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Answers (19)
- Cindy Quinton, "Cindy Quinton"
- Contributions:1323
Grrrr, guess my advice wasn't very timely....of course this hadn't happened to me by this time LAST YEAR, so in order to give this advice in a timely manner I would need some sort of time machine!
- Cindy Quinton, "Cindy Quinton"
- Contributions:1323
Well...we were kind of sitting the fence on a house we loved, but we hadn't sold our land yet. The agent called and said there was an offer, so we made an offer...then a final highest offer. We lost the house, so yes it happens.
- Jason Bruno, "Jason Bruno MaExpert"
- Contributions:24
When a home "hits" the right price (the one the market is willing to pay) offers can come in fast and furious - so it is possible. You could ask them to show you evidence of the other offer (maybe the email from the agent submitting the offer - not the actual offer or something that would make you feel more comfortable doing a best and fina)l. Either that or call their bluff and stick to our guns.. it all depends on how bad you want the property. Hopefully you have a Buyer's agent protecting your best interest.
- Eric Rollo, "Eric Rollo"
- Contributions:36
That is not surprising considering the home's status as a short-sale. If you are in fact still interested in the home, put in your best and final offer and hope for the best, but ONLY after consulting a real estate professional familiar with the area who can give you the property's fair market value. It might also be in your best interest to find a friend or family member familiar with home inspections or even contracting that might be willing to drive by the home and give you an idea of any fixes that might be necessary simply by perusing the property quickly.
Best of luck!
Eric
Best of luck!
Eric
- James Kinchla, "Jim Kinchla"
- Contributions:34
There's so many good deals out there right now, if I were you, I'd look else where. You could miss or pass up some very good opportunities while waiting for a banks response on a short sale.
With prices as low as they are along with very low interest rates, now is the time to buy if you're ready.
Best of luck!
- SteadyState
- Contributions:787
Consider yourself lucky. Over my last five home visits in Sunnyvale/Cupertino/Saratoga CA upon entering the home the agent has informed me that there are pending offers and the seller will make a decision on Tuesday (for some reason it appears to mostly on a Tuesday)
- William Senior, "William Senior"
- Contributions:1
Good luck with the short sale! There are many complications involved and a buyer's agent familiar with short sales is usually the best way to go. Regarding mystery offers; often 'side-lined' agents ask listing agents to inform them if an offer comes in on a property, which is usually in the best interest of the seller: multiple offers. So there probably is another 'instant' offer. But who knows. When you submit an offer with 'assumed' multiple bids, choose an offer price so if you are outbid you can walk away knowing your bid is what you believe was its value 'to you'. Don't overbid and overpay. Also signing 'anything' has implications. Some states are more lenient than others with offers & although a buyer's offers may not bind you to the house purchase, if accepted, you could lose a typical $1,000 deposit if you do not abide by signed terms; which makes offers binding.
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- Michael Emery, "MikeEmery"
- Contributions:7298
You can continue to look for other properties and perhaps even make an offer on another home UNTIL the bank approves your offer. After that point you are contractually obligated to buy the home - excepting other contingencies like inspection and finance.
When you sign a purchase agreement that includes either language or a separate addendum that states 'subject to approval of lender', this is often a contingency to the purchase agreement. Until that contingency is met by the seller, you are not fully committed to the contract and could request a cancellation of your purchase agreement.
What is undetermined is what happens to earnest money which is why in most short sales, the buyer puts up no earnest money UNTIL the bank approves the offer. In fact I saw a purchase agreement addendum just today that stated just such a scenario - which just makes sense.
Talk to your agent regarding any issues you might have as contracts will vary from state to state. This should be considered general information and may not apply to the laws of your state.
When you sign a purchase agreement that includes either language or a separate addendum that states 'subject to approval of lender', this is often a contingency to the purchase agreement. Until that contingency is met by the seller, you are not fully committed to the contract and could request a cancellation of your purchase agreement.
What is undetermined is what happens to earnest money which is why in most short sales, the buyer puts up no earnest money UNTIL the bank approves the offer. In fact I saw a purchase agreement addendum just today that stated just such a scenario - which just makes sense.
Talk to your agent regarding any issues you might have as contracts will vary from state to state. This should be considered general information and may not apply to the laws of your state.
