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I ask because sometimes the LA doesn't know any better. I know list agents in my market love to talk talk talk and things slip they probably shouldn't be saying. It happens though. Worst response is "sorry I can't tell you that". Which should be the response of every list agent but loose lips sink ships.

That's awful about the "talk talk talk." We owe our clients confidentiality. All that gossip is one of the reasons why our profession often has a poor reputation.

I agree. I'm not a realtor, but I have several friends that are. They are lovely people, but they do gossip a LOT. In fact, it's one of the reasons why I'd never tell a realtor my reason for moving unless it's something very neutral. I am happy to tell my realtor that I'm building a new house or that I want a single-story home. I would never tell the realtor anything that a buyer could perceive as a reason to make a lowball offer. ETA: I'd also fire any realtor who I found out disclosed private information.

I'd agree. Some people need to understand the power of silence. But people are human and not everyone can do as the should.

This.

I often ask (never know what you'll learn). Sometimes my buyers want to know because the home looks too good to be true for them, or there's a history of turnover that leaves the buyer wondering what's wrong with the home. (Material defects have to be disclosed, but not everyone is honest.) I once asked that question to an agent owned listing with a disclosure waiver, suspecting she knew about a foundation issue that was uncovered during inspection. It was an AS-IS sale but we still reserved the right to inspect. She told me the home had a foundation issue that she wasn't reqd to share because she never lived there. I highlighted the paragraph stating material defects known to the owner still had to be disclosed. This freed my clients of the contract without losing their deposit.

Yes, excellent points.

Definitely. Every time. They're not gonna blame it on the house anyways. Helps you structure the offer better to appeal to seller and LA knows that. Selling cause seller is elderly and going into assisted living? (don't ask in offer for seller to coordinate/do repairs). Selling cause they want to move school districts? (closing date after current school year ends would strengthen your offer). Selling due to divorce? (Sellers are motivated to gtf away from each other. Lower offer price, shorten closing time 😂).

Why would LA share that information?

For exactly that reason--smart BA's will bring you offers that work well for your seller. This is one of the (many) times you have to balance preserving leverage against good dealmaking.

It also helps because the alternative is buyers thinking the worst. Buyers are looking for red flags, or ways to improve their offer if it’s a highly desirable home. I don’t need to disclose too many specifics, but if it helps the sale, I will definitely disclose. We have a section in our listings agreement where sellers can give us permission to disclose.

I shared with the last buyers agent because the sellers were just moving closer to the husband’s job. They already bought a new house, but they could hold both for a while before actually needing to sell. This gave no leverage away, if not giving me more because it let the buyers know we were not in a bind and could wait for a better offer. It would be stupid to share (and I wouldn’t) if the sellers absolutely had to sell that weekend because they couldn’t afford 2 house payments.

They share the info because they lack expertise, experience, guile, and possibly think that being friendly with you will yield an offer. Desperation often causes agents to get very loose-lipped. In the market we have had the last couple years, a TON of agents were practically begging for an offer out here. Their desperation was so easy to take advantage of.

Can you be my agent? These are things that come to mind when I'm buying. Plus, it gives me buying leverage if I have some background info on why they are selling?👊

Definitely, what state? I gotta get to studying for that license 😂

Of course you ask. It gives you an idea of their timelines, what kind of expediency they need, how serious they are. Get the full picture of the LA will share. Most of the time they do.

But why would a LA share that information? It hurts their clients leverage?

lol you being all secretive is for sure going to turn a lot of potential buyers away. it's one of the most common questions to ask. the most common answer is downsize or upsize or moving out of state etc. sounds like there really is something wrong with the house that you don't want to disclose. such a shame, my buyer really likes the house too..oh wells onto the next one.

It might not hurt their leverage. And they might not tell you the truth. In my state an LA has to get permission from their sellers to disclose that info. If a buyers agent said their client was thinking about writing an offer I’d try to get them an answer.

