Sep. 1, 2008 - Multiple offers in a Buyers Market

Multiple offers in a Buyers Market. 

Really?  REALLY! 

When was the last time you heard this kind of music? 

Of course I was headed out of town this weekend when a listing that I am co-listing received a number of showings and rumbles of multiple offers within the first 72 hours.  Even though we are in a buyers market if the property is less than $400k, looks good, and is in a great location you can still expect to see multiple offers. 

I just attended the North Carolina Real Estate contract update in July and knew there had been some changes in this area to level the playing field for the buyers.  In the past the SELLER was in the driver seat. Broker Bryant wrote a great blog on multiple offers called Liar, liar pants on fire. Not me!!  that describes the disclosures from the National Association of Realtors and some strategies on negotiation which I leaned on during the process. 

Just to reiterate those standards of practice I have included them here.  Code of Ethics 

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)

Now fast forward to North Carolina's new interpretation of the North Carolina Offer to Purchase: 

A broker shall NOT DISCLOSE the price or other material terms contained in a party's offer to purchase, sell, lease, rent, or to option real property to a competing party without the express authority of the offering party. 

The bottom line - The NCAR wants to make sure that, in a multiple offer situation, if one knows then all should know.  Sharon and I agreed that it would be best to send an email(the same email) to all parties communicating the fact that we had a multiple offer situation, some very strong offers, and to submit all offers by 3pm on Sunday in order for our Seller to make their decision. 

It's a tricky situation, and I don't know what the rules are in your state, but my job is to get the highest price possible for my clients and the best terms possible.  Based on our negotiations of this offer I believe we acted in the best interest of our sellers. 

Just keep in mind as we transition to the new North Carolina contracts that the rules have changed and they give the buyers more control of a multiple offer situation.