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I agree with  you.  As long as the seller concurs in writing, you can disclose offer prices.

Todd,

In Idaho it's up to the seller whether or not they want you to disclose what other offers are.  If they say no and you do, you could find yourself in hot water. 

I will tell people who ask if another offer was close to the asking price that it was a solid offer.  It stops people from wasting paper writing lower offers.

I don't think it's an issue at all.  I think that sometimes we can get paranoid with disclosures.  If the other offer is better and I think the buyer will come up, (as long as my seller doesn't mind and I get permission), I will tell what the offer is. 

Very interesting post.  Thank you.

I have never understood this either. I also think that the more information out there the better. The problem seems to be when the other agent misunderstands our relationship and assumes that I'm trying to help him/her get the deal over the other offer. This can lead to hard feelings.

I recently had just a "highest and best" come back to us and it was a lowball listing...no idea how high might be necessary. Once we got the deal (and we did :))....I asked the other agent how high the other offers were, we barely edged someone out on price. I knew that had we realized how close we were....that seller would have seen a much higher offer from us...so he lost out.

This is an interesting post. At first I thought you were wrong about disclosing the price you had as an offer. Then I could not come up with a reason for why. So I concluded you are right. Then I thought a little more and think you are wrong. Here is why, If you have multiple offers and do not disclose the amounts you can go back to all of the ones that you wish to and ask for their highest and best. I think that services the client best as there is no reference floor for the offers to say , ok I will be 2k over the lowest offer for example.

But the comment above abouot getting the seller to concur is valid no matter which way you go. This is really a thought provoking blog thanks

Todd,

I have to politely disagree with you here. I have been selling real estate in Bergen County, NJ  for over 16 years. I deal with both buyers & sellers. The best way to get sellers's the most money is to not reveal other offers. It has always worked well for me and there are truly no negatives. If a buyer knows the seller has an offer of let's say $200,000, maybe they intended to offer $210,000. Now that you revealed you have $200,000, they may only offer $201,000. You just cost your seller $9,000. Now, as a buyer's agent I LOVE when the seller's agent tells me. And, alot of times I have saved my buyers tons fo money. This is just my opinion.                                                       Jeana Cowie, Broker Associate,  Re/Max Real Estate Ltd., Bergen County, NJ

Todd,  I had always thought that listing agents were not supposed to disclose the amounts of offers already received on listings to other agents. But in the class I took a couple of years ago to get the ABR designation (accredited buyers agent), the instructor said that it was okay to disclose that information unless the buyer has submitted in writing a request for confidentiality.  That really surprised me.   I'm in California - I don't know if that is true anywhere else. 

Wow! Todd,

You've opened a can of worms!

Traditionally the pending offer,was keep secret to protect the seller. If the accepted offer didn't close for what ever reason and the property returned to the market you hadn't compromised the seller's bargaining position!

Today with some sellers accepting multiple offers disclosure solicits at least a few dollars more.

Multiple acceptance if done right can be legal, but there is no question of mortality! If you encourage accepting multiple offers, then I still wouldn't disclose!

I would never knolwly be invovled with accepting more than one offer. That being said if I were I wouldn't disclose! If you were to say "They accepted $73,000" on the $100,000 listing you're likely to get an offer of $74,000 to $75,000. If you don't disclose and the new buyer really wants the property they might even pay more that list price!

"WHY NOT?"  Because, disclosing is both a sales an moral question and disclosing is bad form either way.

Bill

Todd - here too it is the choice of the seller to make the call and we even have it in writing on the listing agreement. ~Rita

Todd

I believe if you have permission in writing that will only help your seller in the long run.

Todd Clark (Broker/Sales Coach), GRI (Beaverton, Oregon Real Estate Expert)
Beaverton, OR

Sorry Todd,  I'm one of the agents that will keep things confidential.  If another agent wants something from me or my clients, it has to be in writing.  If you want to make an offer do so.

