What Does it Take to Win in a Silicon Valley Short Sale Multiple Offer Situation

I have to respectfully disagree with a few of your points. Here are my responses:

1. You should offer on the low end of the comps in order to better negotiate a short sale for your clients. The seller controls the short sale so if your clients give incentives to the seller, they will have control of the short sale. From a listing agent perspective, this is the best strategy as well as in negotiations, you want to negotiate the best low price in order to complete the transaction. For example, it is easier to close on an approved short sale of 250k than an approved 280k short sale. 

2. Agreed

3. As a buyer's agent, I don't recommend putting a deposit in. Also, I don't recommend spending a dime on a short sale until you get an approval letter. Finally, a good listing agent has contractor friends who can point out issues with the home prior to listing so that the listing agent can submit the high bids to the bank in ordert o further lower the purchase price. Worst case scenario, if the listing agent didn't do their job properly, the buyer can send their contractor bid to the listing agent so that the listing agent can then see if they can get seller concessions or a price reduction.

4. My response to number three addresses this.

5. Not true. You should ask for the moon, including home warranty and termite report and repairs. Some lenders will reject it and some will let it stay. For example, Chase uses a value based method rather than a net system on California loans.For the lenders that allow closing costs for FHA loans, then have the purchase offer written up as a FHA loan then change it after approval (with seller's consent of course).

6. Agreed. They only should be changed if escrow or title are not smart enough to close the transaction. This is mostly seen in a two lien issue where the first is giving less than what the second is willing to accept.

7.  & 8.  Agreed!

Hi Marcy,

Interesting info and I agree with most of it.

However when it comes to placing a deposit into escrow I think it would be wise to take it as a case by case basis. Meaning looking at all the factors when a buyer makes this decision. i.e. how many loans on the property? does it appear to be a true verifiable financial hardship? are there HOA dues in arrears?  how many short sales the listing agent has closed recently? how cooperative are the sellers? is it a divorce sale?

I know the CDPE classes teach (at lease the one I took) placing the deposit into escrow early, but I do see some risk and again I think it's a case by case basis. And btw, I know it's probably not easy to get all the answers in advance, yet I think it's prudent to know most of these.