Home Buying in Sarasota>Question Details

Segarkent, Home Buyer in Sarasota, FL

My daughter is interested in a short sale. There is a pending offer for 2 1/2 months. Should we make an offer or wait?

Asked by Segarkent, Sarasota, FL Thu Jan 21, 2010

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VERY INTERESTING & INSIGHTFUL: I submitted a short sale offer for a home in Ellenton, Florida in early November 2009. One month ago, a home with the same floorplan in the very same community sold for $1000 UNDER my offer. Great comp for the bank to consider and things are really going in the right direction for this deal to close...BUT AMAZINGLY ENOUGH...

I recently found the listing agent advertising this (my) 2624 sf beautiful 4/2.5 home as an ACTIVE LISTING (instead honestly listing it as pending contract). When my real estate agent inquired why he would be advertising this as an "ACTIVE Short Sale" listing (contract signed/bank currently negotiating), he had a very surprising and disturbing answer. The listing agent informed us that he was only using this listing to bring in leads. Furthermore, he stated that the sellers did not know he was advertising the house as active. Basically, luring buyer in with a bait and switch. Sign in the front yard (no pending), listed as active short sale on yahoo real estate, put up on Craigslist.com, featured on his personal website, etc. Integrity...none. Unethical practice...absolutely.

My suggestion is to seriously consider REO/Bank Owned first and definitely do not chase a short sale that already has an active contract on it. You are second in line in the best case scenario and no one is looking out for your interests in that scenario. Definitely get a real estate agent. I did not realize how helpful they could be in the unforeseen situations. If you do go after a Short Sale, submit a fair offer after reviewing current comps in the same community with your agent. Also, be very patient and willing endure a 4-9 month (or more) time frame to possibly see your dream come to reality. Value is there if you are able to close, but there is always a chance that you may not. Go in with Eyes Wide Open.

I sincerely wish you all the best! It sounds like you are already doing your homework. NEVER STOP LOOKING. I am sure you will come out in the end very happy knowing that you educated yourself throughout the process.
1 vote Thank Flag Link Sun Mar 14, 2010
A pending offer on a short sale means that there is a binding signed contract between the buyer and seller that is only subject to lender approval. Given that the odds are against the contract closing, it might be worth your daughter's time to have her buyer's agent check to see if backup offers are being accepted. However, this is only if she really loves the house and watns to live there. If not, then move on.

Good luck,
Mark LeMenager
Find your next house with the click of a mouse.
Search the MLS without obligation or registration from my website.
1 vote Thank Flag Link Fri Jan 22, 2010
If your daughter is really interested in the property I would call the listing agent and find out if they have any back up offers. Sometimes the buyer is about to walk and they are tired of waiting. If you can be in first position as a back -up you may find yourself in a great position if and when the first buyer walks.

If she really loves the home and you have time, I recommend you do submit the back up offer.
1 vote Thank Flag Link Thu Jan 21, 2010
I agree, you can make an offer and be in a back up position. The offer would NOT be presented to the lender unless the first offer was rejected and no longer in play. If you present more than one offer to the bank you will totally confuse them and it will take far longer to get an answer and close. While waiting in backup position you may miss out on another property. Continue to look at homes on the market. We have numerous homes priced very well with owners not banks just waiting for offers.

Regards,
Diane Fuchs
CRS, GRI, ABR, e-PRO, SFR, SRES
Broker Associate
941-266-8006 Cell
941-375-8040 Fax
diane@dianefuchs.com
http://www.PropertiesInVenice.com

"For your piece of tomorrow, Invest in Real Estate TODAY"
Web Reference: http://www.realtytrac.com
0 votes Thank Flag Link Mon Mar 22, 2010
I am sorry Marianne, but I think your answer is wrong or at least incomplete. The listing agent has a contract with the seller, not the lender. The lender can not require the listing agent to do anything, only the seller can. It seems to me that it all comes down to wether or not a Florida Short Sale addendum was used and wether or not point 5 on continued offers was left in. My buyers never agree to further offers being presented to the lender once we have an executed contract with the seller. I will grant you that it would be in the seller's interest to do so, but it is not required and is subject to negotiation between buyer and seller.
0 votes Thank Flag Link Wed Mar 17, 2010
Patience, Patience, Patience its the biggest qualification a short sale buyer needs. I am SFR Certified and the listing agent is required to forward all offers to the lender until a short sale offer has been "lender approved".
If your daughter really wants the house she should be make the offer and be patient. However, I suggest to all my buyers to continue to look and bank owned are properties that are ready to close. Also, there are plenty of well priced, well maintained homes at great values on the market right now. With low interest rates and plenty of inventory being patient is obsolete.
0 votes Thank Flag Link Wed Mar 17, 2010
Make an offer and have it as back up but continue to look fro properties at the same time. It takes months to get shortsales approved. If their deal falls through or that buyer in contracts gets tireed of waiting and pulls out you can take advantage of teh opportunity and the time...
0 votes Thank Flag Link Sun Mar 14, 2010
Mark has it right. Your offer can become a backup offer if the sellers will do that.
0 votes Thank Flag Link Fri Jan 22, 2010
A pending offer means that there is a Buyer whom is in contract with the Seller on the property that your daughter is interested in. My suggestion is that your daughter continues to look for something else especially if she is a first time home buyer or move up buyer and wants to take advantage of the tax credit being offered by the government thru April 30, 2010. For your information, one out of nine short sales actually close. Your daughter is best to buy a bank owned or what I call a traditional sale. She will get a great buy this way as well. For your convience here is a link to my web site at http://www.sarasellssarasota.com/
you can click on the tab located on the far right side of my web site labeld Bank Owned Properties and search the MLS for these properties only. Let me know if I can help. My contact information is on my web site

