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Elizabeth Weintraub
A Listing Agent Explains All Home Selling Steps
Sacramento real estate clients rely on their agents to explain what’s going on in a transaction and the next home selling steps, even if the clients appear knowledgable. Because an agent never wants to disappoint a client or fail to keep a client informed. Even at the risk of being overly simplistic, it’s important to communicate and inform. I realize that agents don’t want to insult their clients, but clients are insulted if they don’t understand, take your pick.
Not to mention, every home seller has her own perceptions about how she believes things work.
Earlier this week for example I was talking to a seller about putting a sign rider on the post outside that says: Don’t Disturb Occupant. I often put up sign riders like this on vacant homes to try to dissuade the thugs who break into them, but I also use those riders for occupied homes in some areas. The seller said she didn’t need that sign rider because if anybody approached her doorstep with evil intentions she would shoot them. This astonished me, mostly because the seller was old enough to be my great grandmother. I asked if she had a gun. Her response was yes, everybody has guns.
Well, no, I don’t own a gun.
Regardless of how many homes this seller might have sold in her life or how much she might know about home selling in Sacramento, I still explained every step of the transaction to her; fully cognizant that I may need to repeat the steps later on. I try to imagine what is likely to happen in a real estate sale and then I share that knowledge with my sellers.
One of the worst things that could happen to me as a real estate agent is to have a seller wonder what comes next and not know.
Well, I guess I could be shot.
What’s In It for Agents To Do a Sacramento Short Sale?
There are days I ask myself why as a busy agent would I ever do another short sale, and then before I answer that question, I take it on. It’s not just me, the short sales in Sacramento, the few that still exist, are becoming more convoluted and complicated, if that’s possible after all these years. Nothing is a straight story anymore. There is no such thing as a simple hardship letter and automatic short sale approval. Nope, all of the short sales seem to involve years of delinquent dues, past due utility liens, judgments, court settlements, bankruptcies, horrific medical setbacks, in addition to having two or more mortgages to short sale, layered with mortgage insurance on top of Fannie Mae.
Not to mention, some of the buyers for these are no walk in the park, either. They’re probably VA buyers or obtaining CalHFA loans, and the properties probably require repairs, which could involve 203K loans and / or energy efficient mortgages. These additional complexities are more than most agents can handle or want to handle.
There are not very many Sacramento short sale agents in town who a) know how to handle these and b) are willing to handle these types of transactions. Why would any agent in her right mind do a short sale today when she can sell a regular sale and be done with it in 30 to 45 days? I’m sure that’s a question that some agents ask themselves. It’s a question I brought up to sellers last week as well, and I just put it out there on the table.
Now, I made them wonder. What was in it for me, the agent? Why would I agree to do their short sale when it’s so much more work and extremely time consuming? It’s not like I get paid more to do it because I don’t. I charge the same commission to do a short sale as a regular sale. I get paid the same. And I do tons more paperwork, all of which is contingent until the bank approves the sale. There is no transaction unless the bank approves it.
So what’s the deal? See, now I have you wondering, too.
The answer is somebody has to do it because otherwise sellers would have to pay a lawyer. And most sellers can’t afford to hire a lawyer. So, I handle the short sale for them at no out-of-pocket expense for them. All of my fees are paid from the proceeds of sale. It’s basically a free service for the seller. I know how to close these tricky little suckers, so what the hey. It’s a little bit like combining a public service with a business enterprise. A little pro bono work.
Then, yesterday, I received approval on 3 short sales that each had their own particular set of circumstances that would cause a normal agent to drink Draino. Because a normal agent would not have received approval on those short sales. I have a talent for it. What can I say?
How a Sacramento Agent Stays on Course
In a conversation with my sister in Minneapolis this weekend, we discussed how as we get older it becomes easier to understand how a person can mistake her husband for a hat or an umbrella. We have so much overload in our lives today as compared to a few years ago. Especially as an agent selling real estate in Sacramento in the month of May. This is why as a busy agent I often feel the need to take breaks now and then, but even while I’m riding my bicycle around Land Park in the afternoons, I can spot weird things out of the corner of my eye that can morph into, oh, I dunno, imaginary animated objects, for example. I’m not going bonkers. I’m sure of it.
But listen . . .
In the newest version of Plants vs. Zombies, the game board uses triangles and other traffic zone images that impart super powers to the plants. If a person’s brain is otherwise engaged, like mine often is when I’m riding my bike (because I’m listening to music on my wireless headphones, interrupted only when I answer a real estate call — hey, why did the music stop? — Oh, yeah, I’m getting a phone call), it’s easy to zip past a triangle in the road and perhaps picture a double-fisted bok choy nestled securely behind a boosted walnut. I can see how people lose their minds. And you know what? It’s not all that frightening.
I’m here to tell ya that if you’re gonna turn into a vegetable in your old age, there are probably worse things.
Like many top producer Sacramento agents, we keep a lot of information categorized in our heads, and it’s a balancing act much of the time, especially when an escrow has a contingency to sell. I noticed yesterday as I filed away closed escrows that I am often lately helping sellers to buy homes at the same time they are selling. Even so, these escrows don’t last anywhere nearly as long as the short sales used to several years ago. During that time period, it was not unusual to work on a file for 4 to 6 months or longer. In fact, during that particular ice age, I usually got to know my sellers fairly well and their home inside out, with every single detail embedded in my brain.
