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Multiple short sale offers and desperate realtors

By
Real Estate Agent with THE BROKER NETWORK OF CENTRAL OREGON, LLC 200306195

I would like some input on a situation I recently encountered: 

One of the lots I had for sale got an offer and was the only offer received (this was about a month ago).  It was a short sale offer submitted to the bank and is still awaiting approval.  The buyer is represented by another realtor in a different company.

A couple weeks after the offer was submitted to the bank, I get a call from another realtor who submitted a short sale offer even though it was listed as contingent.  This realtor thought her offer should also be put on the table and submitted to the bank.  I explained to her that only one offer at a time, that her offer would be presented to the seller and if he accepted, it would be in back up position, and if there were occasion to submit a new offer, hers would be considered along with any others and that the seller would decide on the best offer to submit to the bank.

This realtor, who I used to respect, but is now on my @#$% list, went ballistic and tried to muscle me by saying she was friends with my broker, asking if it was my buyer (if I was double ending) and thus insinuating inpropriety, was calling the sellers, called a banker and had them contact seller, etc.  From her conversation, she was implying we should be working for the banks and pursuing their interests rather than respecting buyer and seller relationships and were obligated to present additional offers.  The way I see it, the buyer's agent represents the buyer interests and the seller's agent, the seller interests, not the bank.  When we do a short sale, we are trying to prevent a foreclosure and naturally pick the best offer available at the time because it will have the greatest chance of being accepted.

Understandably, since there was already an offer submitted and seller was out of town, this offer was not high on the totem pole for them and after all she did, sellers did not want anything more to do with her, not even as a backup offer.  She was somewhat livid about the delay.  My sellers wanted to file a complaint with the real estate agency against her, but I held them off saying she was probably going through some crisis because previous interactions with this realtor were positive.  She did not let off.  Once she got seller rejection of her offer with no counter, she had the audacity to leave me a voice message to call and explain why it was not accepted - could they be in ballpark with higher offer, etc.  I called her back and suggested she just drop this and advised her I had prevented her getting a complaint filed against her and if she had any further questions, to talk to my broker whom I had already informed of all the details.

This breaks all the rules of respecting realtor-client relationships and I was totally shocked by this behavior.  All the banks I have dealt with so far are one offer at a time, even BofA.  Otherwise, how could we get short sales done with all the rest of the hurdles we must go through.

Then, another realtor I respect a lot, calls me and tells me her buyer is interested in the property as well.  I explain the situation to her and she seems to understand, but she also brought up the question that multiple offers should be on the table. 

I felt in both cases that these realtors were just wanting to get offers in for their clients who lost out on the listing.  The lot was on the market for a quite a while (8 months and they had plenty of time to snag it).  The interesting thing is that once someone had offer put in and it became contingent, all these people want the lot.   I guess they finally realize it is a good deal or valuable once someone else shows they think so.

Has anyone had multiple short sale offers submitted to the bank all at once?  How does that work?  What was your experience?  Any info would be much appreciated.  Thanks.

 

Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Maria, to best of my knowledge, you are right. Once the seller accepts one offer, all other offers are back-up offers and seller reserves the right to accept or reject it. Multiple offer scenario comes only when there is no other offer signed.

I am surprised why some agents don't educate themselves.

Oct 20, 2010 06:00 PM
Maria Peace
THE BROKER NETWORK OF CENTRAL OREGON, LLC - Bend, OR
MBA, GRI

Thanks Praful.  It has been a rough week with all this happening at once. 

Oct 20, 2010 06:04 PM
Ann Wilkins
Golden Gate Sotheby's International Realty - Oakland, CA
Oakland, Berkeley, Piedmont CA

Marie,  You are certainly doing the right thing - the seller can only accept one offer.  When I first started representing buyers in short sales, I did run accross agents who would tell me exactly where we had to be in price to be in first position.  The past year or so this has changed, short sale listing agents work their one offer and maybe take a back up.

Oct 20, 2010 06:09 PM
Sidney Kutchuk
Property Management & Sales at REALTY WORKS TEMECULA, CA 92590 (951) 217-6745 - Temecula, CA
Property Management & Sales Experts 951-217-6745

Maria,

I with you. Once you have a good offer all other offers are backups only.

Oct 20, 2010 06:41 PM
Don Spera
CR Property Group, LLC - East York, PA
Serving York and Adams County, PA

You snooze you lose.  Maria, do not feel guilty about anything you did, you were definitely on the right track.  Sounds like an act of desperation on the other agents part as she tried to get you to overstep your ethical boundaries.

Oct 21, 2010 01:22 AM
Jeanne Dufort
Coldwell Banker Lake Country - Madison, GA
Madison and Lake Oconee GA

Backup is the right solution in this case, unless your primary contract allows your seller to continue soliciting better offers.  It would have to include some kind of kick-out in that case.

Oct 21, 2010 01:29 AM
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland

I only have one submitted at a time.  I will hold on to back up offers in the order they came in and present them if the one at the bank is not accepted at the bank.  I am the Realtor that does not put in multiple offers at once.  People have different thoughts on it.  That is just how I do things when I am working with a seller for a short sale approval.

Oct 22, 2010 04:23 AM