This might be a stupid question but here goes. I am identifying quite a few good properties off MLS (actually, Redfin, Zillow and Realtor) that fit my purchase criteria. The numbers are also work them well for me.
My question - if I put in offers on say 5 of them at the same time, but honestly I only want to procure 3 (based on my financial feasibility), and if all 5 offers are accepted, how do I get out of the other 2 (before spending on inspection to back out)???
Thanks & Cheers!
@Nick Shri A better way is to write the offers on the properties you want, but give the seller only a short window of time to respond.
I used to ask the seller's agent "at what time today can you present my client's offer?" If the agent said 3 PM today, I'd write the offer to expire at 6 PM. If they like the offer, they'll take it. If not, move on to the next.
The problems with shotgunning offers the way you describe are:
1. You'll quickly get a reputation of being unreliable. If you're going to be successful, protect your reputation by treating others the way you want to be treated.
2. If you're presenting an offer and the other party accepts, you have a binding contract that is subject only to the contingencies you list. You'll need to find a way to wriggle out of the contract you signed. (Doesn't that statement make you think twice?) Typical contingencies are for inspection, financing, etc, but again, your reputation is at stake.
Be the investor who makes the seller's agents smile because they know your word is your bond. Build a reputation of honesty and it will pay off for you.
I was thinking the same, putting in expiration time so I can move on to next ones. Thanks for your input.