I just returned from a short sale/Bank Owned seminar. It seems to be all that is selling here recently and for good reason great values for the Buyer. I will tell you what our instructor told us. He does this for a living, negotiates short sales. First of all, only about 25% of the offers that are submitted for a short sale ever get approved or get to closing. Second, Banks are not a party to the contract, they just hold the keys to the house sale, they have to approve the "short sale". Banks will most always encourage multiple offers, but the reality is each offer that is submitted (even in back up) adds time to the bank response time which can be weeks or months. This is very frustrating for all parties involved, the waiting game.
Thoughtful advice, Do not go for a pended or back up position. There are many homes out there right now to pick from and the experts discourage multiple offers either on same property or multiple properties, in fact in our Multiple list system it is required for a Realtor to mark the house as pended with no other offers accepted. I understand the process for approval on short sale can take weeks or months and there is a growing agenda out there to take more and more offers.
Can back ups be written? Of course. But why? If you ever want a chance to close on it. If you have time and this is the only house available then go for it, but I would not send in a back up to the bank until the first position offer has been declined. lf it is a Bank Owned or a traditional seller, the seller usually decides if they would take back ups, but again only in second position. When pended and unless other wise noted in the MLS, taking offers on a pended property would be unethical by the listing agent. In about a month our system will have a way to let us know that a home is pended in short sale and that back ups would be accepted.
Better Advice, find yourself a Buyers Agent and go out and find you a home you can be in first position with! I am asking a lot of questions on behalf of my buyers on each and every home we view, in order to facilitate this process. Make sure the list agent has some experience with this short sale process. This was the point of the seminar I attended today. How to get Short Sales Closed! Very Informative.
Bank Owed or REO properties are not as frustrating for buyers as short sales and many more of these bank owned are coming on the market everyday. Again, find an agent that can keep an eye on your target market for you DAILY, to score the best deal! I hope this helps and please visit my website for more helpful information or representation request if you are currently not being represented by a Buyers Agent.