Can I Submit Multiple Offers on Different Properties

Many homebuyers find themselves trying to decide on multiple homes. Sometimes a home might be a short sale and the homebuyer knows that the process can take some time or the offer might even be rejected. Some homebuyers are afraid they’ll miss out on a property they love while waiting on a counter-offer on a property they REALLY love.

So, can you submit multiple offers on several different properties?

First, it’s important to note that the laws in each state are different. The first thing you’ll want to do is ask an attorney about the laws in your state.

Next, realize that if you are under contract to purchase a home, that contract is legally binding, and breaching that contract can have its ramifications. The liability for breaching a contract depends on the language of the contract. It is possible to submit offers that will not bind you legally by simply just making an offer. Just be fully aware and discuss your contract with both your attorney and your real estate agent. Many contracts offer a 10-day inspection period that allows a buyer to immediately cancel the contract if they disapprove of items discovered during the inspection period. While this isn’t merely a way for you to get out of your contract, it may be an option for you.

Be aware of any lender’s addendums, especially for bank owned properties. These may contain language that shortens or eliminates the inspection period.

If you happen to have multiple offers accepted and you can’t get out of your contract, you will be under contract to purchase more than one home. Keep in mind that it’s always easier not to write an offer than it is to cancel a contract.

Every situation is different, however. If you plan on purchasing a short sale, it’s likely you will submit multiple offers. Because the wait period can be so long to hear back from the bank on a short sale property, and the answer can likely be “no,” some homebuyers want to make sure they have options.

If you decide to make multiple offers on several homes, make sure you are working with an experienced, competent real estate agent that you trust. Look over the contracts carefully before signing anything and discuss them with your attorney when necessary. If you don’t, you could end up losing your earnest deposit on multiple homes or even worse, be legally obligated to purchase more than one home.

If you only intend to purchase one home, it’s best to make an offer on one home at a time and avoid any potential legal or ethical issues.

If you have any questions regarding the purchase of a new home, contact us today.