Should buyers make offers on multiple homes at once?
We want to educate you to the best of our ability on if it’s a good idea to make offers on multiple homes at once.
First, let’s talk about the most common reason why purchase contracts fall through in the first place. After a national survey with real estate agents, four out of 10 agents said that, “negative or surprising inspection results” were the most common cause of contracts falling through, while only 25% of buyers actually change their mind!
While those are the most common reasons on why purchase contracts fall through, there’s also other reasons on why they do as well. Buyers are often making offers at prices they can’t afford. The reason they do this is to hopefully lock down a home, with every intention of negotiating the price down. Buyers seek to negotiate the price down once they can cite imperfections uncovered by a home inspection. If the seller doesn’t budge to lower the price then the buyer is forced to move on because they cannot afford the original asking price.
So does this even make sense for buyers?
It honestly just depends on who you ask. Let’s talk about the reasons it can potentially be a bad idea.
- Buyers who make multiple offers on homes usually aren’t fully committed to purchasing both homes, which ends up putting them at risk of making a mistake with the biggest transaction of their lives.
- It can still a losing proposition for both agents and buyers.
- Depending on the contract, If two or more offers are accepted, backing out of one might not always be easy.
- If your lender gets a call from another listing agent for a pre approval, this will raise a red flag and your lender will possibly think twice about working with you.
So, is there any good in making multiple offers on homes? Depends on the market. The best way to ensure to compete in a frothy market, is to prepare offers on multiple homes in advance. Agents and buyers must strategize together about which offer to submit first. The two things they should take into account is the preference on the home while also understanding the guidelines and deadlines carefully with ALL offers! So if one offer falls through, the buyer can move onto another offer quickly!
Thinking about selling your home? Here’s a few friendly reminders!
- Multiple offers should remind home sellers that the highest offer isn’t necessarily the best one.
- Sellers and their agents should carefully vet offers to consider factors other than price.
Have an awesome week.