![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/06\/multiple-offer-disclosure-2.png\")
<\/a>Do you have to disclose multiple offers on your home?<\/h2>\n
Short answer? No. It all depends on the strategy you\u2019ve outlined with your agent, explains top-selling Boston-area real estate agent David Shorey<\/a>.<\/p>\n \u201cWhen I\u2019m the listing agent, I sign a contract with the seller where we agree on how to handle offers that come in [upfront],\u201d Shorey explains.<\/p>\n When it comes to disclosure, the seller has three options:<\/p>\n \u201cMost sellers choose the second option,\u201d Shorey explains. \u201cThey want to disclose the existence of offers, but not the price, terms, or contingencies of the offer.\u201d<\/p>\n However, Shorey clarifies, sellers are welcome to change their minds about offer disclosure at any time, even after the listing agreement is signed. Ultimately, as the National Association of Realtors (NAR) points out in its Code of Ethics<\/a>, the decision to disclose is up to the seller, and the listing agent must follow the seller\u2019s requests within legal and ethical bounds.<\/p>\n NAR\u2019s Code of Ethics<\/a> also requires real estate agents \u201cto be honest with all parties.\u201d So an ethical listing agent isn\u2019t going to lie about multiple offers on a property to stoke competition. False information like that isn\u2019t only unethical, but can potentially get a seller into legal hot water<\/a>.<\/p>\n Another strategy to approach with caution is offer-shopping, i.e., when a seller discloses the terms of one buyer\u2019s offer to other potential buyers. Buyers can ask sellers to sign a confidentiality agreement<\/a> before presenting an offer. If the seller signs the agreement, they can no longer share the specific terms of that offer with other interested buyers without facing potential legal trouble.<\/p>\n \u201cI think, as a seller, it makes a lot of sense to disclose that you have multiple offers to all buyers,\u201d Shorey says. \u201cMany times that will encourage buyers to improve their offers.\u201d<\/p>\n Here\u2019s how disclosing other offers could benefit you:<\/p>\n It could push one of the buyers to make a higher offer. <\/b> You may get more than a price boost. <\/b> Disclosing multiple offers does come with its own inherent risks. Depending on your market, and the guidance of your agent, you might decide these negatives outweigh the benefits:<\/p>\n It can scare away buyers. <\/b> You may face communication challenges.<\/b> It could create a longer journey to closing. <\/b> A multiple offer scenario happens when two or more buyers make offers on a home at around the same time. While this can happen in any market for a competitively priced home, you\u2019re most likely to encounter it in a seller\u2019s market, where the housing stock is low and the demand for available homes is high.<\/p>\n When you receive multiple offers on your home, you have a few options<\/a> as to how to proceed next:<\/p>\n For more advice on each route, consult our guide to navigating multiple offers<\/a>.<\/p>\n No two multiple offer scenarios will be the same, but there are some common mistakes that all sellers can learn from and avoid:<\/p>\n Determine your priorities before you list your home. <\/b> Decide what you want to disclose before multiple offers appear. <\/b> Don\u2019t let the window for negotiations close. <\/b> Disclose when you\u2019re under contract to other potential buyers. <\/b> Counteroffers void previous offers. <\/b> Accepting an offer doesn\u2019t mean the end of negotiations. <\/b> At the end of the day, your agent is there to represent your best wishes and interests<\/a>. Finding the right agent<\/a> who can guide you through the process with their experience and expertise is important, but it will always be your choice on what to share and not share with buyers. Doing so can, in many cases, lead to more compelling offers as long as you act in a timely manner with respect to the buyers.<\/p>\n Disclaimer:<\/i><\/strong> Information in this blog post is meant to be used as a helpful guide, not legal advice. If you need legal help with a real estate contract or negotiation scenario, please consult a skilled lawyer in your area.\u00a0<\/i><\/p>\n Header Image Source: (Julia Kuzenkov \/ Pexels)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Should you disclose when you have multiple offers on the table to buyers? Ultimately, the decision is yours as a seller to make. <\/p>\n","protected":false},"author":99,"featured_media":17325,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[322,342],"tags":[],"class_list":["post-17320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-logistics","category-negotiations"],"acf":[],"yoast_head":"\n\n
