06-17-2010 06:27 PM
I've seen several Shortsales with a status of "Backup Offer Requested"....does this mean that these properties can still be viewed through Redfin? I just came across a nonshortsale (at least I think) with this status. What would be the reason for the seller to accept an offer and then requesting a back up offer? I had assume that this scenario would result if the buyer made a "contingent" offer which I believe the status would been marked as "contingent". On the other side, I've seen a shortsale with a status of "pending". ...Does this mean that this shortsale is going through the "normal" sale process? I had assumed that shortsales would have this status...it's either for sale, backup offer requested, or sold....
06-18-2010 09:58 AM
Back-up offers are common in short sales because often the first buyer gets tired of waiting and leaves. The seller wants to have someone else in line to step in if the first buyer walks away.
Technically, from the MLS rules, a short sale is only supposed to say "pending backup" if the seller has reserved the right to continue collecting offers and sending them to the bank. In reality, many agents always change it to pending backup for the reason above.
06-18-2010 01:01 PM
I've seen lots of those short sales become active again. It seems that offers fall through pretty regularly, but I decided not to pursue "requesting backup offer" listings because I assume that if the first buyer walks away and I get a phone call, I'll likely discover whatever it was that prompted them to walk away, and there's too much work involved to be taking that chance. Maybe it's worth it if you hustle real estate for a living and do most of the leg work in house.
06-18-2010 02:44 PM
In a short sale, my understanding is that the first offer does the most work. If the first buyer is unwilling to wait long enough for the process to complete, the second buyer will have a much shorter waiting period if the first offer already caused the short seller's case to be thoroughly reviewed by all lenders. So why not make backup offers on short sale homes that you really like at that price? You can continue to look for other homes while you are waitlisted, but can choose to walk away if you find a different home.
06-18-2010 10:01 PM
In shorts many buyers drop out because they find another property rather than something specifically wrong with the short sale property. Many buyers who drop out of a short sale never get to the inspection time frame.
But then I view short sales closing as a crap shoot at best.
06-19-2010 05:22 PM
06-19-2010 11:22 PM
I've seen lots of those short sales become active again.
And at higher prices too! I've seen several where they come back on the market with a 10% price increase after a spanking from the bank.
06-20-2010 07:57 AM
Jethro, I appreciated your comments about a spanking from the bank.
I have a short sale near me where I'm trying to sell my home at the lowest price per square foot in the neighborhood (as a regular sale). Reator-owner did nothing to sell his own short sale (he's represented by a same broker colleague - officially) despite him being the realtor for another listing nearby - you would think he'd want the area to look nice. He did not fix up his own front yard, clean up anything, posted only a few snapshot pictures, never did an open house, very short description of house in MLS with mis-spellings. He did everything in my opinion to make the house look low priced. Sad. Glad the bank made him put it back on the market at a higher price, from what I hear happened after it went pending for more than 90 days. It appears he's trying to get out under a very large second mortgage, and letting the home look as run down to justify the lowest price in the community.
06-20-2010 11:38 AM
"back-up offer requested" translates: forget this dump (they are fortunate to have one half-baked offer). Those interested in truth or results do not pander to realtor or lender niceties.