Making Offers on Multiple Properties
I have finally reached the point where I am making offers on multiple properties. I have made two offers on short sales in the past 2 months. While I might have difficulty financing both properties if the offers were accepted at the same time, I figured I could back out with the inspection or financing offer contingencies if needed.
However, a real estate agent I was speaking to informed me that I should be careful about making more offers than I can finance in case they are all accepted. He said that this would not be much of an issue for short sales but could be an issue for other types of properties. That surprised me because I thought the whole purpose of the contingencies is to enable one to back out.
Is there any issue with making more offers than you can finance at once if you have contingencies to back out? Maybe it is just something that would frustrate agents.
If this is really an issue, how do you know when you are formally released from an offer? Without a written rejection or some set term for seller's acceptance, it seems one could be obligated to an offer until a property sold. On one of the short sale offers, I received a verbal rejection but it seems the offer could still be considered valid if there is not a written rejection. I know the short sale offer has an addendum for a secured party (e.g., bank) release that has to be supplied by 90 days - so perhaps the buyer can use that to back out. There was a seller acceptance time frame that I left blank on the main part of the short sale contract per attorney's advice . However, it seems setting a term for acceptance for non-short sales would help avoid the situation of having too many offers accepted at once.