If there are multiple offers on a property, does the listing agent have to disclose this information?
The Austin market, in many ways, is a very hot market. There are some people who would disagree, but those people are not currently in the buying world with multiple offers that can go over $50,000 above the asking price. These areas, for the most part, are in South and East Austin. Most of the suburbs are less competetive, and aren't seeing such drastic over asking offers.
Last year, I wrote about how I sold 14 houses to one couple, and never got paid. It was miserable. Most offers were $20-25k over asking and my buyers still didn't win. You can read about it here.
This year, I was hoping things would slow down a little, but they really haven't. The good thing is that buyers are now understanding that if they hear the words "multiple offers", they are offering "serious" offers instead of an offer Uncle Joe or Grandma told them to write.
To the original question, does an agent need to disclose if they have multiple offers so you can play a head-game with yourself as to what you think someone else offered so you know what to offer yourself. The answer is, it's either all or none. If you tell one agent, you must tell all the agents. If you don't tell any agents, it's ok. It's about making sure all buyers are on the same level playing field and if all the agents are in the dark or all are in the know; it's level.
Why wouldn't an agent disclose multiple offers? First, it's not the agent's option to disclose or not. The directions would come from the Seller. Second, some sellers just want to see offers as they are, without the buyers knowing if there was someone else interested. Saying there are multiple offers can potentially drive the price up, but on the down side, it could also scare away buyers who don't want to play the game. I've had buyers who just say "never mind" on a house when they find out there's multiple offers. What if all the buyers said that, then the seller is left with no offers.
It's definitely a head-game in today's Austin real estate market! Are you ready to compete?
**Are You Packed Yet?**
Donna Harris, REALTOR®
Donna Homes, Owner
Austin TX Real Estate and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, Cedar Park, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Hill Country Austin TX Real Estate and beyond. Whether you're buying or selling an Austin home, I'll be with you every step of the way.
** Multi-Million Dollar Producer Year after Year **
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