Get the Seller's Instructions in WRITING
There is a fine line that we walk when dealing with possible multiple offers. If you have an offer in your hand but there is an agent that has called to tell you that they "will be sending you an offer", at what point do you let the first agent know that they are competing? First of all, it isn't the AGENT's decision. It is the SELLER's decision. It is the listing agent's responsibility to let the seller know the pros and cons of trying to have multiple offers on their home. (In my experience, the other "offer" does not exist until I have it in my hand, or in my email...until I physically have it, the seller does not know about it. There have been too many times where I was told that I would be receiving an offer only to find out later that the buyer changed their mind.)
Here is the scenario. The house has only been on the market for a couple of days. Many showings, lots of interest, agents telling you to "let them know if an offer comes in on the house", but nothing on paper. You receive an offer, it isn't full price and there is a second showing this afternoon.
Question 1: Do you tell the agent that is showing the house to the buyers for the second time that you have an offer in hand prior to the showing?
Question 2: Do you tell the buyer agent that submitted the offer that there is a second showing this afternoon?
The answer is: it is up to the seller. It is only the listing agent's job to educate the seller on what could possibly happen in either case. The offer that has been submitted could withdraw because they don't want to compete. The 2nd showing could be canceled because the second buyer doesn't want to compete. Then instead of having an offer in hand and another possibly on the way, you have none. It is a tightrope and my crystal ball is always on the fritz! :)
I let my seller decide their risk. And then I have them put it in writing before I talk to any agent. It is not my call, not my decision. I can only provide my experience and let them decide. Some sellers may ask you to call any agent that has shown the house to let them know that you have an offer. This is referred to as "shopping the offer" or trying to get a better one.
The fear of loss is real for buyers. But it can also frustrate the qualified buyer that submitted an offer. Remember at any time, a buyer or seller can withdraw their offer or counter offer before the other side can respond. It is an "at-will" agreement. Nothing is final until all the signatures are there and all parties have received a copy. It is better to have the seller's instructions in writing so that if it does not unfold the way that they had hoped, they cannot blame the agent.
Every seller and every transaction is unique, what is important to one may not matter at all to another. Our job is to represent the seller in their best interests and navigate the transaction through to the closing. We provide the knowledge, the seller makes the decision. If you would like me to show you how I would represent your home, please contact me anytime to schedule a FREE home seller consultation. I would love to work with you!
Keep smiling!
Karen
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