Is it in your client’s best interest?

Lately, more than ever, I have been getting calls from agents who are all asking the same question and, that is, “are you working any offers on 666 Money Pitt Lane”

Well, before I tell you my typical response, I would like to share some insight and see if you agree.

Per Realtor.com,

“An agent is bound by certain legal obligations. Traditionally, these common-law obligations are to: Put the client's interests above anyone else's; Keep the client's information confidential; Obey the client's lawful instructions; Report to the client anything that would be useful; and Account to the client for any money involved.”

So, here are my questions.

1. Is it in your clients interest to reveal to other agents that you are or are not working other offers?

My argument is NO, it is not in your client’s interest to reveal that you are or are not working other offers.

Simply put, when answering the question, you don’t know the motivation behind the person who asked it. We can get into a bunch of “what if” questions but, ultimately if by answering the question the agent decides not to show the home or not put in an offer then, you just hurt your own client. Ultimately my job is to get as much for my client as possible in the shortest amount of time and that means, getting as many offers in the door as possible. I could be wrong but, I suspect that the main reason Realtors ask this question is because they want to avoid being in a multiple offer situation or they want to be in better negotiating position. I guess that’s all fine and good but, it’s not my job to make that so for another agent and their buyer.

Now, let’s flip the script a little here.

Do you think my argument is valid for bank owned properties? What about Fannie Mae properties? HUD properties?

I won’t answer that question for you, I would love to get your responses.

E-mail me when people leave their comments –

Jesse Gonzalez is a highly accomplished and respected real estate professional with a wealth of experience in the industry. With a career over 15 years, Jesse has established himself as a leading real estate sales and marketing expert.

As a licensed real estate agent since 2005 and a broker since 2008, Jesse has a comprehensive understanding of the complexities of the market. In 2013, he founded his firm, Liberty House Realty, LLC demonstrating his entrepreneurial spirit and commitment to delivering exceptional service to his clients.

Jesse's expertise extends beyond traditional real estate transactions. He obtained his Registered Appraisal Trainee in 2019, providing him with valuable insights into property valuation and market analysis. Although he decided to focus primarily on sales, his appraisal background gives him a unique advantage in understanding the intricacies of property values and trends.

With a dedication to excellence, Jesse consistently achieves outstanding results for his clients. Last year alone, he closed over $20 million in sales and received the prestigious Sapphire Award from his local association, recognizing his exceptional achievements in the industry.

Beyond his successful career in real estate, Jesse is passionate about education and personal growth. He is completing his undergraduate degree in Forensic Psychology, with plans to attend Law School in the fall of 2024. Jesse's ambition is to become a real estate litigator, focusing on real estate consumer protection law and advocating for the rights and interests of homebuyers and sellers.

As the owner/operator of the nation's largest social network for REO professionals, <a href="http://www.REOProNetwork.com">www.REOProNetwork.com</a>, Jesse has positioned himself as a thought leader and industry influencer. Through this platform, he fosters collaboration and knowledge-sharing among REO agents, attorneys, asset management firms, and other professionals in the field.

With a commitment to professionalism, integrity, and providing a personalized experience for his clients, Jesse Gonzalez is a trusted advisor and a driving force in the real estate industry. Whether assisting clients with buying or selling properties, he consistently goes above and beyond to exceed expectations and ensure successful outcomes.

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Comments

  • If the property warrants multiple offers, great, higher sale price, happy client, disclose away. If the property doesn't warrant multiple offers then it simply won't and most likely no one will ask. I dont' "decide" to disclose. I simply get the highest and best even if it means non-stop work on a holiday weekend with umpteen offers to disect, it's all good.
  • Steve I agree with you. That there is no "blanket" answer to this. It is a matter of the circumstance at the time of the sale. I tell my buyer clients even if there are multiple offers if they really want the property to put an offer in on it. The worst thing you will hear is no or a counter. But to say never in any instance is i think limiting what we are here for which is to get the best price for our client. And even if someone were to offer full price with appraislas going they way they are today. The house won't appraise for the full value any way.
  • I've and have been on both sides of this in the past, you do have to be careful and know your market. Once working with a buyer who wanted a REO property, the listing agent's assistant kept telling me there were offers pending approval with the lender/seller. The buyer said he would wait a week, again the same story from the listing agent's assistant. And 2 weeks later the exact same thing but this time the buyer gave up. One week later they reduced the price of the home well below what my buyer was willing to pay the first tme..... but the buyer had moved on.

    I have also been the listing agent on deals with multiple offers. I always told all parties involved of the multiple offers and ask them for their Highest and Best. Eight out of ten times they will send a new offer. If you get some negative comments, send an email to all the buyer's agents at one time so they can see there are additional agents involved.

    My brokers even had a lengthy discussion about this very topic. It was their conclusion that we have a duty to our seller clients to get the best possible price for their property and we should always strive for multiple offers competing against each other until one of them gives up.
  • Jesse,
    It is a very different market where you are, INteresting to learn about what is going on in ohter places.
  • Personally, I do not divulge that my client is negotiating offers. Simply put, with as much inventory is out there, agents here you are working an offer and they send their client's somewhere else. I have never experienced or heard of telling another agent that your client is working offers makes them want to start a bidding war.....that's unheard of.....at least in my experience.

    In fact, when we have multiple offers, I always recommend to my clients that they not divulge the multiple offer situation and negotiate the offers individually. Recently I had a seller decide to tell everyone he had multiple offers and none of the people submited highest and best. Instead, they all went to find other properties, the reasoning was, "why start a bidding war when we have other properties we can look at"

    Not to mention, I think if you were to tell your clients that you wanted to let potential buyers know if they were or weren't working offers, I speculate most of those sellers wouldn't want that information divulged. Let me say this another way, I tell me sellers that I won't be divulging that information and 9 out of 10 times, the sellers are appreicative.
  • In the state that I live, the listing agreement allows for the agent to reveal if there are any other offers on the property. It is the "clients" choice if they want other offers to be revealed.
    Now, on one hand it creates a sense of urgency if there are multiple offers on a property for sale. On the other hand it can cause a wait and see on the part of the other agent. I have seen the former more than the latter in my experience. Buyers always want what someone else is interested in . However, investors are more the exception rather than the rule. If they think that there are other offers then they know it is a waste of paper to submit an intent to purchase lest a full offer.
  • Yes, absolutely. My biggest question when I work with a buyer in this situation and the seller's agent says yes is, are they telling the truth, or are they just trying to get my client to pay more. Then there are the agents who not only tell you that there is an offer, but tell you what it is so you can try to beat it. Desperate times sometimes make agents do very bad things. When I represent the seller I tell people how many disclosure packages are out and how many offers received. If it is a particularily desireable property we set a date for offers and let everyone know how many agents confirmed they have offers. For my probate and trust sales through the trust department at a bank I work with they always set a date, regardless of the popularity of the property, and insturct me to disclose the number of disclosure packages and offers as well.
  • Hi Marcy,

    So, am I correct to assume then, you would answer the question and divulge if your client (you represent the seller) is working an offer?
  • In our area if a home does not have multiple people interested or making offers then many buyers feel it must be overpriced or something is wrong. We are more likely to get an offer if there is one already.
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