Buyer agent represented two clients bidding on the same property (disclosure, auction)
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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.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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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.
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.
That probably should have been disclosed to you during the bidding process, but as long as the agent kept your information confidential and stayed impartial, I doubt it impacted your offer. In most multiple offer situations, you have to give your best and final offer, and we can only assume the other party offered more money or had better terms.
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.
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.
It is legal in Oregon for the same agent to represent two buyers making offers on the same property. It is my company policy that one buyer has to be referred to another agent. Agents can only write up one offer for a property at a time. We have this discussion with our buyers during the buyer consultation meeting so they are aware of our policy.
Legal yes. Ethical. Pretty dubious, IMO. Better to have a separate agent represent the second buyer to ensure good representation.
We just had this situation in my office last week! While it's completely fine for an agent to represent multiple clients bidding on the same property (at least in my state), it's trickier than representing just one. So, to make sure things went smoothly and to avoid the appearance of any favoratism, the second party to make an offer was assigned to another agent in the office to represent them during negotiations. We didn't have to do this, but we wanted to avoid having the client feel exactly what the OP is feeling right now.
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.
Why would you need the first buyer to sign it if you weren't representing two buyers at the time you wrote their offer?
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.
Ours discloses that it may happen, but there is still an obligation to tell a buyer if it does happen.
I have had this happen to me before. I gave the buyers the choice to make an offer with me or another broker in my office, or one in another office.
You chose what to put in your offer.
Have a conversation with the agent, in a professional manner, if that is what you want to satisfy yourself that neither offer was presented differently and that the acceptance was the sellers choice.
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