The Edmonton and area market is HOT right now, and we all know that limited inventory leads to an increase in multiple offers. Check out the guide below for more information on the correct protocol if you find yourself in this situation.
Handling multiple offers properly always starts with clear, written instructions from the seller. After that, there are some essential things to keep in mind:
- Read and understand the RAE’s Rules & Regulations as they apply to multiple offers.
- Discuss multiple offers with your client at the time of listing, explaining the pros and cons. As a listing agent, you need explicit, written direction from the seller on whether to disclose the existence of offers to other agents. The existence of offers is confidential information that belongs to the seller(s).
- The RAE’s Rules & Regulations require the disclosure of multiple offers to competing brokerages unless otherwise instructed by the seller in writing.
- When a listing agent becomes aware of multiple offers, the first step should be getting written instructions from the seller (if they have not already been obtained). This must happen before any offers are presented to the seller.
- If your seller instructs you to disclose information about offers, the only detail that must be disclosed is the existence of an offer(s).
- If a buyer’s agent asks, you must provide the name(s) of the competing agent(s) and their Broker(s), unless the seller’s written instructions tell you otherwise. No other details are required (nor should they be shared with anyone).
- Disclosure of multiple offers to other competing brokerages, if permitted by the seller, should happen before the presentation of any offers to the seller.
- In cases where this is not possible (e.g., an offer comes in while you are already discussing another), you should notify the seller as soon as you become aware of another offer, according to the written instructions given by the seller.
- If there is more than one offer, and one of those offers is also through the listing agent, then all offers must be presented by another seller’s brokerage representative. Offers must be submitted to the delegated representative, who is responsible for presenting them to the client (unless the seller instructs otherwise in writing).
Following these steps helps maintain transparency, professionalism and compliance with RAE’s regulations. If you’re unsure, you can always have a chat with your Broker to ensure alignment on the process for dealing with multiple offers. Check out the following video for an interview with RAE Board Member Steve Reid, in which he covers some key components of dealing with multiple offers.
Additional Resources
Real Estate Council of Alberta (RECA):
Alberta Real Estate Association (AREA):
Resources for Home Sellers (RECA):
