What Not To Say When Selling A House

Selling your home can be an emotional process. You’ve built many memories there, maybe even raised your family there, and you want to make sure the new owner takes good care of it. You might be inclined to share all sorts of stories with potential buyers in the hopes of securing a sale. But usually, it’s better to stay quiet.

It pays to remember that real estate sales, while often very personal, are still business transactions. You want to maintain all the bargaining power you possibly can to secure the highest price possible — and you also don’t want to run afoul of any laws. Here are a few things you should never say when selling your house, whether you’re talking to buyers or to your own agent.

What not to tell buyers when selling your house

It’s tempting to want to be present when your real estate agent shows your home. After all, potential buyers have questions about the home, and you live there — you know all the answers. But avoid that urge, and instead, let your agent do the talking. Agents are professionals who can give potential buyers the information they need without revealing anything that might negatively impact your bottom line.

“I never have buyers and sellers talk to each other. Never,” says Jeff Lichtenstein, founder of Echo Fine Properties in Palm Beach Gardens, Florida. “The buyer may not fit your vibe. Politics might get discussed and a sale lost over that. A buyer might say, ‘Will you replace that?’ and now the seller is on the spot. A seller might inadvertently say something they should not have.”

Some of the things to avoid revealing include:

All of this information can give buyers an edge in negotiating. For example, imagine that you’re interested in buying a home priced at $350,000, and the seller tells you “I’d like $350,000, but I can negotiate — I really need to have it sold in two weeks so I can close on my next home.” Armed with that knowledge, there’s little chance you’d offer the full asking price.

“If you say ‘I already bought another house’ or ‘I’m relocating for work,’ it tells buyers you might be feeling rushed and could be more flexible on price,” says real estate agent Brett Johnson, owner of New Era Home Buyers in Denver. “That perceived urgency can chip away at your position.”

“You shouldn’t discuss your bottom line — the lowest price you’re willing to accept,” advises Devon Wayne, owner of Miami-based homebuying company ASAP Cash Offer. “By revealing this information, you give the buyer an upper hand, as they know how low they can go in their offers. Secondly, you shouldn’t discuss your financial situation with the buyer. This is personal information that has no bearing on the negotiation and can only work against you.”

It’s also smart not to mention how much you originally paid for the home. The price you paid when you bought does not correlate to the current real estate market conditions. “It opens the door for buyers to question your asking price or assume you’re sitting on too much equity,” says Johnson.

What you should always tell buyers

While it’s best not to reveal more than necessary to potential buyers, there is some information you absolutely do want to share with them. In fact, in most states, there are legally mandated disclosures that sellers must make buyers aware of.

For example, you can’t knowingly misrepresent the boundaries of your property. You also need to disclose things like lead paint, easements or hazards that could impact the value of the home and the buyer’s ability to use it.

Also, make sure to check your local real estate and property law to see if there are unique disclosures that are required in your state. These may include the presence of a septic system, for example. Your agent should know all the laws in your area, but if you have any doubts, ask a local real estate attorney for guidance.

What not to ask your agent

Just as there are things you should never say to a buyer, there are also things you should never ask of your real estate agent. Both your agent and your transaction as a whole are bound by various laws and regulations.

Many states have legally required seller-disclosure forms that must be filled out for any property sale. You should never ask your agent to violate these rules by failing to disclose mandatory information, or to knowingly withhold legal documents needed to sell a house.

“Don’t ask, ‘Can we hide that issue from the disclosure?’ That’s illegal,” says Sarah Strohschein, a real estate advisor with Engel & Völkers in Atlanta. “If you know about a problem with the home, you have to disclose it. Asking your agent to cover it up puts everyone at risk.”

You also want to avoid asking your agent to do something that might violate the Fair Housing Act. Even some things that seem innocuous could come back to bite you: For example, hopeful buyers might write you a personal note or “love letter” explaining why they love your house and should be its next owner. If someone’s letter reveals that they’re a member of a protected group and you don’t sell to them, they could potentially sue you. Protected groups include race, gender, religion and more, and family status is protected as well — that means that if someone says they want to raise their children there, they have revealed protected information. Don’t ask your agent to request letters from potential buyers, and don’t ask them to reveal this type of information to you.

Finally, members of the National Association of Realtors are obligated to follow that organization’s code of ethics. Among other things, this code requires them to submit offers objectively and quickly, maintain client confidentiality and not conceal adverse facts about a property. These rules exist for your protection as well as the buyer’s.

Tips for smarter communication

• Find a real estate agent you trust: It’s crucial to find an agent you like, feel comfortable with and trust to handle things in your best interest. Interview a few different candidates before making a decision so you can get a feel for how well you’ll work together.
• Let your agent take the lead: It’s probably best to rely on your agent to handle all communications with potential buyers (and their agents). “Buyers will often fish for motivation or clues to negotiate, and a good agent knows how to field those questions without giving away your hand,” says Johnson.
• Limit interaction with buyers: If you happen to run into the buyers before or after a showing, do your best to keep your interaction short and sweet. “Keep the conversation polite and brief,” says Strohschein. If you do end up chatting, keep things upbeat. “Talk about how much you’ve enjoyed the home or the neighborhood,” suggests Johnson.
• Avoid mentioning what you haven’t had trouble with: Even though it may seem like basic pleasantries, it’s best not to tell potential buyers that you’ve never had a problem with things like the foundation, leaks, pests and the like, says Paul Epperley, president of the Greater Fort Worth Association of Realtors. “If the buyer later has issues with these things, it can be viewed as misrepresenting the property — or fraud,” he says.

Bottom line

Your home is likely to be your most valuable asset, so naturally, when selling it, you want to pocket the most money possible. For this reason, it’s important to understand how to handle communications throughout the selling process. Let your real estate agent manage interactions whenever possible to limit any potential missteps and ensure you walk away with the best possible selling price.