Introduction
Navigating the real estate market requires a blend of strategy and finesse. For those in the industry, perfecting this skill is essential. After nearly two decades as a Realtor, I’ve found that receiving multiple offers on a property is a wonderful situation to be in. It’s a clear indicator that your efforts have paid off in favour of my client, often leading to a sale price that is above market value. While a multitude of offers might seem like a stroke of luck, it can also introduce a high-stakes drama that not all agents appreciate.
The Dynamics of Bidding Wars
The reality of multiple offers means that while
one buyer emerges victorious, others are left in the wake of defeat. This can
lead to disappointment and, occasionally, contention among the parties
involved. As a Realtor representing the seller, my focus is unwavering: to
secure the best terms and conditions for my client. The emotional fallout from
other Realtors or buyers is not my concern, as my priority is to ensure my
client’s success.
Legal Know-How and Ethical Standards
In my years of experience, I’ve observed a surprising lack of awareness among Realtors regarding Ontario’s laws on real estate offers. A common misconception is that the listing broker has the discretion to decide which offers are presented to the seller. However, this is far from the truth. Every offer, no matter how verbal or written, must be presented to the seller, regardless of its perceived quality. The exception to this is when the seller has set an offer date AND, has given written instructions to their Realtor, to not convey any offers until the offer date. An early offer is referred to as a Bully Offer, as the buyer is hoping to force the sellers to deal with their offer rather than engaging in a competition.
Offer Presentation and The Law
The listing broker’s role is not to judge the validity of an offer but to ensure that every proposal reaches the seller’s hands. It’s a violation of the code of ethics to withhold any offers, and doing so can have serious repercussions. The integrity of the offer process is paramount, and upholding this standard is a responsibility that all Realtors share.
Conclusion
The art of handling real estate offers is indeed an art, one that demands fairness, transparency, and adherence to ethical guidelines. As we navigate the complexities of the market, let’s remember to keep our practices above board and in the best interest of our clients. After all, in the competitive dance of real estate, may the best offer always win.
