Disclosing Multiple Offers
By Debbie Murray
As a seller it is great to receive multiple offers on your home. However, problems may arise in a multiple-offer situation. Sellers may work offers in any order received. Sellers do not have to adhere to a Code of Ethics. Realtors do, which is why if a listing agent informs one party of an offer, the listing agent must inform all parties.
A seller may instruct his/her Realtor to disclose or not disclose the existence of multiple offers. One of the pitfalls of disclosing other offers is that a potential buyer may withdraw an offer for fear of a "bidding war."
On the other hand, if a party that has not made an offer becomes aware of other offers that party may be prompted to submit an offer immediately. There is no predicting how a buyer may react to news of another offer. As such, a seller may just elect to collect offers and respond to the best, or ask each buyer to present their highest and best offer.
At the time of listing a home, sellers and listing agents should have an action plan to deal with multiple offers so that listing agents are advised as to what they may or may not disclose regarding multiple offers.
Broker/Realtor® Debbie Murray helps luxury home buyers and sellers in the Dallas area facilitate real estate transactions through education. Contact Debbie at 214-558-1004.