Best of Success,
Annette Lawrence, Broker/Associate Remax Realtec Group
See my list of Homes For Sale in the Palm Harbor University High School district http://annettelawrence.mfr.mlxchange.com/?Page=-1
This is a very interesting question! There are a number of factors that come into play to answer it.
During the showing process the agent may be operating under what is known as "Pre-Agency". This means they are not working for the buyer or seller. They are simply showing homes and delivering facts and figures. All that changes at the time of negotiation! At that time the buyer can choose to contract the agent as a "Buyers Agent". If they don't, then the agent will be representing the seller by default.
In Wisconsin, If the agent is a "Buyers Agent" and is representing the interests of the buyer they may offer advice and opinions about how to procure the property. Ultimately, however, they must follow the instruction of the buyer as to the terms of the offer they draft.
In Wisconsin, If the agent does not represent the buyer via contract then by default they are representing the seller when they draft the offer or take part in negotiation. In this case they can only promote that you structure the offer to benefit the seller. They cannot provide you their advice or opinion to structure the offer to benefit you! They can only explain and complete the offer for you. This is why Buyer agency benefits the buyer. Prior to negotiation they should provide you with a "Broker Disclosure To Customer" that outlines the duties they owe to all parties.
There is no way for anyone other than an attorney or judge to tell you if the Realtor acted legally in your case. The Realtor Code Of Ethics is what outlines whether the Realtor acted in an ethical manor.
This may seem odd to the typical consumer but just because you are working with an agent does not mean the agent represents you! Agents must follow state law in regards to representation. They must also disclose, in writing, who they represent prior to any form of negotiation.
I hope this helps!
As a listing agent I rarely give a number, because it may limit the number and likelihood of offers.
Even if i get a silly low offer, i can usually get another buyer off the fence with the threat of a competing offer. That means multiple offers and a better price for sellers.
I would only give a minimum number if I had it in writing from seller if he/she doesn't want to be bothered by lowball offers.
A listing Realtor or even another Realtor who may be assisting Buyer draft & deliver an Offer to Purchase on another Realtor's listing, if not in an official "Buyer-Agency" relationship with Buyer, is bound to treat both parties fairly but Owe their Loyalty and Obedience to the Home-Seller. If Seller asks listing Realtor to make sure buyers know Offers presented below a certain amount are a waste of time, NOT sharing this information would be unethical.
The Realtor may not want to share this information and even find doing so difficult or unpleasant, but MUST if it is asked of them by Seller....because to serve one's own wants instead of one's clients would "taint" the real estate profession.
My advice to all Wisconsin home-buyers is to make sure you enter a "Buyer's Agency Relationship" with an Accredited Buyer's Representative at the onset of your home search. In Wisconsin real estate, if you and your Realtor do not sign an official "Buyer Agency" (WB-36) contract the Realtor working with you is actually working FOR the best interests of Seller. Go with Buyer's Agency to make sure Realtor's loyalty and obedience in a transaction are to you and your best interests.
Hope this helps, Dan.
But I like your description, mind if I borrower it? I think I saw a tainted loan application this morning. I like it better than what I have been using.
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.