Do the Short Sale Banks know we're having a bidding war?

Real Estate Agent with ReMax Select One 01433036

What's easier? Submitting a full price offer where a bank can just change the name of the first buyer with the first back-up buyer? Or is it easier to outbid and be the highest offer chosen. It seems lately my full price offers on short sales are being out-bidded. Do the banks know that there are several offers? Do the banks know that there is a bidding war? Do the banks know that some of my buyers are walking away becuase our full price (or sometime over full price) approved offer is taking too long to process? 

Comments (3)

Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Good question!  Todays market has changed drastically year over year.  We are also seeing bidding wars on REOs that are priced to sell and move in ready.  I just returned a counter offer today after being out-bid on 3 others!  No one is writing this news yet.  But they will soon.

Jan 21, 2012 09:09 AM
Shannon Jones
The Shannon Jones Team - Long Beach, CA
Long Beach CA Real Estate

On REOs, the banks would know that there's a bidding war because the listing agent is obligated to present them with all offers. But on short sales, it's highly likely the bank doesn't know about backup or additional offers. Since the bank isn't a party to the listing agreement or the contract, the listing agent isn't obligated to let the bank know about all offers. Certainly, it can be frustrating for buyers to be out-bid, but price isn't always the deciding factor when choosing an offer to submit for short sale approval. On our short sale listings, we also look at the flexibility and commitment of the buyer, the experience of the buyer's agent, and the financing, down payment & credit of the buyer. When I'm on the listing side of a short sale and we have a bidding war, I don't believe it's always in the seller's best interest to take the highest offer. I'm always looking for an offer from a buyer who has good credit and is willing to wait a long time and offers a price that I feel confident will be supported by an appraisal.

Jan 21, 2012 09:51 AM
Mickey Kinser
ReMax Select One - Huntington Beach, CA
CA Realtor (714) 931-3158

Hi Shannon and Jan... thanks for your comments! :)

Jan 30, 2012 10:29 AM