Despite the fact that the real estate market is returning to normal, it is not unusual for real estate professionals and sellers to find themselves faced with multiple offers from prospective buyers on a property listing, especially in the lower price ranges.

NAR recently indicated that a shortage of available properties is likely to continue for the next ten years because the baby boomers and their children are now and will be in the market.

While it's exciting for sellers to receive multiple offers on their property, many states do not have laws or regulations governing how real estate licensees are obligated to deal with such situations, sometimes resulting in a dilemma over what to do next.

The National Association of Realtors recommends that the safest way for listing brokers and sellers to ensure a seller's best interest is protected is for the listing broker to review how multiple offers will be handled with sellers before any offers are received.

Sellers should decide how multiple offers on their property are to be handled. This is a good policy since it's the sellers who may not get as high a price if some buyers aren't told about other buyers' offers, and it's also the sellers who risk losing all offers if potential buyers back out after being told of other offers.

Keep in mind the following, however. Sellers that have already accepted an offer when they receive a subsequent offer on their property may want to consider the second offer. Alternatively, a seller may accept an offer, receive a second offer they want to consider, but feel in a dilemma because the first acceptance has not yet been delivered to the potential purchaser. In either of these circumstances, listing brokers should advise that sellers proceed only after receiving legal advice. Legal counsel can help sellers make sure that the acceptance of a second offer is clearly contingent on the first offer's becoming void.

Multiple offers are a great problem to have. Just be sure you plan for them by setting a policy and having clear direction between sellers and listing agents on how to handle them when they arise. For a detailed explanation of multiple offers go to the Sell page on easternctrealtors.com or link to it directly at http://www.easternctrealtors.com/a-buyers-and-sellers-guide-to-multiple-offers.html.

Visit our web site at easternctrealtors.com or our blog at ecarvoice.com to learn more.

Quincy Clayton is president and state director of the Eastern Connecticut Association of REALTORS®