Understanding Fiduciary Responsibility
Can You Reveal Too Much Information? Absolutely!
Who are you working for???
When selling Real Estate it is important that many things are disclosed to a potential buyer. Yes, it is important that the buyer is aware of things like lead paint, a previous murder, and in some states if a ghost "lives" in the house. The list goes on and on.
What is also important that your listing agent (who represents your interest) is aware of what he has to reveal, and what is not part of the info that is necessary to "enlighten" any potential buyers. Sellers go over details about a home with their agent, and in turn an agent must list certain things for the buyers agent to review and evaluate with their clients.
Motivation to sell, time frame to sell, a divorce situation and more are NONE of the buyers business. I don't have to tell you that my sellers are getting a divorce or that they are going to be leaving the area in a few months to move near grandchildren after the summer. Too much information!
The same goes true for a buyers agent (with loyalties to you). Beware that your agent is not giving too much information to the sellers of the home you want to buy. If you are working with a buyers agent, that agent is bound to represent your best interest in mind. An important part of negotiations is to deal from power! If I know that you LOVE LOVE LOVE my cllients house, and it is the most perfect home ever, then I have learned you are desperate to make it yours.
If your agent is now telling me that you have been touring homes for a year, and this brand new listing is the absolute perfect match, and that it is less than what you were intending to pay I know way too much. Telling me that you have looked at finding a home with a master on the first floor and the inventory is nonexistent, or severely in need of repairs gives me the upper hand in negotations. Your agent just gave up the farm and also is not representing you properly.
Negotations are what good real estate agents know how to do. When representing your client it is important to know what to say and what not to say. Deal from power and know your strengths. Don't volunteer too much information as it could compromise the deal and your client can lose money. Thousands of dollars are lost with this mistake all the time.
Less is best when negotiating a deal. A very successful agent in my area almost talks in slow motion. While it makes the rest of us uncomfortable I think the method is actually very effective. She makes a statement about the offer and then says nothing. Absolutely nothing. Her method might seem odd, but she could never be accused of "giving up the farm". Amazingly enough the results work in her clients favor.
When hiring an agent experience in negotiations is a part of the job that is frequently overlooked. When buying or selling a home know your agent skills and their understanding of fiduciary responsibilities. Negotiations should be one of the skills that you discuss.
Happy house hunting. Let me know when I can help you along the way.
Comments(61)