Is your leave of absence over? Happy New Year!
The verbiage you provided pretty much tells the tale!

You inform each buyer that another buyer you are working with also wants to offer, and if they have a problem with that we can refer you to another agent . . . otherwise, it's all confidential, take your best shot outta the gate and let's do this!

First, it's good to see you back --- Happy New Year.  As for your question, the answer for me would be a discussion with the buyers.  This can lead to learning and more insight when clarity of the situation can show.  First steps first.

Fred! What a treat to see you! Hope all is well. Not sure there's much you can do except submit all offers and let the builder decide. But you'll need to have that conversation with both of your buyer friends.

Good to see you back Fred!

Disclose to both and see which one wants it the most and which would rather save a few dollars and buy a different lot.

License law and the Realtor code of ethics allow you to write contemporaneous offers.  As you point out, you need to be very careful in your negotiations to protect proprietary information.

You need to explain the situation to both buyers, and get their express written permission (we have a form) to allow contemporaneous offers.

(if either client is uncomfortable with it, and opts not to sign the agreement, you should refer one of them to a trusted associate for the negotiations).

Personally, I could/would do it... once the offer is accepted, it goes back to being a normal transaction, and you'll need to do some damage control with the client who did not win the bid.

Great to see your Fred Griffin Tallahassee Real Estate , Happy new Year!

Thankfully I've never been in a position like that with friends (strangers yes). I would let each of them know the circumstances and say "You have to put in your best offer, I am bound by law not to reviel other bids."

I thought I was going to have this happen a few years ago. Two buyer clients both looked at the same house; I let them both know I was showing it to another buyer. And I decided that IF they both wanted to put in an offer I would refer one to another buyer agent. It didn't happen (phew), and I'm not 100% sure that's what would have happened, but that's how I was leaning. No matter how fair I was, how I said the exact same thing to each of them, whoever lost out would think I wasn't on their side. 

Hi Fred, hope you are well.

Standard lingo on the BB form - unless you are working directly with the builder where this could happen everyday. 

Submit & let the builder/seller decide.

wow.... that's a tough one..... I would only represent one on that lot and that would be the one who called first....  but that's just my "common sense" solution.... the other potential buyer could go to another lot and/or another agent....

That should be brought up at the time of a BB agreement...before there is a problem.

Eve

PS:  Welcome back!

Welcome back Fred.  Our buyers rep agreement address the possibility of this happening.  So I just point that paragraph out to them.

Welcome back Fred.  

Have the serious conversation with both.  imform them of the situation.  see if they have any opinion.  It will all work out. 

Submit the contracts after offering your best advice which will not include information about other prospects. The seller will make the selection.

Since they are both your friends, I would refer them both to another agent for the offer writing.   That way, neither believe they were slighted.  Once the offer is accepted, you could pick back up and jump into the transaction.  And if the offer goes nowhere with the other, again, jump back in.

Fred!!! Great to see you again. I think I would refer one of them to an agent within your office 

Advise both of the situation. If they both wish to proceeed, write offers and submit. Seller will make a decision. Who knows, maybe a third buyer wants the model too and take the prize! If not, there are other options.

Have the conversation and let them know the situation. If they still both want to submit do so and let the builder decide.

I would propose this question to them as well...

Well it's good to see you back in the rain Fred! And after reading the comments you've got this handled - and well.  Good luck with both buyers buying different homes.

Lots of good advice here. Go for it, Fred Griffin Tallahassee Real Estate 

Let the seller decide.  I have seen several offers sold more than the builder asked for.

Fred,

First of all, we are delighted to see you back on AR and want to wish you a Happy New Year!  I think you have good answers, and I have a feeling you will sell both a lot each.  All the best, A

Fred,

I believe you know what to do:)

Welcome back Fred!

Great answers here for a few ways to go. If they were my friends that were clients, I would be upfront as it sounds like you have been. There is a reason that they both want to work with you and they should understand that you have a job to do and will look out for them but the seller will decide which offer to go with. 

Fred, welcome back, nice to see you.  I agree with need to disclose and Ritchie's advise to ask your clients directly.  As long-time friends they would appreciate your candor I should think.

