question on simultaneous offers

[altered_ego]

I have been looking for an investment property and have narrowed it down to two possibillities, both with motivated sellers. I like one a little better than the other, but I think they both have the possibility to give me a good return. I told my agent that I wanted to put in simultaneous low offers with contingencies. I want to put in the offer to A that I also offered B and the offer to A will expire if B accepts their offer first, and vice versa for B.

My agent didn't want to do it because he has never put such a clause in and thought that it might open me to trouble. I don't see how it could, and he couldn't give me specifics of how. I simply thought it would be a way to put pressure on the sellers to take the first offer rather than counter for fear of the other offer being accepted first. So my questions are 1) is this in fact a bad idea? 2) how could it open me to trouble?

Thanks in advance.

[Malok]

It opens the door for ambiguity.

And ambiguity usually opens the door for misunderstandings, disagreements - and lawsuits.


To cite just one problem of many that could crop up:
What happens if both persons accept your offer at the exact same time? It can happen.



Your Realtor was offering prudent advice.

Most Realtors aren't attorneys. Drafting up unusual scenarios for them to "play lawyer" is a recipe for disaster.



And it really shouldn't matter. Instead of trying to "play hard ball 1 against the other". Run your numbers - and make your offer on whichever house you want.

Shoot low if you really think the room is there. Shoot way low.

Worse case, they say no. Whoopee doo. Then hit up the 2nd place.

[Codythebest]

If both sellers accept your simultaneous offers, both contracts are null and void...So you may withdraw the contingency to the best property and rewrite your offer...

[altered_ego]

Shoot low if you really think the room is there. Shoot way low.

Worse case, they say no. Whoopee doo. Then hit up the 2nd place.

Thanks, that's basically what he said to do. Although, he diddn't explain any possible scenarios for trouble, instead he just kept saying that he didn't like the idea.

[Malok]

This gets into an area of knowing your market - and he was probably trying to save you potential problems without coming right out and saying what he was saving you from.


Customs vary according to the locale. I can blow my horn driving my car in New York City. Everyone does it. And if someone gives you any lip, flip them the bird.


On the other hand, if you do any of that where I live, you are very likely to get shot since pretty much every person in the county carries at least 1 gun on them at all times - and that type of behavior is unacceptable, and considered bad manners.



Not all markets have the same tolerance level for playing hard ball.


And creating a name as a hard a$$ can be a way to quickly become isolated - especially in smaller closely tied communities.

You have to deal with people - permits, inspections, loan officers, planning & zoning persons, contractors, electricians, plumbers, etc, etc.
You never know who knows whom - and how "enthusiastically" they enforce their guidelines when scrutinizing your particular property/documents, can be directly affected by your reputation in a community.

(Course if you are in a market like New York City, you could probably foreclose on your mother, and kick her to the street for 1 penny profit - and get a businessman of the year award for doing it.)





And I've found that there really isn't a need to be like that.


You can be a tough/firm businessman and people can either take your offer, or decline it. No big deal. But strong arming people putting one against another, can rub people the wrong way.






Run your numbers. Shoot low and make your offer.


There should be enough inventory in most markets that you can pretty much pick the top 20 or 30 houses you like, and get at least 1 out of them that works for you.

[ltcobretti]

That gets messy. It is hard to put a time on acceptance also, I would stay away from that idea, or go in understanding that you may be buying two properties. If you are in fact low-balling, you should want all of your offers to be accepted anyways, as I realtor I would be uncomfortable too.