What must a broker do if a buyer confidentially offers to increase their offer by $10,000 on a listed property?

When a broker receives a confidential offer from a buyer to increase their offer on a listed property, the broker has an obligation to disclose that information to the seller. This responsibility stems from the fiduciary duty the broker has to their client, which in this case is the seller.

The fiduciary duty entails acting in the best interests of the client, which includes providing all relevant information that could influence the seller’s decision regarding their property. If the buyer increases their offer, this new amount may significantly impact the seller's position in negotiations. By failing to disclose the buyer's willingness to pay more, the broker would be withholding information that might lead to a better outcome for their client, the seller.

It is important to note that while the buyer's offer was made confidentially, the broker's primary loyalty lies with the seller in this situation, particularly if they represent the seller. Therefore, the correct course of action is to disclose the increased offer to the seller, ensuring that they are fully informed and can make the best decision regarding the sale of their property.