Thats a question for an attorney--but there are many ways for buyers to get out of deals so it's likely not an issue especially if you originally go in with lowballs that have no chance of acceptance as is.

I would suggest that one option might be to do the offers one at a time and put a time limit on acceptance right in the contract, like a day. it might take the bank a few days to respond and if they do, the contract isn't actually valid anymore but you and the agent can verbally renegotiate with the bank.

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April 04

Pat Bourgo, "Pat Bourgo"
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back out of the one you don't want.

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April 04

Robert and Yoko Walker, "Orangecrest"
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Feel free to place multiple offers just like the bank receives multiple offers. The bank isn't reviewing one offer at a time, why should you limit yourself? This is common place in California, ask your agent about your circumstances in other states.

You are getting closer to Summer, so competition is going to get more more crazy out there.

I have placed 10 offers at one time and everyone of them were rejected due to others over bidding... And we were coming in $10K to $20K over the list price. If you like multiple houses, you have to act now, they won't be around after you waited for an answer from the other seller.

If you get multiple accepted, pick the one you want. Do not write off all contingencies in your offer, because then you may have a problem.

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April 04

Michael Emery, "MikeEmery"
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If you write multiple offers on different properties and there are no contingencies written into the contract (your get out of house free card), you are obligated to purchase both properties. Now it's unlikely the lender will give you the money for both properties, which would probably negate on or more of the deals. (and I am curious to hear the lenders side of this perspective).

Frankly I am horrified to hear that multiple offers are common practice in California. I am not familiar with that practice in Minnesota.

If I had a client that wanted to write an offer on second property while the offer on the first property was still open, I would not do it.

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April 04

frisky1
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There is a big difference between a buyer placing multiple offers and a bank receiving multiple offers. Once you sign an offer to purchase you are in effect in contract if its accepted as is. then you have to get out somehow within the contract. Anyone can receive multiple offers without any obligation or liability--huge difference. Thats why you shouldn't really trust an agent to tell you the truth and you should get an atty if you want to do this. I would also suggest that you make all the contracts contingent upon attorney review then the atty can rip them up within the agreed time frame for any reason. I agree with Mike Emery -- although it may be unlikely that you'd get into trouble, you are exposing yourself to potential liability and litigation.

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April 04

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What your doing is unethical and should be made illegal.
Your making offers you have no intention of completing as a sale
and your manipulating prices forcing others to pay inflated prices.

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"Frankly I am horrified to hear that multiple offers are common practice in California"

And none can be proven as real offers ! The sole tactic is used to inflate prices. Australia/Canada had similar issues until they levied criminal laws against it. God only knows how out of control the practice is in the states, especially California.

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April 04

Harrison Painter, "HarrisonPainter"
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The best thing to do is give the bank 24-48 hours to respond to your offer.

They usually can not meet the deadline, but will respond when they get around too it. So as long as your offer goes out of contract, you can then place an offer on another property.

So in theory, you could have 2-3 offers out in a given week, and simply wait for the banks to respond. You have no obligation, as they are out of contract, nothing has been executed, and you have paid no earnest money. As the counters roll in, you can choose what is the best working deal for you.

Nothing unethical in that method, just smart negotiating, working within contract law, and taking advantage of the snails pace that a bank works at to get the best deal.

THAT is the type of value that a good Realtor can bring to the table!

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April 04

FriendshipProperties
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In most cases the bank gives you a verbal acceptance long before they sign a contract. In there 'addendum' they say that they can sell the house to anyone else until they sign the final contract. If they can back out at any time, than so can you. There is no deal until both parties have a contract signed by the buyer and seller. Now, there is a slight moral issue with putting in more offers than you could possibly by. And I suppose there is always the possibility they hand you back signed contracts and your locked in to purchase them. I just wouldn't make a habit of it if you don't have to. In most cases you'll get a verbal acceptance in 2 days or less anyway.

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April 04

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I appreciate all of the responses. This issue came about when we saw a house in the $/sq. ft. range we were looking for but not in the neighborhood we want and the second is the exact opposite.

First, there aren't many "morals/ethics" to bargaining to those who think so. Everyone is out to preserve their own dollar, not the other party involved. This makes being "moral/ethical" a conflict of interest. I am not trying to act blatantly immoral/unethical by any means, but I would do the same on anything I purchased of any value. (i.e. pricing a TV at one store and telling the store I truly want to purchase from what the other offer is) It's smart. I would definitely play the contingency game as any salesperson would do me. (Purchase by xx/xx/2009 to get xxx) This country was founded on bargaining strengths and weaknesses. Though I respect the opinions, and honestly appreciate some (thanks guys/gals), I am going to try and get the most for my money.

Btw, they will both be valid offers. One will be a lowball from heck, while the other is resonably low to allow bargain positioning. :) If, contingencies in place, I can get either property I'll be happy. If not, I'll let the next guy overpay. They have both been on the market over 120 days, so I feel good about it. I'll be back to post the happenings later. Thanks again for the advice. I love this site becuase of the diverse opinions and knowledge levels. :)

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April 05

Patti Prescott-Chrisman, "PattiPChrisman"
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I know in Alabama, if you bid on multiple properties then you potentially will end up with more than one house.Similarly, if a purchaser is torn between 2 houses and wanted to make an offer on both, they might get 2 acceptances. There is a possibility of putting a clause that says that if another seller takes your offer first then you won't be committed to buy. I think this would probably put your offer on the back burner when put up against others. Patti

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"What your doing is unethical and should be made illegal."
I disagree with Space_acer, while the banks have the right and time to pick the best offer, then the buyer still have the right to place multi offers on multi properties, then pick which one is first accepted, as long as the buyer agent willing doing that much offers.

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In CA, I put some offer on REO properties, after waiting for 2 weeks and don't got the answer, i offer on another property and get accepted, after that the bank call back and ask if i still interest on the property, "No thank" i said, and nothing happen after that.

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