BIC TIP #1301: Watch Your Mouth!
Picture it: you are representing a buyer, you bump into the seller at the property, and the seller starts telling you everything. Why they are moving, how badly they need to sell, what they would really accept. Now what? Stephen Long, your Notorious BIC, says the answer is straightforward: as a buyer’s agent, you owe a fiduciary duty to your buyer, and that means sharing what you learned.
You Work for the Buyer
A buyer’s agent works for the buyer. Your fiduciary responsibility runs to your client, and that includes disclosing information that could help them, such as the seller’s situation and motivation to sell.
It does not matter that the seller shared it and should not have. Once you know it, you are obligated to share it with your buyer. You cannot unhear it, and you cannot keep it to yourself to be polite.
Loose Lips Sink Negotiations
This is exactly why brokers on both sides need to coach their clients. Listing agents, talk to your sellers. Buyer’s agents, talk to your buyers. Tell them not to share anything with anyone outside your agency relationship that they would not want the other side to know.
If a seller tells the buyer’s agent how motivated they are, that agent has to pass it along. The same goes in reverse. One casual conversation can compromise your client’s negotiating position.
Let the Broker Do the Talking
If your client does not mind sharing something, no problem. But in general, this is one more great reason to use your broker. Communication should flow through the agents, where it can be handled strategically, rather than being shared independently between buyer and seller.
Brokers are trained to communicate in ways that protect their clients. Clients chatting directly may not realize what they are giving away.
The Practical Takeaway
If you represent a buyer and the seller overshares, share that information with your buyer. That is your duty. And at the start of every relationship, remind your own clients to keep their motivations and bottom lines to themselves and let you handle the conversation. Watch your mouth, and teach your clients to watch theirs.
