I am a fairly new agent and need some advice on my listing. We received an offer, the seller countered, the buyer countered that and since then a new offer came in today much higher than the last buyers counter offer. I am sure the seller is going to accept the newer offer. My question is, should I tell the buyer’s agent about this new higher offer that just came in? I am ethically unsure what to do in this situation. It is my first listing and I want to handle this correctly..

Seller is driving this bus, so let them instruct you. You can have them withdraw their couter offer and then accept the new offer. Or you can have them withdraw the counter offer and resubmit another counter, given the new offer on the table. Essentially you want to read the situation with them and construct a strategy that will get trhem the best offer with the terms most favorable to the seller. Hope that is helpful.

1 more thing, be mindful of time dealines---ie. offer expires at ....

The possibilites are endless.

Congratulations on having 1, let alone 2 offers.

If the counter-offer from your seller is accepted by the first buyers you don't have to worry about what to do. You are probably working as a sellers agent and in their best interest. You should probably speak to your broker but in Missouri the seller or buyer can withdraw and offer/counter anytime prior to written acceptance.

Thanks for the quick replies. No the counter offer from the buyers hasn't been accepted yet, then the new offer came in. Is it wise or ethically correct to tell the buyers agent about the better offer that has come in? The buyers agent has been pressing me for answers to their counter offer.

Our listing agreement deliniates that question. I do not think it is a question of ethics, but a question of what the seller wants. If they feel it will help them by having the 2 bid against each other then you tell the other agents of the other offer. If seller does not want it disclosed, then you tell other agents, " My seller does not wish me to discuss any other offers with you." Perhaps your local list agreements are different, in fact certainly they are. Sounds like you ought to put in a quick call and question your broker or another experienced agent in the office who can tackle the question for you.

I usually advise sellers it is best for them to share the existance of other offers.

In NC we have to have the permission of the seller to tell buyers agent about the existence of other offers.

Sometimes when buyers learn there are other offers they come back stronger but then other times buyers just walk away. I have seen agents lose both buyers because they informed the buyers agents of other offers, so make sure the decision comes from your seller.

Thank you, your posts are always helpfull. I am just going to wait and hear what the seller has to say. They should respond this morning, The seller is an asset manager by the way, so communication is few and far between. :)

Yes Bigtoe, my worry is telling the agent and the buyers walk, then for some reason the new offer is rejected.

Well the seller called and accepted the new offer! We are in Escrow! Thanks for taking the time to help a newbie out guys. Much appreciated.

Here, we must disclose how many competing offers there are to everyone making an offer but can not disclose the contents of any of the offers to the other parties.