Some Things in Home Sale Are Best Kept Secret

What’s the first question most buyers pose when they walk through the threshold of your for-sale home?

“Why are the owners moving?”

Buyers are naturally curious. And they’re entitled to know all about the physical defects of your property. But you’re not duty-bound to disclose your motivations for moving, real estate specialists emphasize.

In fact, it’s unwise for a seller under duress to tell all about the pressures they face in letting go of their property, especially when it’s due to a financial reversal, divorce or other unfortunate event.

Indeed, the same is true even if the urgency you face comes from good news, such as an out-of-state job promotion or the fact that you’ve placed an offer on a much fancier house and must sell your current home by a certain date to move up.

“You don’t want to create a fire sale,” said Peggy Sloan, a broker-associate for the Re-Max South County in Mission Viejo.

By letting it be known you’re under time pressure, you put an interested buyer in the driver’s seat when it comes to bargaining over price and terms, said Kenneth W. Edwards, the author of several real estate books.

“The motivation of the seller is critically important and a vital part of the negotiating process,” Edwards said.

To be sure, a homeowner always has the right to decline a low-ball offer. But if you’ve already made arrangements for the moving van, you may feel uncomfortable about doing so, said Frederic J. Elliott, a broker-associate in the Long Beach office of Coldwell Banker.

“By telling the buyer you have to move, you’re giving him the advantage,” Elliott said.

Another piece of personal information sellers shouldn’t allow to be released is the lowest sum they’re willing to accept. Unless there’s competition for a property, human nature virtually dictates that the buyer will offer the minimum you would take.

“I want my sellers to get the most they can, so I never disclose their bottom line,” said Sloan, of Re/Max.

Here are some other pointers on keeping the right secrets when you sell:

* Restrain yourself during interviews with prospective listing agents.

Many people interview two or three real estate agents before they select one to list their home. In each case, they have the agent walk through their home and provide an analysis of what the agent believes the market will pay for the place.

At this early stage, it’s often imprudent to tell any agent you’re under pressure to move. Why? Because any agent you interview, but don’t select, could spread word of your motivations to other agents and, hence, to potential buyers, weakening your bargaining position.

* Tell your listing agent what facts you don’t want known.

While it’s important to tell a would-be buyer about any serious defects in the property--such as a failing air-conditioning system or malfunctioning kitchen appliances--the same is not true about personal information.

Is it anyone else’s business to know that your wife has died and you can no longer support the house payments on a single income? Certainly not. Nor are they entitled to know that you’ll lose your job if you don’t accept a corporate transfer within 30 days.

Still, once you’ve selected an agent, it’s usually important to let him or her know your reasons for moving and your schedule. This helps the listing agent better price your home.

“Your agent should absolutely honor a request to keep your motivations secret,” Sloan said.

* Tell your close neighbors to keep your negotiating secrets.

If you’re like most Americans, you are so busy that you socialize with only a few neighbors. These are the ones most likely to know when you need to move.

Since an increasing number of home buyers are now talking to nearby neighbors before they decide to accept a particular property, it’s possible your neighbors may be approached about your motivation. To keep them from showing your hand, you may wish to ask their cooperation in keeping your personal information private.

* Be sure your agent responds effectively to queries on your motivation.

No doubt you, or more likely your listing agent, will be asked for the reasons you are moving. The way to respond is in a businesslike yet courteous manner, Sloan says.

For instance, your agent might reply to such queries with a simple statement: “The sellers are very private people” or “They would appreciate keeping their personal business to themselves.”

When spoken to in such a manner, most agents and home buyers will cease making queries about your motivation, out of respect for your privacy, Sloan said.

“They’ll back off when you drop hints,” she said.

* Seek to minimize the impact of information that slips out in error.

Perhaps you’ve inadvertently told a buyer why you need to move. Or maybe the buyer has picked up clues around your house, such as a bedroom full of packed boxes or a package of corporate relocation information sitting on your kitchen counter top.

You can minimize the loss of negotiating power involved in the release of such information by having your agent de-emphasize the time pressure involved, Sloan suggests. For instance, your agent might say: “Yes, Mary is taking a corporate transfer, but her timing is flexible.”

Though it’s usually ideal to keep prospects from discovering your time pressures, word could get out through no fault of your own.

As Sloan said: “It’s hard to be a secret seller.”

Distributed by Universal Press Syndicate.