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Are we Allowed to Tell Another Agent the Accepted Price?

By
Real Estate Agent with Home Smart Realty West   BRE#00877192

 

Are we Allowed to Tell Another Agent the Accepted Price?

 


Today I saw a FaceBook post from another local agent in my area of San Diego post that another agent had asked for the "Accepted Price" of one of her listings under contract. There were some nasty post from her friends and other real estate people.  The other agent I guess demanded to know as it was in the contract!  I think the buyer agent got it wrong, we are not under any obligation to disclose the accepted price!  We are under obligation to inform our seller of this this point because some wording is in the contract.  It states with "sellers permission". 

Are we allowed to tell another agent the accepted price?


Why would a seller give out this information to the other agent not involved?  Simple, if the possibility exists to make more money.  This happened to me recently.  The appraisal came in $15,000 low and the buyer was asking for the price to be adjusted down to meet the appraisal.  This was even after we had a meeting of the minds with the buyer if the home appraised low he would make up any differences with added cash to the down payment.  He changed his mind!


I had two other buyers that were interested but did not submit offers before we accepted the 1st offer from the buyer we were working with.  Our buyer had agreed to the sellers needs and was well qualified and could even pay cash.  But this change of heart made the seller angry and he instructed me to speak with the other interested parties.   At this time I asked him for permission to quote our “accepted price”!  We don’t need another lower offer or two.  We still had an offer that was the highest selling price for the neighborhood it was just lower than what was agreed to.


I did this for two reasons, I wanted to know quickly from a potential new buyer if they were willing to come up to the sellers price and (2) didn’t want to waste time with others when I had a buyer under contract…that was waiting for a response.  Turns out our existing buyer was the highest and best.  The seller decided to come down on price but took out some little nuggets the buyer was given at the higher price.  It worked out and we closed escrow. 


It can work in the sellers best interest to disclose price!  I believe that is why the clause is in the contract. Are we Allowed to Tell Another Agent the Accepted Price?


Think of me as your Real Estate Lifeguard!  If you are thinking of buying or selling a home, call or email me for an informative meeting, use my three decades of real estate experience to serve you!  Thank you.


Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Michael, I can't tell you how many time I've from an agent, "I know you can't tell me the offer price, but could you tell me anyway". The answer should be you can find out when the property closes.

Feb 09, 2015 10:32 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Appraisers call and they need to know what is going on to help appraise and the amount of the sale is requested. I give it and they thank me profusely. How many gave when I was getting appraised crosses the mind...

Feb 09, 2015 10:49 PM
Alan May
Jameson Sotheby's International Realty - Evanston, IL
Home is where the hearth is.

We are allowed to divulge the acccepted price (or anything else, for that matter) at the discretion and direction of the client.

Feb 09, 2015 11:07 PM
Michael Blue
Home Smart Realty West - Encinitas, CA
REALTOR - 760-889-8877, Encinitas/Carlsbad

That's exactly right Alan May. It's interesting how many responses lean toward the negstive. Opportunity abounds to get your client the seller more money!

Feb 09, 2015 11:11 PM
Dan Spencer
Aspen Lane Real Estate - Aurora, CO
Your Colorado Home Source

I wouldn't disclose until the closing if an offer has been accepted. It would be up to the sellers if we were multiple offers. 

Feb 10, 2015 12:50 AM
Michael Blue
Home Smart Realty West - Encinitas, CA
REALTOR - 760-889-8877, Encinitas/Carlsbad

I find the ratio of agents that will disclose information to benefit the seller as part of the marketing plan vs those that will not disclose to be 50/50%.

Feb 10, 2015 06:18 AM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

In Tennessee, the seller is the boss. If he gives us permission, we can share and I have. The seller thought it was in his best interest and he was right.

Feb 10, 2015 11:08 AM
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

I can see why there are situations where this could work in the seller's favor to disclose.  Good for you and for your seller to be able to get this one closed.  Thank you for sharing.

