Fill in the cliché:
Keep a few irons in the fire,
Throw it up against the wall, see what sticks;
Run it up the flagpole, see who salutes.
Whatever grandparent saying you want to use, it’s clear buyers are in a competitive situation. So, now there’s a new phenomenon… buyers making simultaneous offers on multiple properties.
As always, when buyers do this, they do so at their peril. Consider the following question: what if it works?
The worst case scenario is that each seller accepts the buyer’s offers and now the buyer is committed to buying two properties. Unless the buyer does actually want to buy both properties, they are about to default on a contract.
In most standard offers, if the buyer doesn’t move forward, they lose their initial deposit, (usually
around $1,000.00.)
If you’re going to get into this game, make sure that’s the limit of the buyer’s exposure and that the buyer is okay to lose $1,000.00. Also figure out how long you’re willing to play this game. If you’ve paid a home inspector to look at the home or paid a financing application fee, those cannot be recouped.
Overall, it’s a questionable practice and the money can really add up.
However you and your buyer wish to proceed, if you have clients mulling this over and want to talk through the legal ramifications, it’s okay, call me.