Good Luck,

Sara
0 votes Thank Flag Link Fri Jan 22, 2010
Dear Seguarkent:

I would second what Mark said. It's the right answer.

My best,
Terri

Teresa M. Fellows
Broker/Associate
Waterside Realty LLC
941-350-4297
tmf4257@mac.com
http://www.floridawestproeprties.com
0 votes Thank Flag Link Fri Jan 22, 2010
Hi Segarkent,

There is not firm rule when dealing with short sales. Each short sale is different due to the bank involved, the listing agent involved, the sellers situation, is there a professional negotiator... and the list goes on and on. To get the best advise your daughter should have a buyer's agent representing her. Then her agent can contact the listing agent and ask all the important questions. Your daughter's buyer's agent should be willing to sit down with your daughter, listen to what her goals & desires are and then help her evaluate the home she is interested in to see if that home looks like it will be the best situation to reach those goals & desires. Short sales can be a great value, but it also can be an emotional & time consuming process. Short sales aren't the best choice for everyone. If your daughter does not have a buyer's agent, I would be glad to meet with her.

Team Pepka strives to provide unparalleled service to all of our clients, whether they are buying or selling a home. We guarantee your privacy will be respected. Making such a decision should not be done alone and we are here to help every step of the way as your trusted, professional real estate partners.

Please visit our website at: http://www.TeamPepka.com where you can find out more about our team, search for homes, find out how much your home is worth, request mortgage information, get the latest information on market trends and so much more.

We hope to speak with you directly about how we can assist you with your real estate needs.

Alisa Begley, Buyer Specialist
Team Pepka
Keller Williams Realty On The Water
(941) 708-3555
TeamPepka@verizon.net
http://www.TeamPepka.com
0 votes Thank Flag Link Fri Jan 22, 2010
If a property is pending, the short sale contract may have already been submitted to the lender. The property is clearly in negotiations.
Your daughter's chances of purchasing may be rather slim.
I would hedge on offering on another property that is available.

Sandra Appignani Waterman, Realtor
REO Default Certified Professional
Coldwell Banker Residential Real Estate
100 N. Tamiami Trail
Sarasota, FL 34236
sandra.waterman@floridamoves.com
0 votes Thank Flag Link Fri Jan 22, 2010
If you are working with a Realtor you should have her call the listing agent representing the property to see if :
1. She will submit a back-up offer if you chose to submit one,
2. Are there any back-up offers already submitted.
3. How many loans are existing on the property.
4. Are there any existing liens on the property (child support non payment, credit card liens, tax liens)?
5. If the property is under contract is it a cash or mortage continent offer?
The listing agent should know the answer to all these questions. I would never hesitate to put in a back-up offer. Seller's lenders may look at your offer and , if it is good, they may even consider it and decline the original offer and accept yours!
There are many options with a back-up offer. If you would like more information please call me directly at 941-504-7496.

Faye Doyle, LLC
RE/MAX Alliance Group
2000 Webber Street
Sarasota, FL 34239
Cell: 941-504-7496
Fax: 941-954-5455
Email: fayedoylellc@gmail.com
Website: FayeDoyle.com
0 votes Thank Flag Link Thu Jan 21, 2010
Hi SegarKent,

This is a hard question to answer since there are alot of things that need to be asked of the listing agent. Alot of short sales can and will sell, it will take considerably longer than a bank owned or regular resale. I hold the SFR designation which is for Short Sale and Foreclosure Resources and would be happy to assist you and your daughter.

Please let me know if I can be of any help

Zach Kopyt
Realtor
941-321-5424
zkopyt@gmail.com
0 votes Thank Flag Link Thu Jan 21, 2010
Segarkent,

I would counsel against writing an offer on a Short Sale unelss you have a strong constitution. Only about 40% actually close and an approval from the note holder can take months. I just received an approval on an offer my customer's subitted almost 5 months ago. Better to look for a "Bank Owened" or one of the many very well priced regualr listed properties.

I would be happy to assist you in submitting an offer on any type property.

William Gregory, Realtor
williamgregory@michaelsaunders.com
941-504-3404
0 votes Thank Flag Link Thu Jan 21, 2010
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