If you are making offers on more than one house, you will need an earnest money deposit for each house....not just one deposit for all of them.

I do not make multiple offers...I prefer to have a good buyer that makes a good offer and gets it accepted.

Buyers that cross their fingers and want to throw darts are not my type of buyer...

Eve

Totally not recommend said my real estate professor, weaseling your way out of deals would tarnish your reputation as an agent as well.

   In a screaming hot seller's market, where there is no inventory, maybe.  But in a normal market or buyer's market?  No.  Aside from tying up additional deposit money (per Mike & Eve Alexander Eve's comment), how will you get through the contingency period without spending money on inspections, and then dissing the results for capricious reasons?  Is that fair to Sellers? 

Of course you can make multiple offers...just be prepared to have more than one accepted and lose some money in the process if you pull out.

I suggest that if they're going to do that, stagger the offers and ask for a day response time and if rejected, then fire off the next one etc.
Unless you're willing to disclose that you are making multiple offers on multiple properties but only intend to buy one.
Unless you plan on buying more than one.
I make great deals for my clients. But if a steal is more important than a good deal . . . they may not understand fully how this works. You get what you pay for, and price is never the only consideration.

HOMEiZ.COM HOMEiZGROUP Sure making offers on more than one house is legal. However, the offeror should be prepared to potentially end up purchasing more than one property. Its not as easy as just losing an earnest money deposit. The purchaser could default and end up in court. The purchaser could insert weasel clauses in the offers, but a smart agent representing the seller will see through these and alert the seller.

I would not recommend my client to make multiple offers.

In this market it is not uncommon for people to write on multiple homes.  I've had a few of my listings be in this boat last year.  Sometimes you can tell your home is the "backup" home by the delays in response from the agent.

It's a sucky position to be in as a seller, not doubt.  You take one offer over another and then they back out because the first choice took a number they wanted.

Buyers need to be able to cover the EMD for both properties.  Out here they have 3 days to get it in, so they could stretch.

Good Faith is a term thrown around that too often isn't understood or followed. If I write an offer for a buyer "in good faith" it's understood that if the offer is accepted, they will move forward in the transaction.  While they may have legitimate contingencies which allow them to escape, like an inspection, if two or more offers were simultaneously accepted, I don't believe using this avenue to secure properties and clear the field from other parties is done in good faith if they only qualify for one purchase. 

I'm sure others do this, and in crazy market conditions it may seem practical, I'm just protective of my reputation for when things go back to a more "normal" market. 

I personally do not like doing Multiple Offers, I think it weakens your offer.

But we are used to this type of market here in Phoenix. We actually have an addendum called the Multiple Offer/Multiple Counter Offer which informs the two parties that there are multiple negotiations active. It also requires that both parties have agreed to any offers/counters before it becomes fully executed. This keeps buyers and sellers from agreeing to multiple contracts.

No, one offer at a time.

As an investor I have done it many times, but then I was prepared to buy multiple homes too.

Yes. EMD is not wired till offer is accepted and escrow is open, so no harm in there. 

The basis of entering into a contract is that both parties are being honest. If you write an offer on more than one house at the same time but you have no intention of buying both and, in fact, cannot afford to buy both, you are being deceitful and underhanded. If the sellers’ agent is aware of what is being done, the buyer’s agent could be subject to an accusation of breach of ethics. I have seen it happen.

I recently received an offer on a listing of mine and the agent made it clear that the buyers had made offers on 2 properties.  In our very low inventory environment, I can understand that the buyers wanted to secure at least one of the units, but it came off poorly because the agent put verbiage into the contract that allowed the buyer to void a ratified offer at their sole discretion. 

This put a lack of trust between the buyer and seller, which was overcome when the other unit went under contract and my seller was able to negotiate a higher sales price.  Not a fan of the practice and it seems to have backfired on the buyers.

Not unless they want to own more than one house or damage your reputation in the process. The only time that was "cool" was in the short-sale market, you basically had to. But not advisable in today's market.

As a listing agent I try to weed out those multiple offer strategy people. My advice to buyers & their agents: Focus on the target house and you just may get it. The Earnest money is supposed to test if people are real....

This is not a recommendation that I would make.

If done, the contract wording needs to provide protection.

Maybe not illegal, but not too moral, either.

I've never done that.... one home at a time.... no one on my team walks that thin wire.... they're sure to fall sooner or later.... not on my watch...

There is nothing in the code of ethics against it. I personally do not do it but I  know plenty of agents that do. I always try to focus my clients attention on only 1 property at a time.

It is perfectly legal if done correctly.

As long as the purchase agreements provide inordinate protections to the buyer, primarily conciliation of agreement at buyer sole discretion. this practice is a good way to get a house in a hot market.

It is playing hard ball real estate and requires clear analysis of risk and resources.

The deposit IS NOT AT RISK until ALL contingencies have been satisfied. That is at least 3 easy exits for the buyer (sole discretion) and the seller has no defense.

A buyer in Florida can say, 'Changed my mind' and walk away. Sole discretion means they need not provide justification, however, justification is easy to fabricate.

So, protecting the SELLER becomes the responsibility of their hired professional.

It is legal and only a great idea if the buyer is prepared to purchase 2 or more homes at the same time. 

It differs state by state...

Deposit only goes in after an offer is accepted.  

Legal yes, but not a good business practice. The sellers will blame you and your reputation will suffer. And the buyer will get amnesia about losing earnest money deposits. You could be a big loser!

Can they do so? Sure. Is it legal? Sure. Is it risky? You bet. And it's not something I would recommend or support, nor do I want to get a reputation in the agent community of doing this.

I would suggest against it. I don't think that many buyers understand that they are really in a contract and on the hook if accepted. Multiple accepted offers would likely cause issues or they would lose money and reputation. 

I don't advise it.

A buyer can do that but it should be properly disclosed per your state requirements. 

It is legal but, can cost your buyer some $$.

Putting your best foot forward on the one that your buyer really wants, instead of just throwing Offers at the wall and hoping one sticks, is the best strategy.

If the buyer can only buy ONE house, they should write only on one property.  BUT, with our frenzied market, have accepted an offer, only to find out they got accepted on another one they want more.  We are still seeing about 25% fallout and some of it is because of this!  

Very dangerous to do so.  Could end up in court if more than one accepts your offer but youcan't buy both

We do not advise that unless the client is willing to purchase two homes. In fact I think it's a material fact that needs to be disclosed to the seller, otherwise I believe that agent and buyer to be deceitful.-Kasey

Buyers can do this, but they do run the risk of losing their earnest  money if they cannot terminate based on a legitimate reason. 

My investor clients regularly make several offers at one time but they have the bucks to buy them all. I tell typical buyer clients that if they want to do that they should be prepared to buy multiple houses. 

Good luck.

Sure - providing the Buyer is willing and able to buy all of them.

HOMEiZ.COM HOMEiZGROUP - excellent answer from Mike & Eve Alexander