Making multiple real estate offers at once
Apr 4, 2015 at 3:26am Edited
I believe you can make any number of offers on any real estate at any time?
While it is not considered a "nice" thing to do , there is no rule that I am aware of that says you can't.
An offer is not legally binding.
However, I think if you disclosed to the sellers that you were making a concurrent offers on another properies you would likely blow your chance of getting any offer accepted.
Also, while realtors and sellers must abide by very strict disclosure rules, I am not aware of any requirements that the buyer disclose that they might be making offers on other houses.
An offer is not legally binding.
However, I think if you disclosed to the sellers that you were making a concurrent offers on another properies you would likely blow your chance of getting any offer accepted.
Also, while realtors and sellers must abide by very strict disclosure rules, I am not aware of any requirements that the buyer disclose that they might be making offers on other houses.
you "can", just have your lawyer/broker (if initial offer) put the right protections into your offer ( ie 24 hour response) so you are not "in contract" with several offers at the same time - let an offer "bake" for 24 hours before making an offer on a different house
on the seller side i am not sure i would consider an offer with a contingency that a contract with a different house may take precedence over our negotiations
on the seller side i am not sure i would consider an offer with a contingency that a contract with a different house may take precedence over our negotiations
I'm not sure a seller would care if you have other offers out. If their house is priced right and not crap then they'll likely have multiple offers, so an offer from someone who looks like he's trying to play games would probably be taken less seriously.
That said, it's not a contract until it's through attorney review. I had a seller pull out after a week and a half of attorney review because the broker kept showing the property and an all cash offer came through in that time.
So as long as it's legal it's all in the game. There's no honor in NJ real estate!
That said, it's not a contract until it's through attorney review. I had a seller pull out after a week and a half of attorney review because the broker kept showing the property and an all cash offer came through in that time.
So as long as it's legal it's all in the game. There's no honor in NJ real estate!
Thanks all. I'm a bit frustrated. My realtor (a totally stand up guy I love), looked at me a little cross eyed when I suggested this, saying one step at a time. Sigh.
So - here's the scenario. I make, what I consider a good offer on each of 2 houses I don't want to lose. Tell sellers that's the case. If they don't like my offer, they then know that I'm not desperate - feel free to make a counter, but also be smart about it, since I could walk. To me that doesn't seem unethical or risky.
So - here's the scenario. I make, what I consider a good offer on each of 2 houses I don't want to lose. Tell sellers that's the case. If they don't like my offer, they then know that I'm not desperate - feel free to make a counter, but also be smart about it, since I could walk. To me that doesn't seem unethical or risky.
I'm looking to buy a house (after the first one fell through because of a very failed house inspection) and I can't imagine finding ONE house I would want to buy (so far), never mind 2! LOL! You're blessed @peteglider!
A seller will care if you are making offers on more than one house at a time. You will be putting your offer at a disadvantage if you disclose that you are making offers on other properties as well.
Put yourself in the seller's shoes. A seller with multiple offers will not want to risk declining other offers, only to find that the winning bidder has won another house and is going with that one instead. Unless your offer was waay higher than it's competition a seller would go with another offer.
Even if you are the only offer, telling a seller you are negotiating on two properties at once might make it look like you are not acting in good faith. You can let the seller know that you have another house you are considering .
Also if you do make an offer on more than one property at the same time you do not have to have the attorney put in special protection. Offers are not binding, even if they are accepted. In fact the standard contract gives you the right to withdraw until attorney review has been completed.
Put yourself in the seller's shoes. A seller with multiple offers will not want to risk declining other offers, only to find that the winning bidder has won another house and is going with that one instead. Unless your offer was waay higher than it's competition a seller would go with another offer.
Even if you are the only offer, telling a seller you are negotiating on two properties at once might make it look like you are not acting in good faith. You can let the seller know that you have another house you are considering .
Also if you do make an offer on more than one property at the same time you do not have to have the attorney put in special protection. Offers are not binding, even if they are accepted. In fact the standard contract gives you the right to withdraw until attorney review has been completed.
Why would you disclose it if it isn't required to do so? It's a sellers' market right now so any advantage that a buyer can find seems fair game to me. (Of course, I'm not saying that there aren't other reasons not to do it ... related to personal stress, etc.)
