Home Buying in 28214>Question Details

L_penn, Home Buyer in 28214

I put the only offer on a short sale and the next day I'm told there's another offer and I need to put in the highest and best. Is it a?

Asked by L_penn, 28214 Sun Apr 17, 2011

fake offer? The house was on the market for nearly two months with not a single offer on it! It is a short sale so the seller and the bank must approve offers. We put in an offer and the selling agent said it was the first and only offer until the next day when we're told there was another offer. This is a big coincidence to me and I'm wondering if the other offer was faked by the selling agent to get us to go directly to our "highest and best" offer. Our realtor says there's no way to find out what the other offer was. Is this true and do you think the other offer is a ploy? We really, really, really LOVE this house but feel a little taken advantage of! Please help!

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Answers

14
Good Afternoon!

As others have said, your agent is correct in saying that there is no way to find out if there is another Offer nor, what the other buyer is offering. Your agent can ask the listing agent if the seller will allow them to share the other Offer price. 9 times out of 10, they won't but, it's worth asking.

I'd like to think that this is not a ploy because I have seen several multiple Offer situations in recent months--especially on the good short sale and foreclosure properties. When your agent notified the listing agent that you were going to be submitting an Offer, the listing agent likely notified all showing agents who had a buyer with possible interest, that an Offer was coming in. The other agent was doing the best that he/she could to represent the seller's best interest in getting a high enough bid that the bank will accept. Their goal is to get an amount to the bank that they will accept in short, so that they (the sellers) can avoid foreclosure. I've seen homes that sat for months and months get multiple Offers after not receiving any over those months. Or perhaps the other Offers that came in were simply rejected because they were so low that they knew the bank would not accept.

If you really love this home, I'd give it my best shot at getting in the home. Your agent is probably going to ask the listing agent to be sure that the sellers sign your Offer so that you have an executed Contract and no other higher Offers can 'knock you' out of the running for this home as you await bank approval.

Best of luck!
5 votes Thank Flag Link Sun Apr 17, 2011
A Realtor will generally not fake an offer. The Seller's leinholder often only allows one offer at a time to be entered into their system. You can test whether the highest and best is real by stating: "We withdraw our offer. Please communicate that to the Seller(s) and let us know if the other offer(s) fall through." But if you like it, and you are getting a great deal on a short sale, then offering a greater amound is not unreasonable.
1 vote Thank Flag Link Fri May 13, 2011
L_penn, this is always a distressing situation for any buyer mostly because it creates a false sense of urgency. As an agent since 97 in the area, I see this alot. Because so many buyers are looking for a good deal, an so many sellers can't afford to provide it, the good deals get a lot of attention. So to answer your questions: 99.9% of the Realtors I've met and dealt with are not willing to lose their license just to get the seller a few more $$$$, so chances are the offer is real. A great piece of information to have would be: what's the other offer!!! Unfortunately, the agent is required to NOT DISCLOSE that information, so as to create a level playing field. That's the situation, here's the advice: Determine how "disappointed" you would be if this home gets sold away from you and base your highest and best on that ... I've been on both sides of the equation numberous times with my clients and it's never easy but this is the thought process that seems to procure the desired outcome for the client. Good luck.
1 vote Thank Flag Link Wed Apr 20, 2011
It is illegal and a violation of the Realtor Code of Ethics, and the agent could lose their license and face serious fines if they attempt to fish for offers or run up the price by claiming to have a fake second offer.

This happens ALL THE TIME. Just this past week it happened twice to my clients. When it rains it pours. And when you find the house you love, someone else will love it even more.

Give it your best. Make your best offer. And get a STRONG financing letter that is FULLY APPROVED. With a short closing date. All of these make a difference.

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Nate Wolf was recently named a FIVE STAR REALTOR by Charlotte Magazine. He is a top producing real estate sales broker, representing both buyers and sellers. He is a member of the National Association of Realtors, The Charlotte Regional Realtors Association and the Carolina Multiple Listing Services. He is licensed in multiple states and serves all areas of Metro Charlotte from Lake Norman to Lake Wylie and Uptown / Center City to SouthPark and Ballantyne.

