Members are still navigating the multiple offer landscape, and with low inventory going into the spring market, it’s not likely the multiple offer trend will let up any time soon. 

Because multiple offer situations can look different each time you get into one, here are some common myths we’re debunking, just in case you run into them.

1. Myth: Buyers in multiple offers are “owed” information on other offers.

Fact: The Seller is running the show, and they decide what offer information is disclosed. As long as the seller's instructions are lawful, the listing agent needs to follow them. The Real Estate Act Rules require agents to get permission from their sellers before disclosing offer information or even that a multiple-offer scenario is happening. CREB^® acknowledges the Regulator’s requirements, which is why, with seller instructions, listing agents can withhold information on multiple offers.

Listing agents are required to present seller(s) with their options when facing multiple-offer situations. Fully explaining the benefits and drawbacks of different options is an important part of fulfilling fiduciary obligations. Additionally, this allows the seller to make an informed decision about how they would like to proceed should they receive multiple offers on their property.

Key takeaway: To be onside with both RECA and CREB^® Rules, if you’re facing a multiple offer situation, listing agents must get their seller’s instructions on how to disclose/ not disclose information.

2. Myth: Same level of information disclosure for all offers

Fact: Sellers can decide to give different instructions for different offers, which means that one buyer might get to know that they’re in a multiple-offer situation, and another buyer might not. While some agents might question whether this is beneficial to getting the best offer for a sale, there’s nothing preventing a seller from instructing their agent to respond with different information to different offers.

Key takeaway: Prepare your buyers for the competitive market, understand their comfort level in a multiple-offer situation, and get ready to support them through it. This is where your REALTOR^® value shines, ensuring they aren’t faced with surprises (as much as you can) and being calm and professional when facing stressful situations like multiple offers.

3. Myth: It’s okay for a listing agent not to respond to another member’s communication in a multiple offer.

Fact: Agents still have to communicate with each other, even if the answer to a member’s question is, “As per my seller’s instructions, I can’t answer that question.” While the sellers decide what information is disclosed in a multiple-offer situation, a REALTORs^® professional obligation requires them to respond with something acknowledging that they received the other member’s text, email, etc.

Key takeaway: If the seller wants to keep multiple offer details to themselves, be ready to respond appropriately to buyer’s agents who ask questions. Remember to get these instructions in writing.

4. Myth: A full-price offer must be accepted.

Fact: Sellers do NOT have to accept a full-price offer. Offers are more than just a final sale price. Terms, conditions and possession dates are just some other factors contributing to a seller’s decision. Ultimately, the seller can accept any offer they want and decline those they don’t, and they’re not required to justify their decision to other buyers whose offers they rejected.

Key takeaway: Do not promise your buyer that a full-price offer is guaranteed to be accepted. Instead, help them understand how different parts of their offer can influence a decision.

Not all multiple-offer situations will be confusing; in fact, many will see sellers giving buyers information because they feel it will result in receiving the best offer. We thank all our members and their clients for moving through multiple offer situations with understanding.