Ethics (or Not?) of Realtor Disclosing Offer Prices

[blueherons]

I don't talk but I can't control what the agent on the other side of the transaction does.

I never disclose price for my clients. If someone wants to know bad enough, they can look it up on the MLS.

[psichick]

I dunno, I don't think it's unethical. I think it's them playing the game/system and well, it's sales. I never trust salespeople...especially commissioned ones. As long as you know your limit of what you're willing to "bid", then you're ahead of the game. Those that get sucked into the "I need to win", are the ones that lose the most.

I don't particularly think it's unethical, however, if it was me in your situation, I would have asked my agent to validate the numbers the seller's agent got, by doing exactly what you're saying is unethical....asking the agents of the comps what they're under contract for.

Sounds like the seller wanted to play the game "bidding war". You lost....but we both know you really won. In this market, people are getting stupid greedy. For example, the house I'm under contract on, lost it's two winning offers because those people were placing offers on multiple houses and then choosing which one they want after. And we're told it's common up here. Or, like the newest game....offers are due on a specific date so if you really want a place, you have to go in high. More games. I hate games. Don't play them and you'll be fine (seems like you didn't anyways).

[justanokie]

Originally Posted by jaynarie

Not a realtor, so I am curious to hear to correct answer.

But, my assumption.... those houses are under contract. You could submit a back-up offer, but unless the buyer backs out, the seller can't do anything about it even if you offered them 10x the current contract price. I think it is still shady, but it may skirt the line of ethical because they are in escrow.

I think there are clear instances where this would be unethical.

Realtors love to say that once you both signed a contract that the seller can't accept a higher offer. It appears that some realtors in this thread use this logic to justify disclosing the contract price to a third party.

The truth is that the contract is only enforceable if the buyer or seller are willing to take the other to court to enforce the contract. This is an expensive proposition that you are not guaranteed to win. Its generally cheaper to just move on, which 99% of people do. The seller is somewhat protected by keeping the earnest money. The buyer however, enjoys no such protection. They are out inspection, lawyer, appraisal and other costs.

I find most realtors to be about as ethical as your local used car salesman, and I approach them about the same way. Of course...there are some really good professionals out there...good luck finding one.

True story. I purchased a property once. Got a really decent deal out of it. I got on contract 48 hrs after the house went on the market. During that time I learned that the sellers had 3 offers on the table. The agent handling it contacted my realtor and wanted a higher offer to compete. I kept my offer the same. It was a good offer. Not a lowball offer but a reasonable one that still left me with a decent deal should I get the property. I soon discovered that one of the other offers was a friend who also invests in local property. He knew my offer price. Declined to beat it because he was looking for a steal and my offer was a bit under 10% what he was willing to go to.