- finny6944
- Contributions:13
Your situation does seem a little strange. Did you ask your agent if she/he is also representing the other buyer ( i am assuming this agent also represents the seller)? Worth asking to see gauge whose interest they really have in mind. In the future consider working with an exclusive buyer agent not a listing agent.
Short sales can be extremely frustrating for home buyers. It usually takes a savvy investor to follow through with the process as they tend to have less emotion and are more educated about the steps it takes to work with a bank. We usually end up advising our clients to avoid short sales altogether since they have such low probability to close (banks usually end up foreclosing on the home before selling at a loss). They can take months to close. Often buyers will wait months for answers just to find the bank will not sell. Outside of the banks selling it "As Is," you also wont be able to make any changes to the Purchase and Sale contract. I advise getting a real estate attorney to review it but just be prepared to sign their standard document. Also be prepared to wait a while for the PS to get executed. In addition, it is my understanding the offer contract is not binding. Only the PS is binding.
That said, since you have already started the process and have a vested (time) interest in the property there appears to be no downside in keeping your offer on the table.
I have a buyers only agent. Is it safe to keep looking at other homes. Also on the offer sheet there is a spot for me to sign that said how long the offer was good for. My realtor wrote TBD, and he said that was the best way. Which looking back on it I wish I wrote a date and time that way the listing agent cant drag her feet. Does this make sense? Thanks
Short sales can be extremely frustrating for home buyers. It usually takes a savvy investor to follow through with the process as they tend to have less emotion and are more educated about the steps it takes to work with a bank. We usually end up advising our clients to avoid short sales altogether since they have such low probability to close (banks usually end up foreclosing on the home before selling at a loss). They can take months to close. Often buyers will wait months for answers just to find the bank will not sell. Outside of the banks selling it "As Is," you also wont be able to make any changes to the Purchase and Sale contract. I advise getting a real estate attorney to review it but just be prepared to sign their standard document. Also be prepared to wait a while for the PS to get executed. In addition, it is my understanding the offer contract is not binding. Only the PS is binding.
That said, since you have already started the process and have a vested (time) interest in the property there appears to be no downside in keeping your offer on the table.
I have a buyers only agent. Is it safe to keep looking at other homes. Also on the offer sheet there is a spot for me to sign that said how long the offer was good for. My realtor wrote TBD, and he said that was the best way. Which looking back on it I wish I wrote a date and time that way the listing agent cant drag her feet. Does this make sense? Thanks
- ConnieK_Oklahoma
- Contributions:2899
well it does seem strange but it can happen. I had one sit on the market for months, and in one weekend had two customer of my own wanting to make an offer and another Reatlor brought an offer. It was a REO property so the bank responded with notice to all of multiple offers and 24 hours to make their highest and best. I hated that because I was sure they doubted that it really happened. I've heard of it happening a few times and I've seen a few times where I think someone was probably lying. the key is...don't offer more simply out of fear, offer what you are willing to pay and be prepared for another offer to get it if you were too low. Depending on your state, there may be actions you can take to obtain proof that additional offers exist. -when in doubt ask an attorney- if your Realtor isn't the listing Realtor, then it's in their interest to have proof as well, ask them if they have access to an attorney through their office.
- Dunes....
- Contributions:3894
Here's a link to 2 Discussions involving many Agents...A Consumer had paid $15,000 more for a Property due to a "supposed" other offer (An offer that never existed)...
Agents seem to wax on about inappropriate yadda yadda but this (No proof of a Competing offer) has been going on for a long time and they haven't done much or put much effort into changing it to protect their clients..Google Phantom Offers
Anyway please read the Discussions I think you'll learn a lot....You'll even have the pleasure of hearing a number of Agents say..
So what if they there is no other offer and the Client pays more..they got the property didn't they
Can I get proof of a competing offer? The answer may surprise you
- TerritoryRE
- Contributions:22
Your situation does seem a little strange. Did you ask your agent if she/he is also representing the other buyer ( i am assuming this agent also represents the seller)? Worth asking to see gauge whose interest they really have in mind. In the future consider working with an exclusive buyer agent not a listing agent.
Short sales can be extremely frustrating for home buyers. It usually takes a savvy investor to follow through with the process as they tend to have less emotion and are more educated about the steps it takes to work with a bank. We usually end up advising our clients to avoid short sales altogether since they have such low probability to close (banks usually end up foreclosing on the home before selling at a loss). They can take months to close. Often buyers will wait months for answers just to find the bank will not sell. Outside of the banks selling it "As Is," you also wont be able to make any changes to the Purchase and Sale contract. I advise getting a real estate attorney to review it but just be prepared to sign their standard document. Also be prepared to wait a while for the PS to get executed. In addition, it is my understanding the offer contract is not binding. Only the PS is binding.
