When "Listing" Your Home - What You Say May Be Used Against You!

One of the questions that I am most frequently asked is actually "What should we ask a REALTOR®?"  Often, it is just as important (and possibly more so) to know what questions that a REALTOR® may ask you that you should NOT answer!

Remember: Until you have signed a contract or "Listing Agreement" with the REALTOR®, that REALTOR® and any other that you might speak to, does not have a fiduciary obligation to you!  They are under no obligation to keep your answers confidential.  You may say, "Hey!  What a minute!  What kind of professionalism is that?"  But please consider this.. If you hire another REALTOR® to market your home and one of the REALTORS® that you talked to previously, but didn't hire, ends up bringing an offer from a Buyer later, working as the Buyer's Agent, they would be obligated to disclose anything that they know about your property and motivation, etc. to their client - THE BUYER!  Your answers may be used against you!

Interview as many REALTORS® (commonly called "agents"*) as you wish, but be careful of such questions as, "Why are you thinking of moving?"  While the question may seem innocent enough, your answer may indicate some duress or motivation that might suggest that you could be open to taking a lesser price for your home - even well below market value!  Whatever your reasons are for selling your property, they have absolutely no bearing on the value of your property.  Such questions as "How much did you pay for your property?" or When did you purchase the house?" are totally irrelevant to it's current value!

YOU SHOULD NEVER CHOOSE A REALTOR® BASED ON WHAT THEY TELL YOU THEY CAN GET FOR YOUR HOME!  The market (the Buyers and effects of supply and demand) determine your home's value - not the REALTOR® (unless they are going to buy it themselves - at or above market value!)  It's too easy to do the "3L" Listing Program - (LIE, LIST and LATER) to get people to sign a Listing Agreement for 6 months and then come back and say "Oh well, the market changed" or "There is so much more competition now". Once they've got you signed....  (Always demand an "Easy Exit" Guarantee".  But that's a blog for another day!)

So, avoid any questions that might suggest your opinion of the property's value, such as  "What do you think your home is worth?"  Your answer can work against you - both with the REALTOR® you hire and those that you don't!  Don't make it easy for them to tell you "what you want to hear" just to get the Listing Agreement.  The value of your property is NOT determined by what a Seller "thinks" their property is worth, or even what he or she wants or needs for the property.

The value of your property is determined by what a willing Buyer will pay for it, within a reasonable time period and after a thorough marketing program has been implemented to ensure that every prospective Buyer has been made aware of the property's availability.

When you are looking to hire a REALTOR® to work for you - YOU should be the one asking the questions!  After you have signed the Listing Agreement with the REALTOR® that you trust to protect your best interests, then you can safely answer any questions that your REALTOR® may need answers to so that they can know how best to serve you!

Good luck and Happy Selling! (and Happy 2011!)  -- Rick

* The term "agent" is often misused as, in many jurisdictions, including Ontario, the "agent" is the Brokerage or company that the Broker or Sales Representative is licensed through.  The term REALTOR® is a licensed trademark of the Canadain Real Estae Association in Canada and may only be used by it's registered members.

Comment balloon 5 commentsRick Sergison • January 04 2011 12:44PM


What a very good post! Thank you for sharing this post.

Posted by Ralph Gorgoglione, Hawaii and California Real Estate (310) 497-9407 (Maui Life Homes / Metro Life Homes) about 10 years ago

Very interesting Rick, thank you for this post it's good advice.

Posted by Jason M. Keith, Equal Housing Lender (Caliber Home Loans) about 10 years ago

Great post! What you say is oh so true. I hope the entire listing public comes across this. I try to guide people as to what to NOT tell me. I put my fingers in my ears and go blah, blah, blah. They usually get it.

Posted by Kathy Denworth, Realtor in the Florida Keys, Islamorada, Key Largo (Century 21 Schwartz Realty) about 10 years ago
Great posts!
Posted by Tanya Boyde a.k.a Cos Melian over 9 years ago
Foreign citizens have alyaws been able to buy property in the US. But it does not give them a residency status. If you have a passport, you can get a visitor's Visa usually good for 3 month. If you are an EU citizen you do not need a visa, and you can visit for 3 month at the time. You can also apply for a Student Visa if you are accepted at one of our schools. But watch out for scams!
Posted by Kier over 8 years ago

This blog does not allow anonymous comments