My realtor is not the listing agent - that is one thing that I had thought of after making my offer. It seems that would've worked in my favor.
What I've been told is that the other offer that came in before mine has been sent to the bank for approval/rejection. I imagine that would mean that the seller has approved the offer to be sent to the bank. My offer I guess is being held in a back-up position; however, my realtor has assured me that the bank is aware of my offer (the amount, and that I can close right away).
So, at this point in time I guess the best I can hope for is that the bank rejects the other offer. At this point will the bank then approach my offer? Or, do they ask the other bidder for their final and best offer before entertaining my offer?
My realtor has also told me that he thinks the bank wants to move quickly with this transaction as the property has been listed for over 400 days. The price just recently dropped, which is why it has gotten all of the recent attention...
Thank you for your help. I am also a first time home buyer, so I'm trying to educate myself as best as possible.
Irena is correct. I also work with short sales and the offers are not presented to the bank, the offers are presented to the seller. The seller accepts the best offer presented to them at the time. Once an offer is accepted it then is placed with the entire short sale package and sent to the bank for them to approve or not. Since it is not uncommon for buyers to fall out due to the lengthy time frame for short sales, there will often be back up offers taken in case this happens. So if another offer was already accepted by the seller prior to yours being submitted than I'm afraid you will have to play the waiting game. In dealing with short sales, a lot of people get tired of waiting and move on, so persistence is key.
If I understand you correctly there was an offer that came in prior to your offer and already submitted to the bank. As a Realtor who is working with short sale properties, based on my knowledge and experience I can say that the bank is entertaining one offer at a time. Is your realtor the listing agent for this property ?