We've been getting a lot of questions lately about feedback calls - whether buyer agents have to, or should, give feedback and what the listing agents should expect. I guess when the market was a little 'hotter' we didn't care as much about feedback. Now we have agents who've never given nor asked for feedback ever getting involved and I thought I'd share some of what I sent in an email to a broker in Louisiana on this topic.
As far as feedback is concerned - here's the latest "conventional wisdom". Under 'old' rules I owed the listing agent feedback when I showed her listing because I was technically and legally an agent of the seller thru subagency. Since I am no longer working in any way for the seller I don't "owe" them anything. That being said - our working relationship with each other would suggest that I give feedback when it is appropriate. There is no prohibition against doing it - it just has to be done carefully.
I now represent the buyer and if anything I say to the listing agent gives away any of my buyer's negotiating power - or in any way compromises his position, then I have violated my legal duties to my buyer client. That is where some of the agents have been dropping the ball. We also have listing agents 'hounding' the buyer agents for feedback and getting angry when they don't give it. Shame on them. They're expecting me as a buyer agent to deliver bad news to their seller that they are not wanting to deliver themselves. I know this isn't true of all agents - but it sure is of some of them!
If my buyer has purchased another property and giving straight to the gut feedback won't hurt him - I say give it. But - if he's still looking and your listing may be one he's interested in - how beneficial to the seller can the feedback be? My job is to do the best for my buyer and I can position my feedback call to start the negotiations now. As a matter of fact, I've been suggesting the buyer agents make feedback calls - be careful what they say - and listed carefully to what the listing agents are saying - some of them are giving away their seller's position!!
We have had some problems in this area - with agents giving away confidential information and the clients finding out and filing complaints and lawsuits. Maybe we need to do a little more work on how to talk to each other without compromising our clients.
All of this having been said - I guess it's both a company policy as well as training issue. I think my position is somewhere in between you and the others in the discussion - although your statement 'it's not a good thing' is certainly true if not handled properly - and are the agents handling it properly?
