[quote=CA renter]
Sorry, sdr, but it does not require a rocket scientist to determine what the “highest and best” offer is.
A bank is just as capable of determining market-based pricing, if not more capable. They did just fine with their appraisals before the growth of the mortgage brokerage industry. I’d like to see more accountability in the process.[/quote]
The banks just aren’t set up to look at all the offers, let alone analyze all of them. They can’t even deal with the single offers they’re receiving now.
Anyway, what is “highest and best”? I’m currently in escrow on a short sale. Our offer was $8-10k lower than the highest dollar offer–sale price is around $240k, so it’s a significant percentage. But the “higher” offers included some combination of FHA, non-“as is” clauses, etc., which the listing agent and the seller had to sort through. Our offer had almost no strings beyond a loan contingency, and we convinced them (with high FICO scores and verified down payment funds) that we would be able to perform if our offer was accepted. Again, the seller had to weigh all of this and keep in mind that the bank might reject the offer if the price was too low. This last item is what helps keep the seller honest: they want the short sale to go through.
Would a bank be able to sort all this out without incurring a huge cost? I doubt it, and why should they if they are getting the service for free? Unless there is a huge amount of fraud, the banks are better off with the status quo.