Yes I think your strategy will backfire. It makes no sense. Sellers are the ones with multiple offers on good homes.
Do what's best for you. If you think your realtor is advising you in your best interests and not their own then you should give that advice weight accordingly.
As far as sellers go- they're going to knock you right out if a better offer comes in and they're able. As they should.
This is not advice to be a jerk but business is business. If you legitimately would be happy in both homes, bid away. The sellers are entertaining multiple counter parties so why can't you?
As far as sellers go- they're going to knock you right out if a better offer comes in and they're able. As they should.
This is not advice to be a jerk but business is business. If you legitimately would be happy in both homes, bid away. The sellers are entertaining multiple counter parties so why can't you?
As someone who is currently selling his home, I wouldn't be offended by someone who let me know it was one of many offers, but I would rate that offer lower in consideration if I had multiple offers on the table.
marcsiry said:
As someone who is currently selling his home, I wouldn't be offended by someone who let me know it was one of many offers, but I would rate that offer lower in consideration if I had multiple offers on the table.
What? Where are you going?
Getting sick of the 90 mile commute to Philadelphia. So, someplace closer to Philadelphia.
marcsiry said:
As someone who is currently selling his home, I wouldn't be offended by someone who let me know it was one of many offers, but I would rate that offer lower in consideration if I had multiple offers on the table.
This. If someone who bid on my house was also bidding on others, I would go with another buyer who seemed more serious about the house I was trying to sell.
@Mumstheword, I didn't know your deal had fallen through! I'm so sorry to hear that (and kind of shocked it was due to a really bad inspection).
marcsiry said:
Getting sick of the 90 mile commute to Philadelphia. So, someplace closer to Philadelphia.
Very sorry to hear that. When I was working in south Jersey last year, I stayed in Moorestown, NJ. Great downtown, gorgeous houses, and similar to Maplewood/South Orange in walkability and neighborliness. Lots of Philly commuters live there.
I agree with others, why would a buyer even consider your offer (assuming it is not the only one) if there is even the slightest chance the deal would not go through because your 2nd choice turns out better for you and you walk away? You mentioned that it tells the buyer you aren't desperate, but to me it suggests you aren't serious either.
A number of years ago, I was selling my house. We received 2 offers at asking price. We didn't know what to do and our agent suggested going back to both bidders to offer them an opportunity to make a second offer. Couple #1 immediately came back with an offer that was a rather significant jump. Couple #2 said they simply could not match that offer and dropped out. We instructed our agent to tell the agent for Couple #1 that the house was theirs. We thought this would be a relative easy transaction since both our agent and the agent for Couple #1 were with the same M/SO real estate agency. However, there was silence from both Couple #1 and their agent for several days. We started to panic and began to press our agent. We finally found out that Couple #1 had made multiple offers on homes. They had decided ours was really their last choice so they came in high, confident they would "win" the bidding war so they would have an option in case their other offer fell through..but they had little intention of actually buying my house. What it seems they had done was to take out an insurance policy.
I recognize that I am ill informed in the "rough and tumble" world of real estate and I suppose nothing was illegal or unethical about what happened. However, I would never have entertained the offer from Couple #1 had I known it was not really a sincere bid. Fortunately, we managed to sell relatively soon thereafter because the market was hot but we always suspected both agents knew what was going on since they were in the same office. Perhaps I am being unfair but I would never use that agency or either of those particular agents again.
I recognize that I am ill informed in the "rough and tumble" world of real estate and I suppose nothing was illegal or unethical about what happened. However, I would never have entertained the offer from Couple #1 had I known it was not really a sincere bid. Fortunately, we managed to sell relatively soon thereafter because the market was hot but we always suspected both agents knew what was going on since they were in the same office. Perhaps I am being unfair but I would never use that agency or either of those particular agents again.
Apr 4, 2015 at 1:03pm Edited
Does the buyer have to disclose to the seller that they are making multiple offers? If not, then I think that if they have the fortitude for it, why not go for it?
Regardless of the legality and ethics of a situation like yours, Norman Bates, I think what that couple did to you was pretty darn shytty. They kind of held your house for ransom!
