Home Buying in Orlando>Question Details

Ron Climer, Real Estate Pro in Orlando, FL

Why do real estate agents NOT tell their co op agents how much a competitive offer is on their listing? Is it a violation of some law?

Asked by Ron Climer, Orlando, FL Thu May 1, 2014

Is it a violation of the code of ethics?
Would it be detrimental to the sale in some way?
Is it an instruction from the seller?
Is it a tradition that makes no sense?

Help the community by answering this question:

Answers

6
Because as an agent you have a fiduciary duty to your buyer or seller. Therefore it is immoral to information that may reduce your clients benefit.
0 votes Thank Flag Link Tue May 6, 2014
SELLING is a professional industry and we have a duty to SELL.
0 votes Thank Flag Link Mon May 5, 2014
Those that CAN'T - TEACH!
0 votes Thank Flag Link Mon May 5, 2014
Is this a question from your class? You market yourself as Orlando's Best Real Estate Instructor, so I'm guessing you already know that the answer can be found in the Brokerage Relationship Disclosures. To me personally the answer is because it's bad business to do so.
0 votes Thank Flag Link Mon May 5, 2014
It makes sense to me because typically it benefits their client - the seller. Let's say you have an offer $20K below the asking price - why would you want to tell another agent how much that offer is? In the absence of that info they may think they have to offer at least full price or more.

We always thought that we weren't legally allowed to divulge that info but it turns out there's no law against doing so. But it's still typically not given out.
0 votes Thank Flag Link Thu May 1, 2014
The agent needs to get permission from the seller whether or not to divulge the information. It is a "depends" answer, as it would differ in different situations and different strategies. Agents are cautious about this because you don't want your seller or yourself to be accused of unfair or unethical practices. It could be another agent from their brokerage bidding against other brokers, or the agent could be a transaction broker representing both parties. Tricky. Then what if the deal doesn't happen ? How many agents & buyers out there are now going to know what these offers were ? Could end up putting the seller in a low leverage position.
Flag Sat May 3, 2014
-No idea. I wonder about it all the time.
-Not as far as I know in CA.
-Not with my board.
-Maybe.
-Maybe.
-Definitely.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Thu May 1, 2014
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer