Common Pitfalls in Negotiating Multiple Offers

Louisiana REALTORS • December 1, 2020
Information provided by:
Patricia B. McMurray, JD and Melissa Grand, JD, Baker, Donelson, Bearman, Caldwell & Berkowitz, PC
450 Laurel Street, Chase Tower North, 21st Floor Baton Rouge, Louisiana 70801

Multiple offers on a property is great news for a seller. However, negotiating multiple offers on a sale of residential property can be fraught with potential pitfalls for all parties involved in the real estate transaction. It is critical that REALTORS® have a clear understanding of the rules and industry standards to provide to their clients when multiple offer negotiations occur. Some common issues that arise during multiple offer negotiations are discussed below.  
  • I am listing agent for a seller who received multiple offers to purchase the seller’s home. Is it permissible to tell all the buyers’ agents who have submitted an offer of the existence of multiple offers and provide them a deadline to present their “best and final” offers?

    Short Answer: 

    Yes, this is permissible if authorized by the seller, unless there is a confidentiality agreement that prohibits that disclosure.  Best practice is to obtain the authorization from the seller in writing.


    Analysis:

    Analysis of this response under the Code of Ethics of the National Association of REALTORS® (NAR) and Louisiana law are discussed below.


    Code of Ethics Considerations


    REALTORS® are subject to state real estate regulation and the NAR Code of Ethics. The Code of Ethics obligates REALTORS® to be honest with all parties; to present offers and counter-offers quickly and objectively; to protect and promote the interests of their client; and to cooperate with other brokers (See NAR Code of Ethics Manual, Presenting and Negotiating Multiple Offers).   Cooperation involves sharing of relevant information.


    Article 1 of the Code of Ethics imposes two obligations on licensees: first, licensees are required to “protect and promote the interests of their client,” and second, licensees are obligated “to treat all parties fairly.”  An agent is permitted to disclose the existence and source of other offers to buyers and cooperating brokers, with authorization from the seller (See NAR Code of Ethics Manual, Presenting and Negotiating Multiple Offers).   NAR Standard of Practice 1-15 provides:


    REALTORS®, in response to inquiries from buyers or cooperating brokers shall, with the sellers’ approval, disclose the existence of offers on the property.  Where disclosure is authorized, REALTORS® shall also disclose [when asked] whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating broker. (emphasis added)


    Essentially, if authorized by the seller, terms of offers can be disclosed to competing buyers or their agents unless there are state laws or confidentiality agreements that specifically prohibit that disclosure (See http://realtormag.realtor.org/law-and-ethics/ethics/article/2012/01/what-disclose-amid-multiple-offers; see also, https://magazine.realtor/law-and-ethics/ethics/article/2018/03/staying-mum-on-multiple-offers).   Best practice is to obtain the authorization from the seller in writing.


    Legal Considerations


    Under Louisiana state law, we did not find any specific law addressing disclosure of offers to purchase, or requiring confidentiality of the terms of such offers.  We did not find any specific Louisiana law prohibiting a seller’s agent from inviting multiple buyers’ agents who have submitted offers to purchase to present their best offers.  Louisiana real estate law defines “confidential information” as “information obtained by a licensee from a client during the term of a brokerage agreement that was made confidential by the written request or written instruction of the client or is information the disclosure of which could materially harm the position of the client” (Louisiana Real Estate Commission Law of Agency § 3891(6)(a)).  To the extent that disclosure of the terms of multiple offers could materially harm the position of the client, such disclosure is prohibited unless authorized by the client.


    The conservative view is that a licensee should make sure there exists no confidentiality agreement between the seller and a potential buyer regarding the potential buyer’s offer or its terms, and obtain authorization from the seller prior to disclosure of the existence of such an offer to a buyer.

  • Am I specifically required to disclose the existence of multiple offers to the buyers/their agents if no one asks about other offers?

    Short Answer:

    No.


