As buyer demand for homes in the Boise MSA continues to exceed the supply of homes for sale, multiple offer situations are becoming more common. Avoid complaints, misunderstandings, and fair housing issues by understanding and following a few fundamental principles. The National Association of REALTORS® (NAR) Window to the Law video on multiple offers does an excellent job of explaining how to be mindful of your legal and ethical duties, the fair housing concerns around buyer “love letters”, and remembering that the client makes the decisions, as well as listing broker and buying broker best practices to use in a multiple offer situation.
For quick reference, here are the best practices as outlined in the video.
If you’re the listing broker:
- Discuss the potential for multiple offers at the listing interview; explain the options available to the seller and get the seller’s instruction for handling multiple offers.
- Explain the fair housing implications of a buyer love letter. Confirm that such letters should not be accepted, and if the seller insists on reading a love letter, advise that they consult legal counsel and document their decision-making process.
- Get the seller’s direction whether to disclose the existence of multiple offers to prospective buyers.
- Make reasonable efforts to keep buyers’ representatives up to date on the status of offers.
If you’re the buyer’s broker:
- Educate buyer clients about the current market and their options for making an offer.
- Remind your buyer that you may not know if there are other offers on the table.
- Inform the buyer that terms of their offer may not be treated as confidential unless required by state law.
- If the buyer insists on including a love letter, explain the fair housing concerns and do not read or accept the letter.
More multiple offer resources from NAR:
- Presenting and Negotiating Multiple Offers – Information on Multiple Offer scenarios from the Code of Ethics & Arbitration Manual
- Staying Mum on Multiple Offers – REALTOR® Magazine Article
- Guide to Multiple Offer Negotiations – Client Brochures
