In last week’s market update, I shared that we again are seeing multiple-offer situations in the local market. While they do not have to cause frustration, they easily can, especially with a lack of communication and understanding from all parties involved. Thus, I wanted to expound on the guidance I offered in late April regarding multiple offers.
Our Code of Ethics obligates Realtors to be honest with all parties, to present offers and counteroffers quickly and objectively and to cooperate with other brokers. Cooperation involves sharing of relevant information.
When it comes to multiple offers, frustration and misunderstanding frequently result from cooperating brokers being unaware of the status of offers they have presented on behalf of their buyer-clients. Listing brokers should make reasonable efforts to keep buyer-representatives up to date on the status of offers. Similarly, buyer-representatives should keep listing brokers informed about the status of counteroffers their seller-clients have made.
Sellers and buyers alike are encouraged to appreciate that the listing broker’s advice is based on past experience and is no guarantee about how any particular party will act (or react) in a specific situation. The listing broker can explain the pros and cons of various negotiating strategies. However, the decisions are yours, whether you are the buyer or seller – not the listing broker’s — to make.
Sellers may be faced with multiple competing offers to purchase their property. When faced with multiple offers, sellers can accept the best offer; inform all potential purchasers that other offers are on the table; counter one offer while putting the other offers to the side, awaiting a decision on the counteroffer; or counter one offer and reject the others. Again, while the listing broker can offer suggestions and advice, decisions about how offers will be presented and dealt with are made by the seller, not by the listing broker.