It’s common practice for homebuyers and sellers to not meet each other until closing. But have you ever wondered why that is? On the surface, a quick introduction or a brief chat seems harmless, but it’s fraught with potential issues. Here are just a few. 

Fair housing violations
One of the biggest problems with meeting is that it can expose the parties to potential violations of the Fair Housing Act, which prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, and disability. 

“Let’s say a buyer and seller interact at a showing, and the buyer innocently mentions that they love the neighborhood because their church is right down the street, or that they like the home’s layout because it accommodates their disability,” said REALTOR® Amy Jackson with Coldwell Banker Hubbell BriarWood. “Those seemingly benign comments could sway the seller’s decision and that would be a violation of the Fair Housing Act.” 

Awkward environments 

During a showing, buyers try to envision themselves living in a home, and that can be difficult to do if a seller is hanging around. Buyers may feel rushed and uncomfortable, or they may feel that they can’t be honest about their opinions with the seller standing nearby. 

On the other hand, if a seller overhears what might be perceived as a negative comment, they may be offended and form an instant dislike of the buyer. For instance, a buyer may mention that they would rip out the high-maintenance landscaping without knowing that the seller — who is standing within earshot — spent a lot of time and money working on the exterior. 

“There is a lot of emotion wrapped up in a home, and many sellers have a sense of forever ownership,” said Jackson. “If a buyer says something critical, it can really upset the seller and set a negative tone moving forward.” 

Possible misunderstandings 

Occasionally, a buyer and seller may get together prior to closing. And if that happens, it’s important that both REALTORS® are present. Without agents in the mix, misunderstandings can certainly arise. 

Local REALTORS® saw this firsthand during the initial COVID-19 lockdown when agents weren’t allowed to attend showings and walkthroughs. While that was only temporary, Jackson said it really showed the importance of having a REALTOR® around when buyers and sellers interact. 

“I had a situation in which a seller took the buyer through the home for the final walkthrough,” she said. “During discussions about the basement, some things were said that were misunderstood by the buyer and it actually sparked major concern. Had myself or the other agent been present, we could have explained things for the buyer and quickly diffused the situation. As REALTORS® we are unofficially trained to be ‘people persons,’ and a big part of our job is problem solving and keeping both parties happy.” 

Potential benefits 

While there are many reasons why buyers and sellers should steer clear of each other, you may be wondering if there are any circumstances in which meeting face-to-face could be beneficial. Jackson says yes, but again, she cautions that these meetups should always include the REALTORS®. 

“I have clients who are getting ready to close on a really unique home, so we set up a time for them to walk the property with the sellers to get tips on how to maintain the home and it’s special features,” she said. “It was a beneficial meeting for both parties and with the REALTORS® along, it took the pressure off the buyers and sellers and helped to ensure things went smoothly.” 

So, while it does occasionally happen, in most transactions, REALTORS® suggest that buyers and sellers don’t interact until the closing day. However, even that has changed since the start of COVID-19, with many buyers and sellers opting for split closings. While some people are perfectly fine going the entire transaction without meeting, Jackson says others like the personal touch that the face-to-face closing provides.  

“I just had a buyer go through a split closing and while she was excited about her purchase, she said it seemed anticlimactic to just sign the paperwork and walk away without meeting the sellers,” she said. “Meeting one another sometimes provides a bit of formality to the process and gives everyone a sense of closure and a new beginning.” 

For a list of REALTORS® who can guide you through your next home sale or purchase, visit the Greater Lansing Association of REALTORS® website at www.lansing-realestate.com.