The Short Sale Process: The Offer

If the property is priced correctly, it should generate multiple purchase offers. The lenders will only entertain legitimate offers to purchase.

PLEASE ONLY SEND IN THE HIGHEST AND BEST OFFER.

Can you tell how important that is? I'm just wondering if the bold and italicized letters tipped you off to how this is critical. Are you wondering why?

In the event of multiple purchase offers, the agent must present all offers to the seller. However, we are not required to present all offers to the lenders, as doing this would greatly delay the short sale process and confuse the lenders.

Unrealistic offers will be rejected quickly. Even worse and more likely, due to the enormous work load at the lenders, the offer will be ignored and the negotiator will not respond, at all, for weeks or months. The lenders do not have the time or the man power in this market for “fishing expeditions” from buyers.

When the agent receives an offer, they should instruct the homeowner to accept, counter, or reject the offer. If it is a “low ball offer”, the agent should use their expertise and skills to work with the seller to generate a counter that will net the highest price for the sellers.

Continue to actively market the property while the offer is being reviewed, if no offers are received in 7-10 days, drop the price and continue to do so every 2 weeks until you receive an offer. Any time you receive an offer, notify Short Sale Connections.


The following fees will NOT BE PAID by the lenders. Please do not submit an offer to my team with any of these fees requested on the EMA, or on addendums to the EMA.

1) Home Warranty/Home Protection Plan
2) Home Repairs **PROPERTY IS SOLD AS IS**
3) Inspection Fees, Pest Inspections, Pest Repairs
4) Fees normally paid by the buyers
5) Survey Costs
6) Junk Fees
7) Utility Bills

The following fees MAY BE CONSIDERED FOR PAYMENT BY THE LENDERS

1) Property taxes
2) Owners Title Policy
3) HOA fees
4) HOA transfer fees
5) Country documentary transfer fees (if applicable)
6) Escrow fees
7) Commissions **MAY BE REDUCED BY LENDER**
8) JR Lien Holders/Judgments/IRS Tax liens
9) Seller Concessions ** Most lenders will only pay up to 3% of the purchase price in seller’s concessions to the buyers. If you submit an offer with a request for higher than 3%, please notify the buyers that we can not guarantee that the lenders will approve higher concessions than 3%.


What's next? Negotiation, discussed here.


Nick.