A seller can choose to sell to whomever they wish for any reason they wish at any time they wish so long as they do not violate fair housing discrimination rules. They can choose the lowest offer, a cash offer, an offer that closes in 3 months, an AS-IS offer, their friends offer â€¦ and so on â€“ and they donâ€™t even have to explain to you why they chose the deal they did. Doesnâ€™t feel fair? Itâ€™s because itâ€™s not.
It never was and never will be. As for legal? Totally.
Regardless of whether or not you can close escrow sooner is not the issue here. Short sales will take longer to process -- and it's not a matter of the owner staying longer at the house. It's when the seller's lender approves the short sale price, terms and conditions.
The seller can choose whichever offer he wants, especially one that has the best chances of being approved by the lender --- and sometimes, those chances are vastly improved when the offer is the highest. That's because the bank would want to get the highest possible offer since the bank would want to recoup as much of its investment as possible in a property that is being sold for less than what is owed on it.
So it's not a matter of the seller being friends with the buyer.....or that you can close in 3 weeks ....
But please discuss this with your agent. If he is not knowledgeable about these matters, perhaps you should get another agent who can better help you and explain what a short sale entails.
What is "fair" does not enter in to it. Six months closing would be unlikely to be accepted by the lender in my opinion, though.
I hope this answered your question! If you have any further questions, please feel free to contact me by the ways below.
Wishing you the best of luck,
De Vonte Williamson
Licensed Real Estate Salesperson
Proudly Serving Long Island
Coldwell Banker Residential
"I Stand Behind Getting You Results!
You keep asking the same question over and over and over.
Get it through your head: It's legal. The other buyer presented a more attractive offer. It was more attractive because the seller wanted to stay in the house longer.
As for buyer and seller being close friends: So? You're right: As friends, they worked out a deal that made the most sense for the two of them.
Is it fair? Absolutely. You could have made an offer similar to the other buyer's. You didn't.
Next time, work harder to keep the seller's motivation and desires in mind.
Hope that helps.