When should an agent disclose their representation of the seller to a prospective buyer?

The correct answer is that an agent should disclose their representation of the seller to a prospective buyer before showing the house. This timing is important because it establishes transparency and trust in the transaction right from the outset. By disclosing their agency relationship before any showing, the agent ensures that the buyer is aware that their interests may not be aligned with those of the seller, which can influence the dynamics of their negotiation and interactions.

This disclosure helps to set clear expectations and enables the buyer to make informed decisions. They need to understand who the agent represents and that their loyalty lies with the seller. This is a crucial aspect of maintaining ethical standards in real estate, as it prevents any potential misunderstandings that could arise later in the process.

If the agent were to wait until after showing the house or before discussing the buyer's financial abilities, it could lead to complications or feelings of mistrust. Therefore, in the spirit of transparency, disclosing representation before any showing is essential for a smooth and ethical transaction.