Article 1 is all about honesty. Years ago, the Code read that we must treat all parties ‘honestly and fairly’. Fairly has been removed as that is not realistic nor is it possible when you have a fiduciary obligation to your client. Let me explain.
Let’s say I represent the seller. Is it fair to tell the seller how high the buyer is willing to go on the sales price but not tell the buyer how low the seller will go? Well, no. That’s not fair but it’s honest and it’s my job when I represent the seller.
We can’t just make stuff up to entice a buyer or seller to do what we want them to do. That is dishonest. However, we do have to tell them the truth regardless of what we believe the outcome will be. That is integrity.
Standard of Practice 1-6 states that we must present all offers objectively and quickly. What does that have to do with honesty? Is it honest to not present an offer? Is it honest to hold onto a low offer and use it as leverage to get better offers? In my opinion, maybe. If the REALTORS are working at the direction of the clients and the buyers know what is happening with their offer, then it’s honest. The buyers can always pull their offer if they aren’t happy with how the seller is responding.
It is never honest not to
submit an offer to the seller. It’s also not right to ignore important factors of an offer in order to persuade your client to do as you wish. Some agents are reading this right now and saying, “If my seller tells me they don’t want to see offers that are….., then I don’t have to present them.” This is true but silly. No one, including your client, knows when their circumstances may change and different things become important. Maybe the sales price can be a little lower if the buyer closes quickly with no repairs. Things change. Give your clients the opportunity to be human.
Do you continue showing a property after it has a contract? You should. Most state promulgated contracts say that the seller will continue to solicit back up offers through closing. Standard of Practice 1-7 says that listing agents will continue to make available properties under contract. Obviously, the seller can say no.
Next time, we’ll talk about confidentiality. In the meantime, think about this: I go on a listing appointment and the homeowner tells me how much they owe on the property. They list with someone else. (I know, crazy. But it happens.) Next month I have a buyer client who is interested in the property. Do I tell my client how much the seller has said they owe?
leighyork 