Columbus Ga Real Estate, Fort Benning Homes, Phenix City Realtor,

Todd, I was always told to keep this information in confidence. This never would have crossed my mind...interesting!

Todd --- another excellent post --- it rally bugs me when a listing agent will give out that information.

       
        Mama Liz

I have given suggestions of what the offer is but never the amount. I guess if they knew we were all doing that it might be OK I'm still thinking on this.

My initial thought was "No way!  I can't divulge that!!"  But your post is allowing me to rethink that automatic response and, in the proper situation, it's a strategy that could indeed net more for the seller.  As other commenters have said, each situation is different and it certainly wouldn't work all the time. 

Hi Todd--Contracturally in NC, we cannot disclose the offer amount (in the event that there are multiple offers or the original offer falls through) unless the seller allows us to do so.  I'm trying to get the highest and best price for my seller so, I prefer not to give out the agreed-upon price in the event that the deal falls through--that will not allow me to get any more from the new buyer than I got from the first one!

Have a great week...

Todd,

Although I can see why you think that your sellers would get more money if you disclosed the first offer, I have to agree Jeana. The element of not knowing usually pushes the buyers to offer more instead of just enough to get the deal.  Another reason I don't practice this is because I don't think it's fair to the first buyer putting in the offer. The only way I could see myself doing this, is with written consent from my sellers and then giving the first buyer another chance to write an offer after the second buyers had written theirs.

Always do whats best for your client. The individual case will dictate whether to tell or not...but I have no fear of or know any rule against telling.

Todd- I have previously posed this same question.  In Florida, there is nothing specific that bars an agent not to disclose an offer amount unless specifically instructed in writing by the seller to do so. An agent cannot disclose how much a buyer is willing to pay nor can they disclose how much a seller is willing to accept. 

But how many agents are actually discussing scenarios with their clients? Not many.

Up until recently, agents were just hoping and praying for an offer to come in at all.  But, lately, it is by far more common to receive multiple offers on a well priced property, particularly in REO and short sale listings where the list price is designed to attract multiple offers because it is set under market value deliberately.   As a result, there are several strategies which are effective and utterly ineffective in play on any given listing.

Some of which have already been mentioned here and are valid to a point. Having said that I will add that  THE GOAL is to achieve  a meeting of the minds.  One of the ways this is accomplished in a buyers market is to be honest with CO-OPERATING  brokers and to give them the opportunity to present strong offers which will meet or exceed the sellers expectations. 

Asking them to present an offer without any idea of where they need to be, in order to be successful in that attempt, may not produce the best offer for the seller.

The object is to eliminate inferior offers, and narrow down the field to viable offers which will accomplish the sellers objective and which fit into the buyers buying ability.

While it is not a game- certainly at times it can feel like one-there are several tactics employed by both buyers and sellers in the art of negotiating.

 Those agents fearful of only obtaining a thousand dollar incremental increase may in the end inadvertently lose an offer substantially higher because all negotiations involve a certain amount of finesse.   Let me repeat that in case you missed it... ALL NEGOTIATIONS INVOLVE A CERTAIN AMOUNT OF FINESSE.

You must study your market- know what has sold and for how much over the past 30 days,  extrapolate the percentage at or over asking price from that data and determine what a reasonable selling price is likely to be. 

 For example, in Poinciana, Florida,( a distressed area) commanding multiple offers on almost every short sale, REO and foreclosure property, the average over a 30 day period showed that the successful bids were 12-18% ABOVE asking price. 

 Sellers agents who would not disclose the new high bid- often received inferior offers.Ultimately frustrating Buyers Agents, and Buyers who relied on nothing more than a guess. Ones who did disclose a ball park figure received higher quality offers yielding a greater dollar amount for their clients.

Buyer Agents who do as I suggest will have a greater probability of submitting an offer which is acceptable and conforming to the price their buyer is willing to pay, and what the market is likely to yield.

In the end it is a win/win for both parties to the transaction. 

Good luck  and Sell well!

Never really thought about it like that...

