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Short sale question - Bidding process?
I just bought a short sale house in California. It was on the market for just a few hours and I met the asking price and my realtor told me their would be no bidding process for other buyers to try and overbid me. But I have received conflicting information from another realtor who says there is a bidding process even if I met the asking price of the short sale. Who is right?
Public Comments
- Right now it's up to the seller whether he wants to accept bids or accept your offer..
- I'll answer your question without knowing the specifics about your situation: Up until you have a signed purchase contract the property is still available and anyone can submit a bid on the property. If other parties are interested and submit offers then I can guarantee you that they will be presented to the bank (especially if they are strong offers - at list price or above or all cash deals). The asking price (especially on a short sale) means nothing. I've seen many situations where agents/sellers list the properties far below market to generate a bidding frenzy. Their goal is get an offer on the property that the bank will accept. So if an offer stronger than yours comes in it will be submitted to the bank along with yours. Sorry to say but unless you have a signed purchase contract then the second Realtor is probably correct.
- Nick, you have not bought anything until the bank agrees to this. There is no sales contract, the seller can not enter one without the bank for a short sale. The bank will likely refuse based on the house being on the market for a few hours, they usually like to see a month for offers to come in.
- It depends whether you just made an offer, or whether you have a signed contract with the selling lender accepting that offer. The former owner is not really authorized to accept a short sale without approval from their lender. If you already "bought" it (closed on it) then it should be a done deal with no turning back (without certain exceptions for fraud or liens you were not aware of).
- LL has given you very correct advice (as usual). Just a few hours means they will wait several weeks to get all offers on the table, at this point all you have is that you have an offer in that HAS NOT been accepted, before making a decision.
