This article titled: Double Ending the Short Sale vs Giving the Seller Highest and Best Shouldn’t Be a Dilemma, was written by Elizabeth for another publication back in the sorry years. Enjoy. — JaCi Wallace
Many Sacramento listing agents are receiving multiple offers, and not just on REOs or short sales. Any attractively priced, well appointed home in a desirable Sacramento location is likely to draw the attention of more than one buyer. The listing agent plays an important role toward helping the seller figure out which offer to accept because the highest offer isn’t always the best offer.
If I didn’t know this was 2018 and not 2008, I would pinch myself and be happy we are not dealing with the attitudes of Sacramento short sales. Although, I did receive a call about a property in Elk Grove that was listed a bit over $400K, which suddenly dropped to $330K. The caller asked me if I thought $340K would work as an offer, so we had to discuss how short sales work. Why a bank would accept an offer, and how banks look at their BPOs. Still, I could work the comparable sales to arrange for a pretty good value that we could substantiate, but then the buyer never called back.
Almost 70% of my listings have been sold more than once and are now back on the market. You know what that means, right? It means that buyers are acting like the days of Sacramento short sales, i.e., eager to get into escrow but reluctant to stay put. When I talk with the exclusive buyer’s agents on the Elizabeth Weintraub Team, they say it is not unusual for them to spend a lot of time on the basics. Such as going over the purchase contract in detail, discussing how individual properties would meet long-term goals. Managing expectations.
This helps to prevent cold feet. Counseling buyers, making sure their needs are met. Not dragging them kicking and crying into escrow. Not every buyer is cut out to buy a house.
It was very common during the heydays of Sacramento short sales to have buyers cancel. But today, there is no reason other than anxiety, I suppose. Example, a starter home near downtown Sacramento has been in escrow four times. There is nothing wrong with the house. It’s been babied like no tomorrow, and the seller has been on top of every maintenance issue. We have a clear pest. But buyers are afraid.
I hope this stream of flakey buyers is just a quick rash that has stopped spreading. At least one thing is certain. We will never go back to the days of Sacramento short sales. The market might come to a slow-as-molasses rolling stop before leveling off, but it will never be a bubble bursting. Conditions for that kind of storm are non existent.
What foresight, though. Like he almost knew the relationship would not last. The interspousal transfer deed meant the wife could not claim any community interest in the property. Ever.
Somewhere along the line, the two separated. Then, in the fall of 2016, the wife abandoned the property and allegedly stole all of the appliances. She left behind a lot of furniture and trash littered the floors. Somebody had punched a hole in an interior door. Still, the condition of the home appeared to be pretty good. Not to mention, when the seller bought the home, he used his VA eligibility, which meant it had to pass VA inspections and clear pest.
Nobody had any keys. So I called a locksmith and paid to have new keys made. We put this on the market as a regular sale with a buyer credit just to test whether the market would bear it. The answer to that was negative. The home was located across from a school, a bad location. No FHA buyers wanted to deal with no appliances and a trashed house.
OK, this was a short sale, and that typically means a long time in inventory. Reason, fewer and fewer buyers possess the patience anymore to wait for short sale approval. Between buying a home that can close in 30 days and another that could take 3 months, buyers tend to lose patience and steam halfway through.
Sure enough, we entered into 3 escrows that canceled. Which meant I sold this home 4 times, eventually to the buyer who made it to the closing of the Northstead short sale. Yes, yes, yes, we will wait, their earnest little faces cried out. But they failed. The third buyers refused to increase their loan by $5,000 to meet the minimum net requirements of the bank. It would have meant an increased payment of maybe 30 bucks.
I don’t argue with these kinds of people, better to just get them out of our hair and go on with a new buyer who will close. This is what closing so many short sales like I do can do to an agent. Makes her much more pragmatic and practical. Some call it hard-nosed. Don’t take no shit. Because the short sale in itself is enough shit for one day. Including the soon-to-be ex-wife calling to proclaim this would never close.
Still, I press on and do short sales because there is such a need. I consider it my pro bono work. I don’t make that much from them and short sales require excessive time on my part.
We went into our 4th escrow the second week of January with an investor. Normally I do not like to sell short sales to investors because they rarely will accommodate the bank’s wishes. They believe, for some odd reason, that banks are desperate and will give them a break, when banks won’t. Also, if the next shiny thing catches their eye, they’re gone. But this investor held in there.
He was a bit confused, I heard, about why he had to pay delinquent utilities, but those liens were attached to the property since his offer. Perhaps he held higher hopes the bank would pay it, but banks rarely do that. At the last minute, the bank also slammed the buyer with payment of the entire escrow fee, too. However, we still managed a successful closing of the Northstead short sale on Monday.
I do not quit. If there is a way to close that short sale, you can bet your booties I will do it.
