Agent Communication: How Much Is Too Much?

Obviosuly, great communication between agents is essential, and fostering strong relationships within the broker community is invaluable. However, it's important to remember that our primary fiduciary duty is to our clients. While the NAR Code of Ethics requires us to be honest with all parties, it doesn't mean we should discuss every detail with everyone involved!

Let me share a story that highlights this point! 

A California buyer sued their agent after closing, accusing the agent of breaching the fiduciary duty of confidentiality. After the first showing, the agent provided showing feedback to the listing agent, stating that the buyer felt the property was overpriced. 

Who would have thought that showing feedback could result in a lawsuit?

Here's the key takeaway: we always need to carefully consider everything we say or do on behalf of our clients.

In this case, after the first showing, the buyer's agent told the listing agent that the buyer thought the listing was overpriced. Later, the buyer decided to make an offer, but negotiations were very strained. During the home inspection and subsequent request for repairs or concessions, the seller was unwilling to budge. At closing, the seller revealed to the buyer that the tense negotiations were due to the feedback about the listing being overpriced. This revelation set the stage for the entire transaction.

The buyer believed that the agent's lack of confidentiality hindered their ability to negotiate a favorable deal and ultimately sued the agent.

The moral of the story? Always act in the best interest of your client and think twice before sharing information that could impact their position.