Home Buying in Edgewood>Question Details

Leeann, Home Buyer in Albuquerque, NM

Can we make an offer on a short sale house, after someone else's offer has already been accepted by the owner?

Asked by Leeann, Albuquerque, NM Sun Jul 19, 2009

We would like to still make an offer on a short sale house, hwver our real estate agent is telling us that it is to late, that the owner of the house has already accepted another offer. They are currently waiting on the bank to aprove of the offer. The bank has said they will not look at any offers for a few months.

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Rich Cederberg’s answer
You should still make an offer if you want the house. The listing agent may not submit the offer to the bank, but they will hold on to it as a back up offer. 4 out of 5 buyers who make offers on short sales eventually pull their offers because they get tired of waiting or they find another house. If your offer is already with the listing agent, when the original offer is pulled yours can be submitted immediately. By this time the bank may have completed their appraisal and may be ready to move ahead with selling. First offerers rarely get the house. It is usually one of the back ups on a short sale.
1 vote Thank Flag Link Sun Jul 19, 2009
Besides, making a backup offer, you could also ask your agent to contact the buyer with the contract, and offer to purchase the property from him/her via an assignment or quick flip.
0 votes Thank Flag Link Sun Jul 19, 2009
Great advice everyone! Just a technical point which I believe is correct - The house IS under contract. It is in PENDING status in the MLS. The sale is CONTINGENT upon the bank approving the offer. Now, I must admit that I try to stay away from short sales, so my experience in that arena is limited. Hence I will graciously bow to the wisdom of those more experienced in short sales.
0 votes Thank Flag Link Sun Jul 19, 2009
Yes, all is true and trust your buyers agent.

You can submit an offer as a back up HOWEVER recommend move forward with search another home

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0 votes Thank Flag Link Sun Jul 19, 2009
Point of clarification-the house is under contract pending bank approval of short sale.

There is a new Real Estate Association on New Mexico (RANM) short sale addendum that very clearly states the owner may keep the property on the market and accept back up offers. Some brokers will then submit every offer to the bank and the seller may in fact have accepted several offers pending bank approval of short sale. Is that ethical? Even though there is an addendum and a therefore a loophole it still seems wrong for the seller to accept multiple offers, but in fact it is done all the time.

It seems like every listing agent does a short sale a little differently. Take what you've learned here and ask your agent some more detailed questions and see if they can give you specific answers.
0 votes Thank Flag Link Sun Jul 19, 2009
Your agent is correct. The house is now under contract. Because banks are notoriously slow in getting back to owners of short sale properties it may be anywhere from 6 weeks to a few months before the sellers find out if the bank has approved the offer. If you want to wait around that long, fine. Then if the house comes back on the market or goes into foreclosure (more waiting) you can be ready to act. If you don't want to wait (and now may be a better time to buy than later) my advice would be to move on and have your agent find you another great deal.
0 votes Thank Flag Link Sun Jul 19, 2009
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