Not a week goes by that I do not engage in a spirited discussion with an agent who expects me or our company to disclose if we have offers on a property. Combined with the unlicensed public (who are given a pass on this topic because they are not licensed and trained so I would probably ask also) we spend a huge investment of time addressing this issue.
Just a brief bit of background. In several places on our website for Realtor FAQ (referenced on every MLS/BLC sheet) we suggest agents visit www.BuyWilmothREO.com in order to prepare to show or write an offer on one of our listings. I would also say that this data base of questions is an excellent education source for any agent wanting to sell foreclosures listed by ANY Realtor. Specifically..the multiple offer issue is addressed as it relates to the Realtor Code of Ethics and why multiple offers should not be disclosed unless a seller authorizes the disclosure. For some reason, the standard of practice has denigrated to a level that, in any other type of residential sale, would have the Professional Standards committees busy with hearings. I would guess that most bank sellers either are not aware of the violation or just have to many other things on their platters to file complaints. Yet, I have discussed this very topic with many Asset Managers and they all agree. Information as to how many offers exist should only be revealed in a carefully orchestrated way so as to ensure the end result is a highest and best acceptance.
The majority of the questions I receive on the existence of offers is so that a Realtor or buyer can avoid this process of the bank orchestrating a highest and best scenario. That is fine and a small part of me understands. The small part is the buyer perspective. Not a clue why a Realtor would not want to make the effort if the property might be a good opportunity for their buyer.
Yesterday, a slightly different argument was received. Here is the discussion I had via email with a Realtor after I informed the Realtor that the seller does not authorize our release of information on status of other offers.
In my 6 years of selling real estate, I’ve never had an agent tell me that they can’t disclose multiple offer situations. It’s in the sellers (in this case, the bank’s) best interest to always disclose multiple offers in order to get the highest and best offer. It’s my experience that in most cases buyers NEVER offer their highest and best, thus the reason for negotiations.