Special offer

Are There Rules in Negotiating?

By
Real Estate Agent with Cedar Rapids/Iowa City, IA KW Legacy Group S44645

Are There Rules in Negotiating?

I would say that there are rules.  However, these "rules" are up for interpretation.  Let me give you an example.

A buyer's agent presents an offer to the listing agent.  They state, verbally, that the buyer is not sold on the property and has another house in mind if the seller is not cooperative with the buyer's terms.  Is this a form of negotiation?  Absolutely!  Does it benefit your buyer?  Is it necessary as the listing agent to relay this message to the seller?  It depends.

know the rules

In the above example, there are many ways to look at what the buyer's agent is telling you, the listing agent.

1.  They are telling you that the buyer is not really committed to the seller's home.  

2.  The buyer is out to get the best deal and if the seller does not cooperate, there are other properties that will work just as well.

3.  The buyer's agent is "puffing" and trying to use an intimidation tactic or fear of loss with the seller, assuming that the listing agent will share the information with the seller as they determine their response.

In the above situation, I do not relay that information to the seller.  I think that it would put a roadblock in the process of selling the home.

Here are 3 possible things that could happen if you share this information with the seller:

1.  The seller responds to the offer unreasonably.  Even refusing to negotiate and countering to the asking price and effectively buying the house back.

2.  The seller could call the buyer's agent bluff.  Removing many of the terms that the buyer is asking for since the buyer is not attached to the property.

3.  The seller could be offended and take the remarks personally and not want someone like that to live in their home.

Ultimately, sometimes as a listing agent, we need to act as a filter.  And just the facts on paper, speak for themselves.  The buyer's intentions are on paper.  Take it for what it is worth and don't let another agent's remarks steer your negotiation tactics with your seller.

*In summary and at the end of the day, we need to consider if we are truly representing our respective clients in their best possible interests. And at the end of the day, the seller is the one that makes the decision on how they wish to respond.  I believe that I can only disclose what is in writing or that I know from first hand knowledge from the buyer themselves, such as information that may have been viewed at an open house prior to the offer.  Anything that will not be put in writing, much like a verbal contract, cannot be confirmed as coming from the buyer in this instance.  

Keep smiling!

Karen

Posted by

 

Karen Feltman, REALTOR®, ABR, AHS, CHMS,                                                                      CNE,CRS, e-Pro, green, GRI, SRES, TRC

Keller Williams Legacy Group

4850 Armar Drive SE Ste B

Cedar Rapids, Iowa 52403

Email: karenfeltman@gmail.com

Mobile  319-521-0701

www.KarenFeltman.com

Licensed in the State of Iowa

© 2010-2021 by Karen Feltman, Cedar Rapids/Iowa City Relocation Specialist 

Comments (4)

Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Karen - however, this is often a real situation. I deal with investors, and they would identify 3 condos, and then they will say that they liked this one the most, and here is the offer for it, but if the Seller does not accept, they would want me to present the offer for another condo, and if the terns are not acceptable, they would move to the third. And if none works, they do not buy.

I would be surprised if the agent decides not to disclose it to the Seller.

 

Jan 13, 2014 11:08 AM
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

Hi Jon!  I can certainly see your point, but in this situation, it was not in writing.  It was an agent that has proven themselves to not be, let's say, ethical, in his dealing with other agents.  Trying to bait the listing agent into saying something to their seller that is not proven to be the intent of the buyer themselves, but the agent's "negotiating" tactic.  When asked to put this information in writing, he refuses.  So you never know where the statement is coming from.  

In your situation, that is part of the game.  Whether investors are throwing out several offers at once to see if there are any takers or they are offering on bank owned properties, an investor is not emotionally attached to any property.  They are looking for the best return for their money and there is no negotiating.  That is a term of sale that SHOULD be relayed.  

Thank you for your thought provoking response to my post.  I appreciate it!

Jan 13, 2014 11:22 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Karen - gee, how much difference details make. It is not in writing, that's the key. Then it may be anything, including BS.

I always tell my guys that they can do it only, if they accept the ramifications. You said you are not negotiating and if the Seller does not accept, you move? Fine, but then you burned the bridges and you can't simply come back and start negotiating. If you do, you are a liar, and you better don't do it.

thanks for clarification. It really changed the perspective.

Jan 13, 2014 11:40 AM
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

Hi Jon!  Thank you for making me re-read and clarify my post.  It gets lost in translation when I am not perfectly clear.  Thank you for understanding and supporting my premise.  Have a great evening!

Jan 13, 2014 11:54 AM