In a strong market, the competition for properties heats up as more buyers have funds available to buy. Active markets can create difficult situations when several buyers are interested in the same property.

How you handle this scenario plays heavily on both moral and professional aspects of brokerage. With the latest technology tools, things have changed enough to warrant a few caveats to help keep things professional.

Fax machines, scanned contracts sent via e-mail, out of area buyers and contingencies make the presentation process a bit more complicated than it was several years ago. Some things remain the same, which is to strive for professionalism and fair play.

The first place to address multiple offers is right at the initial listing presentation. The Seller needs to understand how offers are presented in your area. When possible, it is important to try and present offers in an office setting. This offers neutral premises in a professional setting to conduct business. The listing appointment is perhaps the best opportunity to explain how offers are presented in your area, and the procedures in the event of a multiple offer situation.

Many homeowners need to be informed of the issues that surround multiple offers. In some cases, both parties making the offer may withdraw, as to not get into a bidding war and overpay for the property. Other times, it is important to make the homeowner aware of the importance of the terms over the selling price. A higher offering price, although exciting, may not offer the best terms, like loan to value ratios, closing dates, mortgage terms, etc that work in the homeowners best interest. Prepare your Seller for these many scenarios that may result when their property is marketed.

When we are enjoying a strong buyer market, a multiple offer situation is sure to occur. Spending the time to review with your homeowner the procedures and strategies that work in their best interest saves lots of misunderstandings at the time of heated negotiations. Here are a few steps to help minimize problems while helping you keep good records in the event there are problems that arise later.

1. Design a form that helps keep track of times, dates and responses. If you are a brand new agent, this is the most helpful form you can use when presenting any offer, multiple or not. By keeping track of what changes were made by which party at a specific time helps the negotiating process to be verified and clear. Keep this form with your records to validate any issues that could arise later if a grievance or complaint arises.

2. When presenting multiple offers, be sure both agents are informed of the timeliness of their responses. Although the ultimate decision in many areas is up to the Seller to entertain additional offers, it is a good idea to get signatures and delivery done in the appropriate times.

3. Smart agents actually write the time that the contract right on the purchase agreement. Should there be complications later, having the validation of time on a contract can be helpful.

4. Use a receipt form when delivering a contract to any party involved. It is a good habit to have a regular receipt endorsed when dropping your offer to purchase with the listing agent, when received by either party, and the attorney’s office if you are in an area that utilizes legal services. Having the signed receipt gives credibility and validation to delivery times and the authorized recipient

5. If you get in a multiple presentation, keep a copy of the National Association of Realtors® Code of Ethics to re-familiarize yourself with the guidelines. Many times Boards and Associations guidelines that vary so do a little homework to be in line with local practices.

6. Counsel your property owner about how the countering process actually works. Many times a Seller will want to counter both offers. As a real estate professional, it is your job to inform that seller of the possibility of a lawsuit if both parties accept, for commissions and specific performance.

7. When using electronic exchange, like e-mail, printing out the dates and times is essential. Facsimile copies are not often clear and easy to read, so keep the timing records stored in the fax machine validating the time the agreement was actually received.

8. Always be sure to keep a copy of the agreement that was not accepted. In the event of a dispute later, it is always prudent to have a legible copy with the check and the information about the agent in your files.

9. Properties and sellers may come and go, but working as a professional in your area continues beyond a single sale. Take the time to send a note thanking the agent for their efforts. This simple effort can ensure that you are sending the message of appreciation for their efforts and adds a personal touch.

10. If you represent the buyer in a multiple offer, be sure to have all support documentation available when you present the offer. Include pre-qualification letters, information about the buyer, possible relocation company support information etc. Be sure all riders are included and all areas of the contractual agreement are filled out.

Keep in mind that each selling opportunity creates unique situations. Sincerely strive towards professionalism and do the best job possible as a true real estate professional. By having systems in place to support your work can be a valuable asset. Remember that “integrity selling” is the philosophy with any real estate transaction. Your first priority is to treat all parties fairly and then to work in the best interest of your Seller.

Published: September 27, 2001

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