If you buyer client ask you to place offers on several properties at the same time what do you do?

Asked by Jennifer Fivelsdal, Red Hook, NY Sat Mar 2, 2013

Here is my take http://activerain.com/blogsview/3645105/i-want-to-place-offe…

Help the community by answering this question:

+ web reference
Web reference:

Answers

15
Judi Monday,…, Agent, Green Valley, AZ
Sun Mar 3, 2013
BEST ANSWER
As long as you disclose to each of the sellers that the offer is a multiple offer then it is OK but they CANNOT do so otherwise unless their intent is to buy multiple properties. However I would help my buyers to understand it is not common for a person to like several properties equally and they run the risk of turning off the seller of the property that is their first choice.
2 votes
Jennifer Fiv…, Agent, Red Hook, NY
Sun Mar 3, 2013
Thank you to everyone who commented, I can see both point of views.
1. As long as there is disclosure to all parties then it can be done.
2. Telling the buyer the disclosure is necessary will deter some buyers.
3. Then some would explain to the buyer why it would not be a good idea and how such a practice could hurt them in the long run.
4 Multiple offers only if buyer was prepared to purchase more than 1 house.

I had previously responded to each of you individual after losing my comment to everyone.
I have since deleted them because of certain allegations made. I had no intention of spamming and apologize.

______________________________________________________________

Now I want to respond to some of things I was accused of by Don.

I rarely participate in real estate groups because I have low tolerance for pettiness. I have not really participated much here in the agent to agent section. Weekly I don't even make lots of comments here.

As for gaming the system I don't care, I am not trying to get to VIP3 it does not put money in my pocket. I qualified for VIP3 sometime ago however there are not enough questions here for me to answer and I have no intention of just answering to gain points.

I don't spend time figuring out Trulia point system. I would be surprise if they give points to someone for commenting on their own question, if they do they should change that.

As for my points on ActiveRain I have been Blogging since 2006 so points add up. There are many who started in the last few years with more points.

When people comment on my ActiveRain post and I respond I don't get points. Furthermore it is not spamming since you would have to go to my Blog to see the responses.

Maybe Trulia should add an edit . If I had the ability to to remove the link I would. Since other agents took the time to respond to the post I did not want to delete it. Go ahead and flag it if you see fit.

This situation won't happen again because I won't ever post a question here again.

Any further issues you have with what I am doing take it off-line, here is my number 845-758-6842
3 votes
Donald Mituz…, Agent, Kaatonah, NY
Sun Mar 3, 2013
Larry, I understand your answer, but disagree. That's why I say it's so important to disclose the fact that the buyer is making an offer on more than one property. If you are representing the buyer and this is what they want to do you can certainly walk away if you like, but if it is clearly disclosed to the seller's agent I do not feel you are doing anything that is unethical. It has nothing to do with an agent being poorly trained or starving, just representing their buyer. If the buyer you are working with tells you they do not want this disclosed to the seller's agent, it's a whole different ball game and I would walk away also. If it is all clearly disclosed than it does not mean it is an insincere buyer or one that is playing games. It is certainly possible that a buyer likes both homes and would just like to get the best deal. Wouldn't you?

Don
3 votes
Don,

It was never my intention to promote my Blog in this way. I have a profile here and on many sites. I write a Blog for consumers, so why would I promote it Agent to Agent?

I understand your point of view regarding this subject matter. With full disclosure, this would be fine. Telling the buying the disclosure is necessary probably would deter them from going down this path.

I asked the question here because I knew agents would have different views.
Flag Sun Mar 3, 2013
Mack McCoy, Agent, Seattle, WA
Sat Mar 2, 2013
Ask them if they're prepared to buy several properties at the same time.
3 votes
Mack that was the point I made. If you are making several offers then you should be prepare to buy several houses. I know this is a common when dealing with investors client who might be buying several properties with cash.
Flag Sun Mar 3, 2013
Donald Mituz…, Agent, Kaatonah, NY
Sun Mar 3, 2013
Is this a question to promote your blog on another site? it certainly appears that way.

In answer to the question, you can make offers on more than one property for a client, but I feel in good faith you must disclose this to the agents representing the sellers. If the seller also happens to be negotiating two offers at the same time and turns down the other buyer in favor of yours and then yours goes on to buy the other property they bid on, it would hardly be fair.

Be up front and always disclose. The underlying principles of the Realtor Code of Ethics is fairness and honesty in your dealings. Do this as an integral part of your real estate profession and other agents will be glad to deal with you.

