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Update: I countered at $380, and the buyer immediately countered at $374, so the top of $370 was just agent BS trying to help keep the price down. Does not appear any transgression happened with the buyer's agent disclosing any max.
However, they put a strange contingency on it that I'm going to start a new thread on.
My take is that it is inappropriate for agents to share the type of confidential information which was purportedly shared in this case. Of course, some agents may be authorized to be more involved in actual negotiations, but rarely is that the case. It's best to let the written offers speak for themselves.
Of course, it's common knowledge that some agents tend to spill too much in their desire to complete a deal. I will oftentimes try to fish for information from selling agents which will benefit my client. Sometimes it works, and more often it doesn't...but I try.
My suggestion is that if you don't fully trust your agent, you should keep information about your absolute maximum or minimum price to yourself.
EDIT: I just read your update so it doesn't appear that the buyer's agent spilled the beans after all. Still, it seems a bit unseemly. I think I'd take greater offense from an agent telling me something that wasn't true.
Last edited by jackmichigan; 11-07-2013 at 12:27 PM..
OP, you have every reason to be concerned if you have any hint your agent will behave in the same manner and share your strategy. Please have this conversation with him/her sooner than later.
Why would you put yourself in the middle of a negotiation like that? What do you attempt to accomplish? What's in it for you by muddling things when it is a clear process? Not to be mean, but who cares what YOU think?
What, you are softening them up? "I am pretty sure my seller won't go for it"? Blah! That's a high pressure tactic.....NOT.
"Is it worth countering?" No, they made a price and they expect you to bow down and accept it!
Yikes, I am just appalled by the unprofessional behavior exhibited if you really do these things.
Unless you have a principal interest in the outcome, your job is to convey the bids and offers. Many agents have enough trouble writing them up and ensuring that they are delivered without errors. Stick to that and you provide a real service. Inserting your personal opinion does nothing but muck up the works, destroy the strategy, and leave the buyer shaking their head as to whether their information will be communicated clearly, or whether it will come with 'attachments', such as "I don't think you should go for it".
Really?
Yes I do say it, and no it isn't a high pressure tactic. It is a conversation starter. I always convey bids and offers. My job is to give my seller as much information as I can so they can make an informed decision. When you get a low offer most sellers want to know why that is happening. That question helps me to get the buyer agent to chat about their buyer's motivation. Sometimes I get, "This is the 5th offer they've thrown out. I'm tired of these lowballers." or "They really love the home but just wanted to try a lower price to see what happened." Some agents are blabbermouths. That question gets me a lot of information about the buyer and it also tells me a lot about the negotiation skills of the agent.
I'm a firm believer in countering all offers, but most sellers want advise about what to do in the counter. So yes, my opinion matters. The more information I have, the better I can advise and the better counter we can write up. You are also confused about whom my fiduciary duty is to. I don't care if the buyer leaves shaking their head at my questions. My job is to get information for my seller and if I can get information out of the blabbermouth agent they hired, that's my job.
I'm not sure why you wouldn't expect me to insert myself in the negotiation. That's what people hire me to do.
Yes I do say it, and no it isn't a high pressure tactic. It is a conversation starter. I always convey bids and offers. My job is to give my seller as much information as I can so they can make an informed decision. When you get a low offer most sellers want to know why that is happening. That question helps me to get the buyer agent to chat about their buyer's motivation. Sometimes I get, "This is the 5th offer they've thrown out. I'm tired of these lowballers." or "They really love the home but just wanted to try a lower price to see what happened." Some agents are blabbermouths. That question gets me a lot of information about the buyer and it also tells me a lot about the negotiation skills of the agent.
I'm a firm believer in countering all offers, but most sellers want advise about what to do in the counter. So yes, my opinion matters. The more information I have, the better I can advise and the better counter we can write up. You are also confused about whom my fiduciary duty is to. I don't care if the buyer leaves shaking their head at my questions. My job is to get information for my seller and if I can get information out of the blabbermouth agent they hired, that's my job.
I'm not sure why you wouldn't expect me to insert myself in the negotiation. That's what people hire me to do.
So many people squawking about the buyer's agent without a shred of a clue or evidence that the agent was not following clear, legal instructions from the buyer.
On Line forum readers are smart to recognize that the loudest voices are often unaccompanied by any material knowledge and ergo are unencumbered by facts.
MAYBE the buyer's agent was following instructions. Nothing in this thread indicates any possibility otherwise.
This is a really bad time of year to try to sell a home so I would find a way to sell in the Spring if at all possible. You own the home so you don't have to do what any commission driven sales person wants. Their only goal is commission so you must be in control.
If they want to share opinions about what the buyer/seller will do you really can't do much more than vote with your feet. Have you considered selling it yourself so your budget won't include their commission? Have a real estate lawyer take care of the paperwork and put much more money in your pocket.
Uh, maybe this one landed on the wrong thread, since it is totally unrelated to the OP's topic?
Conversation could have been. buyers agent: I am going to send you over an offer for $360k sellers agent: that is really low(as they already know your bottom line) you have to get your buyers up. buyers agent: let me see what i can do i may be able to get them to $370 but I don't think they want to go that high.
All negotiating no solid numbers discussed just feelers put out there.
It's really up to the buyer to be upset or not, depending on what strategies and intentions they'd discussed with the agent. Perhaps 370 was the number they discussed offering, and the agent suggested starting lower with a "hinted" higher number. And it may be working -- the seller is thinking of countering at a lower price than he might have otherwise, since a deal seems close.
Take 3 scenarios:
1) Offer of 360 -- might appear too "lowball". I might not bother countering, or counter at, say 385.
2) Offer of 370 -- starts negotiation up from there, I might counter at 380.
3) Offer of 360 with "hint" that might grudgingly go up to 370 -- hmmm, that's close to the "rock bottom" of 375, which isn't actually "rock bottom" because the seller would be willing to go to 372.5 to make a deal :-)
In this case, it sure sounds like the buyer has a chance of getting a better price this way.
Again, it really depends what the buyer (or seller) wants in an agent -- someone to just do the paperwork and pass on info, or someone who can be trusted with the negotiation strategy. Either is fine to want, and hopefully is what the buyer thought they were getting.
I'm not sure why you wouldn't expect me to insert myself in the negotiation. That's what people hire me to do.
Quote:
Originally Posted by MikeJaquish
Absolutely.
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