Same here too....as long as the seller allows in writing...but what if the offers aren't that good? ha

If my seller allows then I do give out the offer information. Its a fine line. In my area its usually just an advantage as low balls dont get accepted.

Todd:  I will respectfully disagree.  But not because of law (although that should be followed) or 'feelings' or 'how we have always done it'.    

Bottom line in ANY negotiation - to get the highest and best outcome, is to let the other side name their price first.  If you name any price lower than full asking, you have effectively communicated a price reduction...

First, I would discuss with seller, and get clear instructions.  I would suggest we play it this way:  

There is already an offer on the table.  IT's their first, and probably not yet their best.  We are asking XXXX.  So if you really want this house, and it seems better to your buyer than all the other XXXX priced homes, then I recommend you exceed full list by as much as you can.    

Todd...

In GA you may disclose anything that your seller does not EXPRESSLY prohibit you from doing so. I think that each situation is different ... if it's a hot property and I have a strong offer I tell them to do their highest and best on the first offer, if I'm not thrilled with the offer on the table, I'll give them what they need to know to save us all time and to get the seller a better deal!

More than once I have had that happen in our office were soemone asked another what the offer was. It is a definite no-no because sometimes we have to eat those words and it is not the right thing to do for a seller. Thanks for the insight.

Hi Todd, in Maryland, we are not legally allowed to do so. We are not allowed to "shop contracts", we can't even tell the other agent any terms like settlement date or financing.

So, that's why not here...

But I know it's different in each state...

I'm assuming that one has authorization from the seller to disclose. And then I'll say this: I've often wondered why listing agents don't do this more often in multiple offer situations. Others have made valid points about not revealing the offer price for a first offer but when you have already received multiple offers and are going back to decide which one to take, why not go to all and say something like "Now considering offers over $xxx" Makes the low ballers drop out and gives everyone a chance to up theirs to something more the highest one you currently have.

Hi Todd,

Every situatation is going to have variables.  As a listing agent you need to follow the direction of the seller or seller's attorney.  It's not always just price it's all the terms and conditions of an offer. 

Linda Metallo, Re/max Impact, Lockport, Il.

The simple answer is it is up to the seller to decide. So if a buyers agent asks why not the answer is

" Because my sellers instructions do not allow me to reveal the price."

The objective isn't always to get the highest price.  Sometimes the highest price of an offer doesn't help, if that deal won't close successfully.  There is always more to it than just price.  The other terms have to be acceptable, and they have to work for the client.  Sometimes a lower offer, with better terms may work best (quick closing, with no conditions, sometimes is better than taking a risk for a few thousand more).

If the seller allows us, in writing to disclose the other offer amounts, we can, however, in our market, we find that if you do NOT disclose, the competing offers tend to be much, MUCH higher.

We also have privacy laws here to deal with.... but in an area where this is not a problem, and where you know it works, then why not?

Of course thwe listing agent can tell me if he has an offer and for how much. In fact he should tell me. He dosent need an ok from his seller either.

It seems to me that not to share this info would be doing a dis-service to his seller. And thats when the sellers instructions should be in writing

I had a deal once when two buyers submitted sealed offers. One of them was the asking price and the other said "$10,000 over the other offer". $10,000 was quite a bit, if I had disclosed the offers to the buyers the seller probably would not have gtten $10,000 over the highest bidder.

Very intersting blog and responses. I tend to agree with Jeana #6 on this one. I'd rather not show my cards just yet. The odds are that the buyers putting in offers want the house, right? Let them want it and show you how much they want that house with a higher offer more than just $1000 over the previous best offer.

Adding to that, I also agree with #28 and #29. In the end, as long as it's legal and ethical, you need to follow the seller's instructions.

Interesting read. I wonder why so many agents feel they are breaking some code if they don't say what the offer is on the table. I've found that a main reason told to me by agents is that they are dual repping the deal and don't want you to come in with a better offer and taking away 3%. I wrote a blog on 5 Tips on How to Stop Being Broke for agents and I think you'll find it very helpful.

