Whether Or Not We Have Multiple Offers Is None Of Your Business

By
Real Estate Broker Owner with Bryant Tutas-Tutas Towne Realty, Inc BK607690
http://actvra.in/DLk

tutas towne realty

Hi folks. I’ve read a couple of posts recently that have left me scratching my head. Both were about listing agents and their “unethical” practice of not handling multiple offers according to the Buyer agent’s expectations.

In the comments on these posts the listing agents were called lazy, unethical, unprofessional, bad, rude, unfair and greedy. The consensus was that “The listing agent was not looking out for the Seller‘s best interest.”

Well my question is: “How do you know what’s in my Seller’s best interest”. The answer of course is “you don’t“. You have no clue what my Seller and I have discussed.

As a listing Broker it is my job to counsel my sellers. My Sellers need to know that they do not have to…….

…..disclose multiple offers.
…..counter offer.
…..ask for “highest and best”.
…..even acknowledge your Buyer’s offer.

There are many reason why NOT disclosing multiple offers or asking for “Highest and Best” may be the best way forward.

  • The Buyer may NOT submit an offer if they know there are multiple offers.
  • A Buyer may also NOT want to get caught up in a bidding war.
  • By disclosing multiple offers I could very well keep my Seller from getting a better offer.

I can’t even count how many times a Buyer’s agent has called me to say they were sending over an offer. Frankly it goes in one ear and out the other. I NEVER believe them. I am not going to contact my Seller and get them all excited only to have to let them down when the offer does not materialize.

Send me the offer and I’ll present it to the Seller. And send me a COMPLETE offer. Telling me you will provide a pre-approval and/or proof of funds tomorrow does my Seller or your Buyer no good. Without these items the offer will not be presented. It’s a non offer.

As an example: I received an offer on one of my short sale listings on Friday. It was cash and very low. It was also sent over with out proof of funds (POF). I emailed the agent and asked them for the POF.

I didn’t receive POF until Monday and then......I couldn’t read it. I had to ask the agent to resend it. It took the agent took another 24 hours. Finally, 5 days later, I was able to discuss the offer with my Seller.

My Seller countered. Shortly after that we received a far better offer that my Seller will probably accept. After discussing it we decided to ask the cash offer for “Highest and Best” just to see if they would come up.

I received an email from the agent moaning that she thought her Buyers would get an answer today and that they were not happy with “Highest and best” and were in fact upset that there were now multiple offers because we “didn’t disclose this to them”.

Now if this agent were a Blogger she would probably write a post about how  lazy, unethical, unprofessional, bad, rude, unfair and greedy I am. And how “I’m not looking out for my Seller’s best interest.”

But that’s OK. My Seller just accepted the other offer that was $15,000 better than the cash offer. I really don’t give a crap what the Buyer’s agent and the Buyer think. I work for the Seller. They are the one’s paying me.

While I certainly agree with having “professional courtesy” it does not extend to giving you insider information to help you negotiate a real estate transaction. Always remember who you are working for.

If your expectations are different....then you are setting yourself and your Buyers up for failure. That’s all I have to say about that. What say you?

More articles on handling multiple offers.

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Re-Bloggged 4 times:

Re-Blogged By Re-Blogged At
  1. Bob Pisa Downing-Frye Realty 07/11/2012 06:09 AM
  2. Barry Owen 07/11/2012 07:59 AM
  3. Bob Miller 07/11/2012 10:14 AM
  4. Joe Jackson 07/11/2012 11:48 AM
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Comments 187 New Comment

Rainmaker
267,882
Kasey & John Boles - Jon Gosche Real Estate
Boise, Meridian, Ada/Canyon/Gem/Boise Counties
Jon Gosche Real Estate, Boise ID

I am several months late on this and I'd love to read all of the comments but don't have time.  I agree with almost everything you said.  The only thing that I don't agree with is:

Telling me you will provide a pre-approval and/or proof of funds tomorrow does my Seller or your Buyer no good. Without these items the offer will not be presented. It’s a non offer.

This may, however, be a state to state difference.  Our contracts allow for proof of funds or loan approval letters to be submitted within a certain period of time after acceptance.  As much as possible I send them with the offer and of course as a listing agent prefer them to be with the offer and it can absolutely affect an offers chances if there is a multiple offer situation.  But, we are also required by Idaho law to present ALL written offers and as timely as possible.  Not presenting it because we didn't have proof of funds would actually be violating the law.  


Otherwise, I think you are right one :-) -Kasey

October 30, 2012 11:45 PM
Rainer
2,738
Chris Caplin
Hi all, I have an interesting multiple offer situation that I'm hoping someone might have some advice on. We made an offer on a house in South Carolina. The sellers agent informed us there were no other offers on the table when we handed them our offer. When our offer expired he called us to say they had received another offer and needed best and final. We wanted the house so we offered asking price. The sellers agent then came back and told us we did not get the house but refused to tell us why. He then said they would accept our contract as a ratified back up offer where it would become the contract if the other fell through. I was suspicious so I called the sellers agent and pretended to be an interested buyer. He said it was under contract but they were still showing the house and taking all offers up until closing. Is that odd? I found it odd to be showing the house when they already supposedly have a contract and a signed back up offer. My question is this: if he signed the backup offer, are they legally obligated to prove to me (the backup) that they actually do have the first contract? My concern is they don't really have an official contract but have my full price offer as their "backup" while they shop to see If others will offer more. Is that legal? Can my agent ask that they prove they actually have it under contract with the first offer? If they don't can I sue them? I would also like proof of this contract because I'd like to be able to monitor if it falls through so that I know they don't take a 3rd offer as the new backup if the first one falls through. My apologies for so many questions. Has anyone encountered this before? At minimum it strikes me as incredibly unethical if this is going on but is it illegal? Any advice is greatly appreciated. Thanks! Chris
April 01, 2013 09:20 PM
Rainmaker
1,080,090
Bryant Tutas
Broker/REALTOR, Tutas Towne Realty, Inc
Bryant Tutas-Tutas Towne Realty, Inc

Hi Chris. Unfortunately unless yo have a fully signed and accepted cpontract rthe seller can do they choose. Continuing to market a property after a contract has been accepted is quite common. Sellers can and should accpet back up contracts.

If you want to be informed of other back ups and offers then you need to make this clause aparet of your contract. The seller is under no legal obligation to give yo any info related to thier transaction UNLESS the contract states they must.

April 06, 2013 06:34 AM
Rainmaker
81,566
Mike Crosby
La Mirada Real Estate - 714-742-2897
Mike Crosby Realty

I agree as the seller's you do not have to reveal "insider" information   So how would you represent a buyer with a sellers agent who does not give you information?  That is how would you communicate and negotiate with yourself?

May 29, 2013 02:20 PM
Rainmaker
1,080,090
Bryant Tutas
Broker/REALTOR, Tutas Towne Realty, Inc
Bryant Tutas-Tutas Towne Realty, Inc

I would represnt them the same as I represent my seller. By providing them with the available info so they can make an informed decision. Assuming I have an agency agreement with the buyer then I should have already explained confidentiality and what the listing agent can an can't disclose.

And I would suggest to base their offer on what the property is worth to them. What other's offer really has no baring on the value of the property to the buyer. Keep them focused on what they are trying to achieve and working with available information.

They can't force the seller or agent to provide transaction details on offers that have nothing to do with them.

I hope this helps

May 31, 2013 05:04 AM
Rainmaker
1,080,090

Bryant Tutas

Broker/REALTOR, Tutas Towne Realty, Inc
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