    Analysis:

    As discussed in the previous response, unless in response to an inquiry and with  authorization of seller, the Code of Ethics does not impose an affirmative duty to disclose multiple offers.  Under NAR Standard of Practice 1-15, disclosure of multiple offers is allowed with the seller’s approval.  So, if the seller does not authorize the disclosure of multiple offers, disclosure would not be permitted.  Listing agents should discuss with their client the pros and cons disclosing the existence of multiple offers to buyers/their agents in connection with the seller’s overall negotiation sales strategy.  Additionally, if there is a confidentiality agreement in place, the parties should carefully examine the agreement’s terms to determine if disclosure is permitted.

  • Can a seller extend multiple counter-offers to multiple buyers at the same time?

    Short Answer:

    A seller should generally not counter more than one offer at a time so as to avoid entering into multiple binding contracts to sell the same property to different buyers.  


    Analysis:

    Generally, a contract is formed by the consent of the parties, established through offer and acceptance (La. Civil Code art. 1927).   In Louisiana, an offer that is not irrevocable may be revoked any time before it is accepted (La. Civil Code art. 1930).   Acceptance may be made orally or in writing (La. Civil Code art. 1927). 


    When a seller lists a property for sale, typically that listing is an "offer to the world at large."  An offer to the world at large may be accepted by anyone.  If a buyer accepts the offer with no contingencies (i.e.: agrees to pay the listing price for the property), then that buyer's acceptance of the offer will generally form a contract.  A seller generally cannot revoke the offer to the world once it has been accepted.  

    In the situation of a seller receiving multiple offers from multiple buyers, a seller should carefully consider when and how to respond in order to avoid entering into more than one binding contract to sell the property.  To the extent that a buyer accepts a listing price, with no contingencies or counter-offers, the buyer and seller may have entered into a valid contract.  It is important to remember that the existence of a valid contract is highly fact specific, and it is recommended the parties consult with an attorney to determine whether a valid contract exists between the parties.

  • Are “buyer love letters” a good idea if there are multiple offers?

    Short Answer: 

    No.


    Analysis:

    In handling multiple offers, it is important to remember that “buyer love letters” may trigger fair housing concerns (See https://www.nar.realtor/videos/window-to-the-law/how-to-handle-multiple-offers).   A “buyer love letter” may include such items as letters, videos, photographs, or any other communication that accompanies an offer from a potential buyer which is meant to appeal to the seller.  A “love letter” could trigger implicit bias, possibly putting the buyer in a position to act on an offer based on a “feeling” rather than just considering the price, terms and merits of the offer.  As NAR explains, accepting an offer based on anything other than the price, terms and merits of the offer might violate fair housing laws, and real estate professionals should discourage the use and consideration of buyer love letters to reduce the risk of discrimination (See id).

  • Where can I find additional guidance on best practices for buyers, sellers, and their agents for negotiating multiple offers?

    NAR has published the following guidance on this topic: Buyers & Sellers Guide to Negotiating Multiple Offers.


Disclaimer: These materials are to be used for informational purposes and should not be construed as specific legal advice. These materials are not designed to cover every aspect of a legal situation for every factual circumstance that may arise regarding the subject matter included.


This publication is for reference purposes only and association members or other readers are responsible for contacting their own attorneys or other professional advisors for legal or contract advice. The comments provided herein solely represent the opinions of the authors and is not a guarantee of interpretation of the law or contracts by any court or by the Louisiana Real Estate Commission.


Compliant advertising under the Fair Housing Act

Navigating Fair Housing Advertising Standards: A Guide for Real Estate Professionals

By Louisiana REALTORS® • April 24, 2026
Avoid costly fair housing violations with expert tips on compliant real estate advertising, from listing language to social media targeting strategies.

