I submitted an offer on a short sale listing last week. I thought it was a strong offer --- full price, 10% down payment, 1% initial deposit, AS IS, standard contingency periods.
When I followed up with the listing agent to find out what the seller would like to do --- accept, counter offer or reject --- it appears she bypassed the seller. She told me she received four offers. So she decided to send all offers directly to the lender.
The seller still owns the property and still plays an important part in this process. Furthermore, the seller is her client, so her initial fiduciary responsibility is to the seller. She could have advised the seller to accept/counter/reject the offer. And after there is an accepted offer and back up offers, then and only then should she forward the offers to the Lender.
We recognize that the lender makes the ultimate decision, regardless of first or back up position, but the Seller still has a stake in this process. And again....it's still his property.