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Real Estate Fight Club

14
Jun 2021

Should Your Buyer Be Able To Enter Contracts On Multiple Properties?- EP 90

June 14, 2021

On this episode of the Real Estate Fight Club podcast, hosts Jenn Murtland and Monica Weakley discuss whether or not buyers should be able to enter contracts on multiple properties. What is allowed in the rules of contracts? During a season where buyers are having a very difficult time, is there a way that both buyers and sellers can win? Tune in to hear from all the angles!

Episode Highlights: 

  • Jenn and Monica agree that a buyer might be able to enter contracts on multiple properties.
  • Monica says it’s like putting offers on free houses and then seeing which one is the best.
  • Could an attorney write something such as, “We are putting an offer on multiple homes, and whosoever comes to us first is the one that will be accepted?”
  • You are not serving a client well if they aren’t saying, “This is the one for sure.”
  • It makes sense because it is an emotional purchase; You can be emotionally invested in more than one house.
  • Jenn asks Monica, “Did you ever have a time when you were under contract and a buyer wanted to negotiate on another house?” 
  • Monica says to buyers, “If you want to get out of this contract, this is not your house anymore, and we have to handle that first.”
  • As a buyer, you don’t know how many other offers were submitted, you don’t have any idea what sellers are thinking, and you don’t know if they are going to accept the other offers.
  • Sellers change their mind all the time which makes Jenn think that it should be an option.
  • So many people own more than one house, just not in the same city and same neighborhood at the same time.
  • Monica expresses her concerns and her idea of best practices for both the buyer and the seller in terms of commitment.
  • Realtors want buyers to be focused when they see a house because it is difficult to go through negotiation, inspection, and approval of loans.
  • Paula Elder, from Lexington, KY is the tiebreaker today. Her answer is no, that buyers cannot enter into multiple contracts because with each contract they are saying that they are able to get funds and are pursuing that house with serious intention. Can they get funds for each house at the same time and is that the intent? If not, they are not proceeding in good faith.
  • Jenn says sellers can receive all the offers, and if your buyer is bidding on multiple houses, there should be some kind of language so that they have options, too.

3 Key Points:

  1. The real estate market allows buyers to have some control, and if listers can take multiple offers, why can’t buyers put in multiple offers? 
  2. Buying a house is hard. There are lots of hurdles to get through; You have to be heavily invested in the house to make it through all of the steps.
  3. Paula answers the tiebreaker question, “Should Your Buyer Be Able To Enter Contracts On Multiple Properties?” 

 

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 Resources Mentioned:

 

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