What Every REALTOR® Wants You to Know About “Loose Lips Sink Ships”

What Every REALTOR® Wants You to Know About
“Loose Lips Sink Ships”

During the World Wars, posters were placed in key locations reminding military personnel and contractors that unguarded conversations could divulge information to the enemy that would give them the upper hand in combat. Some information, however minor, could be the missing link to the enemy. In real estate, “loose lips, sink ships” may not actually sink a ship, but it can sink a real estate transaction.

I have said this many times before, and will undoubtedly say many more times: If you are in the market to buy a home, you need to sign a buyers’ representative contract with a REALTOR®. That agent will work diligently on your behalf. You can have confidential conversations with your buyer’s agent, and you can rest assured they will keep the information confidential.

When you are house-hunting, attending open houses is a good way to see what is in the market. If you have already signed a buyers contract with an agent, let the agent at the open house know your agents name as soon as they greet you. The open house agent should respect that relationship. They can certainly provide basic information about the house and answer any questions you may have but, should not inquire about any financial arrangements you may have for a mortgage.

All too often, I see potential buyers come into an open house and start a dialogue with the agent hosting the open house. Inevitably, the question will come up if they are pre-approved for a mortgage and what price of home are they looking for. The conversation takes a bad turn when the buyer(s) make the comment that they are looking for a home “no higher than $500,000”, but because they want the listing agent to know they are solid buyers if they make an offer, the buyer(s) will add, “But we’ve been pre-approved for $600,000.” That information will go from the buyer(s) lips to the seller’s ears in a nanosecond. And if you decide to make an offer on that house – or any house with that listing agent – there will be little room for negotiation.

Another example is if the buyers’ really like the house, and they are under the gun to find a home because they have given notice at their apartment and it has already been rented to a new tenant.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.




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