Two Ways to Handle Buyers Who Want the Same Property

You represent two clients who are extremely interested in the same property. How do you fairly advise them both?

This is a pretty awesome predicament. You have two, ready and willing buyers. Well done!

So here’s the tricky part. You have a fiduciary responsibility to get your clients the best price. How can you do that if you are representing two clients who want the same home?

Take Action

1. Refer one client out. Explain that there’s a conflict of interest and you want to make sure everyone is being fairly represented. You don’t want a client to think that there are any alternative motives. It sucks to have to do this but at the very least, you can get a referral fee and hopefully your client will appreciate your honesty and ethics.
2. Involve your broker. Brokers are here to support you. If they have your best interest in mind (which they should), they won’t take a commission fee. Your broker can help negotiate and write one of the offers so you can maintain a neutral stance in the transaction.

This advice can also apply when you are representing the buyer and the seller of the same property. If you are going to represent both sides, you have to be very transparent with how you handle the situation. Set the expectations early. Let both sides know that you will treat them completely separately. Remind them to come in with their best offer. If you over-communicate and are ethical in how you handle the process, everyone wins.

I’m curious if others have been in this situation before. If so, let me know what you did and how it went.

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