Multiple Offers intent to buy Only One

Yea I would tell them the only way I'd do it is if they could buy both. Way to stand your ground.

I think it depends on the situation. I would write up two offers.  If you are shooting lower offer where there will be some counter offers.  You just work the favorite more. I don't know your situation but I really don't see a problem if they are trying to get a deal. One seller will likely say no and then you get the other one.

Gayle and Christopher,

I really do not understand you. I hear I, but you are not the Principals. What is unethical in making multiple offers? Why you take upon yourself what you do? If the Principal wants you to write two offers, why wouldn't you? Stay your grounds when this is your own property, but here you are hired to stand your Principal's ground, not yours. You can advise, and when they do something illegal, then you withdraw.

Submitting multiple offers is a normal way of doing business. You just make it clear for the Listing agent that your client has submitted two offers, and he will pick the best deal.

WHAT IS WRONG WITH IT?

I think the issue is if the buyer did not disclose that they were writing multiple offers. And because this is not an intense buyer's market around the Puget Sound, I have a hard time imagining it working real well right now, as a seller may not want to take the house off the market just for someone fishing. If it is disclosed, like the multiple counter offers sellers sent out a couple years ago, then that is fine, as everyone knows what is going on, and the seller isn't being lied to. Good faith is still a part of the contracts in this area.

Hmmm . . . I'm a broker associate in FL and I have to disagree with Jon, this isn't the normal way of doing business in any of the three states I'm licensed in. We work one offer at a time for a buyer. I would be wary of any Realtor floating offers that they knew the buyer didn't plan to executed, even in a hot market.

Robin,

I can try to find that discussion on AR before, but it does not matter. First, this works just in a slow market, not hot market. Nobody takes the property off the market.

We are sending offers and say that there are more than one property targeted, and whether they would agree to the offered price. So all they have to say is 'Yes' or 'No' to the price, which is simply not a negotiable deal.

That's how many investors buy.

The problem I see in the blog and in the comments, is that agents tend to dictate to their Principal what to do and how to do that. While the question is only one: "Can I do it this way" and "Is this the best way". You have a better way - advise them. But if you are talking about the investors in this market, you, actually don't.

Again, Robin, would you be weary or not is not the issue, because it is not about you or about me. Why are we dropping the Principal from the picture?

Gayle, Is it unethical for a seller to receive two offers? No.  Provided the seller is aware your buyer is putting multiple offers (and buyer is willing to purchase property at said offer) and time lines will be enforced I don't see anything unethical.  Hey, the buyer needs a house and wants to get the best deal.  I read "time is of the essence" in a most Real Estate contract. This client has done you a favor by introducing a negotiation strategy that will help you with other clients.  If you want to represent the buyers, represent the buyers.  They are your clients.  The seller has to much power in the negotiation.  The idea that a seller has the luxury to entertain offers but the buyer can only concentrate on one house at a time is absurd.  The time it takes for the seller to review offers means that a buyer may have lost out on the opportunity purchase his second options.

 

At least in Wisconsin, this is not considered an unethical practice.  I had a respected Wisconsin real estate attorney counsel me last year that it is permissible (with proper wording in the offer) to make multiple offers, just as it is permissible to make multiple counter-offers.

If the buyer's actions are disclosed, how can it be a breach of "dealing honestly and in good faith"?

Aloha Gale!

Thank you for a great post!

I do not like double standards.  If sellers are not compelled to disclose how many offers they have received and what the terms of those offers are, why then should buyers be compelled to disclose how many offers they have tendered and what the status of those offers are? 

Not knowing all of the facts about your buyer and taking only the short description you have posted, and not knowing your states laws on this matter, I would submit you could have failed in your duteis to your client by not following his lawful instructions. 

Depending on the circumstances, disclosing if you are tendering multiple offers could or could not place your principle at an advantage or disadvantage in a competitive part of the market.   Here is what our Code of Ethics says...

Article 1
When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly. (Amended 1/01)

Standard of Practice 1-6

REALTORS^® shall submit offers and counter-offers objectively and as quickly as possible. (Adopted 1/93, Amended 1/95)

Standard of Practice 1-7

When acting as listing brokers, REALTORS^® shall continue to submit to the seller/landlord all offers and counter-offers until closing or execution of a lease unless the seller/landlord has waived this obligation in writing. REALTORS^® shall not be obligated to continue to market the property after an offer has been accepted by the seller/landlord. REALTORS^® shall recommend that sellers/landlords obtain the advice of legal counsel prior to acceptance of a subsequent offer except where the acceptance is contingent on the termination of the pre-existing purchase contract or lease. (Amended 1/93)

Standard of Practice 1-8

REALTORS^® , acting as agents or brokers of buyers/tenants, shall submit to buyers/tenants all offers and counter-offers until acceptance but have no obligation to continue to show properties to their clients after an offer has been accepted unless otherwise agreed in writing. REALTORS^®, acting as agents or brokers of buyers/tenants, shall recommend that buyers/tenants obtain the advice of legal counsel if there is a question as to whether a pre-existing contract has been terminated. (Adopted 1/93, Amended 1/99)

Standard of Practice 1-9

•  
  1. reveal confidential information of clients; or
     
     
  2. use confidential information of clients to the disadvantage of clients; or
     
     
  3. use confidential information of clients for the REALTOR^®'s advantage or the advantage of third parties unless:
     
     
     1. clients consent after full disclosure; or
        
     2. REALTORS^® are required by court order; or
        
     3. it is the intention of a client to commit a crime and the information is necessary to prevent the crime; or
        
     4. it is necessary to defend a REALTOR^® or the REALTOR^®'s employees or associates against an accusation of wrongful conduct.
        
The obligation of REALTORS^® to preserve confidential information (as defined by state law) provided by their clients in the course of any agency relationship or non-agency relationship recognized by law continues after termination of agency relationships or any non-agency relationships recognized by law. REALTORS^® shall not knowingly, during or following the termination of professional relationships with their clients:


Information concerning latent material defects is not considered confidential information under this Code of Ethics. (Adopted 1/93, Amended 1/01)

John Petrella, REALTOR®
ABR®, GRI, Principal Broker
Hawaii License RB-18892

Local Hawaii Real Estate
Honesty • Integrity • Commitment

Direct: 808.640.3953
Email:  John@HiloJohn.com

REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is Member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.