MULTIPLE OFFER ETIQUETTE
IT'S IMPORTANT TO KNOW REALTOR RULES AND FIDUCIARY DUTIES
QUESTION: You wrote a good offer with well-qualified
buyers. The sellers are out of town and due back today and you are hoping to
put a deal together at that time. The seller’s agent calls and leaves you
a voice-mail message that she has wrote an offer, and in the mean time an associate
from your office tells you he has a third offer. Do you know what to do? Please,
take just a minute to breeze through this overview!
Depending on whom you represent, begin by consulting your broker, so a call
from the other agent is no surprise. Next, if you represent the sellers, call
and explain the procedures you are about to put in motion and get their permission.
When you speak to the other, agents make it clear that the messages you convey
are coming from the seller! Explain to the agents the procedures you will follow
and ask them to prepare their best offer, and wish them luck. In a commercial
or institutional situation, you may ask offers submissions by sealed envelope.
Explain that things have changed. Explain the reasoning behind them submitting
their best offer. It may be smart to prepare two offers, or to ask the seller
to give you the benefit of calling your buyer’s to see if they will up
their offer and his net!
- Prepare a cover letter that explains the offer strong points, such as closing
costs, rapid processing, or less strict property condition standards.
- Prepare a resume about your buyer’s and how much they love the house.
- You might insist that your buyer's instructions are to present the offer
with accepted on presentation restrictions.
- You might consider bringing the buyers and then telling the seller that they
are in your car ready for an immediate counter.
- Prepare a large earnest money check that is eye-catching. Also, consider
making the earnest non-refundable with conditions.
- Consider using "Power of Attorney" with an attached letter giving
you the rules of negotiation.
If you represent the sellers, tell the other agent the sellers have chosen
an offer and countered with a request for an answer by noon the next day. Explain,
you cannot predict if the offer will lead to a contract, so ask to retain their
offer until then. Further, explain that if it goes past noon, you will call and
ask whether the buyer want to keep their offers alive.
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Information provided by this website is general and is not a substitute for professional
advice. Please consult your investment advisor and/or attorney before entering
into any transaction.