3146 Northstead Drive, Sacramento, CA 95833 closed escrow 3/26/18 at $255K.
When I tell you the views from this home overlooking the Catta Verdera Golf Course in Lincoln are spectacular and mind blowing, you will still need to tour this home for yourself because photos can’t do enough justice and words will render you speechless, particularly when you’re absorbing the view in person from this back yard. The Catta Verdera Golf Course is part of the Catta Verdera Country Club, which boasts the only 4 1/2 star golf course in Northern California. This .3571 lot sits high on the hill with views of Sutter Buttes and the Sacramento Valley, as far as the eye can see.
Glancing over the infinity edge of the pool, which drops magically out of sight, you’ll notice the Catta Verdera Golf Course and pond, below the natural landscaping of indigenous vegetation. Sometimes the sky is red and pink and yellow, other times a rich purple, but the sunset almost always amazes.
Inside this home is over 5,500 square feet of luxury living space, featuring mostly walnut hardwood floors throughout. There are 6 bedrooms and a workout room, plus a media center, home office and loft. You will love the cherry cabinetry throughout and travertine floors. The only thing missing in the kitchen is a built-in Miele demitasse coffee maker. There is a wine / beverage refrigerator, a 6-burner gas cooktop, all stainless appliances and a built-in refrigerator, in addition to the granite counters, island and pantry.
The dual staircases that curve ever-so-gently in the entrance take you to the second floor. Off to the right is the master suite, which features a fireplace and spectacular views from the balcony and myriad windows. This home on the Catta Verdera Golf Course is a short sale, and we have already started the process. It goes without saying that you are in the hands of a short sale specialist, but for those of you who do not know, Elizabeth Weintraub has closed more short sales in a 7-county area of Sacramento for the past 10 years than any other real estate agent, according to Trendgraphix. You’re in expert hands.
3641 Monteverde Drive, Lincoln, CA 95648 is offered exclusively by Elizabeth Weintraub and Lyon Real Estate at $929,000. For more information about this home on the Catta Verdera Golf Course, please call 916.233.6759. Virtual tour of Monteverde.
Below are more photographs:
Whose problem is it when a Chase FHA short sale takes more than a year to close escrow? I get so many calls from home buyers wondering why is that Carmichael short sale still for sale month after month, and I feel like telling them to go look in the mirror. Yet, this home I only sold 3 times, so that’s about right, on average it works out to about 4 months for each buyer. I am one of the few agents in Sacramento who will handle a short sale, which is why I have sold more short sales than anybody over the past 10 years.
That’s because I don’t need it to close in 30 days or 60 days to pay my bills, like some agents. If the lender messes up, I can fix it; plus, I’ll still stay dedicated to the transaction. I don’t bail when the going gets rough. If the buyer cancels, I’ll find another buyer. I don’t give up. I don’t take no for an answer. There is always a way to close a transaction, even a Chase FHA short sale.
We listed this home a year ago. Got a buyer, all documents submitted to the lender right away, and we received the Approval to Participate in the FHA short sale program in record time. Things were looking up. We postponed the trustee’s auction a couple of times and were on the verge of getting the approval letter when the buyer suddenly canceled after 6 weeks. And that’s when the file started to go head downhill.
Sold again immediately to a set of investors represented by their mother, a real estate agent. We burned through 5 negotiators for this Chase FHA short sale when things became very twisted and convoluted. Just as we were about to receive approval, the negotiator at Chase realized the buyer’s agent was related to the buyer and she denied the file. The solution, of course, was for the buyer to be represented by another agent, but the mother said no way, Jose. If I can’t get paid, we’re not closing.
Yeah, way to win Mother of the Year award.
The buyers canceled and we found new buyers and put them into escrow. Submitted all of the paperwork. Then, for some unknown reason out of the blue, Chase decided to approve the first set of buyers as long as the mother substituted a new buyer’s agent. The mother finally gave in, hired another agent, unwound the cancellation and we got approval. Eureka. The poor buyers whose offer we submitted was ignored by Chase. How do you like those apples? Chase approved the wrong file.
We moved through the home inspection and were getting ready to close when the investor buyers and their mom for unknown reasons abruptly canceled. Maybe their mother found them a deal she could get paid more on? Stranger things have happened. I went back to the second set of buyers who were shoved aside by Chase to ask if they were still interested. Their agent said far as he was concerned, they are still in contract. So we moved ahead with them.
Just as we were ready to fund, the negotiator at Chase noticed the buyer’s lender and the buyer’s agent had the same address. So he denied the closing. Conflict, he said. Chase gave the impression it did not want to approve the short sale, but I knew they would. The bank was just inept. So the buyers hired a new buyer’s agent and prepared again to close. This time the negotiator objected to the seller signing on the wrong line and asked to have the arm’s length resigned.
But you know, it closed yesterday. At the 11th hour. Just before the expiration. It closed at the same price we started at a year ago. So when you see a short sale has been on the market for a long time, this is probably what’s going on. If you need a Chase FHA short sale to sell, I’m the Sacramento Realtor who can get it done. Call Elizabeth Weintraub at 916.233.6759.