Home Selling in 46304>Question Details

Davo480, Home Seller in 46304

If I get a full price offer on my property , can I accept a higher offer from someone else? thanks

Asked by Davo480, 46304 Mon Oct 25, 2010

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You have no obligation to divulge to the first offer that a subsequent offer came in, or notify buyer 1 that it is now a multiple offer after 2nd offer came in. Often buyers pull out if it becomes a bidding war, so you don't want to lose the first full priced offer if it is the stronger of the two offers and leave you with one written offer on the table from a buyer then who has the power. Best bet is to negotiate with 2nd offer without announcing it to the first offer Unless the first offer has a home sale contingency I would not tell them about offer number 2. Don't focus on price so much, focus on terms! A cleaner deal at the same price is better than a higher offer with more hurdles or contingencies.

I like the idea of offering backup offer to keep the winning offer in line with home inspection issues.

Assuming you have an agent, and this isn't a dual agency situation with one of the offers, follow your agents counsul.

If you like my answer, please check best answer - thanks!
0 votes Thank Flag Link Tue Oct 26, 2010
Davo,

I agree with the answers below: as long as you have not signed the purchase agreement for the full price offer, you can accept the higher offer from the other party. You may want to use the two offers and see if they will get in a bidding war for your home.

Hope that helps!

Peter Wilson
Boulder Bay Realty
http://www.PeterAlanWilson.com
219-510-7431
0 votes Thank Flag Link Mon Oct 25, 2010
Hi Davo,

In Indiana we have a place on the listing contract about Multiple Offers. Your agent would send a Multiple Offer Disclosure form to everyone that has submitted an offer on your property. This is to inform them that more than one offer has been submitted. It is also their chance to make their best and final offer.
I have seen this backfire with one of the parties just dropping the offer. Some people do not feel comfortable with this as it seems like bidding to them. I would say most of the time though they will submit offers.

Good Luck,
Christine
0 votes Thank Flag Link Mon Oct 25, 2010
Why wouldn't you make a counter offer to the full price offer to see if they are willing to come up to the price of the higher offer? Unless you have accepted the full price offer by signing, you can "play" with both of them.
The risk here is if you counter them both and then they both walk away. The old "bird in the hand" philosophy.

If you have a fully executed contract with the full price buyer, then you can accept the higher offer as a back up offer. Then, watch the full price buyer like a hawk during their inspection period, and during their loan approval period. If one thing falls out side of the contracted time-period, move quickly to cancel and when the contract has been cancelled you may move ahead with the higher offer. Make sense?
Hope this helps.

Leslie Eskildsen, Realtor
949-678-3373
Leslie@LeslieEskildsen.com
http://www.WhatAgentsFearTellingYou.com
As seen in the Orange County Register: http://www.ocregister.com/articles/deal-268083-buyer-home.html
0 votes Thank Flag Link Mon Oct 25, 2010
Davo,

Absolutely.....provided you have not already agreed to and signed the purchase offer at the lower amount.

Bill
0 votes Thank Flag Link Mon Oct 25, 2010
During attorney review, the executed contract can be ratified, modified or cancelled within the provisions of your contract. So if you want out of the deal, your attorney can kill a deal. Is it worth it? If you have another buyer really interested, have him write it up formally and compare apples to apples. Besides sales price, earnest money, down payment, conventional or FHA loan, home sale or closing contingency, closing date, and home inspection repairs, (as-is).

Usually there is a five business day provision for attorney review, so that is your window to kill first offer. But why? Unless someone comes in significantly higher, then you risk house not appraising out and the deal falls apart with buyer #2. Strength of non price factors should be the primary reason to look for an out with a contract. Talk to your local agent and attorney.
0 votes Thank Flag Link Mon Oct 25, 2010
As long as you haven't signed the contract for the full priced offer, than the house is still "available". Once you have signed a contract then it is off the market until the Buyer either closes or pulls out of the deal.
0 votes Thank Flag Link Mon Oct 25, 2010
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