When disclosing can bring legal trouble<\/h2>\n
<\/a>Benefits of disclosing offers<\/h2>\n
\n<\/b>Buyers don\u2019t typically make their best offer<\/a> right out of the gate. Letting buyers know there are other offers on the table could get them closer to their \u201cbest\u201d offer.<\/p>\n
\n<\/b>Counteroffers won\u2019t always mean more money, they could spell more favorable terms<\/a> for you. If buyers know there are other competitive offers out there, they might waive the appraisal, inspection, or other contingencies<\/a>. They could counter with a larger earnest money deposit, a shorter closing, or cover closing costs entirely.<\/p>\nDrawbacks of disclosing offers<\/h2>\n
\n<\/b>Telling buyers that there\u2019s competition for the home could discourage<\/a> them from making additional offers. They might withdraw their offer altogether because they don\u2019t want to enter a bidding war.<\/p>\n
\n<\/i>Weighing multiple offers on your home can be exciting, but it\u2019s also stressful to keep track of what\u2019s what with lots of offers on the table. Sellers aren\u2019t obligated to respond to all offers, but a buyer might rescind their offer<\/a> if they feel it\u2019s being ignored.<\/p>\n
\n<\/i>A standard home closing takes 48 days on average<\/a>, according to Ellie Mae, and if you\u2019re in a time crunch, ongoing bidding wars and negotiations can prolong your overall days on market. Offers and counteroffers typically take place within a 24-48 hour window, but each round can add days to your timeline.<\/p>\nWhat are your main options in a multiple offer scenario?<\/h2>\n
\n
\n<\/b>A seller can simply accept the best offer that rolls in, rejecting the rest right off the bat.<\/li>\n<\/ul>\n\n
\nBuyers who are still interested can counter with their \u201cbest\u201d offer.<\/li>\n<\/ul>\n\n
\nThat means disclosing the terms of the best offer, and asking other interested parties to match (or beat) said offer.<\/li>\n<\/ul>\n\n
\nOne buyer\u2019s offer might seem more promising than the rest, and you can choose to counter that offer while simultaneously rejecting the others.<\/li>\n<\/ul>\n<\/a>Handling multiple offers on your home<\/h2>\n
\n<\/b>Knowing what you want before you get it can help you work through a multiple offer scenario with less stress. Shorey asks his sellers to consider their top priorities before even listing the home. Do you want the highest price? A swift closing process? Waived contingencies? Knowing that before you enter the market can make it easier to settle on an offer once they start rolling in.<\/p>\n
\n<\/b>Similar to knowing what you want out of the sale, you should also know how you want to handle the sale of your home before it even takes place. While you can always change your mind, take time to think about what you\u2019re comfortable disclosing to buyers. Do you want a bidding war scenario? Or would you be more comfortable talking to a promising buyer one-on-one?<\/p>\n
\n<\/b>Making a decision on an offer in a time crunch can be stress-inducing, but don\u2019t let the hours run away with the offer. Some offers may include a \u201ctime is of the essence<\/a>\u201d clause, which means if you don\u2019t respond to an offer within a \u201creasonable window,\u201d the offer is void. Plus, respectfully responding to offers within the traditional 48-hour window<\/a> makes for a happier buyer who might be more willing to negotiate.<\/p>\n
\n<\/b>Once you accept an offer from a buyer, you should let all other parties know that your property is under contract. It\u2019s not only polite but neglecting to do so can violate NAR\u2019s Code of Ethics<\/a>.<\/p>\n
\n<\/b>When either the buyer or the seller makes a counteroffer, it voids all previous offers<\/a>. So, once you make a counteroffer to a buyer, all earlier offers are off the table.<\/p>\n
\n<\/b>Even after you accept one buyer\u2019s offer, the negotiation process is still far from over. There\u2019s still the appraisal and the inspection to consider. If an unexpected issue crops up during the inspection or your home appraisal comes in low<\/a>, you may encounter a delayed settlement where terms can be renegotiated.<\/p>\nRemember, it\u2019s your decision to disclose or not disclose<\/h3>\n