How to write offers on multiple properties at once?

Question

Greetings

I imagine this question has been asked before; probably multiple times.  But I can't seem to get the right phrase in the search box to get posts relevant to my Q.

I am looking for a fixer in a rather competitive market (central CO).  Properties seem to be moving fast and I am out of state.  In addition, I am trying to find an agent or two to write up an offer and send info on properties - but that's another discussion.

I would like to write an offer on more than one property at a time so I don't miss an opportunity waiting for a reply on the first property.  Is there a way to do this in the offer?  Allow me to back out of one offer,  if my offer is accepted on another property? (Does that make sense?)  I can't buy more than 1 house at a time.

Appreciate your time

Kelly

Daria B. · Answer

I don't think contingencies are being dishonest.

I look at it as protection for me that of something arises I am protected by that clause. I can then decide if I want to continue under the same agreement or get a reduction or back out altogether. Backing out altogether would be if I knew I could not afford to make repairs in addition to closing.

Mike Cumbie · Answer

@Kelly G.,

How long are you giving them to accept? I've given people 2 hours to accept before. I knew they had another showing coming up in 2 hours, wasn't going to let them have the time to compete. It was on the market in the morning, I got my group in at noon and she made the mistake of telling me "I have someone coming in at 2 so noon is fine" . I kind of hate to put another agent under such a tight deadline, but my client missed out on 3 other houses by being outbid in a tough market. In those situations though you need a solid offer.

I promise you even if it is after 2 hours and they like the offer they will be calling you for an extension. Then you have a little breathing room to weigh your options.

Just a thought!

Good luck!

Kelly G. · Answer

Greetings @Daria B. and @Mike Cumbie;  I really appreciate your taking the time to reply.  Yeah - I'm familiar with the 'inspection contingency' clause and could probably use it but I don't like to be 'dishonest' (though that's not quite the word I want).  I would prefer to just state up front: "hey, the market is tight and I may be putting offers on other properties; first acceptance wins" - well - maybe not quite that way . . .

Thing is - I'm not trying to find the right "investment"; I'm trying to find a house I can afford, and live in, w/o locking up too much of my retirement $$.  And if I'm waiting for one offer to be 'rejected' I may miss another opportunity.  I'd likely be happy to buy the first one that accepts my offer!

Anyway . . . thanks for your help

Kelly

Mike Cumbie · Answer

Hi @Kelly G.

DISCLAIMER: I am speaking for NY I can't speak to what to do in Colorado (it may be the same or it may be different). And as always no legal advice just mindless ramblings of a dolt on the internet :)

First item is that transactions are generally done in "good faith" meaning that if accepted you have all intentions of going through with the sale. You have to decide for yourself what that means to you and your business. Do people "Drop a property for something they like better"?... all the time... do they go in planning that way?.... who knows. No real point to that.... just a point :)

We have an "Attorney approval period". I usually give my buyers 3 days in that area. In NY an attorney can cancel a contract for any reason (They use to need something fundamentally wrong in the contract, but the law changed). I recommend to my clients that they have the attorney wait that 3 days (most RE attorneys do that on their own around here anyway). If they get cold feet or find something better or just decide the porch color is wrong the attorney can kill it with no penalty during that time.

Best of luck!

Daria B. · Answer

The clause in your contract that your agent should be crafting is based on 'contingencies'. The only contingencies I've used or seen are 'financial' and 'inspections'. Not to say there are not others that have been used.

Like inspections that come back with more $$$ to do repairs or foundation issues that are deal breakers for some but for others a negotiating tactic to lower the price.

I offered on two at once one time and both were in bad condition. I looked at the property with a contractor and RE agent that mostly works with investors and knows what to look for. I had an inspection contingency in both as a way of protecting myself that if something came back I would be able to negotiate price. In both cases, the sellers were out of touch with the condition and did not want to barter.