Todd:  Very interesting situation to ponder further.  I tend to agree with Charlie's comment #5.  But if the seller gives me permission to disclose the offer price, I will honor the seller's instructions.

This was interesting. I'll have to park and see how this develops. I was of the mind that you had a very valid point, because I have been frustrated by listing agents telling me, "highest and best", and I have no idea exactly how high to suggest to my buyers. However, as I read the comments, I am not so sure what side of the fence to sit on.

It's not a good idea, and I'll tell you why. Our CoE says we have to deal honestly with all parties. This means if you tell agent B how much agent A's offer is you'll have to tell Agent A how much Agent G's offer is down the line. It's much better to collect offers and then ask for highest and best -- make all the buyers bid against themselves.

In California, you can also issue multiple counter offers.

I disclose how the offers rank -- such as Agent B is #12 out of 15 offers, but I never disclose the price point of other offers. I let the market dictate.

Todd, you know there is always a "dark side" to these issues and I have seen something like it first hand. In NC we are not allowed to share this info without express permission of the seller but we had issues like this arise with "escalation clauses" and I simply adapt the scenario for your question:

Imagine you, as the buyers agent, are told by the listing agent that the "other offer" is full price. If your buyer wants the home they will need to offer over asking price." Your buyer wants it badly. They throw caution (and your advice) to the wind and offer to overpay for the home and rely on the appraiser to determine if they are, in fact, overpaying.

After your buyer wins the bid, he asks you if the listing agent will "prove it" by producing the full price offer. The listing agent can't...or won't...produce it. Your buyer (and you for other reasons) begins to think they were "had." Bad stuff ensues. The rest of the transaction is at minimum unpleasant because of the bad feelings if it even goes through. Upset buyers tend to find ways to void contracts when they are feeling taken advantage of...now your seller is back on the market, lost time, maybe even lost offers.

I see your point if everyone involved is completely above reproach. Unfortunately, laws are not on the books to protect us from honest people.

Bottom line: buyers and sellers benefit from experienced, knowledgeable representation...this situation would be tough to negotiate if you have no idea what can go wrong!

Never gave it much thought.  My response has always been to make it good or something similar.  Seems the opinions run the entire gamut!

Wow!  What an interesting can of worms.  If a buyer's agent asks me, I simply encourage her/him to bring the buyer's best offer.  There are laws and then there are ethics.  REALTOR ethics and my personal ethics dictate much higher standards than the law.  I want the best deal I can get for my seller and I think this is the best way to do it.  Honestly, ethically and equally fair to all parties.

I do get written permission and disclose ~ ABSOLUTELY!!  Some agents (who ask) will gasp like I just did something illegal but when I give them the details they can "one up it".  After all, I am trying to get my sellers the highest net, not go play hide and go seek.

Todd, I have to weigh in with Debe in Charlotte and Jeana Cowie, it is not in the seller's best interest to give out that information.  Last year I had the same thing happen.  I had an initial low offer from a buyer's agent on a waterfront property I had listed.  I was able to find a second interested buyer, one of my own potential buyers, who also submitted an offer.  This offer was $17K below list price, the first was $50K below.  I called the first agent and explained I had a second offer (did not give the price) and simply asked, "Is this your best offer?"  Fifteen minutes later she called me back and offered list price with no closing cost assistance!  Wooohooo! 

Needless to say, I am glad I did not disclose the dollar figure of the other offer. Great post! I enjoyed the discussion.

I think that makes sense.  I would like the listing agnet to tell me what to bring for an offer sometimes.

Todd - Great discussion, but this can be a double edged sword. In some instances it could work to your clients advantage and in others it could blow up and create a good deal of animosity.

I have been told that there was a full price offer, my Buyer's backed away, and the house remained active on MLS. It didn't sell. Then my Buyer is angry usually at the other agent, but sometimes at me.

