Expert: Diann Tonnesen - 4/30/2007

Question
If I put a offer on a house (asking price) can the real estate agent wait until a second person puts a offer on the same house before finding out who gets the house? This sounds more like an auction.
Agent said we could only put one offer on it if this was to happen and the top offer would get the house.

Answer
Hello Aaron,

I am not sure where you are and if local laws may be different. But in general real estate contracts usually contain the phrase "time is of the essence" as part of the contract, and all contracts must be presented as soon as practically possible. To prevent the listing agent from "sitting" on a contract in hopes of getting another better one, usually you have an expiration date on your offer, so that if the seller does not respond within a timely fashion your offer is automatically rescinded.

Again, local laws may differ, but as far as I know you can always "up" any offer before it has been rejected and another one accepted. It would be in the seller's best interests for you to do so! I have not heard of any state law that says you cannot put more than one offer in on a property. It might be a good idea to call your local board of Realtors or the state real estate division to verify what the law says in your area. I do know that in the past after a client has put in an offer, if the listing agent lets me know they have also received a second offer, we have definitely gone in with a new one that was higher when my client really wanted the home.

Of course a seller would always want to get top dollar for their home, and if they do get multiple offers in a very short time period, it can seem more like an auction. When deciding on what to offer, you need to take into account if you are emotionally attached to this home or not, and if you could easily find another one that you would be just as happy with. I truly hope this helps you a bit, Aaron, and I wish you much luck in your home purchase!