Greatest Myth Believed by Realtors

By
Real Estate Agent with FALCON PROPERTY SOLUTIONS
http://actvra.in/52rR

One of the greatest legal minds in real estate was Oliver Frascona.

Oliver FrasconaWhen it came time to take continuing education classes, you wanted to take them from Oliver. He was one of the biggest personalities I've ever met, and he was responsible for writing much of our Colorado real estate law.

He could explain the most complicated or boring points in such a way that not only made them fascinating, but he simplified them so you were able to grasp and remember the concept. 

He had a knack of focusing on the person he was speaking with and making them feel as though their question was the most important one he'd heard all day, and he was always gracious to answer. 

When Oliver died in a plane crash in 2014, I grieved his loss by reading many of his writings and watching videos and interviews. I came across a video of him addressing Realtor Myths.

The first thing he focused on was something that we as Realtors learned in Real Estate 101 and hold near and dear to our misguided hearts: that you can't tell Buyer's Agents, or anyone else for that matter, what the amount of another offer is.

Here was Oliver's observation on the subject:

 . . . there's this myth that a Listing broker can't tell a subsequent Buyer's side what the current offer amounts are. Of course they can, they just have to ask their Seller if it's okay. But each of those Buyer's offers aren't confidential and you can't make them confidential. And if you're really helping that Seller, you should be turning to that Buyer and saying, 'I have three at this price, and if you can beat it, then you're gonna to be the one who wins.'

In the current Seller's market when there are often multiple offers on a property the first day or two it's listed (under $300,000), Realtor's respond to me like I've grown another head when I ask them what kind of offer we need to bring to win the bid. It really isn't a crime to tell me, and I guarantee it won't cost you your license.

Bottom line: If we are truly working for our client, The Seller, we will get their permission to disclose to Buyer's Agents the amount of other offers to try to get the Seller the highest possible price for their home. 

Code of Ethics re: Multiple Offers 

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 Colorado Springs Realtor Mimi Foster 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Lelis Navas 03/23/2017 09:20 PM
  2. Tony and Suzanne Marriott, Associate Brokers 04/17/2017 05:17 AM
Topic:
ActiveRain Community
Groups:
Realtors®
ETHICS and the REALTOR
Certified Residential Specialists
Be The Best In Your Field
Best Practices
Tags:
realtor myths
disclosing other offers

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Rainmaker
2,460,288
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hi Mimi -- in my market there is a brokerage that has introduced an online auction where prospective buyers and their agents can see actual bids being made.   An upfront financial review of the buyer and seller disclosures takes place prior to registering for this auction.    Talk about transparency.  

Good thought-provoking post as evidenced by the many comments.  

Mar 25, 2017 06:53 AM #122
Rainmaker
281,884
Robin Rogers
Robin Rogers, Silverbridge Realty, San Antonio, Texas - San Antonio, TX
CRS, TRC, MRP - Real Estate Investment Adviser

Interesting. I should have read the NAR standards of practice more closely in the beginning, and might not have believed that myth for so long. I've spent way too much time trying to get what seems to be NON-confidential information out of listing agents!

Mar 25, 2017 07:46 AM #123
Ambassador
666,531
Mimi Foster
FALCON PROPERTY SOLUTIONS - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Michael Jacobs ~ Good morning, sir. Everything about that concept makes me cringe. I would be very interested to see how it plays out, and the success they have with it. Seems there might be a lot of room for Listing Agents to get some straw buyers to help their cause.

Hope you're doing well.

Mar 25, 2017 08:00 AM #124
Rainer
22,914
DAWN PARKYN
Florida Luxury Realty Inc - Hudson, FL
Helping Buyers and Sellers since 1994

Very good point.

Mar 25, 2017 08:03 AM #125
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Mimi Foster
FALCON PROPERTY SOLUTIONS - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Robin Rogers ~ check to make sure of your state laws and then see if you can convince your fellow Realtors that you aren't trying to finagle confidential information from them.  I actually wrote this post to send to the dozen local agents who have said, "How dare you for asking?" to me in the past few weeks. LOL Somewhere along the line we got this in our heads and few have been able to let go.

Mar 25, 2017 08:19 AM #126
Rainmaker
2,958,774
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Mimi

The interest on your post is off the charts.

Good luck and success.

Lou Ludwig

Mar 25, 2017 08:13 PM #127
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Mimi Foster
FALCON PROPERTY SOLUTIONS - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Lou Ludwig ~ I think it's a concept that few people have ever questioned because we've known since the day we started in real estate school that we couldn't disclose the amount of the other offers. And we learned that because our (misinformed) instructors told us that was the truth. So when we see in print that's not the case, it's a hard pill to swallow because we KNOW what we know. I was certainly stunned the first time I saw Oliver's video. Isn't this concept part of the Holy Grail of real estate? Thanks for your kind words. ~ Mimi

Mar 25, 2017 08:33 PM #128
Rainmaker
536,377
Thomas J. Nelson, Realtor, CRS
Big Block Realty 858.232.8722 - La Jolla, CA
Co-Host of Mail-Right's: Real Estate Agent Podcast

Great homage to Oliver, seemed like a nice man. I've had great mentors and instructors like that in my life. The crash, was it private or commercial? As a student pilot and the husband to a flight attendant, I hate hearing about any plane down. Sorry for your loss.

