Monday Market Myth: Your Offer on a Short Sale

Myth: In a short sale, the offer submitted to the lender is the one that will get the home.

False: Just because a buyer submitted an offer on a short sale and waited for the bank approval does not mean that they automatically get the home.  As difficult as it may be to hear, a listing agent has an obligation to the seller to get the most money for their home to reduce the amount of debt owed to the the lender.  A buyer who submits an offer and it is accepted by the seller, may be bumped if the property recieves a higher offer at a later date.

Last week I listened to two real estate attorneys Dave Hammerslough and Shannon Jones, and they both spoke that agents must submit higher offers to lenders, even after a seller accepted offer.   If not then agents are at risk of compromising their fiduciary duty to their client to eliminate the most possible debt.  Also agents are required to have verbiage on the MLS stating that it is subject to lender’s approval.

This news may be frustrating to buyers, as they may be waiting to purchase a home that later they are bumped from first position.  It is important that they offer the highest and best offer from the beginning because they only will pay up to that point and it keeps emotions at ease.

Disclaimer


Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s