2026 Legislative Session Scoop - Week 7 Recap

By Louisiana REALTORS® • April 24, 2026
Week seven of the 2026 Regular Session was one of the most active weeks yet for legislation affecting the real estate industry. Louisiana REALTORS® remained heavily engaged as lawmakers advanced bills dealing with property disclosures, appraiser liability, rent regulation, insurance, blight, redevelopment and other issues that directly affect real estate professionals, property owners and consumers across the state. One of the most important bills this week was HB 1166 by Rep. Kim Carver , which would require disclosures for vacant residential property. The bill was reported from House Commerce with amendments on a 14-0 vote and then amended on the House floor, ordered engrossed, and passed to third reading. Louisiana REALTORS® testified on the bill in committee and worked closely with the author to better posture the legislation. Amendments advanced by our team were accepted by the author, helping improve the bill while preserving a practical disclosure framework that increases transparency without creating unnecessary confusion in the transaction process. Another closely watched issue this week was consumer-fee disclosure legislation. HB 617 by Rep. Mandie Landry moved this week, advancing from House Commerce and then the House floor, while HB 580 , another hidden-fee disclosure bill touching real estate transactions, remains pending. Louisiana REALTORS® is opposed to these measures in their current form to the extent they apply to real estate professionals because they are not well-tailored to the realities of real estate transactions, where many costs are negotiated, variable or controlled by third parties. Louisiana REALTORS® testified in opposition to the bills we oppose and is actively working with the author to better posture the legislation and remove real estate professionals from its scope altogether. On HB 472 by Rep. Alonzo Knox , the rent stabilization bill, the author is expected to try to bring the measure back before the committee next week with amendments. Even so, Louisiana REALTORS® remain opposed to the bill on principle. Price gouging is already illegal under existing law, and government-imposed rent regulation is not the right answer to housing affordability challenges. Louisiana REALTORS® testified in opposition to the bill and continues to oppose the measure because policies like this risk discouraging investment, reducing housing supply, and creating further market distortions rather than solving the underlying problem. HB 468 by Rep. Troy Hebert , which regulates the wholesale of residential real property, remains pending in the Senate Commerce Committee and continues to be an important bill for the industry. Likewise, HB 1027 by Rep. Troy Hebert , dealing with appraiser liability, had a strong week, passing the House 90-0 and moving to the Senate. Both measures are significant because they promote greater clarity, consumer protection and confidence in the real estate marketplace. Blight and redevelopment issues also remained active. HB 284 by Rep. John Wyble , which would allow certain local governments to expropriate blighted property through a declaration-of-taking process, remains subject to call and continues to raise serious concerns about private property rights. By contrast, HB 214 and HB 217 by Rep. Chance Henry , which create tax incentives for the rehabilitation of blighted property, represent a more constructive redevelopment approach by encouraging reinvestment rather than expanding government taking authority. Insurance legislation also remained a major focus this week, with multiple bills heard that could affect homeownership costs, market stability and post-storm recovery. Measures dealing with Louisiana Citizens assessments, pre-suit insurance claim review, the Fortified Homes Program and insurance market transparency all carry real implications for affordability and transaction viability. In Louisiana, insurance remains one of the most important issues affecting the real estate market, and Louisiana REALTORS® continues to closely track that legislation. Taken together, week seven showed that Louisiana REALTORS® remains actively engaged where it matters most: supporting practical transaction standards, protecting private property rights, testifying for and against legislation when necessary, pushing back on unworkable regulation and rent-control-style policies, and advancing policies that strengthen housing opportunity and market stability across Louisiana. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.

Consumer Guide Update: Navigating Interest Rates Shifts

By Louisiana REALTORS® • April 23, 2026
NAR is pleased to share the latest consumer guide helping buyers navigate shifting interest rates. The one-page guide covers how lenders set rates, the impact of small shifts on monthly payments and strategies to get the lowest rate possible. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow up to two weeks for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Navigating Interest Rate Shifts Financing a Renovation When You Buy Staging Your House for a Sale Spotting Deepfake Scams in Real Estate Are You Ready to Invest in Real Estate? Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for the next consumer guide, which looks at how solar installations may impact home sales transactions.
Show More