Hi guys have you guys ever dealt with a short sale where the seller that is losing the home decides whether the offer is too low to present to the bank???

This agent says that “seller” is going to counter my offer because they think it’s too low.. LP is 95k we r offering 75k. Home has been on the market for 4 months and they had a buyer that walked..

The house needs work my client is an owner occupant, buying cash.. So not sure how to deal with this guy, other than I’m telling him that the lender is the one with the final say and they should present the offer regardless on what the seller thinks their bank is going to accept??

Also wants us to complete the inspection within 5 days of seller signing offer..

I get that they want to make sure Inspection doesn’t become an issue after approval.. But I’m not gonna make my clients waste their money if the lender does not accept our offer..


The seller has the final say. I routinely counter offers upfront for short sale clients. From the seller’s perspective, it sounds like the listing agent and seller do not want to waste time with an offer that they are concerned will not be approved. An inspection upfront also shows the seller that the buyer is committed. 

Maybe agree to do the inspection upfront if they agree to let the seller’s lender counter your buyer. 


The listing agent probably knows what price the lender will accept on this (based on prior negotiations and/or offers.)

Even though there may not be any other offers and it has been on the market four months, etc, the listing agent is counseling his or her seller to not to take a lower offer knowing that the lender will not approve it. If they did accept it, and then the lender counters 45-60 plus days later and your buyer walks, they are now back at square one.

I have seen many short sale lenders want higher and higher prices in our current market. They are seeing the news and media talking about rising prices, lower inventory levels, etc

As the lender, they are already losing money. But they know that often the longer they wait, the higher the price they will get on it.

Especially in this 75-90k price range.

Regarding inspection: we do see this often. The seller and listing agent want to know that your buyer will not walk post approval and again, be back at square one. They want your buyer to have some “skin in the game” and be invested in the property.

This Article Appears Courtesy of Steven Diadoo

Steven Diadoo, Licensed Realtor in MN with BRIDGE REALTY and best-selling author of 'Road to Success' with Jack Canfield (Chicken Soup for the Soul), Board Member at Bowling for Brains Non-Profit 501(c)3 (Event to benefit the American Brain Tumor Association), licensed Realtor with Bridge Realty, Seen on DIY TV, Create Channel and PBS. For help buying and/or selling a house, please call (952) 270-6141 or Click here.


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