Realtors Should Be Sharing Best Offer
Somewhere along the way, Realtors got it in their heads that it is a criminal offense to disclose the best offer in a multiple-offer situation. In this brisk Sellers’ market where there are often multiple offers within the first day of a home being listed, it is common for a Listing Agent to say, “Bring us your best and highest offer.”
When I ask if they will share their highest offer so my Buyer can determine whether or not they want to throw their hat in the bidding ring, agents often react as though I’ve grown a second head. Or worse still, that they will lose their license if they disclose. Or that I should lose mine for asking.
Having been in real estate for several decades, I was privileged to take classes from one of the greatest legal minds in our state. Oliver Frascona was dynamic, brilliant, fun, and one of the biggest personalities I’ve ever met. He wrote much of our Colorado real estate law. It was a joy to attend one of his classes and glean just a portion of his vast knowledge and experience.
You wanted to take a continuing education class from Oliver. He could explain the most complicated or boring points in such a way that not only made them fascinating, but he simplified them so you could grasp and remember the concept.
Always gracious to answer any question, he focused on the person he was interacting with. He could make them feel as though their question was the most profound one he’d heard all day.
When he was killed in a plane crash in 2014, I mourned his loss by watching many of his videos, interviews, and reading many of his writings.
Offers Are Not Confidential
One such video was him addressing Realtor Myths (starting at 0:55).
For whatever reason, many agents believe they learned in Real Estate 101 (and hold the notion near and dear to their misguided hearts) that they cannot disclose the best offer. That you can’t tell Buyer’s Agents, or anyone else for that matter, what the amount of another offer is.
Here was Oliver’s observation on the subject:
. . . there’s this myth that a Listing broker can’t tell a subsequent Buyer’s side what the current offer amounts are. Of course they can, they just have to ask their Seller if it’s okay. But each of those Buyer’s offers aren’t confidential and you can’t make them confidential. And if you’re really helping that Seller, you should be turning to that Buyer and saying, ‘I have three at this price, and if you can beat it, then you’re gonna to be the one who wins.’
The bottom line is: It isn’t a crime to disclose the best offer, and I guarantee it won’t cost you your license. If we are truly working for our Client, we will get their permission to share the highest offer with Buyer’s Agents to try to get the Seller the highest possible price for their home.
And if you’re looking for an experienced Realtor with common sense and decades of local experience, be sure to call, text, or email me today. I’m here to help.
Code of Ethics re: Multiple Offers
