I quickly ask the listing agent...

1.  So why have you not accepted it, if it is so good?

2.  Is this your buyer or from your office? (yes, they have to answer)

3.  Is it cash or financed?

Most agents answer my questions because they cannot think fast enough not to...sometimes I ask more questions.

Based on how they answer, if you tune in, you will have your answer on whether they really have another offer or are just pulling your leg. 

If in doubt...tell them that since they have such a great offer, your buyer will move on...if they do not have a good offer, they will encourage you to submit an offer...or they might not care, because they either have a good offer or they have the buyer also.

I add it all up and then I tell the buyer what I think...

Eve

I will pass that message to the buyer and let the buyer decides. 

I think it depends on how badly your client wants this house and what your client thinks the house is actually worth. But I would tell my client what the deal was. Besides, how do you know that agent is telling you the truth?

I'd find out more.  An "almost full price offer" if VA isn't as strong as the same price with a conventional loan.  If price isn't something you want to compete on, you can see what their COE is or %down is and try to compete on terms.

Hmmm. I would advise the buyer-client of what was said, then give my opinion: 50-50 they are on the level, based on historical experience.
So what do you want to do? We don't know if it's for real. What is the home worth to you? Is it worth being manipulated into an over FP offer? What is the actual market value? Do you even want to play?
Then shut up and listen.

   I would relay this statement to my Buyer, with the caveat that it may or may not be true.  If they really want the property, they should come in now with their highest and best.

Several good answers before I read the question.  See Wayne Martin and Mike & Eve Alexander 

Follow the instructions from your client. Almost? Ha, ha, ha, ha.... 

But does it mean the seller actually received an offer? Get a confirmation IN WRITING. So, following your client's instructions, write up an offer conditional on a counter offer. Then counter with an escalation price clause to a certain limit, subject to a copy of the other offer. This elimintaes the BS out of the deal.

An "almost full price offer" doesn't mean much.  The current offer may feature barely qualified buyers and crappy terms.  

If your clients are interested in the property, they should make an offer.  I'd give little consideration to the offer in play.  There's a reason the agent didn't say they have an accepted offer.

It sounds like if your clients get the property, there could be considerable upside. 

I tell the buyer what she said word for word & then explain the different options. Well, she might have an 'almost' full price offer with 10 points lol. 

Good luck with it.

Agreed with Candice explain the facts but At the end of the day is the buyer's buyer's decision.

Question one, why has the seller not signed the contract?

Tell my buyer what I have been told and suggest based on those facts I am authorized to tell the listing agent we will pass!

I do EXACTLY what Mike & Eve Alexander do! You'd be surprised at the amount of information you can glean from asking a couple of questions. And, when you fire them at the agents 'in easy conversation,' they WILL talk...just listen and listen between the lines!

I am with Eve of Mike & Eve Alexander - always dig and ask more questions. The more questions asked the more we learn the truth ... truth withstands the test of time and does not change. The other does not because people cannot remember what they told you that was not the truth. 

Up to your client as to whether they want to play or call their bluff.

I'm with Fred Griffin on that one.

Who's to say when a dirty, stale listing is going to pop? I'd let them know what the Seller's Agent said, I'd tell them if there were comparable properties for sale that we haven't seen yet & if they wanted to go in with an offer I'd tell them to make an asking price offer so we ensure we get it. 

Discuss the issue with your buyer and your buyer ultimately can make a decision to move forward or not depending on whether or not the property works for them.

Paul,

It really depends on your relationship with the agent.  We were fortunate to work with top notch people for whom integrity mattered.  Sounds like you do not believe her.  A

I tell the buyer the information I received from the listing agent and let them make a decision. 

Susie Kay nailed this one!

I heard so many times that phrase: we have a good offer, hurry up, submit yours, yada yada. 

I would not even pay attention, unless you are in a good relationship with an agent. Submit your highest and best terms based on your research, if your client still wants it. 

It's a great story that I've heard over and over yet the property never closes. I'd give the Buyer the news and advise them to offer whatever they're comfortable with. Almost is only good in tiddly winks and horseshoes.

Go with you r gut feeling.

Depem

If the other agent is telling me they have an offer on the listing, they better be telling the truth first of all. Who conducts business by lying about an offer? If that is the way real estate agents operate, no wonder we have such a bad reputation. This is the most unethical thing I see going on in our industry, and it should not be allowed.

Okay, so with that said, I would present the information to my buyer and let them make the decision whether they want to move forward or not. I would also ask the listing agent, since they claim to already have an offer, when they might be making a decision on that offer, and try to find out more details if possible.

I would share this comment with the prospect. The offer should relate to the current market value regardless of the comments by the listing agent.

How bad do you want something is in play...Let that guide us all

the listing agent is attempting to create a bidding war .... forget about what that agent said and write your offer in a manner that reflects your market.... make it the highest offer your buyer will pay and with the best terms your buyer is qualified to handle....

Like the others, it is the client's decision in the end.

Paul S. Henderson, REALTOR®,CRS, Advise my buyer of the situation and let them decide on what they want to do.

Not my decision, I inform buyer, do a CMA for buyer to help them decide what they are willing to offer.  But in multiple offer situations I usually tell the buyer to make the best offer that wouldn't make them upset if they lost the property.

Submit your buyers best offer, and it either works or it doesn't.

It is the buyer's choice, how badly do they want the home?

I would give my client the communication as my agency to my client requires just that.

Proceed with where your buyers are comfortable. There may or may not be an offer and your buyers' offer may have more attractive terms.

This is part I hate from agents. It always seems that when a buyer is interested in a property, there is mysterious another offer just happens to pop up. It seems like playing poker. All you can do is tell your buyer and have them make a decision. If we all are saying we are honest, this is one thing that needs to change

I would let my buyer know what the listing agent said and advise the buyer of his or her options.

I guess the other offer hasn't been accepted yet. I've had so many agents play that game and my advice would be not to be stampeded. Offer what the buyer thinks it's worth. Maybe it would be better to wait for another better house to come on the market.

It is the buyer's decision and I do not advise my buyers to pay overmarket prices. If they wish to proceed, I will certainly write it up.

The reputation of the agent will come into play for me.

But with the additional info I would not believe the agent

If the property is under value then full price. The listing agent is an idiot for saying so.

It depends how much the buyer wants the property. I tell my buyer what it is worth, what i would pay for it and ask them what they prefer. No use buying just to buy unless they love it, if not move on