Bidding wars depend on the area that you're interested in. Not all short sales create a bidding war.
I can't stress it enough, that EVERY listing agent works differently with short sales.
There are still agents out there that are submitting EVERY offer that comes in to the bank---not right.
There are still agents who think that the absolute highest highest all cash offer is the best offer - not right
Back up offers: Technically the listing agent is supposed to hold all back up offers in no particular order, so if the first buyer backs out, they go to their pool of back up offers & choose the "best" one to submit, whether that back up offer was submitted yesterday or 2mos ago.
One part of my short sale logic is, I've done my investigations & I know what the comps are. I know what is too high an offer to submit to the bank because I know what the property will appraise for, for the buyer.
Case in point: A property was listed at $455K, the listing agent submitted multiple offers to the bank for upwards of $525K, she represented to the bank that the property was worth way way way more than it actually would EVER appraise & screwed up the whole thing. This was an agent with 30yrs in the general RE business. In the end the listing was canceled & she & the owner thought the bank just wanted to foreclose instead of work with them. Then I came along & set the bank straight, I sold it at fair market value for $460K to an FHA buyer.
Let me know if you need me to hook you up with an aggressive short sale agent who knows what they're doing.
Realtor Since 1996
Short Sale Expert