Making multiple offer

6 Replies

Is it wise to make multiple offers without going to see the properties?

If you are serious about buying if they accept your offer

@Joe LaFleur ok thanks.  I'm just having a time with deals that have multiple offers.  Some places you really don't have room for going in at asking price because of the scope of work.

@Regina Joners Some of this just depends on your area.  Solely looking at from the perspective of pragmatism, realtors talk.  So if you're making 5 offers a week, getting 4 accepted, and renegotiating after getting them under contract after you've had a chance to do your scope-of-work...well...it might get around.  It might not if you're in a giant metro like Chicago or Los Angeles shotgunning offers around but in small markets (where I invest, at least) people know each other.  Why?  In smaller markets there may be still quite a few homes on the market but there only so many investors, so many flippers, etc.  It won't take too long before locals know your playbook and react (for better or worse) accordingly.  Of course, if you renegotiate and then close on 2 of these (hypothetical) 4 accepted offers that will create it's own brand.  

Not for nothing, you could also be in a market where realtors might price fixers artificially low to drive interest and create a minor bidding war. Where I invest I saw a realtor take an SFR that was listed for $95K, drop it to $75K, sell it...and then post online that he had multiple bids and sold it for ABOVE ASKING PRICE. It was sold for $76K...

Go figure.

  

@Andrew Johnson ok thank you, I think that I should put in one offer in at a time until I get one completed.

@Regina Joners Don't take my word as gospel :-) Plenty here will say "just get it under contract and renegotiate after the inspection!" That's not my style and that style wouldn't play well where I invest. At least I don't think that it would. Who knows for sure. More than one way to skin the ol' REI cat.

Side note, it's easy to make offers that expire in 24 or 48 hours.  There's nothing wrong with making 2-3 offers a week with short time expirations.  That doesn't solve your "offer before viewing" challenge but it does allow you to authentically make multiple offers in quick succession that are valid during the offer period.   

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