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Lisa, Home Buyer in Brooklyn Park, MN

My husband and I are trying to buy a house and we need to be out of our apartment by Sept. 1. My question is

Asked by Lisa, Brooklyn Park, MN Thu Jun 18, 2009

can we put bids in on several houses at a time? I was told that if some get approved at the same time, that we have 3 days to withdraw our bid. It seems that bidding on one house at a time, is very slow and very frustrating.

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You can only have one offer in at a time, unless you can qualify to buy more than one house at a time. When you sign a Purchase agreement, you are bound to it's terms if the other patrty signs it. Talk to your Realtor about this. If you have any questions, you can contact me also. Thanks.
Brad Anderson
763-486-5338
BradAndersonHomes@gmail.com
http://www.BradAndersonHomes.com
1 vote Thank Flag Link Thu Jun 18, 2009
I have talked to an attorney about this specific question. The answer is no, you can't write multiple purchase agreements on multiple properties.

If you want to speed the process, have your agent put language in the purchase agreement that the seller must respond to your offer within 48 hours or the offer is null and void.

The 'three day rule' applies to purchases made on the internet. Unless there is specific language in your purchase agreement, (in the form of a contingency) there is no such thing as a 3 day grace period.

Frankly if I were a seller, and I had multiple offers on a property, and your offer had the 48 hour contingency or the 'we're writing multiple offers' contingency, your offer would go to the bottom of the pile.
0 votes Thank Flag Link Wed Jun 24, 2009
I think part of the confusion is because you are not actually BIDDING on anything, unless you are attending a real estate auction. I am not sure why the words "bid" and "bidding" are being used in Minnesota. It just adds to the confusion. That may be language used in other states.

When you sign a Purchase Agreement, you are ENTERING INTO A CONTRACT and you should never enter into a contract with the intention to break it. That is called fraud. The Minnesota Purchase Agreement does allow some flexibility, but only to a small extent. I belive the intent is to allow some flexibility for the logistical problems of getting papers signed and sent back and forth.

What you are suggesting is NOT done for several reasons:
- Sellers don't want to be tied up while you shop around. They could be missing out on a better offer, so
they are extremely unlikely to accept such a contingent offer.
- You don't actually have an agreement until your earnest money is deposited with the Listing Broker
and most people don't want to risk losing the earnest money.
- Your earnest money is NON-REFUNDABLE except in a very few specific cases and these must be spelled
out in the Purchase Agreement.
- Most Sellers will reject your offer because it is weaker than a non-contingent offer.
- I don't think you would be able to get mortgage approval letters for several homes at the same time.

On line 43 of the standard Minnesota Purchase Agreement, you have to disclose if your offer is subject to the cancellation of a previous Purchase Agreement ("a" purchase agreement, meaning "one" purchase agreement - contract language is VERY specific) and you must specify a given date to either cancel the previous offer or cancel the current offer.

I think Aaron has mis-interpreted this section of the Purchase Agreement, but even if he is correct, you would have to disclose all pending agreements to all parties involved. What a nightmare! And no Seller is going to take your offer seriously. Why should they take their home off the market if you aren't even sure you want it?

Anyway, if you need a place by Sept 1st, you should still have time for a traditional home purchase. But you do not have time for 95% of the short sales and even many bank owned properties will take too long. The bank owned properties might also be in too rough of condition to be approved by FHA, unless you go with a 203K Rehab loan, and you don't have time for that either.

You want to save as much cash as you can between now and then. Don't make any large purchases or big withdrawls from any of your accounts. You want to keep your financial situation as stable as you can. You might want to ask your landlord if you can go month-to-month starting in September or at least have a backup plan if you cannot close when you want to.

You will most likely need a 3.5% downpayment (or more in some cases), earnest money (most Sellers require a minimum of $1000 - some require more), approximately $250 - $350 for an inspection, closing costs, an insurance rider, and don't forget utility deposits that vary by company and by city. There may or may not be additional costs depending on how your offer is written or what the lender may require.

Just remember, it is not a BID, it is an AGREEMENT or a CONTRACT. I hope that helps!
0 votes Thank Flag Link Thu Jun 18, 2009
It IS possible to make multiple offers on houses but you must do so with specific disclosure language of the other offers you have written. Effectively you make an offer subject to the cancellation of the other offers. Your agent or an attorney can help.

You have plenty of time to close on a house.
Web Reference: http://www.AaronSOLD.com
0 votes Thank Flag Link Thu Jun 18, 2009
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