Feb 10, 2015 12:15 PM
Claude Labbe
RLAH / @properties - Washington, DC
Realty for Your Busy Life

Disclosing the price could make sense in very particular situations, but only with the approval to so disclose from the seller.

Even then, disclosure would only make sense to me to very targeted individuals.  Not to Nosy Nellie or Just Wondering Joe.  But I have seen times where there was a strategic reason to disclose.

Feb 10, 2015 01:57 PM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

With the seller's permission, should they stand to benefit from the disclosure, then yes.  Just general questions from nosy neighbors or other listing agents in the neighborhood, no.

Feb 10, 2015 09:17 PM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

I was thinking the exact same thing that Kat Palmiotti mentioned. It can also come back to haunt the seller if the original buyer drops out and you've disclosed what the accepted price was.

Feb 11, 2015 12:46 AM
Barbara Le Pine
ADVANTAGE REAL ESTATE, serving Lincoln County - Newport, OR
Your agent for the Central Oregon Coast!

A seller may or may not know if divulging the accepted price is in their best interest prior to close.  I would never advise such a thing to a seller, price should be kept secret, even to an appraiser who should work with available closed comps.

What about the buyer? Is it fair to them to let the seller spill the beans about what they are willing to spend on a house? In a small community, word gets out about who is buying a home.  Agents should zip the lips when it comes to information confidential to more than just the party they represent.

Feb 11, 2015 03:56 AM
Michael Blue
Home Smart Realty West - Encinitas, CA
REALTOR - 760-889-8877, Encinitas/Carlsbad

Kat P.  No it wouldn't using your numbers.

Highest comp and bigger by 200 sq ft = $485,000.  My list =$550,000, appraisal $465,000. I got seller $520,000. I don't want to say it but I will...do the math. :)

Feb 11, 2015 07:07 AM
Michael Blue
Home Smart Realty West - Encinitas, CA
REALTOR - 760-889-8877, Encinitas/Carlsbad

One last note...I think I could have kept the Buyer at the agreed to price between buyer and seller $535,000 by using another technique.  For the nay sayers, it's legal and using two CAR forms. One and then another if the 1st doesn't work.  But, the seller called it and was ok being the highest sold comp at $520,000.

Feb 11, 2015 07:12 AM
Michael Blue
Home Smart Realty West - Encinitas, CA
REALTOR - 760-889-8877, Encinitas/Carlsbad

Jenna Dixon, you got it. Of course, noisy neighbors, looky loos...pound sand until it closes.

Feb 11, 2015 07:17 AM
Michael Blue
Home Smart Realty West - Encinitas, CA
REALTOR - 760-889-8877, Encinitas/Carlsbad

Claude L.  yes same as Jenna Dixon.

Feb 11, 2015 07:18 AM
Michael Blue
Home Smart Realty West - Encinitas, CA
REALTOR - 760-889-8877, Encinitas/Carlsbad

I'm sure all of us know the lender has a copy of the contract and the information is shared with the appraiser.  Full disclosure, transparency.  Was it that long ago wehave forgot we had to deal with appraisers from afar due to gov regulations.  That was a nightmare.

Feb 11, 2015 07:21 AM
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

Clients deserve confidentiality. It is a fiduciary duty,  Customers do not receive confidentiality or any fiduciary duty. 

Most agents have no clue what the difference is or what their duties are...

Eve

Feb 11, 2015 07:42 AM
Marla Yost
The Yost Team- Keller Williams Realty - Arlington, TX
The Yost Team

I don`t disclose to anyone until after closing.

Feb 11, 2015 12:08 PM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

It's always up to our client until the close of transaction (which in my state it becomes public record).  Honestly most agents really never even go to their clients with this kind of request unless it's in writing.  And if it's in writing then they have no choice but to ask their client. I am always shocked at the number of agents who say "no way would I do that" when it is NOT THEIR CALL.

Feb 22, 2015 06:14 AM