Multiple offers - need help
Hi you all. I am new to negotiating my own short sales, just became a CDPE and have a question about a multiple offer situation. It was taught in that course that we should never submit multiple offers (contracts, because an offer isn't really anything until it's signed by both parties) to the bank. And I haven't, but here's my situation. Offer #1 comes in at 12.5% below the current list price and the seller accepted it. I submitted it to the bank and 3 days later I get another offer in at 6.5% below current list price. I told the selling agent of offer 2 I already had a contract in place and would keep them as a back up offer. Their offer was good for 30 days which as of 3 days ago, expired. I finally get a counter offer from the bank on the first offer and the buyer wants to stick with their original offer and counter the bank back at that amount. What is the smartest thing for me to do at this point? Should I go ahead and try to get the 2nd buyer back in and submit their offer along with the current buyers offer? Or have the seller reject the counter from Buyer 1 and go all in with Buyer 2 as a brand new offer? Or any other option some of you superstars think would be in the best interest of the bank and the seller? Thanks you all!!
Replies to This Discussion
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Permalink Reply by Holly White on
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Pretty sure I just answered my own question. I'm working on getting the second offer to increase their offer to what the bank countered the first offer with.
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Permalink Reply by Jeff Payne on
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Ok, short sale has nothing to do with your question. How would you handle a regular sale in this situation? Would you go to the back up buyer without first giving the first buyer a shot? Depending on the lender, you may have to start from scratch with buyer #2.
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I did give the buyer a shot, they countered at their original offer. The backup is willing to go up to what the bank said they'd take on the offer. Isn't getting a higher contract better for my client, (less that the bank will potentially ask for in a promissory note, less they'll be taxed on etc.)?? I want to make sure I understand the positive side of submitting a counter to the bank that is no change to the buyers original offer.
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The lender btw is Wells Fargo, and I am using the Equator system. I have not once been able to physically get the negotiator on the phone after multiple attempts, just been leaving nice messages. Do you have experience with WF and if going with the higher offer would mean we would have to start over? Thank you btw, your input in appreciated!!
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I'm not as concerned about getting closed fast for my pocket book (that's a nice perk), but more concerned about the best interest of my client and the ramifications they may have by closing a deal that's not as good as another one in hand. Thank you btw!!
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Permalink Reply by Bryant Tutas on
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If the bank has countered the first CONTRACT and that buyer is not willing to come up then the seller has every right to cancel that contract based on the short sale lender rejecting the price. Once this contract has been cancelled the seller can accept the 2nd offer and go under CONTRACT with that buyer. You will need to notify WF that you have a new buyer and contract. You may have to start the process over.
Your situation shows why it is so important that we negotiate the best deal we can get for our sellers before having them sign off on it. Price matters and it is our job to make sure the seller understands this.
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