In today's real estate climate, there are many buyers who are out there writing offers on more than one property at once. Some are investors who are just looking for a steal of a deal, while others are normal buyers looking for the perfect home or vacation home. In some cases, buyers may have an accepted offer that's subject to lender approval (and they've been waiting for a couple months with no response from the short sale lender). It's understandable that buyers in this situation may get anxious and want to keep their options open by viewing other available properties (especially since there is no guarantee of receiving an approval from the short sale lender). Some buyers may even push it further by deciding to sign contracts to buy more than one property with hopes that at least one of them will get approved and work out for the buyers.
Be careful! If a buyer is under contract with two separate sellers (with the intention or ability to only buy one of the properties), he/she may be open to a lawsuit from either seller that says the buyer is in breach of good faith and fair dealing. If the seller can prove damages, you may really wish you didn't go that route. If you are a buyer considering this strategy for your San Diego real estate purchase, be aware that there are legal risks to being under contract on more than one property (unless you plan to purchase both properties). Any buyer in that situation is advised to consult with a real estate attorney. Globella is a licensed San Diego real estate broker. We can offer real estate advice, but we are not qualified to offer legal advice. For legal advice, consult an attorney.
One possible remedy would be to openly disclose to the seller that you may be writing offers and/or going under contract on more than one property with the intention of only buying one (whichever property receives short sale lender approval soonest, for example). If the sellers agree in writing to this, it seems you wouldn't be hiding anything from them. However, this strategy could obviously hurt your negotiation position if competing against other buyers for the same property. Short sales are not for every buyer, so discuss all your options carefully with your San Diego exclusive buyer agent.
Justin Gramm is the founder and principal broker of Globella Buyers Realty, your San Diego Exclusive Buyer Brokerage. He also writes this blog, "For San Diego Home Buyers."
Exclusive Buyer Agents do not list homes for sale and never represent sellers. They have no "inventory" to try to sell you. They can represent you in purchasing any home. They are specialists at representing buyers only on the buyers' side of the transaction. Exclusive Buyer Agents work to get buyers the best price and terms when they buy a home.
If you have excellent credit and plan to buy a home or condo in San Diego County within 90 days, contact Justin Gramm to hire an agent on your side of the transaction. Call Justin at (858) 437-2662 or E-mail.