Making Purchase Offers on More Than One House: Is it Legal?

Home buyers in competitive real estate markets sometimes submit offers on more than one house at the same time, even though they only intend to purchase one.

But is it legal to do this?

According to an article on Realtor.com:

“While many people think it’s unethical to make multiple offers when you only intend to buy one property, it also may be illegal depending on where you live.”

Here are five important points to know about this subject:

  1. Some buyers make multiple offers to improve their chances in a competitive market or secure a home quickly.
  2. Backing out of a contract without a valid contingency could result in losing the earnest money deposit.
  3. Submitting multiple offers may be seen as unethical and could harm the buyer’s reputation with agents and sellers.
  4. Lenders may flag multiple contracts as a risk, potentially complicating mortgage approval.
  5. A safer approach is to prioritize homes and make offers one at a time.

Can I Make Offers on More Than One Home?

A reader sent us an email to ask the following question:

“We are about to buy our first home, but our real estate market is very hot right now. We’ve heard that homes are selling fast and going under contract within days in some cases. It makes me think we’ll have to make offers on more than one house, to cover our bases. But what are the risks of doing this? Can we put in offers on multiple properties without losing the earnest money deposit?”

Yes, in many cases it’s possible to make offers on more than one home at a time (though some local real estate laws might forbid it). But it might cost you money in the form of a lost deposit.

Much depends on the wording of the contract and your local laws. So it’s a question better asked of a local real estate agent or attorney.

The Risk of Losing Your Earnest Money

In most cases, the act of making multiple offers on homes isn’t really the issue here.

After all, one seller wouldn’t know that you’d made an offer on another property — unless you told them. They’ll only know that you’re offering to buy their home, in particular.

But buyers should still proceed with caution when using this strategy.

Problems can arise when more than one offer gets accepted at the same time. In such cases, the buyer would have to choose which house they want most, and cancel the other contracts. And this could lead to the loss of earnest money.

Additionally, some real estate agents consider this practice to be unethical and would therefore advise against it. So let’s talk about that aspect next…

The Real Estate Agents Weigh In

We wanted to know what real estate agents had to say on this subject. So we reviewed dozens of responses to similar questions on Trulia and Zillow. The two responses below are representative of what many professionals had to say.

Enrique Tejera, a Miami Beach real estate agent, summed it up nicely on the Zillow Q&A website. Here’s how he responded when a reader asked if he could put in multiple offers:

“Theoretically yes, but it’s VERY risky and really not good practice. The sales and purchase contract is a commitment to purchase a property. You could lose your deposit if two offers are accepted simultaneously.”

San Diego real estate agent Khrystyna Chorna echoed this sentiment when responding to a similar question on the Trulia Q&A website. Here’s what she had to say:

“It is not illegal [to make multiple offers]. It is not ethical either though. If both sellers accept your offers you can still back out from one of them based on other issues … home inspection, etc. We as brokers, should not recommend it, but it is often done in this market.”

Legal But Unethical?

This seems to be the general consensus among real estate agents. It is widely regarded as legal, but unethical, to put in offers on more than one home.

(But again, real estate laws can vary by state. So you have to research this locally.)

In red-hot housing markets, some agents claim it’s necessary to make multiple offers. Otherwise, your home search could be long and fruitless.

Other agents stick to their guns on this subject and claim that it’s not wise to make more than one offer, due to the risk of losing your earnest money deposit.

You’ll find opinions on both sides of the fence, though the two responses above represent the consensus.

Key Considerations for Home Buyers

Here are some key considerations for home buyers who are considering this strategy:

  • Legal risks: If more than one offer is accepted, you may be obligated to buy multiple homes.
  • Earnest money: You could lose your deposit if you back out without a valid contingency.
  • Financing issues: Lenders may see multiple contracts as a red flag and delay or deny approval.
  • Reputation risks: Sellers and agents may see this as unethical, making future negotiations harder.
  • Contract terms: Make sure you understand contingencies and deadlines before submitting offers.
  • Market conditions: In slower markets, this strategy may be unnecessary and could backfire.

How the Earnest Money Deposit Works

When you make a purchase offer on a home that’s for sale, you’ll probably provide some earnest money along with your offer. This is commonly referred to as a deposit, and that’s essentially what it is.

You deposit a certain amount of money to show the seller you are serious about buying their home — and so they’ll take your offer seriously.

In depth: Learn more about earnest money

In a typical real estate transaction, the buyer gives the earnest money to his or her agent in the form of a check. The agent puts the money into an escrow account. The escrow account is managed by a neutral third party.

  • Deal: If the buyer proceeds with the purchase, the earnest money deposit would be applied to the purchase price.
  • No Deal: But if the buyer backs out of the deal without a good reason, the seller could keep the earnest money.

So, if you’re making purchase offers on more than one home at a time, and you are paying earnest money each time, there’s a good chance you could lose the deposit.

In closing: Our advice is to make a strong offer on one property at a time, backing it up with market research and comparable sales data.


Disclaimer: This article is for informational purposes only and should not be considered legal, financial, or real estate advice. Real estate laws and contract rules vary by location, and making multiple purchase offers can carry significant legal and financial risks. Always consult a qualified real estate attorney or professional before pursuing this strategy.

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Brandon Cornett

Brandon Cornett is a veteran real estate market analyst and reporter. He has been covering the U.S. real estate market for nearly 20 years. More about the author