pending sales not closing
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.