Vancouver – Is Your Realtor® Spilling Your Beans?
Posted April 18th, 2012 in Real Estate, Sharing the Experience | 
Huh?
Some Vancouver Realtors® don’t get it.
Agency
With each passing iteration the understanding of what agency means to Realtors® and clients alike approaches defined clarity.
As a Vancouver Realtor® there are times when you work for a Buyer, a Seller or in some circumstance for both. Each position comes with written mandates. Prior to commencing a discussion about Vancouver real estate these mandates must be discussed and acknowledgement of their understanding made in writing. It is an agreement made between your Realtor® and you as their client. The importance should not be underestimated.
The essence herein is not to labor the various aspects of agency save one – the first duty of a Vancouver Realtor® to their client.
Undivided Loyalty
“The Brokerage must protect the principal’s negotiating position at all times, and disclose all known facts which may affect or influence the principal’s decision.
Selling Realtors
For many, part of the glorious self promoting marketing package is that they will keep the Seller informed about what buyer’s who have viewed the subject property thought about amongst other things, its condition and/or price. This ‘seeking of opinion’ is usually completed by email or phone call to the Buyer’s agent that may include a request that goes something like this:
“So….What did your buyer think about the house?”
Wrong Response
The problem is this. Providing any information to the Seller’s agent with regard to what the Buyer thinks stands as an absolute contradiction to the promise made by the Buyer’s agent who said and declared in writing that they will protect the principal’s negotiating position at all times.. Even the slightest hint via a response to the Seller’s agent may weaken the Buyer’s ability to negotiate suitable terms or price.
Thanks for Calling
When the Seller’s agent phones to ask what the Buyer client thought about the property the response should be instant – nothing! Acting as a Buyer’s agent is serious business and means that any response other than “thanks for your interest however, as the Buyer’s agent I have an agreement with that Buyer and I am precluded from entertaining this discussion” tears the fabric of the Buyer’s legal right to undivided loyalty.
Buying or Selling
Vancouver Buyers and Sellers undivided loyalty is one of your negotiation beans, is your Vancouver Real Estate agent spilling them?
Too bad some don’t respect these rules. My last agent often sent me detailed summaries (even email forwards from buyers agents) with details on what tier client thought about our home.
Also recently found a place we wanted to buy (4 months back). We set up a final showing and at the last min find out there was already an accepted offer in place. Their realtor didn’t tell out realtor any offers were coming in. Why? Lady who put in the offer landed from mainland China and had no representation. The sellers realtor wanted to keep both commissions so instead of getting a better deal for his client (we would have put in an offer higher than asking) he kept quiet.
Anon, really? You were going to go head-to-head with a Chinese lady that landed from the mainland (probably with 2 suitcases full of cash)?
I sure hope in the last 4 months you have ended up buying another house. (One less bidder at open-houses)
I’m not so sure going head to head with someone who landed days prior from Mainland China is an anomaly in this market.
We have not bought since. This was one of the few houses that I think actually had some value in this overinflated market.
@anon
Not casting stones but you got me with this -
“we would have put in an offer higher than asking”
then claim this -
“value in this overinflated market”
At first glance it seems to be a contradiction but serves to understand why the market is overinflated.
How would you ever know if a realtor “spilled your beans”?
I would be inclined to want to listen in on the negotiation/be copied on e-mails…
@Reason,
that is an excellent question!
The operative word is TRUST!
@Larry – I agree to disagree in my case. This was the first home of hundreds that we’ve looked at over the last year that, in our opinion, offered value for theprice. We would have paid more – as in this case, the realtor (again, in our opinion) priced too low. My point was that the realtor pulled a fast one on his client (and her client – it was a team) and shorted the seller in lieu of getting a larger commission. The home sold for asking and it sold fast.
What is really fueling the overinflated market is the irrational fear that prices will never go down.