Home Buying in Reno>Question Details

Sandy Longe, Both Buyer and Seller in Reno, NV

If there is an active/pending on a short sale is it advisable or possible to put another offer on it? Thanks

Asked by Sandy Longe, Reno, NV Sat Apr 4, 2009

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It wouldn't hurt to consider putting in a back up offer on the property. Since the majority of my listing over the last 3 years have been short sale, I can tell you that about 60% of closed short sale sold to buyers that were in back-up position. Although most agents to convey to their buyers that a short sale requires patients, and can take anywhere from 2 to 4 months for a typical short sale to get approved, many buyers still get antsy and will back out after 1 or 2 months. If there is a back-up offer in place, and as long as the numbers work out the same, the new offer can slide into the same position as the original without having to start the short sale process over.

If you do decide to write a back-up offer on a property, I would recommend that you continue to look elsewhere until your offer is placed into primary position.
0 votes Thank Flag Link Wed Sep 16, 2009
Sandy,

If the seller has accepted (signed) an offer and that offer has been presented to the bank then the signed offer is in contract and you are in a position of submitting a backup offer. In a lot of respects it would not matter if it was a short sale, or a traditional sale. Your offer would be in a backup position in case the accepted offer does not complete. Your backup position offer cannot be forwarded to the bank unless the bank has requested that all offers be submitted to the bank. If this request was not made submitting a additional offers to the bank while the signed in contract offer is still in process could be viewed as interferring with the rights of the signed accepted offer.

There is a high probability that the 1st short sale offer does not complete. It could be due to price or most likely the buyers get tired of waiting, back out of the short sale offer and then purchase a different property or just continue to look for another property.

A good question to ask your agent to ask the listing agent is how long has the current accepted offer been with the bank and also do you have other offers on this property that have or have not been submitted to the bank. This could be a good indicator if it is worth your while to write an offer.

Please let me know if you have any questions.
0 votes Thank Flag Link Sun Apr 5, 2009
If you really, really, really love this property there is no reason why you can't put an offer on it, but I would probably look for something else and just watch the listing. There is a good chance you may see it back on the market in a few months. If you decide to go ahead with an offer, please get the help of a professional.
However, my advise would be to keep looking. You and I know that there are a lot of great properties for sale and some tremendous values. The right home is out there for you. Good luck!
0 votes Thank Flag Link Sun Apr 5, 2009
Realtors who have clients who are interested in a house that is under contract usually call the listing agent and determine whether it's worth the effort to put in another offer.

What I have been finding in this market is that a LOT of the accepted offers are very shaky- which is one reason why SS are taking so long to close- the offers are not acceptable to the bank, and it's a waste of everyone's time.

Some agents, like myself, add into the private remarks the strength of the offer - asking for more offers, even though we must show the property as "under contract" in MLS.

So, I would have your agent call the listing agent on properties that you are interested into determine whether it's worth your while to submit another offer.

Short sale sale prices that the bank will accept are determined by an independant appraisal- so in truth, the asking price in MLS may or may not be valid- they're a very different transaction.

It helps to work with an agent who is very good at CMA's and BPO's so that your offer will be acceptable to the bank and turn that mystical 6 month nonsense into a standard 45 day close. Believe me, there are specialists out there who close short sales routinely in 30-45 days- it's worth your while to seek out a specialist if you are interested in buying these type of distressed properties (and who wouldn't be! the bargains are amazing!).
0 votes Thank Flag Link Sun Apr 5, 2009
If the bank is continuing to accept bids on it. What that means is that in case the bid the bank actually accepted for some reason falls through, they will take the next highest and best bid. If that is you, its yours as long as everything goes through. You do know that sometimes it can take up to 6 months to purchase a shortsale, that is if you are requesting alot done to the house. I would ask for the basics, roof inspection, termite and pest report, and do pay for a home inspection. If there is a pool make sure it is inspected, cleaned and filled before you move in. Alot of realtors have thier own inspectors and people they use for pest reports and inspections for pests, etc. They are usually cheaper and do a good job, of course you are free to choose whomever you wish. Good luck and good hunting!
0 votes Thank Flag Link Sat Apr 4, 2009
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