Archive for May 5th, 2010
Question: Is There Something Wrong about Making Multiple Purchase Offers?
It is fairly common for first time homebuyers to experience difficulty in buying a new home. Often, they find themselves often being beaten out by other homebuyers on the properties that they like. Not surprisingly, they often consider making multiple purchase offers. After all, this seems like a good plan. They figured they would have a better shot at getting the house that they like. This may sound sensible, but is this a good thing to do?
When Do People Make Multiple Offers?
A buyer’s apprehension is fairly natural. People want the best house that they can afford, and it can be frustrating to lose a house they really want to somebody else. So, it is not surprising that homebuyers consider making multiple purchase offers. But how do you know if it is a sensible thing to do or not? Can you do this or not?
In order to know for sure, if you are allowed to make this kind of offer, you need to know what kind of market you are dealing with. If it is a seller’s market, buyers are expected to do multiple offers. Why is this so? This is really because there is a low inventory of homes in a seller’s market. The absorption rate is consideration low as well. Homes sell fast and the only recourse of buyers is to make multiple offers. Homeowners are then given the chance to choose the highest and best offer from among the multiple offers. Unfortunately, this means rejection for other buyers.
Drawbacks to Making Multiple Offers
There are some drawbacks to giving multiple offers. You may want to consult with a lawyer first. Homeowners may think that you are not reliable. Making multiple offers may be thought of as a breach of good faith.
This could also result in multiple offer acceptances. If you want to make several offers, you have to make sure that the contract contains contingency clauses. This would allow you to cancel the contract without undesirable consequences. Otherwise, you could end up with a huge source of headache. Sometimes, sellers require buyers to give earnest money. If you refuse to give the same, the sellers may not give your offer much thought.
If you have questions about multiple offers, try to consult with your Colville real estate agent or lawyer, so you can get the best advice. These people are experts when it comes to purchasing homes and they know how you can get your home without suffering undesirable consequences.
