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"I Can't Disclose That" Is Not Helping You Or Your Seller Part 2

By
Real Estate Agent with John R. Wood Properties

Back in March I wrote a post called:  "I Can't Disclose That" Is Not Helping You Or Your Seller. This turned out to be a pretty controversial post when you review the comment section.  For those of you who don't want to go back and read that post I'll summarize it for you.

It basically says:  Buyers and agents working with buyers are quite possibly going to ask you how flexible the seller is going to be on the price if they decide to write an offer.

This is a passionate point in real estate today because many of us were taught.  DO NOT DISCLOSE ANYTHING BUT THE LIST PRICE!!!  When in fact we should've been taught.  DISCLOSE WHAT YOUR CLIENT (THE SELLER) WANTS YOU TO DISCLOSE AND KEEP THE SELLER'S BEST INTEREST AT HEART AT ALL TIMES.

To even explore the option of taking the opportunity to talk with our sellers to get permission to disclose a different price other than list price is almost painful for some agents to consider.  Take for example the beginning of this comment:

"My job as a listing agent is to get the most for my sellers and by telling a buyer..."

I guess it could be possible that every seller this guy has worked with was only interested in the highest sales price but it could be unlikely as well.  Now keep in mind this is not a slam on that guy who said this it is just that there is a portion of many markets where seller's would prefer to close faster than saving a few bucks.  Why?  Because sometimes waiting for the higher offer means giving it up in carrying costs to hold.  Now when we're talking primary residences...at least the seller's are getting something out of it.  But what about all those other properties that were meant for second homes or investments?  What about properties in depreciating markets?  Do you think it's smart to punt a lower offer and wait for the next one?  Sometimes....maybe.

In my market it is sometimes all about the fact that the owner simply don't want to own it anymore and it might be worth it to them to cut it loose now at a lower price.

I'M NOT LOOKING FOR JUST THE BOTTOM DOLLAR!  I'm just looking for help to sell your listing!

These fact finding conversations are not just tied to bottom dollar either.  Sometimes it's about other terms like posession and furniture.  Will your seller flip out if we don't want the furniture although you're advertising it as fully furnished?  Will they freak out if we want possession in 3 days?  Hey, I've had to ask. When you get the Naples fever, sometimes you gotta have that Naples property right now!!! :)

Here are a few things I've heard and experienced lately that have been very interesting that reflect signs of really smart agents and have ultimately sealed a deal with my buyer.

1.  Without asking the listing agent he turned to me during a preview and said something that sounded like, "Shannon, your offer needs to have a 2 and 4 in it.  If it doesn't start with at least that, don't bother".  (I changed the numbers to protect the exact scenario) What I loved about this is that what he was basically telling me is the seller was not going to be very flexible AT ALL.  It just so happened that was the exact information we needed to get the deal done.  So we did.

2.  When I asked the listing agent about the seller's flexibility the listing agent replied, "we had an offer last year of this price which was turned down.  I don't know if they will accept it now since it's been a year since they've seen another offer but I know they want to sell.   That with a little more information about the seller's background was enough to get the deal done and since there were two properties these buyers were seriously considering, it was the exact information that listing agent relayed to us that made the buyers write on that property.  The ONLY reason why that property is pending today is due to the intelligence of the listing agent.

Here's an example of something I  heard that I greatly admire.

3.  When I called to make a showing appointment today the listing agent said, "Shannon did you see the confidential remarks where it says that the price is firm"?  I replied, yes...he said, "good.  I just wanted to make sure you saw and understand that"  Kinda cuts out the mystery don't you think?

Here's an example of an agent who has not done herself or her client any favors.Plastic Sign

4.  I was asked by my client to call the listing agent to see if the seller would entertain a low offer.  At their request I called and said, my client who was in town a few months ago who did not think the house was a perfect fit for them wants to know if the seller would entertain "xyz price".  Her response.  No.

The house has been on the market for almost 400 days.  

Now just to be crystal clear.  I left nothing out of her response.  It was just, "no".............................................................................the end.

Had she been a smart girl, she would've already had a chat with her seller.  She would've said something like this:

 "Shannon, I doubt seriously that number is going to work, but I think this number has a better shot.  Are your people paying cash?  Well, as a matter of fact they are.  Ok, when do they want to close?  They can close in three days or 3 months it's really up to your seller.  Ok, let me call the seller and see what he wants to do, I'll call you back.  By the way, do you think that's your buyer's biggest number?

or perhaps.

