When shopping for a home you may find two properties that fulfill all your expectations. With all of the talk of a "Buyers Market" regarding real estate, the thought of making an offer on both homes to see which you can get for the lowest price may be tempting. But doing this isn't wise. Some people who tried this have found themselves involved in a lawsuit that tied up their deposits for an extended period of time.
An agreement of sale for real estate must be in writing to be enforceable, so a broadly accepted practice is to only negotiate offers that are made in writing. A written offer from a potential buyer is binding until it is withdrawn, accepted by the seller (at which point it becomes an agreement), or countered by the seller. A written offer, unless stipulated to the contrary, does not terminate automatically. So, if you make an offer on a second property before withdrawing the offer on the first home, you stand the risk of both sellers accepting. In this case, unless you're willing to buy both homes, you may have bought yourself a lawsuit.
Comments(0)