Do you take multiple offers when handling short sales?

No.  That’s the short answer.

The long answer is more about how the banks deal with offers and how they handle them.  In some instances, one bank may be more equipped to deal with multiple offers.  Certainly, Bank of America and GMAC who now use the Equator System have more resources now to look at more than one offer.  Even in these cases we don’t do multiple offers and here’s a few reasons why:

• The negotiators have a huge case load, multiple offers confuse them.
• Multiple offers, means multiple packages of paperwork.
• Multiple offers may influence the bank to wait out for a higher offer.

Doesn’t Multiple Offers on a Short Sale Increase (because the competition makes for higher offers) the Bank’s Net, reducing the payoff and helping the seller?

It’s intuitive to think this way.  After all, multiple offers can drive the price up.  In a short sale having multiple offers can be detrimental to the deal and here’s a few reasons why:

• Often the best offer is not the most patient buyer
• Often multiple offer scenarios can scare buyers into thinking hard about their backup plan
• Multiple offers can drive the price right out of qualifying for short sale but still fall short of helping the seller sell the home.

If a seller is going to take multiple offers, there needs to be a clear winner and only one winner with backup offers taken from the other bidders.

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