Multiple offers - should you make them?

You're trying to buy a house and missing out - should you make offers on multiple properties?

With the market being so HOT for sellers right now, and HUGE demand from buyers..... you may be forgiven for thinking it's a great idea to make offers on a few properties at the same time!

This could be an issue if you end up being accepted by more than one seller at the same time!

Do you know that it could cost you $$$$?

In Victoria, a contract of sale allows for a seller to retain 0.2% of the sale price if a purchaser changes their mind and cools off during the 3 day cooling off period. This means, on a house they enter into a contract for of say, $500,000, it can potentially cost them $1,000 if they choose to withdraw from the sale, using the cooling off clause.

Of course, there are many factors surrounding why a buyer might change their mind and not be able/willing to continue with the purchase.

It is important to understand the ramifications around what could happen if you put forward multiple written offers, and each seller accepts - in this instance, you would only want to move forward with your favourite home, and cancel the contract on the other two.

Buyers need to be aware that in a binding contract (where both the buyer and seller have signed), the buyer can exercise the right to cool off within 3 business days, also the seller has the right to retain $100 or 0.2% of the purchase price, whichever is the greater!

Tune in to understand more about how and why this could effect you!!

Happy house hunting!

Disclaimer: The contents do not constitute legal advice, are not intended to be a substitute for legal advice and should not be relied upon as such. You should seek legal advice or other professional advice in relation to any particular matters you or your organisation may have.