Multiple Offers - New transparency rules bring comfort to buyers

When the market is hot, nothing can be more nerve wracking for buyers than to enter into a multiple offer situation where they are bidding against other buyers for the same property.  Competition can be fierce and the final accepted offer can be hundreds of thousands more than the original asking price.  Compound this with the unknown about how many potential buyers are in the mix and the process can feel like a blind race.  There could 1, 2, 10 or more buyers all vying for the same home.   And for the the winner or one of the unfortunate buyers who where outbid, the feeling of whether the process was fair is questioned. 

To help reduce this sentiment and to increase transparency for consumers, on July 17, the Real Estate Board of Greater Vancouver (REBGV), Fraser Valley Real Estate Board (FVREB) and the Chilliwack and District Real Estate Board (CADREB) are implementing a new disclosure form for multiple offer situations that Realtors, and the home sellers they represent, must complete, sign and share with everyone who made an offer on the property.

"This new form will help confirm and bring comfort to prospective home buyers in the region that every offer was fairly presented and considered in the process. The real estate profession believes that this change will help inform the public and build greater trust in the real estate transaction process — specifically in instances when competition and emotion run highest."
Jeff King, REBGV CEO

The new Disclosure of Multiple Offers Presented Form will list each of the competing offers the home seller received and the name of the real estate brokerage of record that submitted an offer on a client’s behalf. The selling Realtor and the home owner will then be required to sign this form and provide it to all parties that submitted offers no later than one calendar day after the seller has made a decision.

“The implementation of this new disclosure is the result of considerable research and discussion by a committee of brokers and Realtors since the record-breaking market activity we experienced during the pandemic,” Baldev Gill, FVREB CEO said. “By providing a record of the number of offers received, this change aims to increase buyers’ confidence in the process by demonstrating that their offers are always presented and considered by the seller.”

The new disclosure form seeks to balance home buyers’ rights around transparency and disclosure with home sellers’ right to privacy during the sale of their home. In order to protect a home seller’s negotiating position in the event that the sale fails to complete after accepting an offer, the disclosure form will not include the price of the various offers nor the conditions or reason the seller accepted or rejected a particular offer.

While we are in a slower market with multiple offers not nearly as prevalent as they were just over a year ago,  they are still occurring.  Limited supply and a well-priced home could still elicit multiple offers and we anticipate that this new process will provide more consistent communication and increase transparency into these challenging transactions.

At Manley, York & Associates, we understand that your home is your largest investment.
We closely monitor the market to ensure our clients receive accurate and timely information about market conditions for each type of home and price range to help them achieve their goals when buying or selling a home.

Email us or call us today at 604-817-7173 to find out what your home is worth in today's market and how our concierge service can help take the stress out of the buying or selling process.