Multiple Offers

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Multiple Offers

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Quick Takeaways

In competitive markets, properties on both the buyers and sellers side, may face multiple offer scenarios. The Code of Ethics binds REALTORS® to “act in an efficient and timely manner, present counter-offers, and always work with the best interests of their clients.”
Outside of the Code of Ethics, REALTORS® should be sure to work within the legal framework for accepting offers, work with their clients to secure stable financing, and craft competitive offers to keep their clients’ best interests at the forefront.
Make sure clients’ in multiple offer situations know the risks of waving contingencies and bidding above asking prices.

Source: The Buyer and Seller Guide to a Real Estate Bidding War (U.S. News & World Report, Mar. 11, 2024)

The REALTOR® Code of Ethics does specifically touch on multiple offer situations in Article 1. REALTORS® must act in an efficient and timely manner, present counter-offers, and always work in the best interests of their clients. According to Article 1, Standard of Practice 1-8, REALTORS® have “no obligation to continue to show properties to their clients after an offer has been accepted unless otherwise agreed in writing.”

Outside of the Code of Ethics, there are other legal and ethical issues REALTORS® must consider when dealing with multiple offer and/or bidding war situations. There are designated time periods in which sellers can still accept other offers, some are legal but not necessarily considered ethical. Keep in mind that buyer love letters and other methods of gaining a “personal” edge in a bidding war can sometimes fall in a Fair Housing gray area.

When representing a client involved in a bidding war or multiple offer situation, there are many ways to help your client help themselves. Make sure they have secured stable financial backing, help them craft a competitive offer, and let them know some practical options that may sweeten the deal, like a quick close date. However, remember that your clients best interests are always number one, and it is your job to be the voice of reason in an emotional bidding war scenario.

As a client entering into a multiple offer situation, there are a few things you can do to increase your chancing of getting your dream home. Be wary of too many or zero contingencies, and don’t bid above your financial means. Making a competitive offer right away and sticking to it is often the best bet for you, but ask your REALTOR® what else you can to do heighten your chances.

See References for more information.

References

NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.

Code of Ethics

The REALTOR® Code of Ethics establishes requirements on responding to offers and protecting the interests of clients:

Article 1, Standard of Practice 1-6 denotes that, “REALTORS® shall submit offers and counter-offers objectively and as quickly as possible.”
Article 1, Standard of Practice 1-15 addresses REALTORS®’ obligation in multiple-offer situations: “REALTORS®, in response to inquiries from buyers or cooperating brokers shall, with the sellers’ approval, disclose the existence of offers on the property. Where disclosure is authorized, REALTORS® shall also disclose, if asked, whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating broker.”
Article 1, Standard of Practice 1-7 denotes that, “When acting as listing brokers, REALTORS® shall continue to submit to the seller/landlord all offers and counter-offers until closing or execution of a lease unless the seller/landlord has waived this obligation in writing. Upon the written request of a cooperating broker who submits an offer to the listing broker, the listing broker shall provide, as soon as practical, a written affirmation to the cooperating broker stating that the offer has been submitted to the seller/landlord, or a written notification that the seller/ landlord has waived the obligation to have the offer presented. REALTORS® shall not be obligated to continue to market the property after an offer has been accepted by the seller/landlord. REALTORS® shall recommend that sellers/landlords obtain the advice of legal counsel prior to acceptance of a subsequent offer except where the acceptance is contingent on the termination of the pre-existing purchase contract or lease."
Article 1, Standard of Practice 1-8 denotes that “REALTORS®, acting as agents or brokers of buyers/tenants, shall submit to buyers/tenants all offers and counter-offers until acceptance but have no obligation to continue to show properties to their clients after an offer has been accepted unless otherwise agreed in writing.”
Article 1 denotes that “When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client.”
Article 1, Standard of Practice 1-9 establishes requirements for ensuring client confidentiality and non-disclosure compliance.

Code of Ethics (National Association of REALTORS®)

Part 4, Appendix IX- Presenting and Negotiating Multiple Offers (National Association of REALTORS®, Code of Ethics and Arbitration Manual)

“Perhaps no situation routinely faced by REALTORS® can be more frustrating, fraught with potential for misunderstanding and missed opportunity, and elusive of a formulaic solution than presenting and negotiating multiple purchase or lease offers and/or counter-offers on the same property. Consider the competing dynamics. Listing brokers are charged with helping sellers get the highest price and the most favorable terms for their property. Buyers’ brokers help their clients purchase property at the lowest price and on favorable terms. Balanced against the Code’s mandate of honesty is the imperative to refrain from making disclosures that may not, in the final analysis, be in a client’s interests.”

Legal & Ethical Considerations

4 Ways to Reduce Risk Amid Multiple Offers (NAR REALTOR® News, May 5, 2021)

This article discusses 4 key areas that are a risk for complaints and fair housing issues when multiple offers are vying for a property: love letters, escalation clauses, waiving contingencies, and preparing sellers.

Can a Home Seller Under Contract Still Accept a Higher Offer? (realtor.com®, May 30, 2025)

“As a seller in this case, you can still accept the other or better offer as long as you are still in attorney review,” says Lukasz Kukwa, a real estate agent with Coldwell Banker Residential Brokerage in Westfield, NJ. “Although this will cause some pushback and sometimes isn’t looked at as the most ethical, a seller can legally still accept any other offer up until attorney review conclude as the deal isn’t officially under contract.”