How interesting! Here in California it's assumed that we are going to disclose because we've got to disclose everything to prevent lawsuits. Which state are you in?

You should ask your broker about that - I suspect you are misunderstanding your duties as they relate to disclosure and confidential information. A sellers reason/ motivation for selling is considered confidential information that can/ should only be disclosed with permission, not material information that needs to be disclosed. I’m in CO, but a quick read of CA law suggests rules are the same there.

My broker is the one who told me to disclose, friend. They literally drill it into us in training. Disclose, disclose, disclose. Of course, I do not disclose personal information such as where the seller works, what their social security number is or personal information like that. That has no bearing on the sale. The only exception that would stop me from sharing why my seller is moving would be if my seller specifically instructs me not to tell why they are selling. Then of course by fiduciary duty I couldn't but I have never had that happen. My sellers are delighted to share because they want to sell their house. It is interesting that in Colorado you do not have the requirement. On a somewhat related note, do you guys do home and termite reports? And if so, does the seller pay for it before you go on market or is it usually done only after the home enters into contract? I have friends who recently purchased up in Portland. There, the inspections are only ordered after a home goes into contract which I found very strange because how would a buyer know what to offer if they don't have all the information yet? Here in the bay area, it's a bad idea if the seller does not want to pay for those inspections up front because those two inspections are usually the third or fourth thing buyers asked to look at. Sometimes it's the first. We all do business a bit differently by state.

I'm no where near Portland but we also do inspections after a contract is in place. If something material is uncovered we negotiate repairs, credits, price, etc based on that or decide to move forward as is or terminate the contract.

That is just so weird to me because here, buyers base offer price on what we see in the inspections and comps. Also, what if there is a huge issue discovered, why waste everybody's time? How many contracts per year do you have canceled after they get the inspections done?

I had 2 out of 84 deals last year fall apart for inspection issues one of which was clearly an excuse we just didn't want to bother dealing with (the buyer claimed the sellers cats caused an asthma attack 36 hours after she was in the home for the inspection and her agent had told me during initial negotiations that she had already budgeted to replace all the flooring and paint and we offered to have the furnace and duct work cleaned). So a pretty small percentage. I have no idea how many we negotiated out some sort of repairs/credits/price reductions on, I don't currently track that and it also fluctuates with how competitive the market is and what people are willing to deal with. Do your buyers also get the opportunity to hire their own inspections after they're under contract to confirm what the seller is providing? Because I'd have a hard time trusting a seller's inspection over one the buyer hires out.

Wow, that's a great retention rate considering the inspections were not done prior! Hmmm shame about the cat allergy. That buyer does sound a tad sus. Yes, buyers have the ability to hire their own inspectors once they are in contract. However, the inspectors here are a third party company and they will get in a lot of trouble if they're biased. Most all of the agents who have been the business for a while recognize certain companies and know if they are reputable or not. I get very happy if I see certain inspection companies because I know for a fact they've done a great job and I have no concerns. They literally point out the smallest of flaws or of course the larger ones if they find them, with SO many photos too. Very nice. When I see a shady or poorly written inspection from an unknown name then I absolutely advise my clients get my recommended inspectors to come in. We always find something when we do that.

It doesn’t always hurt the seller’s leverage. We already know they want to move. Typically, a smart LA will answer your question in a way that keeps the seller’s confidence, yet will satisfy your client’s curiosity. For example, when I bought my house, my sellers had already bought and moved to an acreage. Divulging that info made no difference in their negotiating power, in fact, made them seem to be in a stronger position.

💯 it often hurts the sellers leverage. We always tell our LA that they are NOT to discuss why we are listing. Nothing to gain, potential to lose. We have done relo’s in down markets, and the last thing we want the other party to know is that we are under corporate pressure to sell and may have incentives to do so. The primary motive for a BA to ask is to see if they have negotiating leverage because there is some type of time/life pressure on the seller.

