When should you share your own opinion about a house with a buyer?

What the law says

Brokers are obliged to keep professional ethical standards and the law to keep confidential information about a customer or property (or the motivation of a seller to sell). On the other hand, the National Association of Realtors also requires its Certified RealTors® to make information known by professionals or available to the public via databases (ie flood zones or large planning projects in the making).

Brokers must also meet national and national anti -discrimination and honest homes. These non-preferential access to housing options is of crucial importance, especially in the light of one Recent Study This has shown that 75% of sellers believe that brokers give certain customers a preferred treatment. It is crucial for maintaining the trust of the public in real estate professionals (and to continue to conform) that agents follow both the spirit and the letter of the law in this regard.

It is also illegal to share demographic data in a neighborhood about race, religion, handicap and other protected classes. This also includes offering an opinion about a school district such as ‘good’ or ‘bad’.

When should you stay still

One of the most essential guidelines about when they have to remain silent concerns personal taste. Do not comment on the design or aesthetics of a home, unless a buyer specifically asks for your opinion. Again, wrong of data. Instead of, for example, giving a negative opinion about a specific type of architecture, inform your buyer about the common characteristics of that architecture and how a home meets (or deviates) that.

You should also not abstain from offering a specific emotional response to a home (too negative or overly positive) and not offer what a legal statement about the condition of a house can be considered. Save these reviews for a recognized inspector or a real estate lawyer.

When should you share your opinion

So when is it appropriate to share your opinion with a buyer? There are specific situations in which it is not only suitable, but also being part of your tasks as their broker.

1. If a buyer asks for your opinion

Buyers, especially people with little experience in real estate, will want your well -trained opinion about their potential purchase. For most people this is the biggest purchase they will make during their lives, and it is normal to ask a professional to ask their thoughts. If this situation occurs, give a fair but professional response.

It helps to re -concentrate on data and your professional insights instead of a personal preference. If requested, you can reach your response to or a home to the aforementioned goals or have the functions they need instead of offering a personal value judgment.

2. If you see red flags

Even if you are not a recognized inspector or contractor, some properties have striking red flags that buyers need to know. These include structural problems, outdated electrical systems or signs of water damage that your buyer can overlook. Again, you do not diagnose the problem and simply point to its potential existence.

In some cases, buyers who want to invest in a fixer-upper can even move forward with these red flags. This is their privilege and it can match their goals for real estate investment. Making sure that they are aware of these issues falls well within your duties.

3. If you have market insights

As a real estate professional you have access to data points that your buyer cannot do. This includes how the house relates to others in the area, the resale potential and whether or not the listing price is reasonable. Other market insights can be if an area has a different planned development or important changes, such as a street verbaling project.

4. If you have insights into the industry

There is a reason that real estate professionals need licenses to represent buyers and sellers.

The industry can be complex and challenging to navigate, and buyers need help in understanding the process and what a specific list may require. In this case it is your job to give buyers an idea of ​​what they can expect from a transaction (from supply to closing) and to help them consider whether it matches what they want.

5. If the property has functions with added value

Many first buyers from home do not know what they don’t know. They can have a specific idea of ​​the number of bedrooms and bathrooms they want, but not much further. As a broker you can emphasize functions for adding added value that buyers can overlook. This includes things that make the property into a great investment, such as the location, all recent renovations that have been done well, or the potential to convert the property into a rent.

The key here is to understand the goals of your buyer and to mark the functions of a home that can help them reach them.

6. When the expectations are unreasonable

Buying a house can be overwhelming and exciting. When buyers visit many property, it is easy to let me drag by a house that does not match their needs, budget or goals. In this case it is appropriate to share your opinion about a house with a buyer who may have lost sight of what they are actually looking for.

The customer decides to buy a property, but it is your task as a real estate professional to send them to lists that match their declared goals and keep their budget in mind.

The latest opinion

Buyers hire their brokers on the basis of professional experience, but they are also looking for someone who can advise them on their purchase. They want someone who knows what to look out for in a home and offer insights. Ultimately, strategic thinking about sharing your opinion about a house is essential and can help you to better meet the needs of your customer in navigating their purchase.

Luke Babich is the CEO at Slim Real Estate.

This column does not necessarily reflect the opinion of the editorial department of Housingwire and the owners.

To contact the editor who is responsible for this piece: [email protected].