me. As a buyers rep, I try to find out as much as I can about the seller just like you stated in your blog. Sometimes the sellers agent gives up way more information than they should. Heck, they even post it in the members only portion of the listing on our MLS! ie: distress sale, sellers already moved back to mainland, sellers already found replacement property.

Aloha From Paradise,

David Kucic, REALTOR

http://www.davidkucic.com

Jan 17, 2007 10:15 AM