Sellers Divorcing! Must sell!!
That was what I read recently in an agent’s remarks in our local Multiple Listing Service (MLS). Now, I’m all for agents communicating with each other that a seller is motivated (although you would think that the mere act of putting their home on the market would mean they want to sell), but this one made me scratch my head and say “really?”
When an agent lists a home they (should) have a few goals in mind:
- Net the best price for the sellers
- Sell it in the shortest amount of time
- Make the process easy for the seller
How does informing every agent in the market that there is a pending divorce accomplish any of this? 
It doesn’t. In my opinion, it serves as a big, blinking, neon sign that buyer’s agents should come in with low offers because the sellers are desperate enough to take just about anything. Now, that may not truly be the case, but it is the impression that the listing agent is giving. My first thoughts turned to squabbling spouses who just want to be rid of any reminders of a failed marriage at any cost, including a house that is no longer a home.
That’s pretty good information to have if you are representing a buyer…but not such good information to share if you have been hired to get the sellers the best price, in the shortest amount of time with the least amount of stress.
Agents want their clients to be honest with them about their motivation for selling. It makes it easy for us to determine how aggressively to approach pricing their home, since some sellers truly just want to be rid of a property. If that is the case, it should be reflected in the PRICE – not in the marital status of the sellers. Not to mention, there are some rules involving client confidentiality that are part of our Code of Ethics.
I wonder if this couple, who is already dealing with a major life changing event, knows that their pending divorce has just been announced to thousands of local agents who are bargain shopping for their clients?
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Originally published at West Bank Living
I know if I were the home owners that agent would be gone... I'd hire you..
Obviously it doesn't and I am sure if either party new this there would be some real issues with the agent.
What a breach to post that unless the seller's wanted the agent to let everyone know. Maybe it is there intent to get as little as possible for their property.
jK
Lisa, Why share that intimate info? I agree that it makes a potential buyer feel they can really lowball an offer.
Thanks for the comments everyone.
I was just stunned to read this. I actually had to look twice because I thought I was seeing things. I cannot imagine sharing this type of information with other agents and essentially inviting low offers because they know the sellers are under tremendous stress.
I represented buyers on a home that was on the market from a divorce. They didn't say it, but it became VERY obvious through the process...
Lane, if the seller opts to make it obvious or known that's on them (not smart, but on them). I've worked with divorcing sellers before, but I've never given that information to the buyer's agent and certainly wouldn't post it in the MLS. I'm trying to figure out what the motivation is behind it. I can only assume the agent thought it would generate more showings.
I've been in that boat as well. There are some personal situations where the information must be disclosed because it impacts the parties ability to perform (think B/K mid escrow). In this instance, if the seller had told their agent "we're motivated, spread the word" then the listing agent can say "motivated seller"! Geesh, some people have rocks for brains!
Colleen, I can think of several ways to communicate that the seller is motivated without ever mentioning their personal situation. Funny, after I wrote this my partner called me because she had seen the same listing and was trying to figure out which of her buyers might be interested even though it may be priced above their budget - so my assumption that agents would bring out the low offers was right on target.
Hi Lisa...If the sellers gave the listing agent permission (and boy I would want that in wirting) the listing agent should have counseled them against doing that. It is certainly nothing I would even suggest to my owners.
There are some instances where divorced couples want more money for their home because they are splitting up the proceeds in order to obtain housing for both.
Kate
Just thinking out loud here... but do you think it could generate more showings? And if it did get a lot of showings, might there be a bidding war? I know that a lot of less expensive REOs are priced WAY down and end up selling 20% or more above list...
Could be brilliant, but it is a big gamble.
Just thinking out loud here... but do you think it could generate more showings? And if it did get a lot of showings, might there be a bidding war? I know that a lot of less expensive REOs are priced WAY down and end up selling 20% or more above list...
Could be brilliant, but it is a big gamble.
Kate, the thought that the sellers might actually want more crossed my mind too.
Lane, I guess it's possible. The house appears to be priced well for the neighborhood and it's a community without a lot of turnover, so I don't think that there will be any problem selling it - even without the big blinking neon sign.
I'd be lying if I wrote I read this blog. I'm just using you for 25 points.
Actually, Lenza, I'd be interested to hear your take on it. When you are done collecting points, come back and chat with us.
Lisa... I like trying to give people the benefit of the doubt. It is hard sometimes.
Andrew, that was funny.
Lisa, I had a couple ask me to do this and he was a well known mortgage broker in the area. I did it, didn't generate low ball or more traffic that I know off. But, they were at the point of desperate, and had any lowball offers come in, he certainly had the knowledge on the numbers! Sold it to a young attorney.
Lane, that it is...
Jane, why would anyone want to do that? I just don't get it. Like I said before, as soon as my partner (buyer agent) saw it she was trying to figure out what buyers she has that are interested in the neighborhood but would be writing a fairly low offer based on their budget. Surely that can't be the goal of the seller.
I think it's the agent looking for a quick sale not necessarily the sellers.