It is possible for a realtor to see about the other offer. I have asked for a copy of the other offers first page with the names and amounts blacked out. This just gives buyers a feeling that they have gone threw the trouble to produce the document to prove themselves and interest in receiving more offers. Many don’t think this is the way to go but in some cases (like yours) it cools down emotions or possibly being "Fooled" into a higher offer.
Keep in mind that when brokers tell someone they have another offer they risk the other person walking away and not making an offer. In this market I couldn’t imagine a realtor taking that risk. Remember the Realtor wants to sell that house as badly at the sellers do in this market. Not to mention that Real Estate agents are bound by a code of ethics, Tho’ shall not lie!

Good luck and if you like the home buy it before it’s really gone!


Farah de Verteuil
Real Estate Sales Specialist http://www.relocation-home.com
farahv@relocation-home.com
503-758-6281

Pete,

it is not illegal for the agent you are associated with to inform you of a material fact as long as it IS A MATERIAL FACT and not to induce you to offer. It should be clarified by your agent that there is no way to determine what the other offer is and in fact the disclosure by the listing agent of multiple offers is fine as long as the other offer exists. Be aware that in most situations the offer may in fact exist but is not always accepted by the seller. You should offer what you feel is apprpriate and stick to it. You should listen to the advise of your Realtor unless you feel that there exists an integrity issue. If that is your feeling then you should find a Realtor that you trust and go with that individual.

Pete,

Wow, this can go so many ways as it is probably done numerous different ways.... which means... this is just another example of why you MUST interview your Buyer's agent before hand AND sign a buyer's representation agreement before you even start looking (too many people don't think that this step is important, but it is.. otherwise I don't think you'd be asking this question in the first place?)

For me, to be very general about it... I would have to agree most w/ Bruce! Just offer what you want to and don't get pressured into doing something you don't want to do.
HOWEVER to be a bit more specific.....
If I personally know the listing agent and I know they are always honest or I can see obvious tell tale clues (like 30 seperate Realtor business cards flopped on the kitchen table while DOM = 30), and my buyers REALLY like that house... I will advise them to put their best foot forward on an offer if it's truly the house they want.
I am very much an analytical thinker and committed to getting my clients what they want, so I will take my buyer through all the obvious signs and facts about whether or not there could be another offer or not.... BUT THE ENTIRE BOTTOM LINE IS: You Must Do what you THINK, FEEL, or BELIEVE you MUST DO! Our job as ethical Realtors are to tell you the facts exactly as they come and let YOU make the decision!

It is unethical to lie to you. The more upfront the realtor is the better prepared you will be. Unfortunately some do lie, but that seems to be a very small percent. Just be careful and do some research. Good luck.
J.

Good advice here; I especially like Bruce's (do what you want to do, not what someone's trying to pressure you into doing) and Elvis' (don't get into a supposed bidding war).

And, to recall the famous quote: "It depends on what the definition of 'is' is," as another poster noted, sure, the agent can be expecting another offer to come in. It might be tomorrow...it might be next week...it might be next year. Sooner or later another offer is going to be made. No doubt about it. So Patrick's advice is good, too: Do they already have a written contract? If not, then so what?

You should buy what you want for the price you want to pay, and paying no more than you can afford. As far as your question goes--is it legal--that's answered below. And the question is really one of ethics, not legality. But beyond that, the question is: How should you respond to such a statement. Use Patrick's line. Then go back to your process of deciding whether that house, or any that you've seen, is right for you. Make an offer at the time and at the price that works for you.

Hope that helps.

Sounds like Tman has had a BAD experience with an agent (or agents). In order to feel that your Realtor is really working for YOU is to make sure that they represent YOU. Sign that Buyer's Representation Agreement with the agent you decide to work with. PROTECT YOUR interest! A lot of buyer's don't want to sign one of those agreements but in the end, it's the thing that will protect you from not getting the best out of your agent. In the state of Texas, at least, a Realtor (or agent) can show you property all day long, BUT if they do not have a signed representation form WITH YOU, they are working for the seller.
Don't you want to be represented? You can make the agreement for as long or as short as you want. It can be just for that particular day, to see if you really like the person you are working with! It can even be for a particular area, street, house, etc...
I know this was off the subject, but I think it needs to be a point that is emphasized in this question.

