For a first time home buyer, finally being ready to make an offer can be an exhilarating time. Accomplishing every step of the process can feel exciting, whether you have found the perfect real estate agent or have been pre-approved for a mortgage.
After looking at neighborhoods and homes, you’ll come to a point when you are ready to make an offer on a home. You will send it in and eagerly await for the seller to get back to you. If you are lucky, your offer will be accepted quickly and you can go forward with the purchase.
Unfortunately, this doesn’t always happen. Today’s market tends to benefit sellers more than buyers, which means that when you make an offer on a home, you may not be the only person pursuing the house. The seller can only choose one buyer, and it may not be you.
If you are in a really tight market, your offer may be refused several times before you finally find a seller that accepts your offer. After several instances of getting your hopes up and being let down, you may feel drained or disillusioned. In this situation, you might begin to think about alternative possibilities.
One practice that isn’t seen much nowadays, but sometimes happens, is making simultaneous offers. This is when you send offers to multiple sellers at the same time. This is tricky and if not done properly, could end badly. There are situations where simultaneous offers may pay off.
Realtor.com pointed out that in some areas, it’s not only difficult to make simultaneous offers, but it’s also against the law.Before you decide anything, make sure to contact a respected real estate attorney to learn exactly what is permitted and how to move forward with your multiple offers.
“Once a seller signs off on your offer, the contract is valid.”
It’s also important to note that once you get a positive response from one of your offers, you will need to move forward with that deal and cancel the other offers immediately, Realtor.com explained. You will not be able to wait to find out if another offer is accepted. In fact, once a seller signs off on your offer, the contract is valid. This means that if two sellers say yes before you can pull one of the offers, you may be contractually obligated to purchase both homes.
Offer them correctly
When making an offer on a home, you’ll also make an earnest money deposit at the same time. You’ll need to fill out a separate check for each offer you make when making simultaneous ones. If you simply photocopy the same check and send the copies to the different sellers, you will void each of your offers.
If you’re making out three separate checks for instance, there is a risk involved. If two offers are accepted at the same time, or you delay in cancelling your offers before another one is approved, you may lose one of the checks.
Some people may consider putting a contingency in their offer stating that it is only valid if you haven’t heard back from another seller. However, this condition might turn the seller off, resulting in an even longer home search. Your real estate agent may tell the listing agent that you have multiple options on the table and will pull your offer as soon as you get a “yes” from another seller. This could encourage them to say yes to yours quicker.
Consider other options
Making simultaneous offers may prove to be beneficial to you as a buyer, but it’s not without risks and disadvantages. It’s a good idea to look at all your options before deciding to go this route. Inman suggested making one offer at a time, but requesting that the seller respond within 24 hours so that you are free to make another offer.
No matter how you decide to proceed with your house hunt, it’s important to know that you have your financing properly in order. Make sure you are pre-approved for a mortgage before you begin making offers on any home.
Talk to the experts at Lenox/WesLend Financial or call 844-225-3669 to learn about what mortgage options are available to you, and to get pre-approved for a mortgage. As heard on the radio, it’s the biggest no-brainer in the history of mankind.