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1 vote Thank Flag Link Mon Apr 18, 2011
In a perfect world, we would not have Shortsales and Foreclosures.
In this world, we have people who stretch and bend the truth, and there is nothing that we can do about it, except avoid them, if possible.
They probably did receive another offer; I would believe that, I want to.
The unfortunate part is that you were not able to negotiate, back-and-forth, with them: They came back asking for your best offer; putting everything on your shoulders. You would prefer to keep bidding, until you got it, or you reached your limit. But, it doesn't work that way.
All you do is give them your limit-bid and if it doesn't work; move on.
Your Realtor was right; stick with him.

good luck and may God bless
0 votes Thank Flag Link Wed Jul 6, 2011
This is a serious offense for a REALTOR to commit such acts. If you trust the integrity of the listing agent, you likely are in a multiple offer situation and you should present your highest and best offer.
0 votes Thank Flag Link Mon Jun 27, 2011
If the offer you made wasn't your best offer, now is the time to make it, otherwise you may not get to buy the property, if another offer truly has been made.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Wed Apr 20, 2011
Most likely, the listing agent 'played' your offer to another party who had expressed interest in the property in order to generate an offer from them. This is commonly done by experienced brokers, called 'shopping the offer.' Often, nobody seems to want to write an offer on a property until there is competition and then they MUST have the home. I've seen this scenario time and again.

My advice: Forget about whether the other offer is real or fake. Do you want the property? Then write the best offer you can, taking comparables sales and your purchasing strength (FICO score, downpayment, escrow closing time period) into account. The lender is the ultimate decision-maker here, so, if your offer is chosen to go to the bank, don't be surprised if you get a higher counter-offer from them. Short sale transactions require a lot of courage and patience but they do work!

Good Luck in your negotiation!
0 votes Thank Flag Link Sun Apr 17, 2011
Unfortuantely, it happens. I like to think it is not a ploy or a fake offer. The listing agent really has nothing to gain by having you come up with a higher offer in this case. the bank ultimately decides what is an acceptable price for the house. You can either accept the number or counter it.

I have been in this scenarios a few times recently myself...I had a short sale with no offers; lot of showings then all of sudden I had three offers within four days. So, if it is priced right and a good deal then it is probable.

Your agent can ask the lsitign agent aboput the other offer but the lsitign agent in under no obligation to reveal who it is. Unless the listign agent or another agent in theri office is presenting the offer. Then it becomes what is known as dual agency and they have to disclsose it to the other parties.

I do not think the intention or the motive of ithis was to drive yoru offer up. It is just the market right now.
Web Reference: http://www.davedicecco.com
0 votes Thank Flag Link Sun Apr 17, 2011
As a Realtor those situations make me apprehensive because I know it sounds "fishy" but, when it's a good deal, it does happen. The market is heating up now and while the last few months were slow, it's believable now.
0 votes Thank Flag Link Sun Apr 17, 2011
Your Realtor is correct, unfortunately. It does happen. If you really love the home and do not want to lose it, then you should put your best offer. The best of luck to you! I hope your offer works!


Mary H. Schurr, ABR, ALHS
SFR-Short Sales & Foreclosure Resource Certified
QSC-Quality Service Certified
Realtor®/Broker NC & SC
Helen Adams Realty
Randolph Road Office

704.591.5703 Mobile
866.426.2708 Fax
mary@maryschurr.com
http://www.maryschurr.com
0 votes Thank Flag Link Sun Apr 17, 2011
Prices in Charlotte are going up. The Realtor is doing the best for you by helping you to get the home
you 'really, really, really Love'. I would listen to the advice you are getting if you want to get this home.
Mary E Petrarca
0 votes Thank Flag Link Sun Apr 17, 2011
Dear Home Buyer - This is the nature of the beast with Short Sales and Foreclosures. Unfortunately, there is no way to know for sure. We actually have some foreclosure Asset Managers that will call for H&B when you make a low offer. Rather than go back and forth they want you to come to the table full on with your best offer. It is also highly possible that when your offer came in that the listing agent went back to anyone else who had ever seen it and asked if they wanted to get in on it. Again, no way to know for sure. The best advise, and advise that I would give to my own client, is to make your highest and best offer. Be reasonable. Don't pay more than you want to. It all depends on how much you want it and how much you're willing to pay!

Good luck!
0 votes Thank Flag Link Sun Apr 17, 2011
Your realtor is correct. There is no way to verify that there is another offer. It is unethical and illegal to have "fake" offers. More than likely a buyer has been interested in this property and their buyer agent has asked the listing agent to let them know if another offer comes in. Or the listing agent notified everyone who had looked at the house to let them know an offer is on the table, trying to encourage multiple offers. Different banks handle multiple offers differently; some will only deal with one offer at a time, others ask the bidders to submit their highest and best offer. If you really love this house like you say you do, and your realtor has confirmed that it is a good value, then submit your highest and best offer! We are most definitely seeing multiple offers in today's market. Good luck!
0 votes Thank Flag Link Sun Apr 17, 2011
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