Buyer's agents . . . Do you know how to protect your offer in a Short Sale?

Buyer's Agents often fail to protect their buyers offer by NOT including something in writing in their Purchase Offer that insures them that offer will be given the best chance.

Seller has accepted an offer and it has been forwarded to the lenders for approval. The waiting game begins for said approval.

The SSA (Short Sale Addendum) provides in Paragraph E that the Seller may continue to market the property and present to the lender any additional offers that are received on the property. I am dismayed by Buyer's Agents lack of understanding of the language and implication of Paragraph E in the SSA.

E. OTHER OFFERS. Unless otherwise agreed in writing Seller may continue to market the Property despite acceptance of Buyer's offer, and to present to Short-Sale Lender(s) any additional offers that are received on the Property.

Buyer's Agents fail to protect their buyers offer by including something in writing in their Purchase Offer that states: .....no other offer would be delivered to lenders until theirs has been approved, countered or rejected.

Without that language there is no question that the Listing Agent has a Fiduciary Duty to present any additional offer to the Seller.

Nevertheless, it does not make a lot of sense for the Seller to accept a new offer, which must be contingent on the cancellation of previous offers. What the Seller may want to do is to forward the new offer to the lender without accepting them. A seasoned Short Sale listing agent who's closed more than 20 short sale deals recognizes their liabilities should always do this if it is a Higher & Better offer.

Buyer's Agents start protecting your buyers offer!