When a Real Estate broker is the buyer Question

[Gail Eller]

Hi, I would like to ask if a real estate broker is obligated to give a value to the seller when the broker is the buyer and the seller did not ask the value.  In other words,  if a seller calls a broker and says he will take a certain dollar amount for his property but the broker feels it is worth much more, so the broker wants to buy it himself,  Is the broker required to disclose value to the seller prior to buying it for himself? The broker and seller do not have a signed listing agreement. Florida. 

Thanks

Gail

[Bryan L.]

@Greg H. Good points. And some of this varies by state law. In TN, no client relationship exists until the listing agreement is signed. So, if I go in for a listing appointment, and decide that I want to buy the thing myself...... well, they already know that I am a Realtor, so that disclosure is out of the way. If negotiations were to start for me to buy it myself, I would need to remind them that I am not acting as their agent. And at some point before a signed contract to purchase, I would need to get them to sign the Confirmation of Agency Agreement (as well as the disclosure) to get it in writing that I am representing myself and not them. Even so, I have no obligation to tell them what the ARV is. Or what a full retail value would be. Actually, if I were to be buying it myself, I would have them sign that disclaimer that says that I am not an expert on value. Where this becomes tricky is if I were to want to buy one of my own listings (after I have the signed listing agreement). There's just too much opportunity for a lawsuit there in my opinion, so I've never even started down that road. On the other hand, I often try to get the listing as a back-up plan if the deal is one that I can not buy (or not interested in buying). Have a great vacation.