When we got to closing, it was sometimes a bitter sweet farewell. I often felt like I was parting with an old friend, because I was intimately familiar with each facet of the transaction. Nowadays, I take a listing, it sells, it quickly closes, and that lengthy interaction is often shortened. I feel like, hey, we just met, and now you’re going into the closed box under my desk. Wha? Come back!
But it’s all for the best. At least this Sacramento real estate agent is not losing her mind. Not yet, anyway.
Sacramento First-Time Homebuyers Now Have a Fighting Chance
Compared to a few years ago, first-time homebuyers in Sacramento now have a fighting chance to buy a home without a ton of competition from cash investors. They just have each other to compete with, yet some of them are going about it the wrong way. The wrong way is when the buyers refuse to take their agent’s advice. They might say they listen to it, and then they do things their own screwed-up way. When the offer doesn’t get accepted, though, they tend to blame their agent instead of themselves.
This is nuts. My heart goes out to buyer’s agents who end up writing offer after offer that gets rejected because buyers are hung up on the wrong things. Like list price, for example. List price can be meaningless. It’s a measurement. It’s the comparable sales that matter. But people get attached to personal agendas, mantras and odd beliefs, not to mention our favorite sidekick: fate.
Homebuyers last week told me they had a specific price point in mind, but they were looking at an Elk Grove home priced higher. This home had been on the market for only a few days and they wanted to offer less than list price because it didn’t fit their plan to pay slightly more. Well, a reasonable person would say: stop looking at a home you can’t buy at the price you want to pay. But reasonable people aren’t necessarily buying real estate. The fact is a hesitant buyer needs to conform because some other proactive buyer will conform. These buyers reconsidered, conformed and they got the house, over a full-price cash investor.
This market in the spring of 2014 in Sacramento is different than previous markets. We no longer face stiff competition from cash investors. Of course, we Sacramento listing agents still receive full-price cash offers and a few lowballs from investors, but for the most part, the market is made up of first-time home buyers and move-up buyers. I counsel my sellers about choosing between an investor buyer and a buyer who will occupy the home. Does it matter who buys your house? You bet it does. And sellers can legally choose to sell only to an owner occupant.
Not surprising to real estate agents, a story in the Sacramento Bee says homeownership in Sacramento has fallen to a 40-year low. That’s not surprising, given the number of sellers we observed who said yes to the cash investors over the years and no to the first-time home buyers. But now the tide is reversed, and we still have a fighting chance to take back our neighborhoods, providing first-time homebuyers step up to the plate.
The kind of purchase offer a buyer makes can mean the difference between buying a home and not buying a home. Here’s my general advice: Study the comps, listen to your agent and, if the home is on the market for only a few days and the price is justified, pay it or somebody else will. A more savvy buyer will probably pay more than list if the deck is stacked against them. If the home is super desirable, a hot commodity and you’re an FHA buyer or a VA buyer, you’re just not as desirable to the sellers as the conventional buyers, so step up your price and terms or you’ll fall to the bottom.
Hey, agents don’t make the rules. The market dictates.
The Best Sacramento Listing Agent Asks Questions Like This
It’s a sorry state of affairs in this real estate market when a Sacramento listing agent holding a pending offer questions another agent with a pending listing to inquire if her sellers are in contract with the same buyers. Yada, yada, yeah, it’s confidential information but agents can still confirm the fact. I’m just saying it’s sad that an agent nowadays is put in the position of having to ask the question in the first place. It’s part of doing a fiduciary for the seller.
Sure, most transactions are straightforward and everybody is honest and ethical. Unless they are not. I’ve run across so many screwball escrows lately that my head is practically spinning. There was the guy who tried to buy a home and actually finagled his way into a contract when he had no money, no job and a police record. Then, there were the many buyers who wrote multiple offers all at the same time, locked down the properties and then subsequently canceled them all. Not to mention the cash buyers whom, at the last minute, developed cold feet.
There are so many ways that working with an experienced agent in Sacramento can pay off for a seller that I can’t even count them. Because of the volume of business that I do, I see a tremendous amount of purchase offers pass through my computer every year. I pay close and careful attention to each one of them, too.
Somebody asked me the other day, a seller whose home I’m listing next month, if I was too busy for her. I don’t know if she got that idea from a competing listing agent or if she came up with it on her own, but I am never too busy, and that’s the secret to my success. I don’t take on more listings than I can handle. Like I replied to this seller, a while back I was handling 70 to 75 listings at a time and doing a damn fine job if I say so myself. My clients agree, too. Today, my active Sacramento home listings number closer to 25, because the market is much slower.
The thing is I use my 40 years of experience to help my sellers. That’s an inherent quality they can’t buy or easily find elsewhere. My clients expect me to go beyond the norm. If I receive paperwork that makes me ask questions because I spot a red flag, you can bet I will get to the bottom of it. I see that action as part of my job and in good conscience I cannot let these types of questions go unanswered.
