Secrets

What secrets should you tell your realtor? You can tell your realtor anything. But the catch is that your realtor isn't allowed, by law, to keep secrets regarding material facts of the property.
For example, Client: "I have a leaky roof but I don't want to disclose it." Realtor: "We have to disclose it. Why? I have an obligation to you, as the seller's agent. But I also have a code of ethics to uphold. That code requires me to disclose all material facts regarding your property to anyone, including buyers. So, let's get this disclosure form completed honestly. Now, let's talk about the budget. Is it possible to get the roof replaced? Client: "No." Realtor: Well, then let's deal with this in our marketing plan. We'll add a line onto the flyer and in our multiple listing service disclosures that says 'Needs new roof, sold as is.' That isn't the best option for most buyers, though. Most buyers want something they can move right into without having additional expenses. Is it possible to agree to pay for the roof repairs after an offer is received and the cost will come out of closing funds? Client: "No." Realtor: "Then we'll just disclose and leave it at that.

What secrets must my realtor keep? Realtors must not, by law, disclose anything personal about their clients or customers to others, without permission. This is new. In the past, the first thing a buyer's representative asked the seller's representative was "So, why are your clients moving?" This is asked to see how urgent the sellers are to move. It has bearing on how low an offer to purchase can be. Some urgent sellers will be more open to lower offers due to urgent needs to get to a new job. But this isn't always true. Other sellers won't lower their price ever. They'd rather keep the place or rent it out and try to sell later.

So, if you want your personal secrets kept safe, tell your realtor. She will use them only to your advantage and only with your permission.

What shouldn't you tell your realtor? If the seller knows about an issue regarding his property that is for sale, and doesn't want anyone to know, he shouldn't tell his realtor. She (the realtor) will, by law, have to disclose the information. The realtor will lose her license if she doesn't disclose what she knows as pertains to material facts of a property.

Why is disclosure good for buyers? Because buyers know that if they are in an open house, for instance, they can rely on whatever the realtor hosting the open house says about the property. She will not hide material defects of the property.

Why is disclosure good for sellers? Now, here's the reason the seller should disclose everything: If, after the sale, the buyers learn about something the seller didn't disclose, the buyers will sue the sellers, the realtor, and the broker; and they (the buyers) will win huge sums of money from the sellers, maybe even have the sale cancelled, and the sellers pay all legal expenses and maybe even punitive damages (big bucks) for not disclosing. So, in real estate, honesty is the best policy. Your realtor will do everything possible to mitigate the impact of disclosures in how she markets your property. She has many tools she'll use to soften the impact of this disclosure.

Tip: Never over-market a property. Allow the buyer to be pleasantly surprised when she sees the home. The last thing any seller should want is for her realtor to write great things about a property that isn't even greater when seen in person. Here's why. If I say your home is in move in condition and then I show it to a buyer and the buyer see's for herself that the property is in serious need of maintenance, I've just lost any chance of a sale to that buyer. But if I say "needs a little TLC but is priced right", then I'll attract a different type of buyer and most likely a quick sale.