Although, FWIW, @peteglider, I understand your frustration with the market. It's a tough time for buyers in your market. Oddly, however, it's a tough time for sellers in central CT. Any way you look at it, it's always tough for someone!
Although, FWIW, @peteglider, I understand your frustration with the market. It's a tough time for buyers in your market. Oddly, however, it's a tough time for sellers in central CT. Any way you look at it, it's always tough for someone!
So should the folks on House Hunters International make offers on all three choices?
This idea of a buyer make offers on a number of properties bothers me. It seems sleazy and from Norman's experience it can be sleazy. Selling one's house is one of the most nerve-wracking experiences in life. If this becomes standard practice it will make the entire experience for buyers and sellers worse.
Furthermore there is a misunderstanding of "attorney review". When a Buyer makes an offer and a Seller accepts it that constitutes a Contract. As a result of litigation between the Realtors and the Lawyers, back in the 80s I think, wherein the Lawyers argued that drawing up a RE Contracted constituted the practice of law , a settlement was reached which allowed the RE Brokers to draw Contracts but said that Buyers and Sellers would have three days to hire an attorney to review the Contract disapprove same and suggest amendments. It's meant to protect the parties legally not to give them a negotiating tool with respect to price. (Well it was probably meant to keep lawyers in business).
Buying and selling one's home is not "business" in the usual sense of the word. People should be respectful of and honest with each other.
This idea of a buyer make offers on a number of properties bothers me. It seems sleazy and from Norman's experience it can be sleazy. Selling one's house is one of the most nerve-wracking experiences in life. If this becomes standard practice it will make the entire experience for buyers and sellers worse.
Furthermore there is a misunderstanding of "attorney review". When a Buyer makes an offer and a Seller accepts it that constitutes a Contract. As a result of litigation between the Realtors and the Lawyers, back in the 80s I think, wherein the Lawyers argued that drawing up a RE Contracted constituted the practice of law , a settlement was reached which allowed the RE Brokers to draw Contracts but said that Buyers and Sellers would have three days to hire an attorney to review the Contract disapprove same and suggest amendments. It's meant to protect the parties legally not to give them a negotiating tool with respect to price. (Well it was probably meant to keep lawyers in business).
Buying and selling one's home is not "business" in the usual sense of the word. People should be respectful of and honest with each other.
If sellers can entertain multiple offers and encourage bidding wars, why shouldn't buyers be able to make multiple offers? If there is a law/regulation against it, then I haven't seen anyone post about it. Otherwise, I don't think it is really any more or less sleazy on the buyer side than the seller side.
Well, buyers CAN do it. But they should realize that it means it's extremely unlikely that the seller will choose their bid, if they know their house might be the last choice and that the deal could ultimately fall through. If I'm a seller, I am going with the bid that seems most likely to turn into a closing. Forget the rest.
Apr 5, 2015 at 10:12am Edited
I'm suggesting that the buyers not tell the sellers that they are making multiple bids. (Unless that is a required disclosure, but I haven't seen anyone post that.) The sellers don't disclose information about other bidders, so this might even the playing field slightly although (at least right now) the advantage is still with the sellers.PeggyC said:
Well, buyers CAN do it. But they should realize that it means it's extremely unlikely that the seller will choose their bid, if they know their house might be the last choice and that the deal could ultimately fall through. If I'm a seller, I am going with the bid that seems most likely to turn into a closing. Forget the rest.
sac said:
I'm suggesting that the buyers not tell the sellers that they are making multiple bids. (Unless that is a required disclosure, but I haven't seen anyone post that.) The sellers don't disclose information about other bidders, so this might even the playing field slightly although (at least right now) the advantage is still with the sellers.PeggyC said:
Well, buyers CAN do it. But they should realize that it means it's extremely unlikely that the seller will choose their bid, if they know their house might be the last choice and that the deal could ultimately fall through. If I'm a seller, I am going with the bid that seems most likely to turn into a closing. Forget the rest.
I think this is just another example in life that, just because you CAN do it, doesn't mean it's the responsible thing to do and that you should do it. You wouldn't want it to happen to you.
Similarly, the house I was purchasing fell through. We were waiting for the sellers' attorney to sign the cancellation of the contract, and my realtor said there would be a problem for me to put an offer in on another home until we got that signed piece of paper. It may just be an ethics thing with them, but I would think a reputable realtor wouldn't let you put in multiple offers on different houses.