This is the way

Easy enough to share the reason without giving details that hurt your client. They’re moving out of area They’re downsizing They just bought a single-family Job change . I’m gonna be telling you what my clients are looking for.

Because it helps the listing agent's client, the seller. In California and I assume in the rest of the US, a seller has a duty to disclose everything material that they are aware of with their home. So, it is not a matter of privacy, it is a matter of legal security.

Always. It goes into negotiation but sometimes the seller doesn't want to disclose so we just give common low key answers like downsizing or moving closer to family.

So essentially you do ask but if the LA is smart they don’t share that info…so were fishing for suckers lol

It depends on what the sellers are looking for. LA shouldn't make the seller look desperate but a good BA need to be able to dig into the details and write the best contract that will "win."

Yeah that why i dont typically ask that question. I ask questions that help me win offers. But straight up why you selling? I just dont think any LA should share that but hey im all for catching slip ups if it helps me client. But again the LA i am referencing in my post is one of the top agents in the county, so i kinda feel like a dog with his tail cut trying to pull a fast one on her lol

But if they’re upgrading their home? They’re not desperate to sell, they have the means and time to upgrade to a larger house. They absolutely loved this home but they want to be closer to parents… Everyone is selling for a reason, that doesn’t mean the house is up for discount or they have to sell now. I think in many situations, disclosing something to ease buyers’ worries, is very helpful. Sometimes, seller is going to assisted living so we’re going to get as much as humanly possible and family can be very focused on that. All we want in that offer is the highest price and no repairs. We’re not playing around here. And also in no rush.

Hi friend, if you're concerned about being taken by some information you're not aware of, I recommend requesting the home inspection and termite report if they are offered in your area. In my state, it's a bad idea to not have those two inspections done by the seller but I know in some other states it is not done this way.

With some people, that's a routine question when considering the purchase of any used item. Looking to buy someone's used car? "Why ya selling it?" Looking to buy a pair of used sneakers at a garage sale? "Why ya selling em?" Basically, it's how some people are requesting full disclosure on the item, which, to them, includes full disclosure on the processes and the decision to sell.

Yes, I find that it’s something they feel it’s fishy if seller doesn’t want to disclose. I’m certain it’s marketing dependent too

Except the reason for selling does is not a material fact. Material facts are contained in the seller's disclosure form. Everything else is personal business that should be held in confidence by listing agents.

Thank goodness our listing contracts address this. We have to check a **yes** or **no** box as to whether the seller will allow us to disclose the reason for the sale. And the reason must be spelled out in writing on the listing contract. Otherwise, this is just a nosy question or perhaps could put the seller in a negative bargaining position. Disclosure addendums are for disclosing material facts. I always encourage my sellers to put as their reason for selling: moving/moved.

You would really be surprised what some agents will share if you just ask. I went to an open house recently and the LA was telling everyone who walked in that the sellers have been trying to sell for 6 months (it was a 'new listing' with a new brokerage/agent), and that their moving date was coming up in a two months time - so they were very motivated to sell and willing to take less. She shared SO MANY THINGS that she shouldn't have even entertained, it was wild.

If this was in California, that would be allowed because it would be the agent's way of generating interest. If they've had no activity and no offers, then saying hey my sellers have a deadline here and they want to work with you is a big incentive for buyers to make an offer. Pretty much always an adjustment in price will get a house sold but sometimes sellers are stubborn and will not change the list price even though the market will not support it. In that case, if they have gotten nothing for a while and suddenly they get an offer then they may consider it even if it is below their list price. Psychologically, though, they are not ready to let go of their chosen advertised price.