Don Mituzas
Licensed Associate Broker
Douglas Elliman Real Estate - New York's #1
http://www.donmituzas.com
http://nyhomeseller.com
2 votes
Annette Law…, Agent, Palm Harbor, FL
Mon Mar 4, 2013
Jennifer, you handled that graciously. TU
Debra Rose always provides a clarity of purpose and a challenge to be a real pro.
-
And, as a real pro, when I encounter a paper hanging agent representing the buyer you describe, I find it important to advise my seller of ALL the exits the buyer has and most likely WILL use and will keep this real estate 'off the market." With proper disclosure I can protect my seller. With a established pattern of behavior, I can ignore that agents calls.
-
In your question, "IF your buyer asks...." I would respond, "YES", but that will be $125 per submission (non-refundable) After all, I anticipate the listing agent will do exactly as I would. When such a buyer has 'No skin in the game" this becomes a very practical business decision to exploit those agents who are asleep at the wheel.

Be advised, when dealing with blighted property, none of this applies.
1 vote
thank you!
and........I agree - Jennifer handled the negative comments in a very professional and gracious manner,
Flag Mon Mar 4, 2013
Donald Mituz…, Agent, Kaatonah, NY
Sun Mar 3, 2013
Sorry Jennifer, but answering those with who replied with 10 different posts of your own makes it look like you are VIP badge hunting. You could have answered everyone with one reply. Looks a lot like your activerain page. Yes, perhaps I'm being critical, but I've seen the same thing on activerain where you have over a million points. Asking a question and putting a link to activerain just seems to be pushing it a bit to me. All of your replies here is kind of like email SPAM in my opinion. Now you have your VIP2 badge and from what I've seen you may be looking to get to the 3 level. Just an FYI, I really don't care much for SPAM and I don't think others like it either.
Don
1 vote
Connie Fitzg…, Agent, California, MD
Sun Mar 3, 2013
Say No, and explain to them why it is unethical and may cause problems in the long run.
1 vote
I was chairman of professional standards for our local board of Realtors. I'd really like to know why is is unethical if it is fully disclosed. Could you tell me which article and standard of practice it violates?
Flag Sun Mar 3, 2013
My NC Homes…, Agent, Chapel Hill, NC
Sun Mar 3, 2013
Unless their actually prepared to buy multiple homes I tell them I don't operate that way and that I'm prepared to let them walk and find another agent to work with. I ask them who would they feel if they were selling a home and had it tied up for a month by an insincere buyer who was playing games.

I know it's legal and I know there are lots of poorly trained and starving Realtors more than willing to do anything to simply make a sale, but that's not me and I run my business in an ethical manner. When the day is done my reputation in the community in which I live and work is more important to me than any one sale.
1 vote
Russ Ravary, Agent, Commerce Township, MI
Mon Mar 4, 2013
I WOULDN'T DO IT. I feel it is unethical because what happens if they all accept. Plus if you were the seller would you want that to happen to you.
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Mon Mar 4, 2013
No, Mack I never had that experience.........any offer made on one of my listings is supposedly made because the buyer actually wants to buy that home!

What a novel idea!!
:)

Interestingly enough.......... there is an "Exclusive Buyer's Agent, here in NJ, whose partial claim to fame is stating, with great pride, that this policy (of presenting multiple offers for a buyer) is his prime strategy for presenting an offer!

Somehow he feels this is a fabulous and clever way of representing a buyer.

Many of us tried to inform him that as a listing agent (which, as an EBA, he never is), this strategy could raise a bunch of red flags, and might very well backfire and jeopardize his buyer's chance at getting the home...........because once his "strategy" is disclosed, the offer wouldn't be taken seriously.
0 votes
Mack McCoy, Agent, Seattle, WA
Sun Mar 3, 2013
- Mack that was the point I made. If you are making several offers then you should be prepare to buy several houses. I know this is a common when dealing with investors client who might be buying several properties with cash.

We agree.

Listing agents - ever had an offer where the buyer "disclosed" that they were offering on many properties and might not complete the sale if the seller accepted the offer?
0 votes
Phyllis McAr…, Agent, San mateo, CA
Sun Mar 3, 2013
Hi Jennifer, Our Legal Dept recently addressed this issue, and they said no, don't do it....ever...never
0 votes
JANET SHER, Agent, Apex, NC
Sun Mar 3, 2013
In my professional opinion, if I am a buyer's agent, I would disclose to all seller's agents involved in the multiple offers. I would mention to the agents that my customer has found more than one home they are pleased with and whichever one results in positive negotiations resulting in a contract will be the one that will be a win win for all parties involved.

I most likely would encourage to write in the offer a 24 hour right of refusal for the seller to respond to my customer's offer by a specific date and time. This will speed up the process somewhat and at least my buyer will make a decision to continue negotiations with seller # 1 or move on to
seller # 2 and so on.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Sun Mar 3, 2013
Don is right in all aspects.
This practice is ESSENTIAL, and has proven essential in clearing the difficult inventory.
Each homes situation may merit a different response from the seller. As Don points out, disclosure in essential. Properly done. this can work well for both buyer and seller. It is a good strategy and has little to do with desperation.
0 votes
Search Advice
Search
Ask our community a question
Agent2Agent in Zip Codes

Email me when…

Learn more