Pete,

Doesn't matter. Don't get too tied up with this. Just offer what you can and don't feel the pressure. There are lots of houses for sale, so if you don't get this one, there will be another. I don't know if my clients have been lucky or not, but ever single time any of my clients have lost a house to another bidder or seller would not accept their offer, they've always found another that was better in some way. Either better house for same money or perhaps a better deal. A few years ago I had a client who lost 7 houses. The 7th, they actually had the better offer, but the seller met the buyers with the other offer and "liked" them and felt some emotional attachment to them. The last house the bid on and got was better priced and they liked it more than anything else they had seen. That's an extreme case, but it does happen.

An offer being made and a contract in hand are two different things.

An offer is being made! ...An offer is being made!...An offer is being Made!

My first answer is do you have a contract!.....silence.

I live for a listing with more than one contract. When I have an offer, I call everyone who showed any interest.
I tell them I have a contract.
Not an offer is being made.

Pete answer your Realtor with.
Do they have a written Contract? If not they have nothing. Who says the written contract will evevn be accepted.

It is legal to represent the truth.

I don't think it is misrepresented often, but, sad to say, on occasion, that might be true.

It is also true in the reverse...............A buyer (or a buyer's agent) is not told about an existing offer..............and this potential 2nd buyer who might have acted promptly with an offer, if they would would have known, misses an opportunity.

I have seen more of the latter than I have of the scenario that you describe in your question. And, all offers are not good offers. I have seen situations where a 2nd buyer was told that an offer was to be delivered, and the 2nd buyer declined to make an offer. The first offer was not accepted and the Buyer #2 believed that Buyer #1's Offer was fabricated. It wasn't. It was an offer that was not accepted.

Most agents are honest. I suggest dealing w/ a Realtor who upholds the Code of Ethics. If you do not have a degree of trust in your agent, speak w/ the broker about your concerns as it applies to any properties that were shown by this buyer agent. Beyond those properties, move on to another agent if you don't have trust in the current agent. It might be that the agent is honest, but if you are skeptical, you may be better off with another Realtor.

Again, most Realtors are honest in their representations; and I do recommend a Realtor over a real estate agent. I do not imply that real estate agents who are hot Realtors are not trustworthy. When you work w/ a Realtor, you, the consumer, have the support of the local, state, and National Association of Realtors to support you and enforce the Code of Ethics.

" .. Is it legal? NO!

Is it done? YES..."



Naima Sumner,

Thank you for an honest answer.!

Yes Pete it goes on .. more than most buyers/sellers would ever think, and more than most agents will ever admit to - it's called: "protecting the nest".

It's your job as a consumer to be aware of it and it's your job as consumer to do your homework and interview 4 or 5 agents before you ever get into the "looking" part, let alone the "offering" part ... that should clear the road of 90% of the backwash.

You need to stay proactive with your agent on a daily basis, even hourly sometimes .... consider your situation for a moment - your "sales approach" consists of you taking the word of a stranger (your agent) who is dealing with the sellers agent, who is dealing with a seller who has taken the word of the listing agent - and everyone is on commission.

It's one of the worst ways on the planet to negotiate - it's like sending your uncle out to interview for your job at Microsoft ... so you better know, fully understand and trust the person who is reping you, if not, they can be fired in a heartbeat ..... it's your money and it's your payments for the next umpteen years.


Good luck and happy hunting.!

Is it legal? NO!

Is it done? YES... I have personally heard a conversation between 2 agents saying that they were tired of showing homes to some picky buyers and they needed them to make up their mind so they were going to tell them that an offer was being made on the house they liked most.

It sounds like you are having trust issues with your agent. It is imperative that you feel 100% comfortable with the agent representing you. Has your agent given you reasons to be suspicious that they are not working in your best interest?

It is good to tell the truth. It is wrong to tell a lie. The law usually sides with the good, and usually against the bad. I think, Pete, that answers the question most simply.

REALTORS are members of the National Association of REALTORS and agree to uphold a higher standard of ethics. The REALTOR Code of Ethics dictates how we behave ethically. Part of that is honesty to our client. If the seller's agent alerts the buyer's agent there is an offer, do you agree it's your agent's job to inform you of that offer? Are using a REALTOR or a licensed real estate agent?

Sometimes my sellers suggest I tell a buyer there is another offer, but I refuse to lie. On the other hand, I have told buyers I expect another offer, and I DO, however that offer doesn't come in. I suppose should they not get the house and it's still for sale they're going to think I lied, but I can't help what people assume. Many people, not only regarding real estate, think there is a vast conspiracy all the time.

Well as long as it's true I don't see a problem with it, of course if it's not then it could be construed as unethical.