Here's a good question from a local real estate participant in Pennsauken, NJ 08109 zip code, but it applies to anyone listing or buying real estate in NJ...

"Concerning the ethical rules of a listing agent... is it legitimate for them to tell a prospective buyer that the seller declined a prior offer?," the homebuyer asked. She went on to say, "Specifically, would it be proper for them to tell that prospective buyer that the seller was offered X but declined so that if they want the property they need to offer higher? This, before anything is even in writing?

Here's my answer for which I received a "Best Answer" thumbs up! Hope you find the information helpful!

BEST ANSWER

Hi Annie,

I'm going to speak about NJ because you are in NJ. In NJ it is NOT ethical for the listing agent to reveal anything to the buyer or buyer's agent without the express permission of the seller. This is an ethics violation. Please read the Consumer Information Statement that your listing agent should have provided you.
So if the seller says to the listing agent. "I know my house is listed at 200k, but I'll take 190k and not a penny less" it is not ethical for the listing agent to divulge that without first asking the seller. If you're a seller, you have very valid reasons for guarding your motivations to sell. Why? The buyer's agent, if they're good, will try to ascertain the reason for selling, share that with the buyer and this may result in a lower offer to the seller. This is one reason I counsel my sellers to leave the home, if possible, during showings -- I caution them that if they must stay, they should not get into any casual conversation with the buyer's agent wherein they might divulge something that will weaken their negotiating position.

Even if my seller tells me, "You can tell them I won't take any offer lower than "x"; I will still counsel my seller that "You may not want me to say that. Why? Because then all they'll offer is "x" when maybe you could've gotten "x+5,000". Take it from me, someone who used to work in the cutthroat world of Manhatten's major-label music industry, It's best not to say anything and just let the negotiations play out and see where they lead. Remember, in negotiations, he who blinks first, or breaks the silence, usually loses -- so why would you want to start off giving the other party ANY information???

I hope that this answers your question!

Best Wishes to you, Annie!
Kim

GOT QUESTIONS ABOUT PENNSAUKEN, NJ REAL ESTATE IN 08109 OR 08110? GIVE ME A CALL! I'M HERE TO HELP!

Kimberly Thomas, Broker-Associate
Realty Executives Brown & Pope
856-308-5989 http://www.kimcanhelp.com

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