RealTown's RealTalk

I actually had this happen recently. As a "newbie" I had the same concerns
as to how could I work in both customer's best interests in the same house.
After speaking with the associate broker who is mentoring me (she is the
most ethical and fair person I know -as well as one of the top producing
agents in our area. Hmm is there a connection here??) Her advice was to show
both buyers the house, treating it the same as if you were acting as dual
agent, fair and honest to both. As long as you don't share information as to
the other buyer's offer this should be fine. If it comes to making offers, I
would suggest disclosing at that time that not only it is a multiple offer,
but that you are also the buyer agent for both sides. We recently had this
in our office, and the agent was not upfront with the first buyer that he
represented the other buyer as well. He did everything right as far as
working with both potential buyers, but didn't think to identify himself as
the agent for both the offers. One buyer was upset, and even though their
offer was accepted, they decided not to purchase the house. While the agent
did get the one sale, he also lost the other buyer. One of the nice things
about our office, is that we all work together as a team, sharing resources
and lessons such as this. I am very thankful to benefit from their years of
experience, without learning some of those hard lessons firsthand.

Kris Coutant
Balfour Realty Inc
Glens Falls NY
Serving Saratoga, Warren and Washington Counties
518 361 5250

RE:  Showing the same house to more than one buyer.  I make it a policy not to show the same house to more than one buyer until I ask the first buyer I've shown the house to.  If I know buyer #2 maybe interested in the house I will ask buyer #1 would it be ok to show the house.  I want to make sure buyer #1 is 'off" the house I've shown them.  I've done this before.  I've explained the situation to buyer #1 and #2.  I can tell you both appreciated the fact that I checked with them and informed them both.  That will enhance your credibilty with both clients.  In my opinion representing two buyers with offers on the same property may not be a violation of the CODE of ethics I think it's a conflict and potential for a lawsuit.  Like one of the other comments it's almost like dual agency it should be disclosed, though I don't think in this case disclosure requres consent.

Neal Adler wrote...
"If I know buyer #2 maybe interested in the house I will ask buyer #1 would it be ok to show the house.  I want to make sure buyer #1 is 'off" the house I've shown them. "

Let's take it up a notch...let's say it's your listing.  While you are pussy-footing around with buyer #1, getting permission to show the house to buyer #2 but buyer #1 says "no, you can't show another buyer this house until I decide if I want it."  You know darn well the home would be perfect for buyer #2 and he/she would purchase it if he/she been could see it.  But instead you show buyer #2 another property that he/she ends up purchasing.  Meanwhile, buyer #1 decides not to purchase the house.  Where does that leave you with your seller now that you have lost the seller TWO offers with one potential sale?

I tell buyers in my intial interview that at any time I may show other buyers the same properties they may be looking at or other agents could be showing the same properties to their buyers so if they see something they want it may not be there long.  Everything is out on the table from the beginning.

LyndaK in INdy

" I'm never too busy for your business "
Lynda King, REALTOR-Broker, ABR, ASP, CRS
RE/MAX at the Crossing, Indianapolis, IN
Lynda@SellingIndy.com
www.SellingIndy.com or  www.IndyHomesOnline.com

Neal Adler wrote...

"...I'm going to tell them I have another buyer that's interested and I don't get a response from buyer #1 within a 'reasonable amount of time' I'll let them know I'm going to show it to buyer #2."

What do you consider is a "reasonable amount of time"? 

I'm going to take this up yet another notch.  You are working with two buyers in the same price range, a new listing in a red hot area comes on the market that would be perfect for both of these buyers.  Which buyer are you going to show the property to first? 

I don't think waiting any amount of time is "reasonable" or getting permission from buyer #1 to show a property to buyer #2 is fair to buyer #2.  In any market or with any listing, red hot or not, there is always going to be that chance of the perfect house getting away from a buyer.   As the agent to buyer #2 you need to be ready, willing and able to show listings without first getting permission from another buyer.  If not, buyer #2 will find an agent that is.

Laurie's EBA disclosure and the disclosure that I give during my initial buyer's consultation, that we may be showing the same properties to other buyers, put the buyers on notice upfront.  No need for "permission".

