Avoid Delay in Short Sales By Understanding Multiple Offers
Short sales are not for the inexperienced!
Unbeknownst to many listing agents and sellers, each time an “additional” offer is submitted to the bank (the seller’s lien holder), the process starts over, adding up to two months to the transaction, during which a foreclosure can actually occur!
There is often confusion between the agents, the sellers, and the buyers as to what is required of all parties involved when a second offer is submitted to the seller with a pending offer already in to the bank and awaiting approval.
While each State and board of Realtors has their own rules, our local Kona Board of Realtors states that any and all offers only must be submitted to the seller. Let us not forget the seller is NOT the lien holder or Bank, but rather the seller is the listor of the property!Â It is the seller’s choice as to whether or not to submit an accepted offer to the lien holder OR accept the offer and advise the buyers and their agent that they are placing the offer in backup position pending the lien holder’s decision on the previously submitted offer.
For instance, sellers might choose to forgo an additional, top-dollar offer in order to simply close a transaction quickly. Choosing not to submit the offer to the bank could prevent buyers from becoming frustrated with the process of short sales, and may ultimately allow for more successful and timely transactions. In such a case, submitting the higher offer to the bank could slow down the processâ€”and perhaps sacrifice the deal altogether.
Ethically, the Realtors involved should be sure that sellers understand the fact that they are in control of the offers and how they manage them is ultimately their choice. The outcome of such decisions needs to be carefully considered before a second offer is submitted to the bank.
Be sure your Realtor has adequate training and experience in short sales, and that you are in agreement with all parties involved before entering into such a transaction.