Although questionable for sellers, this change will provide a purchaser improved confidence in the integrity of the seller's Realtor when receiving the message that there's another purchaser also bidding on the same property.
The long term recommendation is to have a real-time multiple offer registry that purchasers can monitor to see if there are other offers that are made on the same property.
Until then, the Independent Advisory Group (IAG) recommends that the Real Estate Council require that all offers received by a seller’s agent be quickly filed with that agent’s managing broker and be retained at the brokerage for review by the Real Estate Council on demand.
The IAG states that they are "... aware of reports that some licensees are not disclosing all received offers to sellers, and favouring offers from particular buyers, in a manner that may compromise the licensee’s duty to act in the best interests of their client." In my many years of White Rock real estate experience, I have never heard of such inappropriate behaviour. Implentation of a simple process could eliminate this possibility.
The IAG is also aware of reports that "... claims of multiple offers, that in some cases may be exaggerated, are used by some licensees to encourage buyers to increase their offers."
So, the IAG recomends that brokerages be required to maintain records of all offers made during the sale process until a real-time multiple offer registry is in operation.
This is good news because it will enable purchasers to confirm that their offer has been submitted and it will confirm that there are indeed multiple bids that have been received on the property. However, there are times when it might be bad news for sellers, if it is the sellers request not to disclose multiple offers untill they are all received. Why? Because many purchasers will not submit an offer if they know that they will be competing against other purchasers in a bidding war.
Thinking of selling? Let's meet to discuss what's best for you.