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Possible to make multiple offers?lefthander07 [4 Posts] Can we make multiple offers on different properties at the same time? If not, is there a more legitimate way of working around this problem? On account that we're serious investment buyers and not wishing to miss out on potentially good deals we've shortlisted in a particular area. More often, you may end up having to negotiate each of them and really wish to only settle with the few best bargains that works in your favour. In the interest of time, I'm hoping to find ways to shorten the negotiating timeframe by having to nego multiple offers at the same time rather than to work on the offer outcome one-at-a-time and potentially lose opportunity cost that way. I was told by an opinion that you can't and you need to wait for an outcome of the first offer before you can make the another. Are there any binding clauses that we can't do that? Would need advice if there are any (legal) implications or obligations of such circumstance. The only thing i can think of is eg. you put in 10 offers at same time and all of them are accepted! In dat case, u've got to really make sure your pocket is deep enough to take all in. But what are the chances that all of them are accepted in the first offers?! dan. PaulDobson [394 Posts] Hi Dan We operate mainly in NSW and, as far as we know, there's nothing stopping us from making multiple offers. Of course, as always, check with your solicitor. In fact we use the concept of multiple offers and a time limit on our offers, to insert some urgency into the transacction, e.g.: Cheers, Paul Paul & Karen Dobson Talk to us about Wrap Training Joint Ventures.   Jackie1966 [14 Posts] I guess you could use the "cooling off clause" if all offers were accepted. Jacqueline Terryw [6654 Posts]  I would be very careful in making offers. you could have binding contracts if your offers are accepted and multiple binding contracts could be painful! Terryw Jeff Johnson [49 Posts]  best to be aware that cooling off penalties were instigated to protect vendors from buyers doing what you are looking at and I am pretty sure this applies in all states. jeff.johnson@raywhite.com Linar [280 Posts] The way I would go about this is buy putting in offers with very small timeframes with a clause similar to Paul stated above "eg. "good until xxxpm on xxx date". If you have a short timeframe of say 24 hours, then you will know very quickly whether your offer will be accepted. Don't put in any more offers than you are prepared to contract. What if all of them accept your offer? The beauty of a very short timeframe is that you will know very quickly whether you have secured the property or whether you should continue making offers. Let the agent know that you are making several offers. I have sold several properties before and usually I ignore offers with timeframes because I feel pressured, but if I know that it is because the purchaser wants to be free to make other offers, then I will give an answer within a few hours. The agent should tell the vendor the reason for the short timeframe. If you were to make several offers and they were all accepted, you could take advantage of the cooling off period but, in my opinion, RE Agents will be less likely to consider you a serious purchaser. Why would an agent continue to deal with you in the future, let you know of deals before they are released to the public, if you then just cool off without any good reason? As much as people say that RE Agents work for the vendor, the truth is that they work for themselves and if they have a purchaser who they know is a straight shooter and doesn't mess them around and makes life easier for them, they are more likely to want to deal with that purchaser.
Cheers
K Jackie1966 [14 Posts] If all offers were accepted then I would imagine that the bank wouldn't loan you the money to buy all the properties anyway so you could legitimately cancel under the finance clause, couldn't you? Terryw [6654 Posts] Jackie1966 wrote:
If all offers were accepted then I would imagine that the bank wouldn't loan you the money to buy all the properties anyway so you could legitimately cancel under the finance clause, couldn't you? Possibly, depending on how you were to word the clause and the vendors were notified in time. Terryw scott8afl [18 Posts] in QLD you can make multiple offers but if they are accepted you can not pull out unless you use the cooling off period which will incurr a .25% of the total purchase price penalty. If your looking at 10 properties thats alot of bread Qlds007 [4379 Posts]  in QLD you can make multiple offers but if they are accepted you can not pull out unless you use the cooling off period which will incurr a .25% of the total purchase price penalty. This assumes that all of the offers were cash unconditional offers otherwise as Jackie has mentioned you could terminate on the basis the approved finance was not acceptable to you the buyer and the full deposit would be refunded. Cheers Yours in Finance newbi2 [199 Posts] In NSW, a contract is not binding unti it has been signed and exchanged. Until that stage, it is still a negotiation with the buyer able to pull out and the vendor able to sell to someone else even after offer and acceptance, hence some people think they have been "guzumped" even though they had not yet entered into a binding contract. As always, please confirm with your own solicitor and this may differ in other states. Mick MrFairGo [82 Posts]  We recently lost a sale because, even after several extensions, the buyer could not get finance. Our solicitor sent me a bill for $330 for his time, being a lot of communication with the buyer's solicitor. Ouch! So if a buyer comes to me and wants to buy our house, I want to know they are likely to go ahead with the purchase. Having said that, I myself have sometimes put in multiple offers. I remember once a REA ringing me and asking if I wanted all of them presented, or one at a time. I said All. I will figure out how to pay for it later if they all say yes. If they are good deals, I can find JV partners easily enough, or refi other properties to raise the deposits. However, the most we ever bought at one time was three, back in the days when houses were around 100k, so it wasnt' too bad. :) . rudo1ph [32 Posts] Qlds007 wrote:
That's useful information, thank you. Rudi Terryw [6654 Posts] newbi2 wrote:
In NSW, a contract is not binding unti it has been signed and exchanged. Until that stage, it is still a negotiation with the buyer able to pull out and the vendor able to sell to someone else even after offer and acceptance, hence some people think they have been "guzumped" even though they had not yet entered into a binding contract. Hi Mick Bear in mind that a contract doesn't have to look like a formal contract. For a contract for the sale of land to be binding it only has to have about 5 things including location, amount, parties, and signature (plus 1 more??). A note on the back of an envelope could satisfy as a contract. Terryw newbi2 [199 Posts] Hi Terry, As always your comments are thought provoking and informative. Do you know of where I can find more information on this? I was of the understanding that there were certain documents that needed to be included for it to constitute a contract (eg council searches etc). Just curious. Thanks, Terryw [6654 Posts] Hi Mick Have a look at any first year law textbook on contracts such as "contract Law in Australia" by Carter - btw you can pick up very cheap books in the 2nd hand uni bookshops. It looks like contracts for land must be in writing and must contain the following essential terms (the 3 ps) The document must also be signed - signatures can be in many forms too, eg. a secretary signing on your behalf in front of you. All these requirements need not be on the same document too, they could be spread out over a few documents of different dates. Terryw |
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