Can a realtor tell you what other offers are, ethically?

When you’re interested in a property you desire, it’s natural to wonder what the other offers on the property are. After all, it could help you strategize and make a more competitive bid. But, can a realtor tell you what other offers are? 

This question is especially crucial in a hot real estate market. There’s a good chance that a home seller may get multiple offers for your dream property. This often causes some amount of anxiety and even disappointment if you lose out in a bidding war. 

So, can a realtor tell you what other offers are? Well, the answer to this is not as straightforward as it seems. Let’s find out under what circumstances can a real estate agent share or not share the other offers. And, what are the legal and ethical issues involved in sharing someone else’s bid? And finally, does it impact the home sale? 

Is it ethical to disclose offers?

Real estate ethics have different layers, starting with the basic principles of decency, honesty, and fairness. Realtors also have a legal obligation to act in the best interest of both the buyer and seller. According to the National Association of Realtors (NAR), disclosing details of an offer is up to the home seller, and the listing agent must follow the seller’s decision within lawful and ethical limits.

Realtors and cooperating brokers must be honest, meaning they can’t lie about multiple offers just to spark competition. False information is not only unethical but could also lead to legal trouble for the seller. If a buyer wants to keep their offer terms confidential, they can request a confidentiality agreement to prevent the seller from sharing details with other buyers.

Read more: What is steering in real estate?

So, can a realtor tell about your offer to other buyers?

The short answer is no, they cannot. The NAR has a strict Code of Ethics that all realtors must follow. This includes rules about disclosing information related to offers. Realtors must maintain confidentiality about the specific details of other offers to purchase unless they have explicit permission from the seller to share that information. Even though you, as a buyer, would love to know what other potential purchasers have offered, the realtor can’t reveal those specifics without going against ethical guidelines.

This is especially pertinent in three situations:

• If the buyer and seller enter into a confidentiality agreement whereby all parties agree that the existence of and the offer details will not be disclosed. The only problem is that a seller who expects their home to receive multiple offers may not agree to sign such an agreement.
• If the real estate laws or real estate regulations of the state do not allow it.
• In case the seller does not want to disclose the existence of offers. And, says so to the realtor. The latter has no choice but to follow their client’s instructions.

What happens when there are multiple offers on a house?

When a seller’s agent proclaims that there is another offer on the house, the potential buyer can think that the realtor is trying to rush them into buying the home quickly or using the competing bid ruse to make him doubt and be more susceptible to placing the highest bid.

A buyer obviously prefers if the seller’s agent shares the details of other bids so that they don’t have to pay more than they should. However, the same buyer will not want the seller’s agent to share the details of their own offer lest the information gives the other house hunters the opportunity to formulate a winning bid.

Keep in mind that while there might not be any legal time frame during which the seller must respond to your offer, a quick response is always appreciated. The seller and/or the listing agent should respond within a few days – ideally within 48 hours.

Can a home seller tell you what other offers are?

Interestingly, while real estate agents cannot legally share your offer amount or any other details of your proposal with other buyers, the home seller can. That is to say, there’s no law preventing the seller from sharing the information. What’s more, the seller can even share your offer with other potential homebuyers. So, the real estate negotiations may not be entirely disguised.

Are there real estate laws about disclosing offers?

There are different types of law that govern real estate and a seller’s property transactions or ownership – at the federal, state, and local levels. 

• A government administrative agency enacts regulatory laws.
• A legislative body enacts statutory laws.
• There are also common laws as decided by the courts.

In some states, the legislation prohibits an offer from being disclosed to other buyers, while in others there’s nothing illegal about telling one buyer what house price another has offered.

Remember that if your real estate agent is a member of NAR, they pledge themselves to protect and promote the interests of their client. And that they must treat all parties honestly.

Last thoughts

As a homebuyer, being in a bidding war for your dream home is stressful enough. But, wondering if there really is a bidding war and if you should offer more than the listed price is more stressful. 

When you decide to sell or buy a home, you need to make sure that you hire the right real estate agent. And, you need to trust your agent. 

It’s a good idea to have a game plan from the start of the home-buying process to avoid anxiety or disappointments. Make sure your realtor shares all the information they can – legally and ethically. But, you cannot expect them to share who has an interest in the same property and their offer. 

Written by Ramona Sinha. October 16, 2022

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.