Welcome back, Fred Griffin Tallahassee Real Estate !

Full disclosure and transparency would be the words of the day.

I always suggest referring one of the buyers away to someone else. How can you best represent two buyers for the same property?  But if you fully disclose to each that you have another buyer also interested in the same property and they are okay with you representing them as well - as the verbiage in your agreement notes - then you should be okay.  Ultimately it is the seller's choice which offer they accept.

So good to see you back Fred Griffin Tallahassee Real Estate ! I'm in agreement with others and your stated intent.  We have a contemporaneous offers form for this situation.  Disclosure but not too much, ;:-) 

Be upfront with both.

Hello Fred - what a nice surprise to see you here in the Rain! 

Happy New Year! 

I would have an open discussion with both - full transparency. 

I would let both buyers know that I'm writing an offer for both and I cannot disclose the details of each.  

Where have you been Fred?  Good to see you, though!

You ask them which they prefer ? Paper Rock Scissors OR on your mark, get set, go write an offer?  Good luck!

Good to see you back Fred Griffin Tallahassee Real Estate You've gotten many good comments and hope both your friends wind up with the right home! Sounds like you've got the opportunity to sell two different homes. 

Go talk to the builder and see if he will give extra incentives if you have TWO buyers for the lots. That way everyone wins!

I agree with all the comments to inform both of them. Happy new Year Fred!

Welcome back!

Inform both clients of the potential multi-buyer representation.  Give them the option to have someone else in the office represent them.

I would write an offer for both of them and let them know that there are multiple offers and they need to put their best foot forward.

Fred Griffin Tallahassee Real Estate disclose to both buyers.

Yep, keep them both informed that you are representing more than one client. If one wants to be referred out, do it. If one wants to move on, be happy to be of assistance. 

refer one of them out to someone I trust in my office

I would write their offers and let them know you are aware that there is another offer coming in and that they should make it the best and final offer.  Then let them decide what kind of offer to make and "may the best person win".  You don't have to tell them that you are the agent who wrote the "other" offer.  I have been in this position before.  You have to treat every client the same.

Oh my gosh, it's so good to see you here, Fred! You have been sorely missed.

To answer your question - I think your BBA is pretty clear. That said, I would have a conversation with BOTH buyers, asking for their feedback on the subject, letting each know about the other and giving direction as to how they wish for you to manage their Offer. They are long-time friends - they will not hesitate to give you direction! 

Good luck, Fred!

Hi, Fred, it's good to see you back. Thanks for asking this question - I learned from all the great answers here, too. Disclosing to both Buyers about you writing offers for both, reminding them that the Builder sales people are in this situation daily (see Lyn Sims ), and offering to refer them to a trusted colleague are great options.

Friends for 20 years means you are their implied buyers agent whether they sign anything or not or whether you want to be or not. Tread carefully as they both expect you to be totally looking out for their best interests.

WOW! Barbara Todaro and Candice both gave great answers! I don't know what I would do, and I hope I never have to decide 

business is business

UGH, that is always uncomfortable, but disclose to both, submit both, and it is up to the builder.  Glad to see you back.

Disclose your relationship to both buyers and let them decide if they want to continue the transaction with you representing them. If they do, only disclose information about the property and not about your other client, just as in any other transaction. Let each buyer make their own offer, submit both offers and whom ever gets the accepted offer gets to proceed. Then do your best to find another property for the other party. Just be upfront about all possible scenarios so you don't lose a friend in the process. Good Luck!

Write the guy that called first. Tell the second one you're already representing a buyer on that home and that you have lined up "John" or "Susie" or some other agent in your office to help them. That's how I would handle it. I see your Buyer Agreement allows an agent to represent two buyers for the same property but I would still handle it as described above. 

Have another Agent Draft one of the Agreements. You work with the Winner , the rest of the way .

This does happen in bank owned where homes are priced to sell. At that time it is disclosed to all buyers their are multiple buyers. I have my buyers sign the agency disclosure. Any info disclosed that buyers may need about the property and buyers told to make their highest and best offers. 

Great responses have already been posted but I wanted to take the opportunity to say "Hi Fred!!".  :)

refer one or maybe both of them out to agents within my office.