Making Multiple Purchase Offer

Published by cravat | Filed under Buyer / Seller Tips, Miscellaneous, Real Estate, Shout Outs, Uncategorized

You ask is it okay to make multiple purchase offers? One reader asks me “My husband and I are having a really tough time to buy our home. We keep getting booted out on the properties we like by spot cash buyers. My officemate says we should start making multiple purchase offers on as may properties that we like, as possible but my real estate agent is a bit hesitant on the idea. For me it looks like a very good plan, though, My husband is all for the idea and would like to check it works. Now, I ask you is it okay to make several offers?”

To answer you, if I gather and ask a dollar every time a prospect investor asked me if it was allowable to write several purchase offers, well, I definitely would still not be filthy rich. Nonetheless, I clearly understand a buyer’s craving to give out multiple offers especially in seller’s market.

In seller’s market, usually record, it means the number of homes available for sale, is way too low and the inclusion rate is low as well. Inclusion rate is the total of months it would take to sell every property on the market based on the present rate of sales.

With these, more than one buyer might be able to submit for an offer in a property, concluding in multiple offers on the desirable homes. When an owner receives several offers, an owner enjoys luxury of choosing the highest and the best offer. More often, buyers in these cases experience offer rejection.

Downside to Making Several Purchase Offers

–  Violation of Good Faith and Reasonable Dealing Agreements - In some cities or states, contract law entails a good faith and reasonable dealing transactions. If a buyer can give to buy only a single property yet gives out several purchase on many homes, it is foreseeable that the buyer has violated the good faith agreement which may have legal implications. Buyers are advised to talk to a lawyer to seek and know their legal stand point on this issue.

– Throwing the Same Check With Every Multiple Offers Could Cancel the Agreement – There are instances that buyers photocopy an earnest money deposit and give out the same payment with each offer. Since there is only one earnest money deposit check, technically one offer actually has a secured purchased offer. The several offers have no deposits which may invalidate or cancel the multiple offers that you have made.

–  Several Purchase Offers Might Result in Several Acceptances – If an offer holds no Agreement Contingencies that would allow the buyer to void the agreement without repercussion, a buyer could enter in several purchase offers. In that case, all the owners may expect the buyer to secure a fund and close each agreement.  Buyers who declines to perform could put themselves liable to the sellers and / or in court.

Protection Available for Multiple Purchase Offers

Several buyers are excited to purchase bank-owned homes. One of the difficulty that arises with foreclosure  homes is REOs tend to incur a big interest from buyers and the REO banks can take a very long time to respond.

The solution for some buyers is to make several purchase offers and submit on many bank-owned homes at the same time. These buyers are allowed to make several purchase offers that could keep them away from liability for bad faith if they make conditional offers. It only means the offer would indicate language that makes the offer subject to the owner’s acceptance after the REO bank recognize the offer. It allows the REO banks know that the buyer has given several purchase offers.

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