LyndaK in INdy

" I'm never too busy for your business "
Lynda King, REALTOR-Broker, ABR, ASP, CRS
RE/MAX at the Crossing, Indianapolis, IN
Lynda@SellingIndy.com
www.SellingIndy.com or  www.IndyHomesOnline.com

With regards to the response to my last post. First, apologies for the typo's. Let me clarify. I do not pussyfoot around. Secondly, if I had two buyers for one particular property. As a courtesy to buyer #1 I would let them know if they are not interested in the property I do have other buyers. When showing buyer #1 I would ask them what they thought about the property. If they needed 'time'. I would follow up in a day or two. If they were not sure it would indicate to me they were probably not that interested anyway, and would let them know I would be showing it to another buyer or buyers. By doing this at least you are showing your concern for buyer #1 and I have had clients let me know how much they appreciate this. If I show buyer #2 and then buyer number #1 is now interested I would never represent more than one buyer at the same time on the same property. Even though there is nothing in the code of ethics that would prohibit it, in my opinion a written disclosure would be in order. We do have a standard form stating we do represent more than one buyer at a time. That being the case, in all likelyhood it would be a multiple offer situation and I would have a manager write up one of the buyer's offer so there would be at least some mitigation of a conflict. If the second offer were accepted I would step back in and represent the buyer. If it were my listing, I would not under any circumstances write two offers by two buyers at one time. Most company policies (including our own) require managagment to be present when a multiple offer situation comes into play when the listing agent has their own buyer. This mitigates the chance for a lawsuit. Though I do feel two buyers from the same agent, office, or company requires full disclosure. I do not feel it requires consent as in a dual agent situation, requiring disclosure and consent.

I do not ask anyone's permission to show other buyers properties. As I stated I do it as courtesy.

At 01:40 AM 2/11/2007, Neal Adler wrote:
>RE: Showing the same house to more than one buyer. I make it a
>policy not to show the same house to more than one buyer until I ask
>the first buyer I've shown the house to. If I know buyer #2 maybe
>interested in the house I will ask buyer #1 would it be ok to show
>the house. I want to make sure buyer #1 is 'off" the house I've
>shown them. I've done this before. I've explained the situation to
>buyer #1 and #2. I can tell you both appreciated the fact that I
>checked with them and informed them both. That will enhance your
>credibilty with both clients. In my opinion representing two buyers
>with offers on the same property may not be a violation of the CODE
>of ethics I think it's a conflict and potential for a lawsuit. Like
>one of the other comments it's almost like dual agency it should be
>disclosed, though I don't think in this case disclosure requres consent.

Neal, I would show the house to both buyers but would only represent
the first one who wanted to offer. Why would a buyer work with you
if they were not going to see a house just because another buyer saw
it first? I send out the new listing to any buyer
it fits and show them as they are available. I have never had two
buyers want to offer on the same house/condo but I would release the
second buyer from our agreement rather than represent both.

How do you decide which buyer you tell the house about first? Long
ago when I worked at Century 21 I had two buyers offer on the same
house....it was terrible!

Pam

Pam Bell
BuyersAdvisors.com
Pam Bell_____________________________________ Broker, E-PRO, ABR, JIM
Buyer's Advisors, Single Agents in Northern NJ______________(888)819-1990
http://www.BuyersAdvisors.com
PaminNJ@BuyersAdvisors.com

1.  "As a courtesy to buyer #1 I would let them know if they are not interested in the property I do have other buyers."

Exactly!  Let them know this upfront BEFORE you even show them listings.  That is, if you are going to be fair to all.

2.  "...I would follow up in a day or two."

Oops...sorry while you were waiting to follow up with buyer #1, some other agent sold the house.  How is that fair to your buyer #2?

3.  "...I have had clients let me know how much they appreciate this."

I'm sure you have...the buyers who are in the #1 position!  Buyer #2 may initially say something such as "I understand" and/or "That's fair".   And he may really thinking that at the time you tell him but he will sing a different tune if the perfect house is lost because you are being "courteous" to buyer #1 by not showing the "perfect" house to buyer #2 until buyer #1 says, "Pass".

I see you are an ABR.  I don't remember my ABR instructor telling my class to wait on a response or get an approval from buyer #1 before showing buyer #2 the same property.  I guess if what you do works for you and your clients are satisfied with your "policy" then everybody is happy.  It's just not the way I work or will work unless law says I must.  I'm more of a pro-active person that wants to make things happen now for my clients if there's any chance of that happening.

LyndaK in INdy

" I'm never too busy for your business "
Lynda King, REALTOR-Broker, ABR, ASP, CRS
RE/MAX at the Crossing, Indianapolis, IN
Lynda@SellingIndy.com
www.SellingIndy.com or  www.IndyHomesOnline.com