https://www.nar.realtor/videos/window-to-the-law/how-to-handle-multiple-offers
NAR top three takeaways:
1. Sellers make the decisions.
2. Do not read, transmit buyer "love letters" due to fair housing risks.
3. Clients make decisions. Remind buyers that they may not know about other offers and offers generally are not confidential.
Other thoughts…
To keep everyone equal, one idea is that the seller asks for the highest and best offers delivered at a time/date/location. Sellers have to make this decision as there is a risk that some buyers might move on rather than competing at highest and best offers.
Avoid escalator clauses as they have many issues. First, the seller is just going to counter the offer at the escalation clause’s cap price. Second, if all buyers use escalation clauses then they all ratchet each to their cap price. Third, it is difficult to prevent "straw buyer offers" from ratcheting the escalation clause to the cap price. Fourth, arguably there is no agreement as the material term price is not included in the agreement. Fifth, lawyers need to draft escalation clauses.
Posted by: Byron King on 09/08/20 (This information is only accurate as of 09/08/20. You must contact SCR for updates and changes to this information after 09/08/20 as laws and regulations may change over time. SCR 803-772-5206 or email Byron)