my real estate agent has suggested that we submit up to 5 offers on five different houses.?
when I have mentioned this to friends, they seem shocked that he can do this saying that their real estate agents would only allow one offer at a time. Is my real estate agent doing something wrong? I asked him if this was legal and he says that as long as we don't give them any earnest money we are fine and can withdraw our offer at any time.
As an explanation: We have a very short amount of time in which to buy a house. About 1 month.
- 1 decade agoFavorite Answer
There is nothing wrong or illegal in making multiple offers on multiple houses, but you are setting yourself up for a problem. What if all five sellers accept your offer? Then you are bound by contract to buy all of them. Ditch the agent and look for one that has has a clue.
PS. The above comment about verbal offers is 100% wrong. There is no such thing in real estate.
- 1 decade ago
I am AMAZED at all the BAD advice given here. People shoulod NOT give advice on things they know nothing about.
First of all, there is NOTHING wrong with writing multiple offers and I personnally have seen it done. A SMART real estate agent CAN do this correctly. The process is that you submit your 5 offers IN WRITING and depending on the state the property is in you may need to include a deposit check for a small amount, say $500 per property. Then you wait for responses from the sellers. Once you get the FIRST acceptted offer abck; your agent faxs a letter to all others sayig "Offer withdrawn". THat gives you the legal right to cancel the offer PRIOR to acceptance by any or all the sellers.
This is usually done while making lowball offers; 20 to 50% BELOW list prices. It IS a good way to negotiate with multiple sellers in a slow declining market and to get a house in a short period of time.
IF you were to follow the advice others have given here you would be spending 5 times the amount of time trying to negotiate one house at a time. So you are giving up time and the ONLY risk you have is that if more then one offer comes back accepted at the same time or before you can send the Offer Withdrawn fax, but even if this happens the ONLY risk you have is losing the $500 deposit per house and that should be more then justified by getting an accepted offer at your lower offer price.
IF the WORST possible case happens then plan in advance for that risk; worst case is ALL 5 accepting your offers and you lose $2,000 in deposit money; so lower your offer price on ALL the houses by that same $2,000 and your net cost is the same with NO additional risk.Source(s): FULLTIME real estate investor.
- FRANKLv 51 decade ago
To be a true offer, the offer must be in writing. You are bound by the offer. And, "due consideration" must be part of the offer. That means a deposit. If you back out, the seller can keep deposit. The seller could also file lawsuit for submitting multiple offers, with no intent to honor them all. That is FRAUD. The question is who would be the guilty party, you and/or the Realtor. I have seen this happen. The sellers always win in this kind of lawsuit.
The practice of making several offers at the same time is not ethical. If a Realtor wanted to write up five different offers at the same time, then Realtor must let you know that you must be in a financial position to honor all five of the offers. If the Realtor did not do this, and wrote up five offers, that could jeopardize the real estate license.
This practice was one of the examples used to show contract law violations in a real estate law class that I took years ago.
- DebraLv 44 years ago
First off, when you submit an offer, you are required to put in a deposit, typically at least $500. If you have 100 - 1,000 low ball offers in, you sure have alot of liquid assets. Next, if you just got a job and are living at home with your parents, do you have good enough credit to qualify for a home loan? This is something to give consideration to. And finally, no agent is desperate enough to work with someone like you. We all have phones and know people in other offices. Word spreads fast when there are potential sponges of time and resources lurking about. And for the suggestion that you work with the listing agent, that is risky, they are there to represent their client, the seller - not you. What you are suggesting is probably more suited to the FSBO market. You have a better shot of getting an accepted offer from a seller there.
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- 1 decade ago
Why would you make an offer to 5 different houses? Did you like them all? Even you did, you should make a priority lists, and eliminate those ones you don't like. Besides, even you didn't put an earnest money deposit, in this type of market, seller will try to do everything to sell their house and possibly exercise their legal rights. You don't want to be in that situation. You should advise your realtor and withdraw all the ones you don't want to buy and avoid any legal claims or problems.
- AndreaLv 71 decade ago
Are you in an area where it is a sellers market right now, where the houses sell quickly and get multiple offers? That's the only reason I can think of to do something like that.
I wouldn't be comfortable if my agent told me this and I'd probably look for someone new to work with. He's probably thinking that no one accepts your initial offer and counters with something else. However, just imagine if all the offers were accepted as is!
I'm not sure whether it is legal or not but morally, I think it is wrong.
Good luck in your search.
- 1 decade ago
Most people have their eye set on one house. Why would you put 5 offers on houses and not want to buy them. You are wasting your time, the seller's time and the other real estate agent's time. Your agent just wants to make a sale, period!
- LandlordLv 71 decade ago
You can't do more then one offical offer, and offical offers come with earnest money. All banks and most buyers do not look at any offers w/o an earnest money deposit. You will not get a house if no one will even look at your offer, which are not legal offers anyway.
Find yourself a decent agent, this one sucks.
- ♥ Heaven ♥ Lee ♥Lv 61 decade ago
If you were to find 5 different houses that you liked and put in 5 different offers, that'd be ok. An offer is only verbal. Just don't sign anything on more than ONE. Then you get into big trouble!
- dundiLv 41 decade ago
expand your time to buy a house. buying a house in a hurry is a mistake. Look for a place to live that offers month to month payments and put your stuff in storage. The problem you are facing is some arbitrary time limit. You need to find a way to let yourself have more time!