I have this debate all the time with ignorant agents. I've have used The HAUS platform, which exposes all the offers to you once you've submitted yours. It has the eBay affect. It works. We act like 007 and when it's just selling houses.

Mar 25, 2017 09:59 PM #129
Ambassador
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Mimi Foster
FALCON PROPERTY SOLUTIONS - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Thomas J. Nelson, Realtor, CRS ~ he was piloting his Piper PA 46 Malibu. It has been in litigation since the accident about whose fault it was, a jury finding neither pilot negligent, then the judge saying he was going to retry the case. It was all a tragedy regardless.

I have read about The HAUS platform and seen examples, but I've never used it nor known anyone who used it. Looks like it would work for Buyer's Agents well.  

Mar 26, 2017 05:49 AM #130
Rainmaker
910,043
Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

Is this a state by state condition, or is it across the whole country?

Mar 26, 2017 03:48 PM #131
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Mimi Foster
FALCON PROPERTY SOLUTIONS - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Ron Marshall ~ I haven't had anyone comment yet that their state doesn't allow it. On the other hand, it's in the Code of Ethics, so I guess it is national. 

Mar 26, 2017 04:11 PM #132
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Mimi Foster - so sad that you lost Oliver - you've got to love a man with a handle-bar mustache - they're typically larger-than-life folks!  

I do get that all the time - "What are your other Offers?"  

"Now, you KNOW I can't tell you that?"

I respond - "Well, you could, if your sellers agree to it - I would think it would be in their best interest to be able to get that best Offer up just a bit and make more money!"  

SILENCE - no kidding!  Then they stammer; then they say, "Oh, no, they won't allow me to disclose that!"  

They had no clue - they hadn't even ASKED their sellers!  

Great post Mimi - love all the interest in this topic!  It's definitely that kind-of market right now for this discussion.

Mar 27, 2017 02:37 PM #133
Rainer
162,548
Chris Lima
Atlantic Shores Realty Expertise - Port St Lucie, FL
Local or Global-Allow me to open doors for you.

Great post.  This has to be one of the most misunderstood topics.  I have had agents act as if I was asking for their mother's maiden name and social security number when I ask about offers. I was curious about state to state rules but NAR's code of ethics would trump state.

Mar 27, 2017 02:56 PM #134
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Mimi Foster
FALCON PROPERTY SOLUTIONS - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Hello, Debe Maxwell, CRS ~ thanks so much for your kind words today. Isn't it amazing that this is such a sacred taboo? Maybe 2 in 100 know this. We hold on like it's gospel. 

Mar 27, 2017 07:22 PM #135
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Mimi Foster
FALCON PROPERTY SOLUTIONS - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Chris Lima ~ Isn't that the truth? Sometimes I want to get belligerent when they respond like I've just committed a heinous crime. And I think so about COE  

Mar 27, 2017 07:24 PM #136
Rainmaker
1,190,741
Lyn Sims
RE/MAX Suburban - Northwest Suburbs of Chicago - Schaumburg, IL
Schaumburg IL Area Real Estate

Huh, interesting. I will investigate with attorneys that I trust. Great advice Mimi.

Mar 30, 2017 11:22 AM #137
Rainmaker
752,261
Jan Green
HomeSmart Elite Group,Scottsdale, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

We have just such an instructor here in Scottsdale. Your experience and understanding is exactly what our instructor would say, "Just get the sellers' permission!"  Great post!

Mar 31, 2017 08:20 AM #138
Rainmaker
2,327,153
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce - Short Sale

  We had an CE instructor like that here...his sons now follow in his footsteps with much the same voice and intonation...a little scary....but comforting at the same time.

Apr 03, 2017 07:50 AM #139
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Anna Banana Kruchten, CRS
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!

It's so easy and what seller isn't going to agree to that - of course they're not going as they like bidding wars on their home!  When I've got the buyer you bet I'm going to ask what will it take because my buyer wants this home - A LOT.  You'd  think I asked them to give me their first born - I can't do that......sure you can, just get the sellers permission to do so!

 

So sorry about Oliver - he certainly has left a huge legacy that will be remembered and appreciated forever.

Apr 11, 2017 11:24 AM #140
Rainmaker
2,126,763
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Mimi Foster ". . . there's this myth that a Listing broker can't tell a subsequent Buyer's side what the current offer amounts are. Of course they can, they just have to ask their Seller if it's okay. "

Right on target - and - re-blog!

Apr 17, 2017 05:15 AM #141
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