1st place can be the best position for making an offer on a short sale

Being the 1st offer in on a short sale does have some advantages, but it also comes with disadvantages. In Colorado, you can write the contract as such so that neither you the buyer nor the seller can back out of the agreement, and this means if your offer is the first in, it's the one sent to the bank to work with (provided they agree to doing a short sale). Many people use this to their advantage if they either have cash, or are not in a rush to get a home.

One of the biggest downfalls of being in 1st position is that you don't know what the wait time will be for an answer. This can tie up your ability to buy, and you might miss out on other homes. The biggest advantage is that your offer is the one that the bank is working with. As long as you aren't completely unrealistic, many times the bank will counter and you can see where they stand, what numbers they are shooting for. This can give you an advantage, and if you don't like what you see just move on to the next home.
  • May 05 2011 - Northeast Colorado Springs
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Answers (4)

You can't write a contract, you write an offer that can become a contract if the seller agrees and in the case of a short sale, if the bank also agrees in writing. Without 1 you still have an offer. I don't know the laws of Colo but most shorts I have dealt with are in no hurry to accept an offer and will often drag their feet waiting for more offers to roll in. Then they often give all parties the "Final and Best" request for them to make their last and best offer. Being first to get your offer to the selling agent might be good, but that agent can submit 5 offers at one time even if they came in a few days apart.
  • May 05 2011
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Tim, Colorado laws are most likely different than where you are at. Here there can be a serious advantage to being the first offer. If you state on the contract to buy and sell real estate (yes, contract is in the title and no one has accepted it yet), along with a short sale addendum, you can dictate that your offer is the only one going into the bank until they reject, or the buyer doesn't agree to a counter. This is an option that was put in by the Colorado Real Estate Commission.
  • May 05 2011
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Wow that option in CO certainly is an advantage for the first offer. In my area, banks seem to endlessly collect offers in a stack and then sent out the dreaded best and highest offer form. Yuk! Maybe I should be looking for property in CO instead.
  • May 06 2011
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If you have the time, Colorado can be a great place to get a deal on a short sale. If a buyer checks the box in the short sale addendum that the seller cannot back out of the offer it looks pretty good. Lots of investors have figured this out and make it a point to be first in line.
  • May 06 2011
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