Home Buying in Antioch>Question Details

Dee, Real Estate Pro in Oakland, CA

what is the purpose of a disclosure of multiple offers?

Asked by Dee, Oakland, CA Tue Jul 8, 2008

made an offer on a REO, which of course has multiple offers.
Why is the selling agent requesting those who made offers to sign this disclosure?

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Answers

6
Disclosure, Disclosure, Disclosure. Real Estate contracts are the ultimate in CYA. You (the buyer) needs to know that there are multiple people offering (or may be offering up until the day of closing on an REO) on the property. The disclosure protects the agents, the banks and everyone including your first girlfriend against you actually thinking you are the only one offering on the property. The theory is that if you know there are multiple offers you may offer accordingly (probably higher).

Just because it is an REO does not mean therre are multiple offers. Maybe yes and maybe no. REO's are not necessarily the deal anyway. All the banks want is as much as they can get from whomevery they can extract it from as soon as possible. Make sure you see the appraisal your lender orders for you!

Best of luck.

Marston
1 vote Thank Flag Link Tue Jul 8, 2008
Good Afternoon. When a property has more than one offer, it needs to be disclosed to the other purchasers that there are other interested parties. At some point the realtor will notify the buyers to submit their highest and best offer by a specific time. Some banks will require an additional addendum to cover themselves stating that they are considering other offers and they may not be based on the highest bid, but the best overall contract (no credits at closing, strong down payment, etc). So that may explain the reason for the additional addendum.

Let us know how things go.

Have a great evening.
1 vote Thank Flag Link Tue Jul 8, 2008
Lois,

Without seeing the disclosure itself, my best guess would be that it has information for you on how that particular Seller handles multiple offer situations, and the most important information would be that you do not have an accepted, legally binding contract, until it is signed by the Seller. You may be asked to tender a best and final offer along with everyone else who has submitted an offer, or multiple counter offers may be extended. Your realtor should be able to explain the disclosure more fully to you, so give them a call.
Warmly,
Janice Spencer
1 vote Thank Flag Link Tue Jul 8, 2008
Multiple offers forms are used for any type of sale, they are not REO specific. This is a type to disclosure that informs all interested parties that there is a situation in which seller will be choosing an offer out of the bunch, and no matter how good you think your offer is, seller might have a better deal from someone else in a group. This gives you an ability to come up with highest and best price and condition you can offer and thus eliminates your ability to further negotiate. By signing multiple offers disclosure you acknowledge that after you submit your highest and best there will be no further negotiations with seller.

Violetta Polyakov
Broker/Owner
Florida Home Consulting, Inc
(561) 767-8864
0 votes Thank Flag Link Sat Sep 29, 2012
Love your bit of humor Marston.
0 votes Thank Flag Link Sat Sep 29, 2012
when you put in an offer to buy a home, is there anyway of knowing what the hightest offer on the propert has been / offered?? or is it just a hit and miss??
0 votes Thank Flag Link Sat Sep 29, 2012
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