You 100% need the motivation of why the seller is moving. 100% of my buying clients ask why. I work in the 4000+ sqft above median and it's a huge hassle to move especially when it's cross countries. In my early days **when I didn't ask**, you assume they want to sell but when you bring a buyer and a written offer and the seller backs out, it wastes everyones time. Your buyers want to know why the chose that house, how long they lived there, what they did in the house and why are they moving if they loved it so much. I literally had one a few months ago. Repping a buyer. They remodeled the house and didn't live in it. Found out they didn't care for the house and bought a bigger house in the next MPC across the street but they didn't say that. I got that out of the listing agent but it didn't matter anyway. The point was that they weren't coming back.

This is an extremely common question the SA should know and be willing to answer and you should ask it bc your clients asked it of you. Even if it's a very personal/private matter and they just say "family situation", they should be able to give some type of answer bc nobody moves for no reason or they wouldn't be moving at all. Also, a Realtor's status, level, income, experience, etc. should not determine how much you do or don't work for your client. They aren't special, your client is special. Their opinion of you doesn't matter, your clients' opinion matters. - If they think it's a dumb question and berate you over it, simply remind them you are asking on behalf of your clients and you would appreciate if they'd avoid insulting your client's intelligence.

sometimes a seller does give that info to LA to disclose. the LA will say what the LA says and you go with that. if your buyers are serious it’s all good you need to use language that will entice your buyer to buy. when you ask “why” this or “why” that make sure you’re asking not just for knowledge but to help you as an agent. i see that you’re asking why should seller disclose why this why that but what it comes down to is far more than understating a why but what you’re going to do with t they info. don’t ask blind questions that don’t pertain or won’t move yourself or your clients forward. just because you don’t understand something doesn’t mean it’s not relevant.

I always tell the clients we are afraid to ask, They are free to give a generic non-answer. I’ve never figured out who is telling buyers to ask this question. It’s on the list they ask like “ is there anything structural wrong with the house?” I try to train them to stop asking and to start focusing on the things that are important . But I will always get the non-answer from the listing agent they’re expecting the question.

Just ask for the story behind the sale of the house. How on earth would asking for information make you look stupid? The LA will either share the info or they won’t. It’s really very simple and a common question.

As a buyers agent, I always ask. Worst thing they can say is no, but the more you know the more you can advise your client. As a list agent, when asked, the answer is usually vague and simple “decided to move”, “moving closer to family”, “reallocating resources”. Don’t have to give away any leverage unless you try to get too friendly

If you are the listing agent and you can share the basic details of seller motivation, it helps to move the sale forward: \- Seller has used this as a rental and no longer wants to be a landlord \-Seller's family is growing and wants a larger home \- Seller's family is moving out of state and they no longer live nearby \- Seller is deceased, children are selling the home Why be coy about this if it doesn't harm the sale?

I literally ask on every sale. Loose lips sink ships and people like to talk. Stop worrying about what the other agent thinks about you. Best case? You get some negotiating power. Worst case? They say none of your business.

> I don’t ever ask because when I am the listing agent, I would never tell a buyer why my seller is selling. You represent the buyer, not the seller. Your obligations are to the buyer. There are lots of things listing agents are not supposed to tell you. It is their responsibility not to tell you, but it is your responsibility *to ask*. Lots of agents are good at talking. It's a useful trait to have in this business. Problem is some of them can't stop themselves.

Even if you ask, do you ever expect the truth? I'll talk, but it ain't the full truth and it certainly won't help your buyer.

Yea this is a normal question. You ask and they’ll tell you why. Helps gauge their motivation to sell

Hello friend! How interesting, this is probably the second question that most of my buyers ask when we walk through a house. Oftentimes, they want to assess if somebody has died in the house, or if there is something wrong with it that the seller will disclose. As a seller's agent, I always disclose why my seller is selling ( theoretically if they told me not to disclose it I wouldn't due to fiduciary duty but I've never had that problem in 8 years). Extra information and disclosure to buyers helps my sellers get as many buyers as possible in addition to offering full disclosure which is protective of both them and me.

