Must I disclose the terms of other offers? How do we handle multiple offer situations?


Must I disclose the terms of other offers? How do we handle multiple offer situations?

Terms of offers and the existence of offers absolutely does not have to be disclosed. And, understand offers are not confidential between buyer and the seller and can be disclosed by a seller if they decide to do so. Offers are confidential information between the agent and client and not under any circumstances shall a or agent disclose confidential terms without the express permission of the client they are representing.  In today’s tight market we are experiencing many “multi-offer” selling situations. When more than one offer is received before the execution of a contract it is a multiple offer situation. There are many different strategies and considerations when determining how to respond to multi-offer situations. These range from setting a deadline and asking for “best and final” from all buyers or simply picking the best offer and negotiating with one party. The number, range, and quality of offers has a lot to do with which strategy is best. As we have discussed in other posts, it is not always the best idea to accept the top offer. Choosing the buyer that has a high chance of closing is equally important. The most important scenario for a seller to avoid is when the buyer rushes in the home and tells their agent “Send in an offer and get it locked up”. After executing a contract, they decide if they really want it and terminate during the option period without any risk of losing earnest money. Your agent should be talking to lenders and buyer agents to judge a buyers sincerity. Seller agents must make sure there is some evidence the buyer really loves the home, is qualified, and all parties of the buyer have had a chance to preview the property before executing a contract. Buyer agents should be aware of the possibility of a multiple offer situation and advise their clients to submit the best and final offer in the first offer. During our initial consultation we will discuss the likely hood of a multi-offer situation and review the methods of responding and presenting. For both Buyer and Seller, we will plan for this possibility and discuss how to respond. Each situation and timing is different and the strategy must fit the situation.