Your agent should be working with you on writing the most competitive offer you can. There are terms and other items that may tip the scales in your favor, closeability being one of them.
The banks however are unpredictable, and that is one of the risks you take with a short sale property.
Marcie Sands, REALTOR
Simply The Best Real Estate Company, Inc.
Banks should not be seeing more than one offer. The seller should accept an offer subject to bank approval. After that any other offers received by the seller should be in a backup position. They should not be sent to the bank.
Once the bank processes the file and either accepts or counters the offer submitted, the party making the offer submitted has the option of moving forward or not. Of they decline, then it should go to the first backup, etc..
Too many agents think they have to send the bank all the offers; they donâ€™t, even if the bank asks for all offers. Sending in multiple offers is not only unfair to the first buyer that the seller accepts, it actually slows don the bank as they now have to evaluate many offers.
KISS --Keep It Simple Stupid -- should prevail.
There are a couple of agents in San Diego that even publish this policy that the seller wonâ€™t accept any offer until the bank has given an approval or counter. They then email every buyer that submitted an offer , asking for best and final . When I explain this to a prospective buyer, they generally shake their head and pass on the property. They donâ€™t want to be the crash test dummy and not have right of first refusal.
As many have said, there is no rhyme or reason in how a bank will accept an offer or not. In many cases, they have these overworked, grossly underpaid people with minimal trainings making the first round decision. Common sense would be to accept the highest return with the lowest possibility of falling out of escrow, but then again, most banks have no common sense
Broker Associate, Realtor
SELLSTATE Next Generation Realty
It has been my experience that banks want the highest net. I've had all cash offer vs. offer with a large down payment; the latter was accepted, they had the higher offer. I hope this helps.
Gina Garcia, Real Estate Consultant
e-PRO Internet Professional
Keller Williams Realty
So many factors can influence which offer is submitted to the bank. All of our experiences vary depending on the bank and the listing agent. If there are multiple offers that are close (close enough), I recommend the seller (person on the loan papers) counter all to highest and best. I, on behalf of the seller submit the best of the counters to the bank for approval.
Low downs can mean FHA and in some cases equal longer close of escrow. If you are a buyer with a lower down, make sure your lender is either a.) the bank handling the short sale or b.) is a lender who has FHA processing/underwriting in house with experience at closing around 30 days. (Close of escrow is going to be a huge challenge with new truth and lending rules coming out August 1st. - see link below for more info..)
I have heard some agents have been told by lender seller that they will not even review offers until the house has been on the market 90 days (what??). I have heard some want to the see the top three offers and decide for themselves. I do not see how a loss mitagator (read bean counter) can dictate to the owner of the home what offer to submit. However, it certainly behooves anyone trying to get a short sale approved to be very much within market value, to show due diligence in trying to get the best offer (like you would if it weren't a short sale) and present a well organized complete file for the lender to review.
So, it may be the listing agent who decides which offer goes to the bank- and typically they will determine which offer they feel is the "strongest". Keep in mind though- you never know who will still be interested in the property by the time the bank decides to look at, and accept offers! I have one right now where I am the listing agent. We had about 14 offers on the property, and all but 1 buyer wanted to be in the "back up" position.
The bank has now screwed around ong enough that 4 of the buyers have taken a walk by now. So, just keep looking, putting in those offers, and see what comes through! You never know at the end of the day who might end up with a short sale home in this wild and crazy process!
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Good luck...this is a short sale,
Joan Wilson (Realtor, SRES, Ecobroker)
California Cool 4 Sale
Prudential California Realty
Direct Phone: 760-757-3468
License # 01341483
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