With the housing sector showing signs of recovery in many areas, multiple offers could become a factor in the weeks and months to come.

Prior to engaging in a bidding war on a house, buyers may cautiously want more information, such as a peek at rival bids. The case for disclosing bids is simple: Buyers want to make sure that there actually are competing bids, and that they’re not needlessly raising their own bid.

The National Association of Realtors® maintains that, unless state rules dictate otherwise, bids can be shared.

“Purchase offers generally aren’t confidential,” according to an NAR statement. “In some cases, sellers may make other buyers aware that your offer is in hand, or even disclose details about your offer to another buyer in hope of convincing that buyer to make a ‘better’ offer. In some cases, sellers will instruct their listing broker to disclose an offer to other buyers on their behalf.”

At times, regulations or state law may limit brokers’ ability to disclose some terms of the offer to third parties.

There is one scenario, though, where competing bids are always disclosed – and no one minds.

“The auction process is entirely open,” notes Rick Sharga, executive vice president at Auction.com. “Every bid is public and multiple bids are common.”

Source: RealtyBizNews