New Hampshire Real Estate Blog

Buying a house??….Did you know that the purchase agreement /offer to purchase is not necessarily being kept confidential?

If your answer is No…then this blog is for you because in New Hampshire it MIGHT not be.

Yes… absolutely in New Hampshire it might not be and most buyers are shocked to hear that…even some agents are shocked when they find out.

REALTORS� have an obligation Ethically to disclose to their buyer clients the fact that their offer may not be kept confidential and yes I am talking about the terms…i.e. offering price and or conditions…financing, deposit and closing date all of which MAY be released by the seller to competing buyers in hopes of getting a better/higher offer.

This is sometimes called “shopping offers” and has been done fairly routinely but secretively in New Hampshire and other states. No one will talk about it because they feel uncomfortable about it…

I wrote about The REALTOR� Code of Ethics Article 1 SOP 1-13 in detail a while back in my Blog but the summary of the Code of Ethics that all REALTORS subscribe to involving this, reads as follows….

Standard of Practice 1-13

When entering into buyer/tenant agreements, Realtors^� must advise potential clients of:

5) the possibility that sellers or sellers’ representatives may not treat the existence, terms, or conditions of offers as confidential unless confidentiality is required by law, regulation, or by any confidentiality agreement between the parties.

Make sure that your REALTOR� tells you about this and that you understand that in NH we have no requirement by law or regulation about contract confidentiality. Also understand that the REALTOR� is only obligated to tell you this if they represent you in the transaction. If the agent you are working with is not your Buyer agent…they have no obligation to tell you this. this is just another reason to consider working with a qualified educated experienced Buyer agent…like me of course :)!

A prior (before purchase offer is released to the other side) confidentiality agreement might work in your favor but discuss this with your REALTOR� and understand that it is subject to the seller agreeing to it as well.

Every time I try to use a confidentiality agreement I get laughed at by the other REALTORS�…I mean who in their right mind would have their seller sign this type of stipulation. So you can see that this might not work in your favor.

Some of you might wonder if this could impact you in our current market…absolutely it could!

Any home priced right and in exceptionally good market condition will attract buyers and as we go into the new year and with interest rates as low as they are…buyers could still find themselves in multiple offer situations and it could also be used as a ploy against them. Be prepared and act wisely as this is the biggest investment of your life…choose a REALTOR� who has the experience and skills necessary to protect you.

If you’re interested in searching homes for sale in New Hampshire check out our website here or drop me an e-mail .

Monika and Jay McGillicuddy

We know that you don’t care what we know ….until you know that we care!

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