Disclosing Other Offers on Homes for Sale
As a listing agent, am I required to disclose that I already have offers on the property to any agent who wants to show my listing or any buyer who wants to see my listing?
The ethical course depends on two factors: First, has the agent or prospective buyer asked if there are offers on the property? And second, has the seller given you approval to make that disclosure?
Ask sellers upfront how they’d like you to respond to such an inquiry from a buyer or cooperating broker. If sellers haven’t given you approval to disclose, you have to respond that the sellers don’t want the presence of other offers disclosed but you would be happy to present any offer.
This is an important conversation to have with sellers at the time of listing, especially if multiple offers are typical in the market. That way you will be able to respond promptly and appropriately.
Article 1, Standard of Practice 1-15 states:
“REALTORS®, in response to inquiries from buyers or cooperating brokers shall, with the sellers’ approval, disclose the existence of offers on the property. Where disclosure is authorized, REALTORS® shall also disclose, IF ASKED, whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating broker.”
(Adopted 1/03, Amended 1/09)