While I've never gotten specific dollar amounts regarding current offers in for a house, I usually can get ballpark information to help guide my buyers such as whether the offers are at, above or below the list price.  That helps us determine whether we are wasting our time putting in an offer at what my buyer wants to submit.  For example I've had situations where the listing agent has told me there are several offers in, and there are 2 offers (or some such number) that are significantly higher than list price.  My buyer can then decide how to craft their offer.  Interesting post and comments.  Thanks.

I like the idea, and as long as the playing field is level, and you have written permission, I say go for it. We can become the eBay of the real estate world. As a listing agent in East Austin, I'm finding many multiple offer situations these days!

Hi Todd,  Quite an array of answers going here.  For me it makes sense to assist the potential offers to get as close to list or over as possible.  For example, I might say that an existing offer is close to list but not over.  This tells the agent that to be successful they need to be very close to list or even over list.  I have also told agents where they rank in a multiple offer situation.  In any event, if you help one offer then you need to go back to the initial offer and let them know they are no longer in first place.

Our Exclusive Employment Agreement (listing contract) was updated a few years ago to address multiple offers.  So the ethical requirement of written permission/prohibition from seller is there from the get-go.

What if you also had [rep agreement w] the buyer?

I personally like 'make the offer you can live with based on the information you have re: value'. Period.

Todd: Nice post and what a great array of comments... What a great contrast in replies...

Interesting discussion with many persuasive arguments for and against.

I am wondering about the confidentiality issue - here we normally do not give out any info about a transaction until it closes and is recorded publicly.

Also - could the listing agent and seller be in trouble for contract interference, should an existing contract lose out to a second offer?

As in a short sale, which is a contingent offer - once a contract is accepted by the seller, that is the contract and the only contract that is sent to the bank.  The other offers (if any) would be in backup position only.  Otherwise, in Nevada, the buyer on the first contract could sue the seller, the list agent and even the bank for interference of contract should another (better) offer be sent to the bank for consideration.

If you're on both sides of the deal in Texas, you can maintain your relationship with both parties, provided it is addressed in your respective agreements .   You cannot directly represent them, but if you are a broker, you can appoint sub-agents, one for each party to the transaction.

Wow...It just goes to show you just how hard negotiating can be. I have never told the offer price to a buyer's agent. Everything always works out as it is supposed to.

Hmmm... definitely food for thought here Todd.  I have been in this situation many times on the buyer's side and that information has never been divulged to me.  I don't know if we have a rule on it here in TN.  I will have to look that up.  I think either way, it's probably best not to disclose because what if all the offers have fallen through and you have to re-list... at what price do you re-list if others now know how low your sellers are willing to go?

Our listing contract has boxes where the seller checks off whether they want the existence and/or terms of other offers disclosed.  I explain the advantages and disadvantages of each possibility and let them decide.  I also let them know that they can change their mind later (in writing) after offers come in.

Every sale is different.  I just treat each transaction individually and make sure I have authorization for whatever I'm doing.

I always look at it case by case.  Disclosure would not be a good idea in some instances.  I recommend having the Seller's blessing, in writing, if you  feel disclosure is warranted. 

What an interesting topic, and great responses. I always like to see the multi faceted answers here.

I agree that it's ok as long as the seller is in agreement.

Patricia

I agree that it's ok as long as the seller is in agreement.

Patricia

I don't give out the offered price but I do let the calling agent know what they will need to do to be in the running. It is generally something like,

"Your client's offer will need to be over the listed price to be considered."

Sorry I agree with Jeana Cowie and Tom McClaren. It is not in our best interest nor our clients to disclose such information. It will one day bite you in the A**.

Don't do it...That's my advice.

Well, it seems a lot of different opinions have weighed in on this one.  I don't see any reason whatsoever not to disclose it.  In this market, why not? 

I agree Todd good post

In Florida whether we are a single-agent or a transaction broker (no dual agency is allowed here) we must keep confidential the offers and details that could give an advantage to the other party in the deal. We can ask the seller if he or she would like us to say what the other offer is, but in my opinion the buyer would come back just a little over what the original offer is, If I were the buyer I would counter that way. I would not up the ante $10,000. Maybe $1,000 depending on the total price.

