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Giving Showing Feedback- Does It Step On Your Buyer Agency Duty of Confidentiality?

Here's a thought. Does giving showing feedback on a listing to the listing agent step on your duty of confidentiality between you and your Buyer?

This question came up today when I went to an Agent Luncheon and was sitting at the same table with a few other agents enjoying our lunch. On the table were feedback forms from the listing agent asking us to give our thoughts.

As for me I dislike these forms. The questions they ask do not work well with my brain as I am a free flow feedback person and hate being put in a box that says check one. I mentioned this at the table and the conversation turned to 'I'd rather do a form here than answer feedback after showing a listing'. Hmmm, interesting I thought so I asked why is that? The answer was our confidentiality duty to our Buyers.

Now I had never thought of giving feedback as breaking any confidentiality agreement between me and my Buyer so that comment got me to thinking. Could that be true? And if it is, where does that leave giving feedback which is so important to Sellers especially in today's market when showings are few and far between.

I mentioned that if it was true maybe we should give our own personal feedback and not that of the Buyer. That's a thought each one answered yet none were totally supportive.

So how does giving showing feedback affect our agency with our Buyer? Of course this is assuming we have a Buyer Agency agreement already in place with our Buyer.

I haven't come up with the answer as of yet but I am checking with the powers to be for a more difinitive answer in my market area.

So how do you feel about giving showing feedback? Does confidentiality between you and your buyer come into play when doing so or not doing so?

Posted by Martha Brown Annapolis and Anne Arundel County RE on 09/22/2009 11:06 PM

Comments (12)

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12 Comments on Giving Showing Feedback- Does It Step On Your Buyer Agency Duty of Confidentiality?

SEP

Martha: Huge confiedentiality issue for sure. As agents we're not supposed to discuss their real estate needs or erode their negotiating power. Easy to do with almost any kind of feedback.

Hi Martha!

Good question. Here is the rule of thumb I usually follow...

If my clients liked a home, I usually say that it has "stayed on their list" and then I point out that that they had lots of other options they liked just as well. As far as I am concerned, that is all the info the listing agent needs to know - whether or not it is still a contender - nothing more. And, I have to admit that if I don't happen to answer when the agent calls, I likely won't return the feedback call until I know for sure what my buyer has decided to do.

If they didn't like it, and I can offer something constructive to the listing agent I will give that feedback as straightforward as possible.

I'm always very careful when I give feedback. You certainly don't want the seller to know that your buyer REALLY likes their house, especially if they might make an offer. I'll be positive but reserved in that situation. If I know they will make an offer I don't give feedback at all. If there are negatives to share, I'm usually honest. Most of the time the house simply isn't what they wanted. No harm in sharing that information. I think most Realtor's value other Realtor's opinions more than anything.

You bring up a really good point. I agree with the comments above, I am actually more forthcoming whne my buyers are not interested in the property, however, the feedback is usually my feedback anyway.

If the buyers are considering making an offer, I may or not disclose their level of interest. Every deal is different, if I think I can advance my clients interests then I may even, with their permission, disclose details about my buyers needs. It can be a good way to begin negotiations.

SEP

Most of my clients are out-of-state. I rarely wait for them to show up before I begin sifting through the various price ranges of my clients, checking what's available right now. Helps me be ready for walk-in prospects. I limit my feedback to the obvious: condition, unpleasant odors, and, if asked, price.

Our buyers do not want it shared what they think -- if they liked the home they will make an offer -- anything else does not really matter.

Very thought provoking post. Here in Florida we work mainly as "Transaction brokerage", but we still have the duty not to harm either side in negotiations. I can see that giving an overly enthusiastic feed back about how the buyer was just madly in love with the home could be used against them. Will have to discuss this with my fellow agents.

Since no information about the buyer is given to a seller, other than the buyer's opinions of the property, I'm not sure how that breaks any kind of confidentialty. We have an automated system so agents can provide feedback quickly and easily and that info, in my opinion, is very helpful to me and my sellers. Feedback illustrates any objections that keep cropping up...and frankly, helps validate things we tell our sellers about their property.

Martha: This has never come to mind for me, but I can see it now that you've blogged this. Feedback could give away a negotiating position if, in fact, your clients did decide to write on a home.

SEP

Martha, I'm not a big fan of the automated forms. And I'm always pretty circumspect when I give any sort of feedback - unless my clients totally hated the place!

SEP

Hi Martha -- Very intriguing question. I am very reserved in my feedback as it relates to the buyer's view. I've seen buyers say no way would I ever buy that home and they end up buying it. I always look at things in terms of confidentiality and future negotiating and if it doesn't pass these two, I leave it out. Most feedback, if the listing agent is very skilled and has their pulse on today's market and has very good competencies, should be able to pro-actively tell the seller what the feedback will be before the home ever goes on the market.

matt- Yes it could be especially if you give away the excitement of the Buyer over the home. I am not sure it could be done with all feedback though. But as I said i am still thinking about that.

Kristina- it is surely a fine line isn't it.

Lisa- I like the part where you say 'the house is simply not what they wanted'.

Rich- i think you hit on a key point when you said 'with my Buyers permission'

Sherry- previewing is a different story as you do not have a Buyer with you. Its when you do have a Buyer in tow that it is starting to sound to me as if it could become tricky.

Bob & carolin- well that certainly keeps everything plain and simple :)

Jim - Discussing with your Broker may be a good choice as well

Carol- That was my thought to but if we say something and then the Buyer changes their mind and decised to write what then???

Chris Ann- So I am seeing as well. Though I have never been one to over enthusiastically say a Buyer loves a home I can see even the lessor of approval can or could be a detriment.

Pat- But this question does make you think more now doesnt it?

Chris- So true in a perfect world but so many agents are not that skilled at telling their Sellers what they need to hear and in turn wait for us to do so for them. Not a good way to do business for sure. The question is intriguing for sure and has made me think even harder.

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