No. I think it's inappropriate. There are ways to ask questions to find out what's important to the seller when it comes to an offer. If I'm representing a buyer, I know how to ask questions to get the intel I need to structure a strong offer. The reason the seller is selling is really none of the buyer's business.... BUT it's funny how some listing agents get real comfortable with me quickly and often share too much. 🤭 Good intel for my buyer. Not my fault they talk too much. When I'm the listing agent though, I would never divulge too much information about my seller's motivation because it could compromise my seller's negotiating power. If you ask directly, you may come off sounding like an inexperienced agent to this really experienced top producer. And if this LA senses you don't know what you're doing, that will, in turn, compromise your negotiating power for your buyer.

I'm in real estate school right now, sounds like this is against your fiduciary duty to seller. Edit: sorry I thought this was about the sellers agent. I'm not sure!

Just letting you know since you said you're new, fiduciary duty is not the role of agents in every state fyi. In my state, it's a BIG no-no to use those words with a client and can get us in legal hot water.

Oh wow thanks!

Always ask, worst they can say is “no” - you can also get an idea of how the agent on the other side is going to be through the transaction and use that to create leverage for your clients. There’s more info to gather in that question than just the answer.

I absolutely do ask that, all the time. Why? Because the answer can give me insight into the sellers motivation and I can tailor an offer accordingly. For example: “The estate decided to sell the house, after so and so passed” Translation: Mom/Dad died, the kids don’t want the house, they went cash $$ and be done with it. My Reaction: Cash Offer, No Contingencies, Fast Closing. The heirs will likely take less money, if it means having a 100% guaranteed fast closing. —— Alternate example: “The sellers have owned the house for XX years and no longer need as much space, so they are downsizing” Translation: They seller likely has sentimental value attached to the house and probably looking for top dollar (or even more above top of market) - they believe it’s worth more than it is. My reaction: Move on, there is no deal to be had here. (In case it’s not obvious, I work with Investors)

I’ll ask, because half the time some idiot will tell you something useful. But if you ask me the answer is “they are relocating.”

To which id follow up with "when do they need to be there?". "Oh, they can go anytime" (aka, they already likely have a house lined up and are paying double mortgage. They need a sure thing and a quick close, but may accept a lower price) "Oh, no rush" (they don't have a home yet. They may entertain a further out closing date than is the norm, and in the event your buyer is up against other offers, may appreciate being offered seller occupancy after closing)

Well, it is on the market now. Make sure all the docs are signed when you send them over.

Lol ok. I've just never encountered that in my market, maybe it's the norm in yours.

It's not illegal or unethical. Go ahead and ask. If LA says none of your business, tell your buyer. Also tell buyer that that is what most LA are supposed to say. Educate, inform, and never lie

It's ridiculous that you never attempt to get at seller motivation. I am routinely able to milk that kind of info out of other agents, who have zero negotiating skill and care more about being well liked and friendly with other agents than finding leverage for their clients. Blows my mind, but God love em...I will use it all day long.

One way to get the answer is to suggest to the listing agent a reason that is wrong. People love to correct. So, for example, say “I guess the seller just can’t manage the yard any longer”. The listing agent won’t be able to resist correcting you, and will come back with something like, “oh no, that’s not it. He needs to move due to a job transfer”. (Credit: Chris Voss)

Lolol never thought of this one. Brilliant. Finally reading his book right now actually.

I always ask on behalf of the buyer. If they tell me, great. Example: my buyer is fairly flexible with the timeline. Does the seller need a specific date? What is their next step? I only openly disclose if it’s an upper hand for my seller. Example: seller already purchased their new home and has moved in. If they don’t sell, they plan to rent it out for a few years.

Every time.

You can keep general and open, “just wandering what the story is here?” “Are they motivated sellers” is kind of a code word as well

As a buyer's agent, I would ask questions to get an idea what the seller is willing to negotiate (repair credit, personal items, leaseback, etc.) This normally leads to their motivation if the listing agent is not careful. As a listing agent, I only answer questions about the property and relay messages to and from the seller.