Expert: Dick Dennis - 1/9/2008

Question
Dick,
Hi, I had my realtor put in an offer on a short sale listing on December 8, 2007. Our realtor received a call from the listing agents partner stating that the offer looked good and had been submitted to the bank. After a follow up call ten days later, the listing agent acted like she didn't even remember the offer. The agent stated that her secretary had abruptly quit and she would look in to it. My realtor attempted to call her several times after the listing agent did not respond.  Finally she responded and stated that the offer had never been submitted. A few days later she left a message that it was submitted by her personally to the bank. We had not heard anything from the bank or the listing agent so we placed another call into her. Two days later she called back and informed us to be patient. Also she stated that they had another open house and are expecting another offer. We dated our offer DEC 31 per the listing agent and placed a full price offer, which we were told was better than the existing offer. My agent has only handled a couple short sales that were unsuccessful. What do you think of this situation? Is our offer still valid? Should the seller know about the offer? The reason I asked the last question is because I have mutual friends with the person selling the house. We were told there was another offer on it, but the seller was not aware of this. Any information would be appreciated. Thanks, Kirk  

Answer
I don't know where you live, Kirk, but one thing you are going to have realize is that "he who acts like he wants it most, loses." In this kind of market there are many good deals so if you act anxious that you want that house, you are going to pay a higher price than if you found a house that was just as good and at a lower price. As for the date of the offer, it doesn't amount to a hill of beans. The seller (the bank for all intents and purposes) is going to accept the offer they like the best. Period. What the bank is most interested in is how good is your credit and the likelihood of who is actually going to close on the deal. But if you are still anxious to get that house, then I suggest you YOURSELF continue to contact the lender that is doing the short sale. They take their time anyway.

Another thing: real estate brokers, like any other business, have people who are incompetent. You already found that out when you had to wait to find out the offer was never presented. Inform your agent, or the agent who is involved with the property, that it is your intent to keep on the back of the short-pay lender, based on your experience already. Better yet, look around for another house that you would like to own. DO NOT GIVE THE SELLER OR THE LENDER the idea that they have the only house in existence, especially in this market. I wish you well.

Dick Dennis