Highest and best. The Highest Short Sale Offer is not always the best offer. $$$,$$$
Today I was reviewing multiple offers on one of my Temecula Short Sale listings. I thoroughly review all offers for my clients and advise them which one to accept. One offer stood out as it was written for $15,000.00 over the listed price. That offer was not accepted. Why…..?
Well we tend to focus on price,but in a short sale were the seller nets ZERO the goal is to get them to closing before the bank forecloses on the property. So in reviewing all offers I have to strategize and select the short sale offer I think has the best chance of closing.
OK so here is why the highest offer may not be the best and I had to learn this lesson the hard way.
If you get impressed by the highest offer and submit it to the bank for short sale approval and they approve it, your safe if the offer is cash and the buyer closes. If the buyer is not a cash buyer the headaches begin.
Will the property appraise, if not, does the buyer have the funds to bridge the gap? What happens if the buyer walks and many do. Now you have to re-market and chances are the next offer or your backup will be for less.
Trying to now convince the lender that they should take a lower offer is a up hill battle and you may run out of time to recover.
Think it through and don’t focus on Highest and Best offer. In a short sale the highest offer is not always the best offer.
41720 Winchester Rd #I Temecula Calif. 92590 DRE# 01156692