Turn a Sacramento Short Sale Into an Equity Sale

Turning Short Sales into Equity SalesThe Sacramento real estate agents who are only in the real estate business to make money will never know how truly wonderful it feels to help our sellers and buyers accomplish their goals. Those kinds of agents are missing the motivational aspect of this business, the driving force that makes agents stay in Sacramento real estate for the long haul. On top of which, I believe they have their priorities turned around. It really is true that if you do what you love, the money will follow. That’s not just a hokey thing people say to sell books, it’s real. An agent should focus on the client and not on the end result. That belief is how I became a top producer.

This Sacramento REALTOR doesn’t have to look any further than her own back yard for evidence. For example, I was watching people stroll by a restaurant in Midtown the other day during lunch at the Bento Box over on 16th Street. A young woman got out of her car wearing a T-shirt that said Can’t Buy Me on the front. I thought hooray for her! No trendy designer logos for her. No Ralph Lauren or Tommy Hilfiger or Hollister. She would never sell out. As I was silently rooting for her nobleness, she walked into closer view and I could read the rest of it: Love was printed at the bottom. Not being a guy, I suppose she doesn’t understand. Not being an older woman, she truly doesn’t understand. Many of us would like that diamond ring.

My clients from Orangevale probably felt like I handed them a diamond ring last week. I called them after escrow closed to confirm that it had recorded and their transaction was over. We talked about how they had initially thought they were going to do a short sale for their home in Orangevale. You probably won’t find an agent who knows more about short sales in Sacramento than this agent. But I’ve also been selling traditional real estate for almost 39 years. After I looked at the comparable sales, part of me had agreed with them. But another part of me could see that if I was able to just push that sales price about $10,000, they could probably sell as an equity sale. What? Turn a short sale into an equity sale? You betcha.

I offered that option, and we opted to go that route. An equity sale. A regular real estate transaction. Yes, let’s turn a short sale into an equity sale.

The real estate market in Sacramento has calmed a bit since July. It’s slower and more reasonable. I say it’s just the lull before the storm that will hit after Labor Day. What you read in the paper happened months ago and is not today’s market; it never is. But even during this slower period over the summer, I was able to sell that home in Orangevale for all cash at the list price. After running the numbers for an estimated net sheet, I suspected that some of the bank payments might add up to more than the sales price. It’s better to make sure the buyer could cover those costs before going into escrow, so we drew a counter offer. It basically said the buyers would pay all of the closing costs and back payments in an amount not to exceed a certain price. That “certain price” was padded enough to allow for any hiccups.

Sure enough, it closed. The additional funds needed were about 1/3 of the estimated amount, which made the buyers ecstatic and the sellers relieved. The sellers were able to pay back all of their delinquent payments and pay off the loan. They stopped the foreclosure proceedings and avoided a short sale. They turned a short sale into an equity sale. The time period between when we put the home on the market and when it closed was about 2 weeks. The sellers couldn’t believe how fast it happened. This is what happens when an agent focuses on a resolution.

If you’re looking to buy or sell a home in Sacramento, call Elizabeth Weintraub at 916 233 6759. Your home might be worth more than you think. You might be able to turn a potential short sale into an equity sale.

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