But in any case, depending on whom you are representing, our agencies demand confidentiality unless otherwise directed by the side we are on. Also keep in mind that the offer is not just the PRICE, but many other items as well. I am surprised that agency requirements in other states do not also demand confidentiality, special when one is working as a single-agent.

Todd~ Since some states have different rules, it just depends.  In KY it is up to the seller whether or not it is disclosed.  It is the sellers call and NOT the agents, to  make that decision.  We simply follow our sellers legal and lawful instructions.  THEY, meaning the sellers, decide how to proceed. 

I agree 110%...Great Blog!

It depends on the agency of the situation before I open my mouth and I'm also not fond of telling agents outside my office anything that may compromise my sellers future position.

I think if you explain the pros and cons to the seller and have it in writing, it could benefit them. Same with buyers.

Excellent question.  If I am a buyer's agent, and I ask the listing agent how much the other offer is, and if it is higher than my client's offer, it will give my client something to shoot for.  Nine times out of ten, when I ask that question, the listing agent refuses to answer.  So often, the buyers have to guess, and hope they raise their bid high enough.  Sometimes, they regret not offering enough, after they lose the purchase to someone else.  It seems to make sense for a listing agent to say how high the offer needs to be, in order to get the best price for the seller.  If the asking price is $280,000, and the seller has an offer for $300,000, what harm would it do for the listing agent said that the buyers need to offer above $300,000 to be considered?  If they don't, then the sellers could miss out on a much higher offer.

My local market is a very strong Sellers' Market.  It is not even a question of whether prices will exceed the asking price.  Everything is selling above asking price.  If you go by the comps, and make an offer that is a certain percentage above the asking price, you may think the offer is sound, only to later learn that the property sold for double that percentage.  The banks have learned to lowball their asking price in order to get a frenzied bidding war.  On the other hand, if, as a listing agent, you have a traditional listing, you should be able to get the seller to price it at market value to sell.

Julia Odom (#27) said it best for multiple offers:  "why not go to all and say something like "Now considering offers over $xxx" .

Todd, I know what you mean about the confidentiality thing. All we have to do is ask the seller's permission and we can give this information. Great reminder of who butters our bread.

Hi, Todd -

Strategically, I have mixed emotions on this.  The value of doing so might depend a lot on the terms or some other aspect of the existing offer - and on the apparent likelihood of getting better details on a second offer - not just on price alone.

Legally, disclosing an offered amount would not require seller permission in Oregon.  But I would never give it without that permission anyway.

Legally, disclosing, an accepted amount (to anyone for any purpose) prior to close is likely a violation of the Oregon confidentiality rule - because it would be tantamount to revealing that the seller is "willing to accept" less that the listed price.   If you were revealing this price to a buyer that you might represent as a dual agent, Oregon law would clearly require that the seller's permission be given in writing.

There might be some rare instances where robotic orthodoxy is not the best way to go, but in general would not reveal the amount of a competing offer. You ought not spoon feed the other side. Confidentiality is crucial yes, but if the asking price is $500,000 and I tell them there is a full priced offer, they might bid $505,000 when they might otherwise bid $515,000. Not doing so removes any doubt that we got the most the market would bear. 

Todd, I fully agree. And why WOULDN'T the seller want this information given out? Of course, we still must ask. I wish agents here in Phoenix would adopt the same understanding. Love the cartoon - too funny!

Your post was interesting, but what is even more interesting to me, is to read how differently agents across the country feel about this matter.  I have to say...I would choose not to disclose...or at the very least leave it up to the seller.

In the straw poll, as a Listing Agent in the San Antonio area, I will not disclose the other offer's details, only that there is one.  Makes  the other side potentially up their offer and without us giving away anymore than we have to.

As a buyer's agent, I do ask, but say that I understand if they decline.  Gotta do what I can to get a good price for my buers.

