Correct REA procedure for a multi-offer situation?

[BigWal_v2]

Hello all,

Quote from this article:

According to the complaints committee, Tondi failed to follow correct procedure for a multi-offer situation.

Can anybody post a link or advice on what the 'correct procedure for a multi-offer situation' is for an REA?

As both a vendor and a buyer, I've tried asking what happens in this situation, and have never been referred to anything as concrete as 'correct procedure'.

PS - not sure if this belongs here or under the 'Finance, legal and tax' forum. Mod's please move the post if I've put it in the wrong place.

[jack2016]

I get the impression that the "correct" procedure is everyone is told that they are in a multi offer situation - encouraged to put their best offer, agents not telling what highest offer is so as to be impartial. Vendor picks the offer they want.

HOWEVER. I have heard of a top agent (top sales year on year) who does this - picks the top offers. Call both guys say will you up your offer. Once one guy ups it, calls the other, gets them to beat it, when they beat it, rinse repeat. I was told this is a bit dodgy. But who knows? Anyone knows?

[BigWal_v2]

I get the impression that the "correct" procedure is everyone is told that they are in a multi offer situation - encouraged to put their best offer, agents not telling what highest offer is so as to be impartial. Vendor picks the offer they want.

HOWEVER. I have heard of a top agent (top sales year on year) who does this - picks the top offers. Call both guys say will you up your offer. Once one guy ups it, calls the other, gets them to beat it, when they beat it, rinse repeat. I was told this is a bit dodgy. But who knows? Anyone knows?

Thanks Jack2016.

That's pretty much my (very limited) experience, but the article says ".. According to the [REA'S] complaints committe, Tondi failed to follow correct procedure for a multi-offer situation"

I, and hopefully many others, would like to find out what the REA's definition of the "correct procedure for a multi-offer situation" really is.

Just to have it in black or white, you know.

[Aston]

https://www.rea.govt.nz/real-estate-professionals/the-sales-process-and-general-guidance/multi-offers/

[BigWal_v2]

Excellent. Thank you Aston.

[ladyagent]

Aston is spot on with this link! You can also look on settled.govt.nz under Buying a Home..."Understanding a Multi-Offer Process".