Would You Sue Your Buyer's Agent?

There is an interesting article in the New York Times today about a buyer in California that is suing her buyer’s agent. Marty Ummel believes that her real estate agent hid information that similar homes in a neighborhood were selling for less, in order to keep a deal together and retain his commission.

There are a lot of things at play here; the real estate agent was also the mortgage broker (which to me seems to be a clear conflict of interest), each party has an appraisal stating a different amount for the time period when the home was purchased, there is no clear agreement if agents should provide price recommendations to a buyer.

The National Association of Realtors says it has no cases that revolve solely on valuation. It will be interesting to see where this case leads and the precedent that will be set. What happens if Realtors are no longer allowed to provide price guidance? How will this affect price recommendations for sellers? Will they need to hire appraisers?