Home Buying in Plantation>Question Details

Or30313, Home Buyer in Plantation, FL

Short sale listing agent says our offer can't be presented until he hears back on a prior, yet-to-be-accepted offer.

Asked by Or30313, Plantation, FL Wed Feb 2, 2011

A listing agent just showed us a short sale. We want to put in a offer. He says he "can't" put in our offer until he hears back on a prior, low-ball offer that he says will "probably" be rejected. We plan to offer $25k more than the other offer. Is that true? Is there anything that would prevent him from presenting the bank with our higher offer? Isn't he legally required to present our offer?

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12
Good Afternoon Or30313;
There may be an executed addendum in place stating that the owner can only sign and present one offer at a time to the lending bank. The executed addendum might also stipulate that no back-up offers can be accepted during this time.
You should clarify the reasoning behind this with the agent; and if you are not satisfied with the response you should ask the broker.
It's also very curious how you know that your offer will be $25k more than the other offer...but that's another issue.
Web Reference: http://www.321property.com
1 vote Thank Flag Link Wed Feb 2, 2011
I guess I have a couple if questions. One is I am assuming that he put this property in backup and would have checked off on the short sale addendum that they could accept backup offers so you would know what you are getting in to from the beginning and make a choice. Secondly is how do you know that your offer is 25k over? I am pretty sure I know how. The only way is a kick out clause which would require them to submit the higher offer. Unfortunately there is still no guarantee that your offer would be accepted either. We are at the mercy of the banks process and the usual time frame is 90 days to hear back and then be able to approve a new listing price set by the bank.
0 votes Thank Flag Link Thu Jul 28, 2011
From what I understand has already been made an offer to the bank and its offer to back up, that's normal in a short sale
0 votes Thank Flag Link Mon Feb 28, 2011
In the Short Sale addendum there is a timeframe for acceptance. Typically when I submit lowball offers, the timeframe is short for an acceptance as these offers are typically from investors who will not likely stay through the whole short sale process. See if you can submit a back-up offer. I do this as a rule because the originall buyer is usually not the one who sits at the closing table. Meaning, it usually takes a couple if not numerous buyers to make a short sale successful. Best of luck to you.
0 votes Thank Flag Link Thu Feb 3, 2011
Welcome to the short sale world.

The good news is that "Multiple offers are not accepted".

So you "Could be in the running"

First, is this your dream home?

If your answer is yes, then be persistant.
Web Reference: http://www.ronanddebbie.net
0 votes Thank Flag Link Wed Feb 2, 2011
I would suggest calling the broker to find out the details...as suggested before, the bank could have specified one offer at a time until it is accepted or declined. Another thought is that sometimes the agent is trying to get the a number from the bank as to what the minimum amount is that the bank will accept. They can then go to their original buyer and any other buyers to say...the bank will accept any offer over this minimum amount. Whatever the reason, I would contact the agent first to get the details and let him know that you would like to put in an offer...either competing with the current offer or as a 2nd or back up offer if the bank does not accept the current offer....if you feel that you are not getting answers or feel uncomfortable I would then call the broker and explain the situation. Lots of unknowns and no rules when it comes to short sale banks, each one has a different way of doing business
0 votes Thank Flag Link Wed Feb 2, 2011
Hi!

Under the transaction broker agreement used in most offices in Florida all offers shall be communicated
to the seller unless directed not to in writing.

I am providing you a link to that document below:

http://www.floridarebaterealty.com/transactionbroker.htm

Hope that is your favoite answer :))))

Ray Levy
Coldwell Banker Camelot Realty
Mount Dora, FL 32757
352-978-8551
0 votes Thank Flag Link Wed Feb 2, 2011
Sorry to hear about your disappointment. In a short sale situation the homeowner must approve the offer that will be submitted to the bank for review and approval usually accompanied by a contract of sale and an escrow deposit. The bank than will review the short sale package, order an appraisal or a Broker price opinion also known as BPO, that usually takes several months . The bank will determine two things: 1) Homeowner must qualify for a short sale and, 2) Appraisal or BPO must be of satisfactory. In the event that the offer is less than the appraised value the bank may come back and counter offer which they usually do, the buyer than will have the opportunity to either increase their offer, counter offer back to the bank or choose to walk away and collect their escrow deposit back.
In your situation you may choose to wait a long time for the results or look for another home.
0 votes Thank Flag Link Wed Feb 2, 2011
I suggest that you contact the Agent's Broker regarding your issue to make sure you know exactly what is going on. The Agent cannot tell you any info about his client, but he can tell you the position of the Lender. It is unusual for a Lender to refuse to look at multiple offers, although anything is possible for short sales. If you believe you aren't receiving enough info, you may be waiting for a home that will not be yours. At that point, I suggest that you start looking for other homes. I, also, suggest that you retain a Buyer's Agent to assist you. The Buyer's Agent will represent your interests, push for info, negotiate your Purchase Agreement, etc. However, the Seller pays the Buyers' Agent's commission. So you receive the Buyers' Agent's services at no cost to you.
0 votes Thank Flag Link Wed Feb 2, 2011
Hi there,

The other two answers summed up your situation well. There may be dynamics of which you are not aware, like the lender requesting only one offer at a time, or the seller dictating so. Ask your agent whether the lender or seller is the one requesting one offer only be presented. It is a difficult situation but you have to be patient. Phil's suggestion to ask the broker is a good idea if your agent cannot provide answers.

Best of luck,

Rachel LaMar, J.D.
LaMar Real Estate, Inc.
Web Reference: http://LaMarRealEstate.org
0 votes Thank Flag Link Wed Feb 2, 2011
Hi Or, Present all offers is what we do, however with short sales they are tricky and if the Realtor is in contact with them, then they should know best. It's hard to judge what goes on with each bank that has short sales, also the owner can have a say in what deal to accept at the begining. Sometimes the banks only want 1 offer to deal with at a time. We've had it on several of ours where the banks won't entertain another offer until the first offer is a go or no go. Hang in if you want the property more often than not the first deal will not be accepted then the Realtor will put your's in. Waiting is the hardest part as they say and in short sales it's true.

all the Best
Dave & Lisa
Web Reference: http://www.u
0 votes Thank Flag Link Wed Feb 2, 2011
The seller is the current owner, not the bank. The Seller, may have requested not to see other offers or is not willing to accept the offer until it knows the other is denied.
0 votes Thank Flag Link Wed Feb 2, 2011
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