15

September

How Valuable is Buyer-Agent Feedback to Sellers? It Depends.

Cullen P. Watson, Esq.

How Valuable is Buyer-Agent Feedback to Sellers? It Depends.

In my opinion, many sellers overvalue feedback they receive from buyers and their agents. With many sellers placing so great an emphasis on this feedback, the question begs to be asked, “is this kind of feedback actually valuable?” The answer, as you may have read before on this website is, “it depends.” Specifically, it depends on when and how the feedback from a buyer’s agent is requested. Let’s run through some different scenarios to help determine what value to place on buyer-agent feedback.

 

A. Feedback Received Early in the Listing Period: Be Confident and Play it Cool.

1. For Sellers: If a listing agent has conducted proper research on the market and comparable sales, then the listed home should be properly priced, and there should be no need to seek feedback from a buyer or their agent. If a listing agent seeks feedback early in the process, it sends the signal that they (and the seller) aren’t confident in the listing plan/price. This will likely give buyers and their agents the impression that the sellers are desperate, which likely will invite lesser offers than a seller would receive otherwise. At Lawyer’s Realty Group, if we have a great listing that is properly priced, we let the property do the talking. How do we do this? We always use a professional photographer to capture a home in its best light. So if you use Lawyer’s Realty Group, having a great set of pictures to proudly show off your home won’t be an issue.

2. For Buyers: Early in the listing period, interested buyers should NOT be giving meaningful feedback to a seller’s agent. When I represent a buyer that loves a property and plans on making an offer, I never tip my client’s hand. When I represent sellers, I’m constantly amazed by how many buyers and their agents will convey how much their clients LOVED the place without any solicitation for feedback coming from me. When a seller knows that a potential buyer already loves the house, that seller has a tremendous amount of leverage in any negotiations with the buyer. Play it cool, hot-shot.

 

B. Later in the Listing Period: Stay Cool, but Analyze Feedback within the Proper Context.

Not every house sells quickly, even in a “seller’s market.” Some properties are unique (see prior blog post) and others run into unfortunate circumstances. It happens. So if and when you get feedback from potential buyers or their agents, analyze it within the proper context.

Buyer-Agent feedback later in the listing period can be valuable if given proper weight and analysis. A home for sale only needs one buyer, yet each potential buyer (and their agent) has a personal opinion of a property. When a feedback request specifically mentions the personal views of the agent/potential buyer, value the input, but see if it fits with the context of the original, objective listing plan. The proper question to be asked is whether the feedback accurately represents the market consensus or whether, instead, it is the opinion of a single agent/buyer. One agent/buyer that doesn’t like the house can be easily dismissed. If feedback from multiple parties keeps noting the same detractions, however, then it may be time to reevaluate the listing plan. Repeated negative feedback is usually something fundamental that can’t be changed about the property. For example, if the house doesn’t have any outdoor space or parking, shrug your shoulders and hope for a buyer that doesn’tvalue those things. If, on the other hand, the repeated negative feedback is something that can be easily fixed (very rarely the case), consider making the changes.

 

C. Open House Feedback: Consider the Source, and Take it with a Grain of Salt.

Potential Buyers and neighbors can be overly nice or unnecessarily mean when there is a face-to-face interaction with the listing agent. Some people just say “great house” and give a thumbs up to be pleasant. Others simply give negative comments, whether valid or not, just for the sake of doing so. I don’t find this to be the most valuable analysis, but I don’t dismiss it. Like much advice in life, I take it with a grain of salt.

As lawyers, we are not only trained in doing diligent research and providing ample review of contracts, but we are also trained in negotiating with the opposition. In an expensive and competitive market, skillful negotiation can change the terms and financial implications of a transaction. As a seller, do you want to net as much as possible on the sale of your home? Of course you do. Would you mind some extra money in your pocket? Yeah, I thought so. Get this right by following the general rules outlined above.

In conclusion, feedback from buyers and their agents can be valuable, but always view it in the proper context. If you are a seller, remain confident in your listing price early in the listing period, and resist the urge to desperately solicit potential buyers and their agents for feedback. If a house sits on the market for longer than expected and you receive unsolicited feedback from buyers or their agents, make sure you take it with a grain of salt and analyze it within the proper context. Finally, if you are a serious buyer, never tip your hand.  As always, we’re here to help you….Buy Smart. Live Well.

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