Window to the Law: How to Handle Multiple Offers (National Association of REALTORS®)

“Multiple offer scenarios can be stressful for sellers, buyers and their brokers. By following a few fundamental principles, real estate professionals can help their clients navigate multiple offers, alleviate misunderstandings and reduce the risk of discrimination.”

Advice for Real Estate Professionals

What is an Escalation Clause in Real Estate and When You Should Use One (realtor.com®, May 13, 2025)

“Escalation clauses in real estate can cause a lot of stress for homebuyers, especially when their dream home is on the line—but when they’re boiled down to the basics, they’re fairly straightforward. Remember to be realistic, to be comfortable with how much of a competing bid you’re willing to offer and put down as a down payment, and to confidently go after a piece of real estate at that price.”

11 Ways to Win a Bidding War (Boston Agent, Mar. 19, 2021)

Local agents in Boston shared the tips and tricks they have been counting on to gain advantage in today’s unprecedented market including; offering a pre-inspection, checking with the seller pre-offer to see if there is something – like a flexible closing date – your clients can offer, working quickly to keep the time frame tight, and making sure your client has solid financial backing.

The Real Estate ‘Winner’s Curse’: Study of Nearly 14 Million Home Sales Over 20 Years Shows You Don’t Want to Win That Bidding War (Fortune, Oct. 8, 2025)

“Real estate economist Soon Hyeok Choi, and his colleagues and I analyzed nearly 14 million home sales in 30 U.S. states over roughly two decades. They found that people who paid more than the asking price for their homes — a reliable sign of a bidding war — were more likely to default on their mortgages and saw significantly weaker returns. How much weaker? On average, homebuyers who won bidding wars saw annual returns that were about 1.3 percentage points lower than those who didn’t, we found. We specifically looked at “unlevered” returns — basically, the returns you’d get if you bought the home outright with cash, without factoring in a mortgage.”

Common Mistakes Buyers Make in Bidding Wars (NAR REALTOR® News, Jun. 7, 2022)

“Bidding wars are the new normal for buying a home today. In desirable areas, there may be multiple offers, which might force you to up the ante in a dizzying quest to come out on top. Yet in the heat of the moment, many buyers run the risk of becoming overzealous, making mistakes that cost them the deal—or worse, land them with a house they regret. Don't be one of them! Here are some common bidding war mistakes you might be particularly tempted to make in today's crazy market, along with some smarter, saner alternatives to try.”

Advice for Clients

The Buyer and Seller Guide to a Real Estate Bidding War (U.S. News & World Report, Mar. 11, 2024)

“For buyers, a proper offer on a home includes a strategic number (offer price), a proposed closing date, and financing terms. A buyer should arrive at each of these three terms based on the comps, as well as timing and financial needs. Arming yourself with current and relevant data and information will help you approach the process with confidence and efficiency, which can work to your advantage. And when it's time to make an offer, being flexible and friendly are two of the best ways to win over the seller and/or the listing agent.”

“For sellers, properly handling this exciting but likely stressful process is paramount and an experienced real estate agent should be able to guide you. Above all, it is important to manage the offers and buyers so nobody feels misled. Sellers and their agents must keep in mind that many buyers who enter a bidding war might have already lost out on another property, so their emotions may be running high. This is especially true when inventory is low. You should be timely in your response to each offer…”

How Do Sellers Handle Multiple Offers? (realtor.com®, May 18, 2022)

““If the seller receives an all-cash offer that's at or above asking price versus an offer under asking price that requires a loan, they'll take the first offer all the time,” says Maria Jeantet, a Realtor with Coldwell Banker C&C Properties in Redding, CA. The terms of the sale are important as well. These terms could help make your offer more appealing:

Providing a pre-approval so the seller knows you are already locked for the mortgage amount you need
Waiving your right to an inspection
Offering to close on the seller's timetable (Sometimes a seller wants to close ASAP, or wants to wait until the kids' school year ends.)”

How to Win a Bidding War on A House: Strategies for Success (Business Insider, Jul. 22, 2024)

“In real estate, when the demand for homes in a particular area exceeds the available supply, you have what's known as a seller's market. This can be very difficult for buyers, who might find themselves competing with several others who are all interested in purchasing the same property. These situations frequently lead to bidding wars, which can push the final sale price much higher than what the seller was initially asking. So how do you win a bidding war? Prepare, make a strong offer, and make your offer stand out.”

Managing Multiple Offers and Making the Right Decision (Houston Association of REALTORS®)

“In today's fast-paced real estate market, receiving multiple offers on a property has become common, especially in competitive areas. When you're in the process of selling a home and faced with several offers, each promising a successful sale, it’s not just about accepting the highest bid. Handling multiple offers involves strategy, thoughtful decision making, and a clear understanding of each offer's strengths and weaknesses. Explore the key actions and considerations for managing multiple offers effectively.”

Consumer Guide: Navigating Multiple Offers (ational Association of REALTORS®)

“When your home is on the market, you may receive offers from multiple interested buyers. Offers can vary greatly, and you will need to determine which one is best for you. Read the Consumer Guide to decide how to navigate multiple offer scenarios.”

eBooks & Other Resources

eBooks.realtor.org

The following eBooks and digital audiobooks are available to NAR members:

Close That Sale (Audiobook)

The Altman Close: Million-Dollar Negotiating Tactics from America's Top-Selling Real Estate Agent (eBook)

The Complete Idiot's Guide to Buying and Selling a Home (eBook)

How a Real Estate Agent Can Prepare for a Successful Negotiation (Audiobook)

Improvisational Negotiation (eBook)

The Negotiation Book (eBook)

Negotiation Genius (eBook)

Secrets of Power Negotiating (eBook)

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