The article describes the frustration among prospective home buyers who take part (often unsuccessfully) in a multiple offer situation. As the article correct points out, there is often a proliferation of multiple offer activity in markets subject to limited inventory.
The frustration though is the result of the marketing methods often utilized and recommended by agents and adopted by their sellers in setting a listing price for the property. Specifically, the prices are set artificially below prevailing market prices along with a delayed offer date in order to encourage greater buyer interest and buying frenzy.
The article does a good job of discussing the growing negative reaction to underpriced listings in the market by knowledgeable buyers who are now beginning to avoid competing offer situations.
What the article doesn't mention is one of the strategies used by savvy REALTORS® in the multiple offer situations known as the "Bully Offer".
Simply stated, the Bully Offer is one which includes an aggressive offer price with good terms and includes a short irrevocable date (24hrs or less) which clearly expires well before the delayed offer date noted in the listing. In such a case, the listing REALTOR® is legally bound to "convey the offer to the seller at the earliest practical opportunity".
Assuming the REALTOR® does so, the seller can very well choose to accept the offer which leads to a happy seller and a purchaser who has avoided the multiple offer frenzy and associated stress that comes with it.
The problem in this case are the purchasers and their agents who chose to play by the rules and wait until the requested offer date to convey their offers, They are all left fuming once they realize the house has already been sold.
In case you're wondering, no, there are no specific guidelines within the Provincial Real Estate & Business Brokers Act legislation (REBBA) that addresses this specific Bully Offer situation. Aside from the seller and agent's own moral and ethical dispositions, there is nothing guiding the appropriate conduct of an agent in this case.
The only recourse for the disgruntled purchasers/agents in this situation is to pursue legal damages. In that respect, by accepting the "early offer" the seller and his agent may be leaving themselves open to a potential lawsuit.
How the Courts would rule on on this or determine the basis for damages is anyone's guess.
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