Short Sale with Multiple Offers

By
Real Estate Agent with Cactus Mountain Properties, LLC

Here in Arizona the competition for a Short Sale can be fierce.  The demand for low cost properties can create a multiple offer situation.  When representing the Seller, there have been 2 philosophies on how to manage multiple offers on a property.

First, the Seller accepts the highest and best offer and only that offer is presented to the bank.  All other offers are held in back-up position until the current Buyer withdraws, Buyer's offer is rejected by the bank, Buyer rejects bank's counter-offer or Buyer fails to qualify for financing.  In the case where a higher offer comes in after the original offer is presented to the bank, the higher offer is held by the Seller and remains in back-up positon until current Buyer is nullified for any of the previously mentioned reasons.

Second, the Seller continues to accept offers and turns all offers into the bank for acceptance or rejection.  A higher offer is submitted on grounds that the bank will cancel a lower offer without further notice.

The AAR Exclusive Right to Sell (Listing Contract) and the Short Sale Addendum to the Listing Contract can be interpreted to allow for either approach to handling Short Sale multiple offers.

I have found in order to keep the playing field fair, I am in favor of escrow being opened at the time of Seller acceptance as insurance for both Buyer and Seller to successfully close the sale.

Please share your experiences with both approaches.  I would like to weigh out the pros and cons of both to help determine the most affective.  Thank you in advance.

 

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Barb Merrill Works 4 U!

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Rainmaker
384,640
Mark Hall
Realty One Group Cascadia - Vancouver, WA
Homes for Sale Vancouver Washington

In Washington we favor the idea of only presenting one offer at a time. This gives the buyers incentive to make an offer and to stay involved until the end. It has worked well for us so far.

Sep 28, 2009 04:43 PM #1
Rainer
112,567
John Puplava
ABC Home Inspections,L.L.C. - Prescott, AZ
ABC Home Inspections,L.L.C.

Hi Barbara,

How are you doing today. Ijust want to introduce myself to you my name is John with ABC Home Inspections. If I can assist you in any home inspections. Please call me.

Thank you,

John with ABC Home Inspections

602-471-7384

www: abchomeinspectionsaz.com

Oct 06, 2010 05:47 PM #2
Rainmaker
1,042,710
Charles McDonald®
Charlottesville Real Estate Solutions - Charlottesville, VA
REALTOR®, Principal Broker®, Owner

I am researching Short Sales and You have some great posts!

I have just subscribed to your blog

your friend in Charlottesville

Oct 20, 2010 12:48 AM #3
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Rainer
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Barb Merrill

GRI, Associate Broker
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