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  1. #1

    Buyer agent represented two clients bidding on the same property

    We lost a bidding war back in March. That property was closed recently. We didn't feel good after we found out my agent represented another buyer who had actually won the bid. Is it fine in the real estate world that my agent handled in such a way? Although I would rather trust my agent being professional in the bidding war, but my feeling somehow got hurt after knowing the fact.



  2. #2
    There is a form from the CA association of realtors called the disclosure and consent to represent more than one party.

    Since I work in a small pond and it's very likely that my company will represent both sides of a transaction, I have my sellers fill this out when I list a property. Same with 2 buyers, although that becomes a little tricky if we have one buyer who makes an offer and then a second one shows up. We would obviously have the second buyer sign it, but it might be tough to get the original offeror to sign it after the fact. We haven't had that situation in the past 6 years, but maybe it's time for me to change the policy.

    It's never fun to come in second, but if you didn't know the amount of the other buyer's offer or terms, it's very likely that your agent didn't reveal the details of your offer either.

    The last time I had multiple offers, I had the buyers and their agents each come in and offer them an opportunity to best the offer on the table, auction style. This would be different where it is a bank owned property and they just ask for the "highest and best" offer.



  3. #3
    You need to check your agreement with the agency. Ours specifically states that we may be representing more than one buyer on a particular property. If a client has a problem with that, I would strike it out.



  4. #4
    Inventory is tight right now and I often show separate clients the same property. I haven't had it come up that 2 buyers want the same place (yet). Our office policy is to get the managing broker to work with the 2nd buyer to develop the offer and work negotiations. It goes back to the agent if the 2nd buyer gets their offer accepted. It's legal, with disclosure, to represent both, but it almost always ends up with one buyer feeling that they didn't get good representation - no matter how hard the agent tries to be professional and neutral.




 

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