Rules of Engagement?
By Jim Palmer Jr.

Buyers competing to purchase real estate can be frustrated at best and exasperated and homeless at worst.  The buying process can be difficult especially when inventories are low.  There seems to be some misconception among buying consumers that sellers are obligated to behave in a certain fashion or that there are rules of engagement out there somewhere that sellers must adhere to.  I’m talking about the predictable situation in a low-inventory-market when a buyer presents an offer then waits for an answer, only to find out there are multiple other offers coming in.  The buyer has a choice to make. Leave their offer as written, or modify their offering by adding a higher purchase price or streamlining the offer to eliminate contingencies.  Do they want to participate in the inevitable bidding war?

Some common questions concerning this scenario are: 1) Does the seller have to consider the multiple offers in the order they came in, or does the buyer who was first in line get preference?  2) Does the seller have to respond to an offer by a certain time date mandated by a buyer?  3) Is it legal, fair, or ethical for the seller to ignore a buyer’s mandated response time in order to wait for other possible offers?  4) Is the seller’s broker obligated to present all offers immediately or can they wait for a week to allow offers to stack up before presenting them?  5) If the listing information says the seller will consider all offers on a certain date, can seller change their mind and accept an offer before the time frame they stated in the listing for offer review? 

The pat answer for most of these questions is that the seller has the power to choose and do whatever they want to do!  Sometimes when those choices are adverse to a buyers will, it may not feel fair, but it is a sellers prerogative to choose when and if they will accept any offer.  They can also change their mind up to the point when an offer is fully signed and agreed upon. 

The brokers however, are subject to certain statutory rules in this scenario.  They are obligated to deal honestly and in good faith.  They are obligated to present all written offers in a timely manner.  That means they cannot allow offers to stack up without presenting them to the seller, however, that does not mean the seller has to make an immediate decision!