As a seller, you need to know what you must share and what you shouldn’t share.
When you list your home for sale, there will be lots of people who ask why you are selling your house. There are things that you can share that don’t seem like a big deal but actually harm your position and ability to get top dollar for your home. It’s best to ONLY share your motivation and reasons for selling with your Realtor who will know what should be told and what shouldn’t. Even sharing things with friends or neighbors can cause information you really don’t want to be public knowledge to find the ears of potential buyers or their buyer’s agent. As mentioned in another blog, a listing Realtor ethically has to represent the best interests of their seller while a buyer’s Realtor has to ethically represent the best interests of their buyer. For example, if you are listed at $300,000, but tell your neighbor that you would take $275,000 and your neighbor tells someone they know who is looking to buy a new home, that could have a negative impact. You might not know that your neighbor’s friend or relative is looking for a house. Your neighbor might actually think they are doing you a favor by relaying information that brings you an acceptable contract. But relaying that information probably just cost you thousands of dollars.
If people know that a seller has already bought another home and can’t carry two mortgages very long, that might make them view the seller as being ‘desperate’ and might encourage lowball offers. The same thing goes for other circumstances such as divorce or job transfer. Those are not things that have to be shared and in most circumstances should be kept private.
On the other hand, there are things that must be shared. If the seller is aware of any defect such as roof leak, past flooding, or an appliance that doesn’t work, they must disclose that information. Those things should always be included on the Seller’s Property Disclosure. Realtors must disclose known defects as well.
These are just examples of a few things that can harm negotiations if shared or increase liabilities if not shared.
If you have any questions or if I can help, don’t hesitate to contact me!