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  • Property-a-holics

    2 offers allowed at the same time?

    Hi Tribe,

    if one were to find 2 properties that passed due diligence and matched  requirements would it be acceptable and ethical to place and offer on each knowing that only one will be bought? (Assume each property is with a different agent)

    If not then how about alternating the placement of an offer on each property until the answer is yes.

    For example: placing an offer on property A, waiting for an answer. If answer = no then place and offer on Property B. If answer = no then increase offer on Property A. If not then increase offer on Property B etc etc until answer = yes.

    My concern with the alternating approach is that it could slow the process down so much whilst waiting for an answer that one might lose the property to another buyer.

    Another option is to be open with both agents and say that you’d like to place and offer on two properties and the first one to accept will be a goer.

    Any thoughts would be greatly appreciated.

    Thanks

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    I don't think it's at all ethical to place two offers knowing you'll turn one down just for the sake of it.

    However, if one vendor is willing to negotiate a better price to secure the sake then you have a valid, ethical reason for placing two offers. In fact, it could give you a bit of a bargaining chip if there is a property you prefer over the other. I think maximising your own gains is ethical, after all... It's why we're here. Besides, if one vendor is unwilling to negotiate, they're completely free to refuse your offer as they see fit really.

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    It is not one of the ways that my property business earns  its income, but it is a strategy to put in very low offers on many places at once and hope there is some vendor situation motivated enough to accept.

    If you get two or more very low offers accepted at one time and were not able or wanting to service them yourself, then the situation would likely be of enough value either to inveigle investors into deals which you continue to run, or to sell the lead you now had (in effect as a sourcer) to someone else to buy.

    Nothing is binding in the English system until exchange but you might be looking to try to lock down an agreement on the low offer price by an option agreement or at least if via an EA, the property ads being taken down.

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    At any one time we will have multiple offers in on different properties, and constantly liaise with agents so they they know we are viewing/offering on other properties and we then evaluate the likely success which dictates further offers.

    We also regularly put in 2 offers on the same property, usually where there is development potential so there is likely to be a lot of interest, so we offer a cash unconditional offer based on completion in 21days which is likely to be quite low, and then an offer conditional on perhaps survey or planning which is higher. Agents quite like this as some vendors are only interested in best price, others may be speed, so art least it gives us 2 opportunities.

    In your situation I would make it clear that you are viewing other properties, you only want to buy one so you need to hear back quickly, or even put a deadline on your offer.

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    Phil Stewardson.

    Stewardson Properties.

    Stewardson Developments Ltd.

    Burson Land Ltd. & Jennings & Gilchreaste Ltd.

    http://www.stewardson.co.uk

    Follow me on twitter - @philstewardson

    Good points made above...I cannot disagree...communication is key though.

    What if get two offers accepted?  As I broker a few years ago I had a client in this position....both agents were calling me constantly re valuations and whilst he was approved to buy either (or indeed both) but I knew he would only buy one......he messed a lot of people about and put me in a difficult position.  We fell out and he then lost a lot of points with agents...the upshot being he didn't manage to buy either in the end!

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