Hi, Richie

   May I give an example of what NOT to say?   

   My Buyer liked the neighborhood, liked the exterior of the house, we just needed to see the interior and it was probably going to be a done deal.

  We arrive for our appointment, the lady Seller is at the door.  "Sorry, I couldn't get away in time, I'll be out in a few minutes."   My Buyer takes the opportunity to ask, "Why are you selling?"

  ***  "Because my husband has been transferred to another city, we are struggling to make ends meet paying his apartment and this house, my kids miss their Daddy, we just need to sell as soon as possible".

    My Buyer would have offered full price or close to full price.  Instead, he offered 65 or 70 cents on the dollar.  The Seller was frustrated and annoyed, but they took it.

The truth be told, unless the reason in any way relates to a material fact, the reason a person sells is none of anyone's business. Of course, I never say that ... it just resides in the recesses of my mind.  

Whatever the response is, I keep it honest, relevant, and simple.

I do usually answer with the same answer - because they want to!

I find the question to be most galling followed by the ever popular,  "do you know what they paid for it?"  My response is "How much do you weigh?"  Sometimes I ask their age  ;)

Without answering your questions directly, this is my response...

In my experience, usually the truth would do if it doesn't give up negotiation power, obviously with permission from the client.

Otherwise, no reason or excuse needs to be given, you're your client's PR professional for their property and the gate keeper of info, of which, not all needs to be released. Responses can be as simple as saying: "I do not have that info".

The "why" is only relevant between the owner and the listing agent/Broker.  Beyond that, it is no body's business.  I usually respond with something along the lines of "Because they want to" or "It's irrelevant."

This always irked me. It doesn't really matter the reason they are selling. It's in the MLS & they'd like to sell. Is this the house for you?

In our market, it's going to sell fast so it really doesn't matter or give a buyer negotiation room.

This is discussed with the seller when listing the property. Without seller's consent, I can't say anything and most seller's don't think it is anyone's business. In that case, I simply say "I don't know" or "I don't have that information". If the buyer or their agent presses the issue, I ask "Why do you want to know?". That usually catches them off guard and they stop asking.

Richie Alan Naggar,  It is a simple question...almost like, how are you?  I always have an answer ready and it depends on what I have discussed with my seller.

Sometimes the answer is innocuous. Sometime the answer is too much information. Sometimes answer provides no insight at all.

Depends on the situation.

Agents seldom ask such a question, buyers sometimes do and seldom get an answer beyond, "why, does it matter?"

If I do know the reason and it is not something that makes my client look desperate I will give them an answer such as the man who was selling his hunting cabin, getting old and had no children who were interested in taking over his beloved sanctuary.

Yes we need to be prepared to answer this and other frequently asked questions.  We also need to be prepared to answer unique questions as well.  I most often let the buyer know that this information is not usually available.  I explain that the biggest reasons for selling is upsizing, downsizing, job change, relocation, family matter etc...

I only work with buyers, so I can't answer for my clients, but those times we've happened to arrive to find a seller hasn't left yet, you bet we ask.  Sometimes it helps my client to know.

"The house no longer meets their needs.  Now let's see if it meets yours". 

I use answer that was approved by sellers.

I thought technically that was on the "verboten" list of what not to reveal based on our loyalty to seller obligation, but there may be ways to get around that.

My answer is the seller is interested in selling that is why the property is listed. Is your buyer interested in buying or just looking?