Is there any good reason to share the maximum I'm willing to pay on a given property to my agent?

Asked by A Regular Home Buyer, Oakland, CA Mon Jan 19, 2009

We are working on an offer and the agent asked and I was not sure what to say. Friends have told me that this is NOT a good idea, even though my agent represents only me (the buyer). I would be curious to hear opinions from other home buyers on this issue and of course also from real estate agents. Thanks.

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8
Karen Parsons…, Agent, Laguna Beach, CA
Mon Jan 19, 2009
Hi,

I imagine that the reason you are concerned about telling your buyer's agent this information is because you think he/she will tell the listing agent to get the deal. That sounds like you don't really trust your agent. When I represent the buyer, I want them to pay as little as possible. The difference in commission for me is really pretty minimal when you are talking about a $10-20,000 increase.....the good will I get from a buyer who knows that I'm working for only them....that's priceless.

I've advised buyers to walk away, when something is a bad deal....it's a bad deal, so find an agent you trust and you can tell them what you think and trust they have your best interest at heart.

Karen
2 votes
Dana Schuster, Agent, Slidell, LA
Mon Jan 19, 2009
Karen:

thumbs up from me for your good,honest answer!
0 votes
Frederick Go…, Agent, Riverside, CA
Mon Jan 19, 2009
Hi Ms Home Buyer,

Your agent should know. Your agent should have a Pre-Approval letter from your bank showing your maximum loan amount. What is most important is you should be working as a team with your agent. Your agent needs to let you know how much the home is worth and if you are all in agreement, proceed with your offer.

Fred
0 votes
Daniel, , Baton Rouge, LA
Mon Jan 19, 2009
If your agent is worth his/her salt, they should have your pre-approval letter from your bank stating that your good up to x number of dollars!
0 votes
A Regular Ho…, Home Buyer, Oakland, CA
Mon Jan 19, 2009
Jay, Thanks for your response.

You say "Most of the time it is not important for your agent to know the most you are willing to pay for a home..."

Can you tell me under what circumstance it would be be advantageous for me to reveal that information? It seems to me, under most situations, it is not necessary or perhaps even advisable to do so.

Ms. Homebuyer
0 votes
Jay Voss, , Cedar Park, TX
Mon Jan 19, 2009
Ms. Buyer,
Most of the time it is not important for your agent to know the most you are willing to pay for a home. If you are in a multiple offer situation and don't want to lose the house, your highest and best offer may be the best plan. Code of ethics and fudiciary duty prohibit agents from sharing confidential information. Penalties for doing so can include stiff fines, revocation of license and a bad reputation.
Good Luck.
0 votes
A Regular Ho…, Home Buyer, Oakland, CA
Mon Jan 19, 2009
Just to clarify, the agent was asking what is the maximum amount I'm willing to pay for the house.

Not how much I'm going to pay him (yes, I already know that its the seller that pays the agent commision!)

Hope that makes the question clearer. Regards,
Ms. Homebuyer
0 votes
Dana Schuster, Agent, Slidell, LA
Mon Jan 19, 2009
I'm not sure I understand your question,but as the buyer,you are not the one paying the agent's commission--the seller pays this at closing.
0 votes
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