Michelle,

I had this happen to me 2 months ago. I told both clients that I have another one interested in the property, and also assured them that I wouldn't or couldn't divulge any information to the other as to how the negotiations were going if it got to that stage. They appreciated the fact that I informed them. One actually found a property that suited their requirements better, and didn't pursue the initial home, but I think I gained brownie points with both.

It depends on your scenario as to how I answer. I have had this happen and basically if you have both buyers, get offers, not letting the other know who has offered what. If one of the buyers is with another agency let the agent know that you have an interested party as well. Basically, not knowing your big picture, first money wins. One buyer may be qualified already. Don't know the big picture, but someone may go away mad unless you have a similar property, good luck. But they both need to get their offer on paper, now.

Are you the listing agent AND have 2 buyers working with you? This must be a very nice house! Good luck!

I have had this happen. Show both parties the house and then if both parties want to put offers in, just explain to both parties you are working with another couple that is also interested in this house and that you going to take both offers to the owner just as you would for a single buyer. You won't devuldge any information about either parties financing situation and or how high the offer is. You are just a messanger and nothing more.

They should respect your honesty and completly understand. If they don't feel comfortable with this, have someone else in the office accept the paperwork from this couple and present the offer for a 20% referral fee.

I say, take a moment to praise God!!!

We have been talking about this a bit in our office and here (Vancouver Canada) we have come to the conclusion that the best solution in terms of protecting yourself is the Buyers Agency Agreement we have here that specifically states that it is not a conflict of interest to work with more that one buyer on the same property. Under our agency disclosure rules you would essentially be required to tell each party the negotiating posistion of the other with some agreement specifically limiting your agency relationship.

Be careful!

oops....last sentence should have read "withOUT some agreement specifically limiting your agency relationship."

Oh you poor thing.

What a nice problem to have!  I have been in this situation as well and the best thing is to disclose you are working with another buyer who is also interested in the property and do not tell them what the other is doing.  Just think twice before you speak and you will be fine.

I would NEVER represent 2 buyers who are negotiating for the same property. I feel it is definitely a conflict of interest. I cannot give more than 1 buyer advice or help them negotiate a transaction when I have knowledge of terms and price that is in conflict with the other. I do not feel any agent can do this and properly represent both buyers. One of the buyers should be given to another agent and work out some kind of referral fee. I always ask the question, How would I feel if I had an agent representing me and another buyer for the same property? I wouldn't feel it was very ethical.

The broker should be made aware of the situation.  In Connecticut, it is recommended that the 'designated agency" rule be invoked.

With one of the buyer's permission, the broker assigns or designates another agent in the firm to represent them.  Referral fees vary, I would offer out 25%.

If it is both parties intention to extend an offer on the same property, and they are represented by the same agent, I would say it is conflict of interest and nearly impossible for one agent to maintain fiduciary care for both.

In Florida we have Transaction Brokerage and you can work with as many buyer clients as you are fortunate to have without breaking the law.  You also can be the listing agent at the same time.  There are specific laws to follow to avoid conflicts of interest.  

Just write up both offers, present both to the listing agent, wait to see which one is accepted or counteroffered.  The listing agent, if they are smart, will tell the seller not to counter two offers at one time or they could have two contracts.  The seller will counter one of your offers and work with it until it becomes a contract or falls apart.

If it falls apart, re-offer the other one with some changes.

An agent writing offers on a property for more that 1 party is a conflict and that agent cannot not possibly do those buyers justice. In Northern Ca. seller's do make multiple counter offers to buyers. If done properly and ethically, this gives all buyers a fair chance to purchase a property. Agents need to decide what is more important, commission or their clients. I always put my buyers and sellers in first place.