The Propensity for a Bad Real Estate Transaction in Sacramento

Experienced Realtors figure that 1 in 10 might be a bad real estate transaction in Sacramento.

I’m not sure if other agents purposely shield their clients from the crazy things that happen in a transaction or if they don’t notice it, they don’t care, or maybe they just don’t sell enough homes in any given year to increase the odds of an encounter with a bad real estate transaction. I’ve almost become immune to the irritation because it happens on so many occasions. I simply try to find a positive way to deal with issues and change the outcome, while making sure my clients understand exactly what is happening.

Fortunately, not every transaction in Sacramento is a potential nightmare or we would all go insane. But there are enough that it can make a person wonder how anything ever closes with so many screw-ups going on in the real estate industry. I generally do not expect the other side to perform, especially when I don’t know them, and I am on the alert, ready, willing and able to do their job if it comes down to it. Having lowered expectations of my fellow real estate professionals creates less stress in my life and provides for greater harmony.

My agent friend Myrl was sitting in my home office the other day when an appraiser called on speaker phone and asked if he could gather more photos for his appraisal. The only problem was the transaction had closed several weeks ago. Was I losing my mind? I suppose that’s a possibility. I’m not a spring chicken. Oh, he didn’t realize it had closed. This is also an appraiser who couldn’t meet the comps. This had been a potential bad real estate transaction, which I managed to salvage, and it was still coming back to bite.

Yesterday, I sent a reminder to a seller in Sacramento to unlock his gate for the pest worker. A few minutes later, the pest worker called to confirm. Next thing, I get a text from the seller that says the pest guy refused to commence work on the property because the listing agent was not present. What? Good thing I had his phone number in my “recents” and called him back to say start work or I’ll strangle him. Trying to save that from turning into a bad real estate transaction.

I honestly try to head off trouble at the gate. Even with my 40+ years of experience, I can’t prevent every bad thing from happening, but I do try to lessen its impact.

Then, how about the poor real estate agent who submitted an offer on a home in foreclosure for less than the amount owed? I don’t think he looked at any data in the listing beyond the sales price, just knocked 35% off and wasted his time and energy typing. He’s not a bad real estate transaction waiting to happen, he’s a no-chance-in-hell. He’s a guy who traded integrity for complicity.

Last week, a listing agent refused to accept a buyer’s offer because she did not understand how real estate works. She declined the purchase offer and wrongly informed my team member that he had no legal right to sign the purchase contract for my client. We all work at Lyon Real Estate, and the broker governs the contract. Any agent can sign. Her seller lost a higher offer with better terms because she doled out lousy advice.

Is there little more irritating than the professionals who are absolutely certain they are always right when they are generally wrong?

Sure, how about these following examples?

We regularly contend with the lazy buyer’s agents who call on a listing without checking to see if it’s listed in MLS. The excuse is, hey, my client called me; excuse me, translation: not a client, it’s some guy they ran into at the grocery store who saw an ad in Zillow. Further, as a professional, one should provide professional service, and that means checking to see if the listing is actually a listing in MLS.

The buyer’s agents who call to ask questions that are answered in MLS. These are the guys who look outside at the rain pouring down and claim it’s a sunny day. The financing options in MLS might state cash, and reiterated in the confidential remarks is the statement: CASH OFFERS ONLY, and yet the agent will ask if it can go VA. Or they ask if it’s a 3 bedroom, when all public records state a 3 bedroom. Or, does it have a garage when it shows a 2-car garage. My favorite is how can they show with instructions that read call first lockbox.

Let’s not even talk about the transactions that we can’t get the mortgage lender to close on time, despite their assurances at offer inception. A seller asked yesterday why her escrow was extended yet again. It’s not like we have a lot of escrows right now. Hello? Inventory shortage. No backlogs. No excuses. Why, the seller remembers when she bought her home with an FHA loan . . . yes, unfortunately before Dodd Frank, before TRID guidelines, before the industry completely overhauled mortgage regulations from 1974.

This is just the tip of the iceberg. We all make mistakes. We are all human. At least the last time I checked. I am certainly not perfect. However, mistakes are supposed to be learning curves and not repeated.