Nope. Here in WA when I represent a Seller I have no duty of confidentiality to the buyer or the buyer's agent. It is totally a green light to shop that offer around.

IF the seller and I think it is a good idea.

Practical issue- I get the sellers OK before discussing any terms with anyone. But I do explain that it might help out in some of the negotiations. Or not. Like oh so many things, it just depends.

Its called 'shopping contracts' in my neck of the woods and absolutely forbidden by an agent. However a Seller can 'shop' if he/she wants but you better get it in writing and they better understand what it 'really' means to them. With that said.. why would anyone even want to be a party to such ???. The downside so overides any good that may come from it. And to put yourself in that position puts a sour taste in an agents mouth for future business with you. Agent relationships are important not only in this one transaction but in others down the road.  I know.... but you are working to get the Seller the most money for their house. Wrong way of going about it in my book.

Todd, With out a doubt.....it depends. When presented with multiple offers my seller and I will discuss all options. Revealing the amount of an offer on the table MAY be the way to go. Revealing the price could very well scare a better qualified buyer away. The first decision my seller has to make is whether or not to even disclose multiple offers. This too can scare other buyers away.

Personally I prefer to get offers in writing and on the table before we give out any info at all. I feel we need to see what we are dealing with before we can make an informed decision and what to disclose if any thing.

I wish agents, when working for the sellers would NOT use offers as auction items.  I like the "right of first refusal."  Get an offer, and counter it if it's not what your client, the sellers, want to accept.  That's working in the sellers' best interest, but also it doesn't use the buyers offer against them.  If the counter is not accepted by the buyer, move to the next.  But I think it's very unethical to use an offer submitted in good faith by a buyer to have it used against them . . . just counter back.  I've had too many of my offers submitted -- first -- and then get the call from the lister:  "give us your best and highest" and the listing agent HAD NOT EVEN RECEIVED THE OTHER OFFER.  She just knew it was coming.  Then waited.  Why don't listing agents just go with the first offer received . . . give the buyer the benefit, and if no one can come to terms, move on to the next offer. 

Well, you have laid some interesting food for thought out on the table.  I have never really thought about it from this perspective.  I have always been a fan of not revealing the offer amounts, but I can see your point.

I have to agree with SarahGray Lamm about being able to PROVE the other offers.  If that cant be done, it could be a nasty situation.

Both sides have valid arguments for obtaining the highest price. Disclosing may find a better offer of just $500 when the buyer was willing to pay much more, or maybe bring in an offer when a potential buyer was feeling insecure about getting into the fray.

Of course it goes almost without sayin that your AGENCY ducks better be in correct order---

Very interesting thread as Im sure many have incorrect notions about the legality of it. Personally, I dont think I would want to do it. If I were a buyer and found out that my offer was being given out to be shopped, I wouldnt have anything to do with the property. If my buyers agent told me that they obtained the offer amounts, I would assume that someone else would then be privy to mine later and outbid me with the knowledge. I think it has more potential for hard feelings than warm fuzzies.

Hi all,

"To tell or not to tell, that is the question?"  to paraphrase Mr. Shakespeare.  How about a "yes, I do" and "no, I do not?" 

It goes like this:  I was taught the price on the first contract is given first priority.  So, I would not tell the other offers the amount of the first offer.  However, I would skirt this issue with a "yes" by asking the buyer's agents what their new offer is, then simply tell them their offer is "not high enough" or "high enough", my  "yes" answer.  If they go higher than first, so be it.  I'll call my first offer and give them the same chance.

Is there not a time limit for new offers to be submitted, like 3 days? 5 days?

Wow, 83 comments and not one response from Todd? Where are you?

I will not give out the exact number of other offers I receive, but I will say that I have something very close to list price or above list price if that's the case. And then of course, if there are 2 or more offers on the table, I'll ask the sellers if they want to do a best & highest or just a disclosure that there are multiple offers.