That said, since you have already started the process and have a vested (time) interest in the property there appears to be no downside in keeping your offer on the table.
Short sales can be extremely frustrating for home buyers. It usually takes a savvy investor to follow through with the process as they tend to have less emotion and are more educated about the steps it takes to work with a bank. We usually end up advising our clients to avoid short sales altogether since they have such low probability to close (banks usually end up foreclosing on the home before selling at a loss). They can take months to close. Often buyers will wait months for answers just to find the bank will not sell. Outside of the banks selling it "As Is," you also wont be able to make any changes to the Purchase and Sale contract. I advise getting a real estate attorney to review it but just be prepared to sign their standard document. Also be prepared to wait a while for the PS to get executed. In addition, it is my understanding the offer contract is not binding. Only the PS is binding.
That said, since you have already started the process and have a vested (time) interest in the property there appears to be no downside in keeping your offer on the table.
- finny6944
- Contributions:13
That makes a lot of sense. I have a pre approval for the amount of the house, not sure if this helps. I understand that it can take longer to close but is there anything else I should know besides they can't repair anything? Thanks
- Michael Emery, "MikeEmery"
- Contributions:7298
Short sales can take from days to months for the bank to give you an answer. Sometimes they will come back and ask for more money, sometimes they won't. You can't expect the home seller or bank to do any repairs due to the financial situation of the seller.
A huge benefit is having an agent who is familiar with the process. Make sure you ask them what you can expect from a short sale purchase as it's not the same as a traditional sale.
And just remember, it's not always about price. The bank will look at issues like who can close more quickly, who has the better credit, who can put more money down in a down payment. You could offer a million dollars for the house, but if you can't close you are no good to the bank.
A huge benefit is having an agent who is familiar with the process. Make sure you ask them what you can expect from a short sale purchase as it's not the same as a traditional sale.
And just remember, it's not always about price. The bank will look at issues like who can close more quickly, who has the better credit, who can put more money down in a down payment. You could offer a million dollars for the house, but if you can't close you are no good to the bank.
- finny6944
- Contributions:13
Thanks for all the good advice. I raised my offer and now I'm told that the other offer came in exactly the same! Seems impossible to me. They said both offers are being sent to the banks attorney to decide which offer the bank will accept. Anymore input how this process is gonna go? Or how it's supposed to go? Thanks a lot
- Dan, "the_country_hick"
- Contributions:4699
There are 2 possibilities.
1 another offer came in.
2 no other offer came in.
Since you have no way of knowing which it is just make the offer you felt comfortable with. If your offer was all you wanted to do stick with it. If you are willing to pay more offer more knowing it is possible you are only bidding against yourself.
The next move is yours.
1 another offer came in.
2 no other offer came in.
Since you have no way of knowing which it is just make the offer you felt comfortable with. If your offer was all you wanted to do stick with it. If you are willing to pay more offer more knowing it is possible you are only bidding against yourself.
The next move is yours.
- Kimberly Dobyns, "Kimberly Dobyns"
- Contributions:6
Many agents work closely with investors when putting homes on the market to sell short. These investors immediately place an offer on the home and the agents hold the offer for a time to gather all highest and best offers. Ask your agent to dig deeper with the listing agent to see if this is the case. It could simply be a timing issue. I've had several buyers find homes listed as short sales only to find that other agents just happen to have a buyer in the same area and price range at the same time.
- finny6944
- Contributions:13
He said he has done them before. Is there something I need to know?
- Michael Emery, "MikeEmery"
- Contributions:7298
If the price was reduced, the listing agent probably sent an email to agents whose clients had previously viewed the home. Quite possibly this triggered an offer.
There are buyers out there, but they are waiting in the weeds hoping for the best deal possible. So yes, it's possible there is another offer.
Have you talked to your agent about the implications and processes involved with a short sale?
There are buyers out there, but they are waiting in the weeds hoping for the best deal possible. So yes, it's possible there is another offer.
Have you talked to your agent about the implications and processes involved with a short sale?
Phantom offer?
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