8 Ways to Handle Multiple Offers

1. Unless the seller says not to bring offers under a certain price, you must present all written offers, no matter how unattractive.

2. Present all offers promptly. Don't sit on an offer because a better one might come along.

3. Present offers in the order they were submitted to the listing broker.

4. Make sure all salespeople and buyers understand your procedure for handling multiple offers. Inform them all that theirs is not the only offer.

5. Present multiple offers with all parties present, unless the seller requests otherwise, and provide all parties with the same information.

6. Equate all offers in understandable terms. Price is not the only consideration. Discount points, settlement dates, downpayment amounts, contingency clauses, financing provisions, and repair allowances can tip the scales.

7. Select one offer to counter and hold the others as backups if negotiations fall through.

8. Keep each salesperson and buyer informed at all stages of the process.

Portions adapted from “How to Handle Multiple Offers to Purchase,” Leigh-Alexandra Basha, Northern Virginia REALTOR®, April 10, 1989

TIP: If you represent buyers making one of several offers for a property, encourage the buyers to make their best offer before the offers are presented to the seller. They may not get a second chance.

Avoiding Agency Conflicts During Negotiations

If the listing salesperson is representing the seller as an agent, but working with the buyers as customers, avoiding possible conflicts of interest during the negotiation phase of the transaction requires care.

To help your salespeople avoid breaching their fiduciary responsibilities, try the following:

• Develop a written summary of what a seller’s agent
  can and cannot do for a buyer-customer.

• Suggest that the salesperson consider proposing a disclosed dual agency relationship to the buyers and sellers, if permitted by your state law and your company policy. If you do permit disclosed dual agency, develop a written explanation of dual agency for all parties to review and sign.

• Conduct regular training sessions with your salespeople on the responsibilities and limitations of different client relationships.

Insights Into Multiple Offers >