Todd, I confess that I only read about half of the responses but I am confused at the word "fair" that is being thrown about.  "Fair" is not in the code of ethics......Honest is but not "fair". 

You are absolutely correct in that we represent the seller and we should be looking out for the best interest of the seller.  In my state we have to have permission from the seller to disclose what the other offer is but we can certainly do it. I do it whenever possible.  If the first offer is not asking price than they have no right to quibble over "fair"!

I disagree with agents who say that disclosing the current offer would cause the seller to get a lower offer from the second buyer....I think that it actually helps procure an offer.  Too many times I have had buyers walk from making an offer when the listing agent will not disclose the current offer price....they see this as a seller or sellers agent that is not interested in selling or negotiating.

Recently I was representing a buyer in a multiple offer situation.  We got the house by simply not asking for the washer and dryer.  The listing agent (A broker at that) did not disclose the second offer because the other buyer made a second offer when they found out we were making an offer.  He said that he didn't play those games........HE NEVER GAVE THE SELLER A CHOICE!  We know for a fact that the second offer from the first buyer was $6,000 higher than our offer which was accepted since the seller never knew about the second offer from the first buyer!

I am always in favor, but our Real Estate rules state that this must be with the sellers permission. I usually do not have a problem getting it.

Todd,

You got a nice discussion going here and the conversation bounces from one end to the other. There are some good points made for and against.

Good post.....good question on ethics.  The duty is to the seller, but the duty needs to be done ethically.

According to our code of ethics, you can never "give up" the negotiating power of either side in negotiations.

It depends upon the situation, but usually I don't give the exact numbers to the buyer's agent. I can see your argument though I can also see an argument for not giving an exact number as it might bring down what might have been the highest and best.

I think you answered your own question. If the offers are lower than list price, you don't dare disclose, if the offer is at list or above go ahead.

Standard of Practice 1-15 

• REALTORS^®, in response to inquiries from buyers or cooperating brokers shall, with the sellers' approval, disclose the existence of offers on the property. Where disclosure is authorized, REALTORS® shall also disclose whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating broker.(Adopted 1/03, Amended 1/06)) 

Standard of Practice 3-6 

• REALTORS^® shall disclose the existence of accepted offers, including offers with unresolved contingencies, to any broker seeking cooperation. (Adopted 5/86, Amended 1/04) 

I was reminded recently by Broker Bryant of our Standard of Practice that can definately apply in this situation, it depends on what the seller wants you to do.  My advice to my sellers is to look at each offer independently and decide which way they will get the most money out of the property, AND, which has the best terms as well and counter accordingly.

Thank you everyone for stopping by, I'm sorry it has taken me so long to get back. But, I have had one very busy week when it comes to sales. I do agree that each situation is different, but I can say right now everyone of my listings but one has multi offers on them and everyone is selling for more than the asking price by at least $5000.

Isn't it funny how quickly things change!!!  BTW I need buttons and graphics on my page...  :)

I don't think you should disclose the exact amount, I do play the game when there are multiple offers.

I would disclose that there are other offer but to actually tell what the offer is i don't think i would. Now if the seller gave me the green light there would be documentation attesting to that fact as well.

NO you CANNOT disclose the price without getting permission from the buyer that OFFERED THE PRICE! if you did that could be considered condfidential information , not to mention completely illegal.. all you realtors are LEMMINGS

BUY NOW! OR BE PRICED OUT FOREVER!! THIS RING A BELL??? 

The funny thing is you realtors STILL don't get it! you have lost all credibility by your completely FAULSE remarks! 

James, it is a shame that you are yourself making general statements. But, each state has its own laws that state whom a party represents. The listing agent represents the seller and the buyer represents the buyer. No offer is confidential unless that is part of the contract. If you read any contract, there is not a single statement in the state of Oregon that says you can't reveal the offer to future potential buyers. (That is of course if you have the sellers permission - Which I get up front in writing from my sellers)

Clearly you have had a bad experience with an agent and I am truly sorry for that, most of us are out there to help protect the consumer.