Compass agent Ben Faber started a discussion:
JtR: If you find a halfway-decent home, it will probably be in the first seven days it’s been on the market. It’s when the listing agent goes into full defensive mode and all communication turns vague because they are so afraid of saying the wrong thing. There are no rules of engagement. Just make an offer and send it into the black hole and maybe you’ll hear something.
Ben: If we represent the seller, then what information is in the seller’s best interest to share with buyers and brokers? Option 1 is the seller does not share any information because one of the fundamentals of negotiation is information and the seller is in possession of information. The information is confidential unless the seller authorizes us to share the information. Option 2 is the seller shares information, such as: specified number of showings, disclosure viewers, offers, etc. When advising the seller, what do you think is in their best interest and why?
JtR: We must acknowledge the change in market conditions, and be willing to consider all the options. Listing agents need to be doing their job better than ever before, and exploring what information to share and how to share it makes sense.
In a conservative market where buyers are adverse to risk, it pays for sellers and listing agents to be warm and inviting – it immediately sets you apart from the normal agent (who typically doesn’t want to talk in person or on the phone because they so worried about saying the wrong thing).
My suggestions:
Disclosing the details about the offers received? The other offers are your best friends when properly presented. Because most buyers want to steer away from bidding wars these days, how the listing agent presents the other offers is critical. Properly presented, the other offers outline the path and formula to which the buyer can say yes or no to buying the house. If the listing agent doesn’t have the skill to sell the evidence they have, then they can go wait in their bunker and hope a deal finds them.
I always want to have a good explanation if I don’t have offers too. It’s been two months since the tariff tantrum so if you’re still using that for an excuse for why the house isn’t selling, it means the seller and agent haven’t adjusted yet either. Sellers and listing agents want to demonstrate how they are dealing with the constant chaos, because it is standard fare now – and will continue for 3+ years minimum. The tariffs will stick, Trump isn’t going to change, and Maga is here for good – deal with it. Lowering the list price in any increments is telling buyers that you’re realistic about the new difficulties.
I also want to politely weave into the discussion any bad news earlier than before. During the frenzy, the buyers wanted the house/rate so badly that they shrugged off defects – but not today. Buyer’s remorse is real and you want the buyers to hear at the perfect time that the 37-year old roof is original but not leaking and sold as-is.
I’m going to provide a home inspection and comparable sales too. I want to do everything I can to help make the buyers feel more comfortable with their purchase. We email their buyer-agent a full package with explanations and attachments – knowing that they will just forward it directly to their buyer. Their friends and family will be trying to talk them out of buying, and you have to pray that they don’t read twitter. Be the one positive that keeps them in the game.
Know the financing options. Buyers in our last three closings utilized alternative financing to purchase (qualifying with bank statements instead of tax returns). Agents who aren’t aware of the options might pass on a legit buyer.
Have solid answers for the obvious questions, like these:
- “Do you think it’s worth it?”
- “Why do you think it’s not selling?”
- “Where are these folks going?”
If the sellers and listing agents are dependent upon effective open houses, then they better be good at handling questions face-to-face. Anticipate the questions in advance, and have good answers ready.
I used artificial intelligence for one property description and I’m done. You can tell that most listing agents are brainlessly using AI when home descriptions are overloaded with superlatives but never say anything. They don’t stand out – they all sound the same. A buyer is only giving you 5-10 seconds to make a great impression before they swipe. Get your money’s worth!
To answer Ben’s question:
Option 2 is my favorite and I think transparency is a sales tool – and using it wisely can make the difference between selling and not selling!
More on the topic here:
Transparency. I’m good with translucency. There’s price, performance and perks. I’m good with sharing “there’s higher offer(s), they a prepared to close (much) sooner, they aren’t demanding as many conditions.” If we need to go full transparent then there’s a thing called “whiteboard” where everything is up on the wall in real time. That’s unrealistic as for instance, the agents don’t want their cut shown to all.
Your command of the English language far exceeds mine! (MIT vs Cal State Fullerton)
The buyers and sellers both know what they are paying for their realtor now, thanks to the NAR Settlement. It’s a start.
Buyer-agents would love to know what the listing agent’s ‘cut’ is. The buyer-agent has to disclose their fee to the listing agent, shouldn’t go both ways?