Vangie Williams

I am a listing agent who has closed several short sales and foreclosures in the last few months. All prices are negotiable, make an offer, but make a reasonable offer, don't think that your client is going to buy a house for 70% on the dollar. The listing agent has to watch out for their clients best interest as well. What you could do is do a mock BPO and see what figures you come up with and submit an offer based on those figures.

Regarding commissions, most bank will not pay over 5% for two agents and as low as 2% for dual agents (this is being challenged in Virginia, but that is an entirely different topic. And in some cases will come back with a ridiculous 4%, fight that one. Each of you deserve more than that for having to deal with the "long" short sale.

As far as closing cost (and I am going to throw in down payment assistance programs)-Closing Cost are usually paid by the bank and up until recently so was some down payment assistance. If your client needs down payment assistance. You are not going to get both and it will be a waste of time for everyone.

Hope this helps.

Vangie - Tue Jul 8 2008, 23:28

I have done several shortsales. This to me is a very tricky question. First, I have a question, did you get a release or at least an addendum stating that you were taking back up offers. Problem is this if Buyer #1 has put all their eggs into moving into this house then you could have a fight because. As a listing agent, I definately would not have submitted the 2nd contract because I feel at some point you have to respect the contract you have negotiating on and either wait for their counter or get a release. This could come off bad to the bank as well. The bank is looking for a sure thing with the counter, if you come with something new or a change, it could hold up your entire deal.

Second question: Has buyer #1 spent money on appraisals, home inspections, etc, if so this could get messy, definately talk to your broker or a real estate attorney.

Please do on to others as you would want them to do onto you. You may have to work with these agents in the future and they may considered this to be a problem one way or another.

Good Luck.

Vangie - Tue Jul 8 2008, 22:58