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What to do when two buyers want to write on the same property?

By Dennis Herman

Real Estate Broker/Owner with Crossroads Real Estate LLC

July 23, 2008 02:11 PM

Did anyone else ever have this problem? This is the second time I have seen this happen. I showed one buyer a foreclosed property twice. The showings were a month apart. About a month later I showed the same house to another buyer. The second buyer wrote an offer with buyer agency.

The next day the first buyer called and asked to see the house for the third time. The first buyer was not ready to write an offer after the third viewing. I also brought a spec sheets for 5 other properties. One of them is close to a property the first buyer was considering writing an offer on but the new listing is much better.

I am not sure I would be able to offer buyer agency to the second buyer if he wrote on the same property I have an offer in with the second buyer. But how does this effect the fact we need to treat all customers/clients equally?

Are there any other problems with this situation that you see?

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Donna Harris

Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX

Realtor,Mediator,Ombudsman,Property Tax Arbitrator

I would think that you would need to disclose the other relationship that you have, to both parties. You can't tell the second one and them write a higher offer as I would think that you would still need to go back to the first one and let them know so they have the opportunity to make sure they submitted their best offer. Fair is fair, so you need to let both parties know the same information... but you also might want to contact the selling agent first and see where your offer stands because you might call your other buyer and say that the house is already under contract with one of your buyers, but that you'll let him know if your buyer backs out.

Jul 23, 2008 02:20 PM

Jeffery Griffin

Jeff Griffin LLC - Wailuku, HI

Broker Owner

We have an addendum stating we can work with several buyers, the issue is getting the first buyer to sign it before the second buyer.

Jul 23, 2008 02:22 PM

Erik Hitzelberger

RE/MAX Alliance - Louisville REALTOR-Luxury Homes - Louisville, KY

Louisville - Middletown Real Estate

Dennis - I agree with Donna, you have to disclose the relationships. If either party is uncomfortable, maybe you can refer the first client to another agent for this transaction only.

Jul 23, 2008 02:28 PM

Patrick Lambert

ALLY Real Estate - Waikoloa, HI

Hawaii Real Estate Expert

Wow, two offers in this tough buyers market? I would be thanking my lucky stars right now. Things are tough.

Jul 23, 2008 02:30 PM

Tim Haight

Pinal Realty & Property Management LLC - Arizona City, AZ

Broker/Owner

I would think that since the first buyer didn't commit after this amount of time that it might be tough to get them to do anything at all. I have had to impress upon my buyers that the best deals will not last. If they are serious they need to go ahead and pull the trigger

Jul 23, 2008 03:21 PM

Dennis Herman

Crossroads Real Estate LLC - Howards Grove, WI

This is a strange occurance to have two buyers interested in the same property without having other brokers writing on thhe same property. I have found some really great deals in the past and sent the listing to a number of buyers that fit the property type and price. I have seen some forclosures in Menomonee Falls that are in good shape and would not require much work beyond flooring and painting and are about $100,000 under market value. Most times these really great deals are gone in a matter of hours. Most times buyers are too slow to react and loose out on the deal. In these cases there are multiple offers already on the table. If you disclose the fact there are already multiple offers would you have to disclose the fact that one of them may be an offer you have with another buyer? In that case I would have no idea what the other offers were.

Jul 24, 2008 03:31 AM

What to do when two buyers want to write on the same property?

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