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.
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!
You have plenty of time to close on a house.