"I seriously doubt it, they paid xyz for it two years ago and put zyx into it on improvements.  They really want qwx and he's turned offers down for *^%.  Is that the best number your people can come up with"?

At least there's communication here.  Smart girls know that we might not get this deal done but we may get the chance to work together again and I want you to help me sell my listings instead of continue searching for another agent's listing who offers more dialog.

 Ok, so that's all for now! New buyers in town tomorrow!  Whoopie!

:)

Posted by

Serving my purpose through content-rich information about Naples, Florida real estate!

Best Regards!

Naples Real Estate

Shannon Lefevre, PA
Your Naples Smart Girl!
239-595-6223

“The opinions expressed herein are those of the author and do not necessarily represent the views of John R. Wood Realtors.”

 

Comments (17)

Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate

Hi Shannon,

Plain and simple for me. I don't want to know the sellers bottom line when I list it...just an idea of range if any. That's because that could change by the minute. I will tell the buyer that they should submit an offer that they feel is fair and then go from there. I wouldn't want to say too much and find out it backfires. Just make a reasonable offer and it will either be accepted...rejected or a counter offer.

May 12, 2008 10:11 AM
Karen Turney
Homesmart - Phoenix, AZ
Phoenix Real Estate

I let my seller know what my limitations are when it comes to disclosure of the price that they want.  It is the list price, unless they give me permission in writing to go further in a conversation with an interested party.  Just having this knowledge lets them know when an offer is coming in that they can be more open about thier bottom line and give me permission to have a conversation about price and terms.  I think its called Agency.  I like the comments above as well.

May 12, 2008 10:20 AM
Lisa Heindel
Crescent City Living LLC - New Orleans, LA
New Orleans Real Estate Broker

LOL @ Karen's "I think it's called Agency".  Smart post, smart girl.  I've used some of those same tactics, but make it a practice to NOT know my sellers bottom line.  Perhaps I need to rethink this....

May 12, 2008 10:31 AM
Shannon Lefevre
John R. Wood Properties - Naples, FL
Shannon Lefevre, PA Your Naples Smart Girl

NEAL:  I don't like knowing my seller's bottom line either.  What I do like knowing is enough information provided and approved by my seller to distribute that could entice a buyer's agent or buyer to write the offer.  It's a little added extra step that I'm finding is helping more and more.  In fact...it's a step some agents are taking and seeing contracts close because of it while other agents are not taking and not closing because of it.  Hugs to you my friend.  It's good to see you around and thanks for your comment! :)

May 12, 2008 10:36 AM
Shannon Lefevre
John R. Wood Properties - Naples, FL
Shannon Lefevre, PA Your Naples Smart Girl

KAREN:  Cool.  Me too.  Thanks for commenting.

LISA:  Hey girl, long time!  Bottom line is not always best but information that buyers don't expect to get especially when they're not getting it from competing properties is REALLY GOOD and sometimes the KISS needed to seal your deal.  Of course all of this being with full seller approval in writing is strongly recommended. Around here we prefer to call it "selling" but we realize it's called Agency as well. Hugs and thanks for stopping by. :)

May 12, 2008 10:42 AM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!

Shannon- You are so right in your stance on this. We are listing agents and we always present all offers to our sellers, even if it just verbal, because it it their decision, not ours to make. Things happen, things change. Something just the night before could have happened that changed the sellers' mind about a low offer. The listing agent is NOT servicing their client by answering for them. Now, in the case of certain short sales, the lender is stuck on their net number, but even then we try to get creative with the buyer and their agent. Of course, if they are too far off the mark, we explain to them why their offer will not work with that lender.

May 12, 2008 12:45 PM
Shannon Lefevre
John R. Wood Properties - Naples, FL
Shannon Lefevre, PA Your Naples Smart Girl

KATERINA:  Thanks for stopping by and including the short sale info.  You're right about those.  Buyers giggle when they get my take on a short sale.  It doesn't come up often because we don't have many in the areas where I sell but I tell them they have a 50/50 shot.  You'll either get it or you won't.  That about how the banks are playing it today. :)

May 12, 2008 01:21 PM
Susie Blackmon
Ocala, FL
Ocala, Horses, Western Wear, Horse Farms, Marketing

Shannon, thank you for all the continuing ed you so kindly provide for me!

