Q & A - Why are the Sellers Moving?

Buyers usually want to know why a seller is moving...the neighbors can be a good source for that information!

q: Why are they selling?

a: Becasue they would rather receive (insert list price here) than keep the property.

Any answer beyond that would be a breach of the duties owed to the client, unless they gave permission to disclose that information.

Saying that in a pleasant way while also putting the buyer at ease is where true skill comes in.

Not all, but many buyers who ask this question don't NEED an answer (IMHO).  They ask because they're curious, or are looking for an angle, or just don't know what else to say...kind of like kicking the tires.

Joan

As you probably have found most buyers seem to ask this question and no doubt want to be able to use this as a bargaining chip if there is a sense of urgency or strong need by the sellers. Unless the sellers give approval, seems to me it really should not enter into the equation and shouldn't be shared. And it might depend on the reason, too

Jeff

If the individual listing the property is an "agent" of the seller they have fiduciary obligations to that seller client (at least in the States I work in), one of which would be confidentiality.  The seller and their agent do, however, have a legal obligation (again, I can only speak about the States I am licensed in) to disclose any material defects in the property they are aware of.  So, my answer to that question is always, "the reason they are selling is immaterial.  If you are concerned about the condition of the property, be assured that the seller has an obligation to disclose any issues they are aware of".  And, truly, a buyer can end up outsmarting themselves if they suss out the "reason" the seller has put the house on the market and then assume they now "know" what the seller's motivation is.

Good post! In TX, we have a document that the sellers have to sign outlining what we can say about the reason for selling. We also have pretty extensive Seller's Disclosures.

That listing agent probably was not authorized to disclose personal information about the sellers such as "they bought a home not too far away," holy cow, that is just nobody's business, and now she opened a can o'worms for the buyers. If she had kept her trap shut, you'd probably be in contract. I swear . . .

Joan usually when I hear these questions it is because the Buyer is trying to get leverage on the Seller by trying to find out if the Seller has to sell and they have them over a barrel.

Buyers are entitled to an honest answer to that question, albeit not an unauthorized one. A great listing agent will have thought this through and be able to answer that question with an honest answer and in clear conscience!

With most buyers, any answer will do because they're just curious (and sometimes shopping for an angle to use as leverage). So, to fulfill our duty to our sellers and still meet the standard of fair and honest dealings, we need to settle on an answer that is brief, truthful and satisfies the buyers' curiosity without detracting from the desirability of the property or compromising the sellers' privacy.  I look on this as another of the many creative challenges this business provides. 

This is an interesting angle to the question. Any answer that conveys urgency on the part of the seller becomes a bargaining tool for the buyer - but I can see that they might wonder whether there is something "wrong" with the house or the neighborhood.

An inspection should clear up one problem - meeting a few neighbors should clear up the other one. 

Some of that question is just talk and conversation to try to get to know the sellers and gage if they the buyers will be happy in the home. Sometimes they are trying to uncover an vulnerability.

Dear Joan,

Mostly, sellers move for very personal reasons; nothing to do with the house or the neighbors. Given the inertia of most people, they do not make that decision lightly.

The only question IMO a buyer should be concerned about is the FMV of the property and the opportunity to buy it on their terms and conditions. Disclosures, appraisals and inspections could be used to renegotiate or rescind an offer if contingencies are not met.

Agree with Kimo. I always thought it was a stupid question, sorry. The fact that the house of obviously for sale means they want to sell it. Do those nosy buyers want to buy it?

Does the seller get to quiz the buyer about why they want to buy a home?

I asked a seller the same thing once, it changed my mind about the property. 

When I am going to write an offer, I ALWAYS call the listing agent and ask what the seller's hot points are. If that means getting the answer to that question - then great! It may help me win in a multiple offer situation.

Hello Joan ... great post my friend, great comments and your post has been featured to the group:

All Real Estate - Today and Tomorrow

In general this is information that should not be shared, no matter what the reason is for the move.  Sometime it is obvious, but not always. 

If asked, just say they are moving for "personal reasons." That usually ends the conversation. We sell properties and I feel it is unethical if we get into areas that are none of our business. That's just my 2 cents worth. Have a great 2016!

I always ask this question, but I always try to verify the answer.