If a buyer's agent learns that the buyer is willing to pay more than the asking price but has not yet made an offer, what should the agent do with that information?

When a buyer's agent represents a buyer, the buyer is the CLIENT and is owed FIDUCIARY DUTIES — primary among them CONFIDENTIALITY. The buyer's willingness to pay more than asking is CONFIDENTIAL CLIENT INFORMATION. DISCLOSING IT would: (1) Breach the buyer's confidentiality; (2) Violate the agent's fiduciary duty (specifically the duty of loyalty); (3) Potentially harm the buyer financially (they'd negotiate against themselves); (4) Constitute a license law violation; (5) Subject the agent to civil liability for damages. PROPER HANDLING: (1) The agent works to negotiate the BEST PRICE for their client, not just at asking price; (2) The agent uses the buyer's authorization (in writing in some states) to make specific offers at specific prices, ideally below asking to start; (3) The agent advises the buyer on market conditions, comparable sales, negotiating strategy; (4) The buyer's specific willingness to pay more is NOT shared with the seller's side. WHAT THE AGENT CAN COMMUNICATE TO THE LISTING AGENT: (1) The offer terms the buyer authorizes; (2) That the buyer is qualified and serious; (3) General professional information; (4) That the buyer is exploring multiple properties (or not); (5) That the buyer is doing inspections (or not); but NOT: their exact maximum price, their urgency level, their personal circumstances, their financial means beyond what's necessary for the transaction, their reasons for buying, etc. CONFIDENTIAL INFORMATION includes: (1) The buyer's maximum price; (2) The buyer's urgency/timeline; (3) The buyer's personal circumstances (job change, divorce, family situation); (4) The buyer's other offers or properties they're considering; (5) The buyer's motivations; (6) The buyer's financial means beyond what's necessary to disclose. WHAT IS NOT CONFIDENTIAL: (1) The offer being made (once made); (2) Material defects the buyer notices; (3) Things the buyer wants disclosed to the other party. CONFIDENTIALITY SURVIVES: The confidentiality obligation typically continues even AFTER the transaction is completed (or fails). The agent cannot share confidential info publicly or with other parties even years later. DUAL AGENCY EXCEPTION: In states allowing dual agency, neither party's confidential price information should be shared with the other; this is a key reason dual agency is restricted. IF BUYER AUTHORIZES DISCLOSURE: The agent can share information only with the buyer's specific consent; e.g., 'My client has authorized me to share that they have a deadline of X for a corporate relocation.' MISTAKE BY BUYER: If the buyer accidentally tells the listing agent something confidential (e.g., at a showing or in person), the buyer's agent should: (1) Note this happened; (2) Try to refocus; (3) Recognize the buyer has revealed information. The buyer's agent shouldn't repeat or expand on this. ETHICAL DUTY: The Realtor Code of Ethics (Article 1, Article 2) addresses this directly — Realtors owe fiduciary duties to their clients.