May 12, 2008 09:43 PM
Kelly Sibilsky
Licensed Through Referral Connection, LTD. - Lake Zurich, IL

I don't see why anyone would have a difficult time discussing negotiation strategies with a client and then disclosing what the client would like them to disclose to the other party. This would include optimal closing dates or other things the client is flexible about. As you say, it's not always about the bottom line number. Sometimes a quick closing or cash deal change the whole scenerio. I've had clients tell me to tell the other side that they were "flexible on price but really want to close by the end of the month." This can be incredibly useful when negotiating.

The problem, as I see it, is that there are agents who say too much without permission of their clients. I've heard agents say things about their clients that I seriously doubt that client wanted me to know. That is a lawsuit waiting to happen.

May 13, 2008 12:57 AM
Paul Slaybaugh
Homesmart - Scottsdale, AZ
Scottsdale, AZ Real Estate

I never ask for my seller's bottom line number either, largely because I don't care.  The market is going to bear what the market will bear, and the seller will have to make the decision whether it is acceptable or not.  I provide all of the information and help establish a reasonable expectation, but I don't like dealing in absolutes when the variable of human behavior is at play.  I, too, feel that our industry has become much more concerned with what we can't do versus what we can do to encourage a sale.  I won't reveal anything that my client hasn't permitted me to, but I do ask them for the flexibility to do my job properly.  Another great post, Shannon.

May 13, 2008 03:29 AM
Rob Baldwin
US ECO-GREEN REAL ESTATE INC. - Santa Clarita, CA
REALTOR, Santa Clarita

When working with anyone I always find out how flexable they are. I feel that it makes it a little easier in the long run to get to were your client wants to be. SOLD! Nicely done as usual Shannon.

May 13, 2008 06:40 AM
Shannon Lefevre
John R. Wood Properties - Naples, FL
Shannon Lefevre, PA Your Naples Smart Girl

SUSIE:  Hugs!  Good to see you! :)

KELLY:  Yep I've seen that happen too...not good.  But it is good to see you. :)

PAUL:  Thanks darlin!  As far as the absolutes go, the only absolute in real estate is there are no absolutes. :)

ROB:  Hey, it's been a long time Rob!  Great to see you and thanks for the comment! :)

May 13, 2008 06:55 AM
Adam Waldman
Westcott Group Real Estate Company - Hauppauge, NY
Realtor - Long Island

SHANNON - I think that so many limitations have been put on us through the laws of agency, that many people are afraid to negotiate for fear of getting in trouble.  This is a problem, because one of the things that we are hired to do is negotiate.

May 13, 2008 08:00 AM
Shannon Lefevre
John R. Wood Properties - Naples, FL
Shannon Lefevre, PA Your Naples Smart Girl

ADAM:  I know limitations, limitations...that's why it's so important to understand the laws inside, out, backwards and upside down and then have the ability to think past right now and forecast what's next before someone else beats us to the punch! :)

May 14, 2008 04:17 AM
Lisa Ryan
Callaway Henderson Sotheby's International Realty - Montgomery, NJ
Selling Princeton,West Windsor and Montgomery Town

I also never ask what my seller's bottom line price is and I also advise my sellers to try to work with all reasonable offers that come in, what you turned down yesterday you may regret a few months from now.

May 14, 2008 03:26 PM
Anonymous
Pam Romney

Here in the British Virgin Islands our market is still strong.  Never the less, I always ask bottom dollar... assuring the seller that I will try my best to get the highest price.

If their bottom dollar is much lower than asking price, I advise sellers to think about getting closerto their bottom dollar in their asking price.  Buyers in my market know a great deal when the see it!

Pam  www.islandrealestatebvi.com

May 15, 2008 11:40 PM
#16
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

Sharon, I agree there is a way to talk to other agents without violating agency relationships. Some agents are so paralized by fear they offer nothing or say nothing and the negotiations dies. I too mainly list and never want to know my sellers bottom line and don't until the first offer comes in.

May 16, 2008 12:26 AM