Can Buyers Make Multiple Simultaneous Offers?

Posted at 5:14 AM, Apr. 28, 2007

Ask ten real estate agents if it's OK for a buyer to make multiple offers and you'll likely to get diverse answers.  Some agents will tell you that if a buyer only intends to purchase one home it's unethical to make more than one offer at a time.  Other agents will tell you there's nothing wrong with the practice.  My two-cents is that there's nothing wrong with the practice, so long as it's done right.

Consider this scenario:  you're a buyer looking for a home for yourself and your family and narrow your decision down to two possible homes.  You make your first choice and put in an offer.  The seller rather than getting back to you right away drags their feet.  Why?  Lots of reasons:  Sometimes sellers will hold off responding to offers because they anticipate additional offers.  Sometimes it's just poor timing and a decision maker is out of town.  Here's the dilemma for the buyer:  while they're waiting for a response that other house they're interested in may be snatched off the market.

I see no reason why a buyer should be held captive to a seller's schedule.  One option is for the buyer to extend an offer on the home of their second choice.  However, when making the second offer one should disclose to the homeowner receiving the second offer that the buyer has other offers in play.  Some agents will disagree with me and they can write their own blog or are welcomed to comment here.  My opinion isn't based on any legal requirement, but on the simple rule that we should treat others the way we want to be treated.  After all, most buyers would want to know if a seller has received multiple offers for their home.  Conversely, it's only fair for a buyer to disclose to a seller that they have put in offers on multiple homes.

You may be wondering if disclosing to a seller that multiple offers have been extended puts the buyer at a disadvantage.  The fear is that the seller may not take the offer seriously.  This is possible, but no more likely than a buyer being turned off upon learning that there are multiple offers on a home that interests them.  It could actually work out to the buyer's advantage and keep the seller from playing games and give the offer serious consideration.  If your second offer is accepted it could also put more pressure on the seller of your first-choice home to move forward or risk losing out. 

In summary, I'm not suggesting that buyers should make multiple offers a common practice.  However, there are circumstances where it may be appropriate, and as long it's employed with proper disclosure there's nothing wrong with the practice.