Putting in offers on multiple contracts - wrong?

[POTCfan]

I never made more than one offer at a time, but I thought about it. During the buying process, I withdrew my offer on a few so that I could make an offer on another. I waited 5-7 days, and if I heard nothing I would formally withdraw my offer so I didn't feel bad about making another offer. I figured after that many days, they are probably looking for a higher offer, and I figured that if they were holding out then there was a higher potential that they would be looking for a higher bidder during the entire selling process. I thought that if there was some legitimate reason why they needed more than 5 days, they could contact the broker and ask if I was still interested. Looking back on it, I probably should have put a time limit on the offer - it would have saved me some time in finding the right seller.

 

[Deb & Bill]

I agree that buyers may back out more often, but they have skin in the game. They have a deposit to lose. Speaking strictly on the DVC resale issue, I don't see sellers losing anything if they back out. With the housing market it is a totally different animal in my opinion.

Sure the seller has something to lose. A buyer for their points while the lookie-loo is tying them up.

 

[fmer55]

Sure the seller has something to lose. A buyer for their points while the lookie-loo is tying them up.

And what about the extra money I paid after a seller backed out when they had closing docs in their hand, 60 days after contracts signed? The market went nuts for 60 days and the price I passed ROFR through has not been seen again.

Time limits are a good way to go.

I do not see how you can compare this to buying a house, In over 20 offers I have made on houses I have never, ever, waited for more than 24 hours to hear back. Not sure about other parts of the country, but in NY, you will be held legally liable for commissions if you back out of a fully executed contract.

 

[Deb & Bill]

And what about the extra money I paid after a seller backed out when they had closing docs in their hand, 60 days after contracts signed? The market went nuts for 60 days and the price I passed ROFR through has not been seen again.

Time limits are a good way to go.

I do not see how you can compare this to buying a house, In over 20 offers I have made on houses I have never, ever, waited for more than 24 hours to hear back. Not sure about other parts of the country, but in NY, you will be held legally liable for commissions if you back out of a fully executed contract.

Oh, I agree with you about sellers backing out after they have tied up your money for months as well. Both are wrong.

 

[JustTinking]

I've made offers with all the big brokers here, and I usually receive word back within hours on whether my offer was accepted or countered. Sometimes it takes an overnight if the seller is unavailable, but reasonably you should get a response within 48 hours. Setting a time limit on a offer will guarantee that and keep you out of wondering about the ethical implications of making another offer in the same timeframe.

Obviously we'd all like to do win-win negotiations and work with people (sellers, buyers, brokers) who observe some standards of fairness. I made an offer last month on a property at full price and the seller countered with a $10 increase. I walked away because it didn't feel right and I wouldn't want to do business with a party who bent the rules like that.

 

[dcfromva]

I think it is a much better option to put a time limit on the offer.

If I was the seller and found out a buyer had done this in the past (or was currently doing a multiple offer), I would not take the offer seriously and probably reject it.

On the other hand, it harms buyers. It artificially inflates the number of buyers in the market-- if 5 buyers put in 5 offers-- that could potentially end up in a bidding war even with moderate amounts of inventory.