making an offer to short-sale (short sales, real estate, new home)

Scott456 · 06-23-2011, 09:15 AM

I want to make an offer to a short-sale property, but the seller just accepted a contengent offer (obviously upon bank's approval) from another buyer, and bank review process has not started. Should I make the offer now or wait until the back reject their first offer.

WestieJeff · 06-23-2011, 10:25 AM

Move along, find a new home to make an offer on.

If the other offer has already been submitted to the bank then no listing agent who knows what they are doing will submit your offer, even if it is higher since banks have a hard enough time keeping one offer straight, nevermind two.

Watch the house, if it falls out of escrow with the current buyer then you can make an offer, but expect that will take months.

We've been under contract on a short sale since last Nov and no sign of short sale approval in sight (all due to bank). Most likely will not close, but we're still in escrow for the time being.

Throw all logic out the window when dealing with short sales.

Scott456 · 06-23-2011, 10:48 AM

OK. Thanks. I thought I would just check.
The listing agent did say she will not submit another offer to the bank until the bank reject the first offer, but she did encourage me to submit my offer anyway.

olecapt · 06-23-2011, 11:46 AM

Quote:

Originally Posted by Scott456

OK. Thanks. I thought I would just check.
The listing agent did say she will not submit another offer to the bank until the bank reject the first offer, but she did encourage me to submit my offer anyway.

You know it does not cost you anything. We just had a throwaway short work out in a couple of weeks. So if they will take a back up offer stick it in. And then watch...the listing agents will lose the backup offer over 50% of the time.

You have no obligation really. Just kill it if things have changed and it comes up.

I agree though not to stop looking. Presume it is not going to work and find something else. Do that three or four times and something will pop.

Scott456 · 06-23-2011, 11:29 PM

If I make a backup offer now, and then their first offer was rejected and the house is back on the MLS, what's the point of submitting my offer now, and still have to watch? Isn't it better to submit the offer when the house is back on the market?

olecapt · 06-24-2011, 03:32 AM

Quote:

Originally Posted by Scott456

If I make a backup offer now, and then their first offer was rejected and the house is back on the MLS, what's the point of submitting my offer now, and still have to watch? Isn't it better to submit the offer when the house is back on the market?

You may be able to get it to contingent status before anyone else gets a shot at it. You may also get a call telling you pretty precisely what the bank will take.

Not a big deal but sometimes a day or two can make the difference.

SportyandMisty · 06-24-2011, 11:27 AM

Quote:

Originally Posted by olecapt

...And then watch...the listing agents will lose the backup offer over 50% of the time...

Are listing agents that incompetent? I would have thought the bursting of the bubble would have driven the incompetent agents into other careers.

Danknee · 06-24-2011, 11:57 AM

Quote:

Originally Posted by SportyandMisty

Are listing agents that incompetent? I would have thought the bursting of the bubble would have driven the incompetent agents into other careers.

No way. They list their primary job as Real Estate agent despite 95% of their income coming from the place they flip burgers at.

olecapt · 06-24-2011, 12:27 PM

Quote:

Originally Posted by SportyandMisty

Are listing agents that incompetent? I would have thought the bursting of the bubble would have driven the incompetent agents into other careers.

I may be exaggerating a little but I think out of 4 or so over the last years we called the listing agent on a status change rather than the listing agent calling us on all but one. Many of these tend to be high volume operations and they just lose it in the system. Some will simply refuse to deal with a back up offer.

The herd is however vastly better than it was in 2005/6.

Scott456 · 06-24-2011, 03:16 PM

Is it possible to submit an offer in a way that my offer automatically becomes the 2nd in line, and I won't have to compete with other offers in case the property is back on the market?