Last week, I had a buyer ask me if she could write offers on three separate properties, and then just go with the one that was accepted first. In theory, she could do this, although some would recommend disclosing that a buyer is writing multiple offers. In fact, this type of disclosure was done in the height of the market several years ago.
That market was very different from today’s market. Response time then was in hours and days, not weeks and months. Short sales were virtually non-existent and foreclosures making it into the MLS were not that common either.
The question my client asked is a tough one. And, from what I’m reading from other Phoenix Realtors, I’m not the only one getting this question.
Can I submit more than one offer at a time? – Rod Rebello
Writing Offers on Multiple Properties – Jonathan Dalton
Ask the Broker: Is it legal to place offers on multiple homes? - Jay Thompson
The comments on Jay’s post show just how challenging it is for buyer’s right now.
My client just submitted her fifth offer to purchase a home, which is not all that many in this market. She was outbid on a several foreclosures. One short seller didn’t even respond to a full-price offer. And, this buyer is watching Phoenix home prices begin to increase in her price range, and she’s trying very hard not to panic. You can understand why she asked the question.
In the end, she opted to write one offer for the property that she really wanted. There’s still something about real estate, where a house becomes a home. And the look in her eye, as she walked through the door of the house, said it all. "This is where I want to live." Multiple offers or not, that’s what real estate is still about for most home buyers.
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Twitter: buytucsonlots
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Like your photo, Dru – wish I’d thought of that
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Rod Rebello´s last blog ..Can I submit more than one offer at a time?
Twitter: drubloomfield
08.25.09 at 8:02 am
Says it all, doesn’t it?
Twitter: sulameyer
08.25.09 at 9:21 am
People are panicking trying to make the deadline for First-Time Home Buyer Tax Credit. First time home buyers are finding themselves competing with investors for good deals to see them slipping away. Banks like cash. I do not blame them; they can close a deal in a matter of days instead of waiting for a loan to be process. Now up to 45 days for FHA.
The panicking and the bidding wars created by the banks are pushing buyers to write multiple offers for homes that they may not even like. I found myself trying to be a counselor making people understand that even though the tax credit is nice, it is not a good reason to rush and end up with a mortgage that will feel like a burden since the house they choose driven by panic will never feel like a home.
Dru, multiple offers are unethical in my book. The Arizona purchase contract states that the buyer warrants he/she has told the truth about his/her ability to qualify to purchase the home. This means the buyer swears they have enough money (cash) or have enough credit to purchase the home. If writing multiple offers, can they honestly pay for or get loans for 2 or 3 homes? If not, then they cannot write multiple offers.
The other option is to fully disclose that the buyer is writing offers on more than one property at a time. This is ethical. However, sellers (banks) of foreclosure properties will immediately reject the offer. This happened to me. Took them all of 5 minutes to say “forget it!”
Twitter: PhxREguy
08.26.09 at 1:03 am
Leif – You should read the comment by Jonathan Dalton on the post on my blog Dru linked to. I was all for disclosure too, but pondering JD’s thoughts changed my mind. I’m not saying you should change your’s, but it’s something to consider.
If you feel multiple offers are unethical, how do you represent someone who is looking at purchasing a short sale? Are they just supposed to sit around for weeks on end waiting for a response while other suitable homes get sold off the market?
Jay Thompson´s last blog ..Welcome to My Nightmare. Oh the joys of running a real estate brokerage.