nar1Disclosing Other Offers to Co-operating Brokers.

New Listing Disclosures:  Effective January 1, 2009, Standard of Practice 1-15  requires that as the listing agent, and with your clients’ approval, you disclose the existence of other offers to cooperating brokers and potential buyers if the cooperating broker or buyers inquire about whether there are other offers.  ALSO you must disclose from where the other offers arrive, from you? Another agent? Or by another co-operating broker?

Notice that the Standard does not say the terms and conditions of an offer must be disclosed only the existence of other offers and whether those offers came from a salesperson within Prudential®, Americana Group, REALTORS®.  If the terms are to be disclosed it is up to the seller.  Of course the seller will merely ask you and your job is to advise them. 

As to whether the terms are disclosed is a complicated question.  I know it seems at first impression that if you state a high price, one would hope that a bidding war will commence.  But never forget the power in not telling a buyer a price.  If buyer #1 is made aware of a competing price at 100 by buyer #2, buyer #1 is likely to offer 101 plus 1.  But if buyer #1 is informed, there is another offer from another co-operating broker, buyer #1 may offer 105 to ensure their position.

I am lobbying the Greater Las Vegas Association of REALTORS® to modify the Listing agreement to allow the seller to elect to disclose or not disclose.  Until then, I have written this simple Standard 1-15 Disclosure Approval.