By Scott Newman
Real estate is back in 2012 in a big way. Many markets are seeing price increases in response to dwindling inventories as more and more buyers are getting off the fence every day. With that in mind — especially since it’s been so long since we’ve had the opportunity to use the phrase “multiple offer” — I felt it would be pertinent and relevant to go through some best practices for handling multiple offer situations to make sure you’re in line with ethical and fair business practices.
Don’t Forget Your Loyalties: This is a big one, and it’s obvious, but many agents forget that you can’t disclose information that your client doesn’t authorize. No where is it written that you must disclose whether or not you have other offers on the table. Unless your seller has specifically directed you to do so, you should not automatically answer that question if asked by a buyer’s agent or buyer.
I have seen situations where a buyer will pull out of a deal because they think there is too much competition, and you can be legally liable for any negative consequence that results from your disclosing information you shouldn’t have.
To summarize, don’t ever forget that your ultimate loyalties lie with your seller, and just because you’re asked a question doesn’t mean you have to answer.
Treat Everyone the Same: This is another obvious one, but it’s important and bears repeating. To avoid accusations, legal action, and overall negative impact to your reputation as a professional, it’s imperative that you treat everyone the same way.
If you’re sending out a request for highest and best, send the exact same e-mail, forms, etc., to all interested parties who have seen the property so there is absolutely no doubt that everyone was informed of the status and had a chance to make an offer if they wanted. It’s better to e-mail an agent that showed the place six months ago along with everyone else, than it is to have your deal blown up by a lawsuit from a buyer who feels they were unfairly kept from knowing the latest update and opportunity to place an offer.
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By Toby Boyce
Sitting in the classroom taking licensure classes to become a licensed real estate agent in the state of Ohio, suddenly it becomes very obvious: They want to make sure you know people don’t like you.
“You are spoken in the same breath as used car salesmen,” a local real estate attorney is fond of stating. (Of course he often neglected to mention that the other half of the comparison is to his own profession.)
However, are we in the same class as used car salesmen? Nope. Not even close according to the U.S. Better Business Bureau’s recently released 2010 numbers . In fact, the number of complaints against real estate agents isn’t even in the top 50 industries. The most complaints in 2010 were registered against:
1. Television – Cable, CATV & Satellite: 30,408
2. Cellular Phones Services & Equipment: 24,876
3. Auto Dealers – New Cars: 23,906
4. Banks: 22,609
5. Collection Agencies: 14,966
6. Auto Dealers – Used Cars: 13,902
Real estate agents slipped in the 54th position on the list with 3,034 complaints. Which I believe was made even more impressive by the fact that more than 400,000 inquires were made for real estate agents of the Better Business Bureau in 2010.
So next time you look in the mirror, remember, “Dog gone it, people like you.”
Toby Boyce, MBA, is a real estate practitioner with Keller Williams Consultants Realty in Westerville, Ohio. Visit his Web site: www.delawareohrealestate.com.