During a bidding war, the listing brokerage must disclose the number of active offers on a property, whether any of the buyers are represented by the listing brokerage, and whether any offers include an adjustment to the commission the seller would pay the buyer’s brokerage.
Sellers are not required to choose the highest-priced offer.
However, in today’s hot housing market, the list price is more often being used as a marketing tool to generate interest in a property.