Home Buying in Los Angeles>Question Details

Labuyer1, Home Buyer in Los Angeles, CA

If I submit multiple offers on different properties at the same time, what happens if more than one gets accepted?

Asked by Labuyer1, Los Angeles, CA Mon Mar 25, 2013

Am I bound to both purchase agreements?

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Meredith McKenzie’s answer
If you have not written protective langauge into your offers (e.g., Seller is aware that Buyer has made multiple offers. No Seller acceptance is bnding until Buyer has acknowledged this acceptance in writing), you could have valid contracts with more than one Seller. Because this is a hot market, you may have the option to 'withdraw' your acceptance without any negative repercussion since the Seller may have other offers to accept; however, there are many properties that are not so hot, or sellers who send out such high and ridiculous multiple counter offers that most initial buyers do not respond. This means that you could very well find yourself in valid contracts with more than one Seller and could risk paying damages to a Seller whose contract you decide to void.

Writing multiple offers on multiple properties at the same time is a sign of panic. You will be more successful in finding your dream home by working with a real estate agent with strong negotiation skills and by developing a strategic plan for finding that home. You also have to be willing to overbid appropriately to stay competitive.

It is possible to find your dream home in this marketplace. I have closed 5 buyer transactions with first time homebuyers in the last 60 days, two of which were FHA 3.5% downpayment buyers who received closing cost credits from the seller. Get focused in your search, be aggressive in your offer structure and work with a great agent.

Good Luck in your search for a home...one offer at a time.

Best,

Meredith McKenzie
Broker Associate #01142186

Podley Properties
626-344-9755
arroyolover@gmail.com
1 vote Thank Flag Link Mon Mar 25, 2013
If more than one gets accepted in THIS market you are VERY lucky!!!

In this case you will have to make up your mind real fast as to which one you want to call yours.

Once you decide which again, should be done ASAP, You open escrow on that one. If all goes well, you will be in your new home soon.

Much Success to You
Kawain Payne, Realtor
0 votes Thank Flag Link Mon Mar 25, 2013
I sure wish you were. But as the others say, you can wiggle off the hook.

Why don't you at least try being upfront with the sellers? Just because you can find an "out" doesn't mean that that's the best course of action.

Consider the seller's perspective. He or she thinks your offer is legitimate. (Sure, you say it is, but you have no intention on closing on multiple properties.) They certainly go through an emotional roller-coaster. They may also take other steps in anticipation that the sale is likely to occur.Then you pull the rug out from under them.

Yeah, it's legal. Yeah, it's done. But it doesn't make it right.

What goes around comes around.
0 votes Thank Flag Link Mon Mar 25, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
That is called "shot gunning" and today almost every buyer does it. Chances of your offer getting accepted are very slim... and if it does happen, I would hurry and go by some Lotto tickets. If your agent doesn't change the purchase contract.. you have 17 days to cancel for any reason. .. even if there is a bright Barney purple car parked in front of the house, you can cancel.
0 votes Thank Flag Link Mon Mar 25, 2013
As long as you have your inspection contingency in place, you can cancel the agreement without losing your deposit. The inspection contingency provides time for the buyer to research all aspects of the home including items that aren't linked to the physical condition, like the neighborhood and crime statistics. Some of our clients have even gone as far as to complete inspections on two homes at the same time while they make a final decision. It's a rare to be in that position but not uncommon to want to further investigate before making a final decision.

Good luck with your purchase!
0 votes Thank Flag Link Mon Mar 25, 2013
Hi,

You can back out of one based on the inspection contingency, or

you can sell the contract if the verbage is correct and make money abnd still buy the home you like.

Let’s go buy & sell some real estate.

Great

Albert M. Goldberg Broker
alyourbroker@yahoo.com
Thirty Plus Years Experience
800-765-3609
0 votes Thank Flag Link Mon Mar 25, 2013
Nothing will happen to you.
You can choose to purchase multiple homes.
You can choose to buy only one.
It appears, that unlike most buyers today, you are in the enviable position of having multiple choices. Most buyers are currently faced with multiple offers.
0 votes Thank Flag Link Mon Mar 25, 2013
As long as you have CAR standard contingency periods, nothing will happen to you. It's a matter of timing and you can pick and choose which house to go with now. Lots of minor details involved, but bottom line is get into escrow with the one you want. =) Good Luck.
0 votes Thank Flag Link Mon Mar 25, 2013
You are bound to both purchase agreements and you are suppose to deliver deposit to escrow (by default 3 days). If you do nothing - seller will have to cancel.

However I think it's always best to be upfront with sellers and pick a property put of these who accepted your offer - at the same time let the other accepted offer know that you have to cancel so that they can work with other buyers.

Hope this helps!




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0 votes Thank Flag Link Mon Mar 25, 2013
Then you have a choice and should make it quickly...

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0 votes Thank Flag Link Mon Mar 25, 2013
Technically you are. You are suppose to disclose that you are writing multiple offers. Obviously in this market a lot of buyers are doing that.
If the seller's were to accept both your offers as is you would be obligated to send your deposit to escrow. However, if you did not send your offer into escrow you would be in contract violation and the seller's only right at that point is to cancel. Which is what you probably wanted anyways.
0 votes Thank Flag Link Mon Mar 25, 2013
The offer is only valid when you acknowledge the seller's acceptance in writing. Even then, you have a 17 day inspection period during which you can cancel.
0 votes Thank Flag Link Mon Mar 25, 2013
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