Apr 5, 2015 at 11:10am Edited
Maybe there ought to be a few more curbs on what sellers can do, then, also. Why is it ethical to encourage bidding wars and not provide information to buyers on other bidders but it is not ethical for buyers to bid on more than one house? I just don't see the ethical difference between the two situations.
sac said:
Maybe there ought to be a few more curbs on what sellers can do, then, also. Why is it ethical to encourage bidding wars and not provide information to buyers on other bidders but it is not ethical for buyers to bid on more than one house? I just don't see the ethical difference between the two situations.
I agree! I was involved in a bidding war many years ago and it disgusted me. I gave up and let whoever it was buy the house for an overinflated price.
Your realtor is working for you. He/she should be your advocate, your champion. if you ask him to submit two offers at once there is nothing in the Code of ethics or the law or the NJ Real Estate Commission Rules that would preclude him from doing so. He should do it.
As realtors we do not always like the rules, but we have to abide by them.
Your realtor should do what ever he or she can within those rules, to help you purchase a home at the best price and terms he or she can negotiate on your behalf.
No, it may not be nice for a seller if a buyer makes an offer on two properties at once knowing he or she can only proceed with one. But it is fully within those rules. In this environment , where there are 2, 3 even 10 or 12 offers on many homes, where many sellers accept an offer only to decline it a day or two later because something better has come along, it is perfectly acceptable to submit offers on two different properties at once.
If you find two homes that you love enough to be willing to purchase, it could be that your only realistic choice could be to submit two offers at once because if you lose the first, by the time you find out, the second one will be gone too.
An offer is just that , an offer. It is not a promise. It is an opening to negotiation. Approximately 30% of all accepted offers never get to closing, so any seller who banks on any offer offer is jumping the gun.
In the previous example, where sellers were kept waiting for days after accepting an offer, hearing nothing from the buyers because they had submitted multiple offers, I have to ask, what was your realtor thinking? If buyers don't respond the very next day with attorney info and strong indications they are going ahead, then it often means there is a problem. Your realtor should not have waited for days when there was another offer hanging in the balance. However, I doubt your realtor knew the circumstances with the accepted offer. Your realtor would not have jeopardized the sale of your home to do an underhanded favor for another realtor.
As realtors we do not always like the rules, but we have to abide by them.
Your realtor should do what ever he or she can within those rules, to help you purchase a home at the best price and terms he or she can negotiate on your behalf.
No, it may not be nice for a seller if a buyer makes an offer on two properties at once knowing he or she can only proceed with one. But it is fully within those rules. In this environment , where there are 2, 3 even 10 or 12 offers on many homes, where many sellers accept an offer only to decline it a day or two later because something better has come along, it is perfectly acceptable to submit offers on two different properties at once.
If you find two homes that you love enough to be willing to purchase, it could be that your only realistic choice could be to submit two offers at once because if you lose the first, by the time you find out, the second one will be gone too.
An offer is just that , an offer. It is not a promise. It is an opening to negotiation. Approximately 30% of all accepted offers never get to closing, so any seller who banks on any offer offer is jumping the gun.
In the previous example, where sellers were kept waiting for days after accepting an offer, hearing nothing from the buyers because they had submitted multiple offers, I have to ask, what was your realtor thinking? If buyers don't respond the very next day with attorney info and strong indications they are going ahead, then it often means there is a problem. Your realtor should not have waited for days when there was another offer hanging in the balance. However, I doubt your realtor knew the circumstances with the accepted offer. Your realtor would not have jeopardized the sale of your home to do an underhanded favor for another realtor.
Thanks @sarahzm. That was exactly my thought process, but it is good to hear it from a professional who knows the rules.
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In this stupid tight real estate market, why don't buyers make offers on multiple homes... And let sellers know thats the case?
I don't get why I couldn't make offers on more than one house. It's an OFFER not a contract until it's been through attorney review, right? So both parties are protected and not obligated.
To me, a seller knowing I have a viable back up plan that I'm willing to move on, puts them under pressure to not be overly aggressive or indecisive.
Opinions ?