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Elizabeth Weintraub
5 Ways to Get Your Sacramento Purchase Offer Rejected
We have weeks in Sacramento real estate during which I stare at my offer tracking sheets to count the number of offers that are excellent examples of how not to write a purchase offer to buy a home in Sacramento, also known as how to get your purchase offer rejected. You see, one of the benefits of working with the Elizabeth Weintraub Team is that I provide useful information to my own team members. I often advise my team how other listing agents look at purchase offers — because I know how I look at them — and offer tips about what NOT to do. How not to get an offer rejected. Which is why so many of my team member’s purchase offers are accepted.
Because when an agent is working with a buyer as a buyer’s agent, often the focus is directly on that buyer. The buyer’s agent can be so wrapped up in what her buyer wants and in trying to fulfill those requirements that an agent can forget how her or his actions and words appear to the parties who can make or break that Sacramento home purchase.
- The first rule is do not argue with the listing agent. I don’t care if that listing agent is dumber than a bag of rocks, don’t argue. There is a big difference between arguments and negotiation. Don’t try to explain a “cash offer” for example to the listing agent as there is hardly a Sacramento real estate agent alive today who doesn’t know the advantages of cash over financing, even though it is always all cash in the end.
- The second rule is don’t insult the seller. If you think the house appears cluttered or dirty, for example, don’t demand that the seller “wash the floors” and take all personal items with them. Our California purchase contract already addresses debris. Wash the floors? Seriously? And how does one wash carpeting? Tear it off the floor and toss it into the washing machine?
- The third rule is send all of the documentation that is necessary in order to submit a purchase offer. And, for heaven’s sakes, try to submit this paperwork in one file in the manner specified in the multiple listing. If the paperwork is incomplete, the purchase offer is incomplete.
- The fourth rule is don’t submit a lowball offer when the seller has received multiple offers. You would think this would be such an obvious rule, but gah, it is not. I suspect some agents do this anyway to “teach a lesson” to their buyers so hopefully on the next purchase offer the buyers will be more reasonable.
- The fifth rule is don’t submit a lowball offer while also breaking rules 1 through 4. This is worse than 3 strikes and you’re out. Why do you think the sellers would want to consider your lowball offer that insults them, makes unreasonable demands and is incomplete?
It’s tough in some Sacramento neighborhoods right now to buy a nice home. Don’t make it so much harder on yourself than it needs to be.
Do Not Touch the Sacramento Lockbox Without Permission
I’m thinking about slapping a preprinted notice over my 70-some lockboxes that warn: don’t touch the lockbox without permission. It is never OK for a Sacramento real estate agent to use a lockbox and enter a home without checking the showing instructions in MLS — yet it happens. Unauthorized access happens not because agents think but because some of them don’t think. An agent today explained why he entered a home that is not even on the market, after I emailed him twice to ask for an explanation. He said it was because he lived across the street and the seller told him she was listing with me.
I imagine that news went over well.
So, he decided it was OK to bring over a buyer to walk around the home and trample on private property. Because he knew the seller. It did not occur to him that he had no written agreement with this seller nor permission to be there. Not only did he not understand that he was trespassing, but imagine his surprise when he noticed the lockbox and thought to himself, hey, here I am, a Sacramento real estate agent with a buyer and whoa, I have a display key that will open this lockbox. I will do it.
I know when the agent was there because I check my lockbox showings via the Supra website 2 to 3 times a day.
This agent did not bother to see if the home was listed. Which it is not published in MLS yet. Or maybe he did and he realized it was not on the market and that was simply his flimsy first excuse. Because his second excuse was he figured the seller would receive multiple offers, and he thought for some odd reason that we would give him priority with his offer if he submitted it quickly. And the way to submit a fast offer first was to break into the home without permission. Yeah!
This is winning on so many levels, not.
MLS guidelines allow showing of a home when that home is in active status in MLS and the showing instructions are followed. In some parts of town, and I’m not saying where, I don’t even put a for sale sign in the yard because agents out showing homes will use a lockbox if they can spot that lockbox without looking up the home in MLS to even determine if it’s available to be shown. I’ve had buyer’s agents enter occupied pending sales unauthorized with a naked seller in the shower. Geez, Louise!
MetroList should improve its training for agents and not just hand out lockboxes like they are candy.
All I can say is it’s a good thing that seller didn’t hire this agent and instead chose me. We’ll see what tomorrow brings when this home hits the market.
Preparing Your Home For Sale Before Going on the Market
Before fixing anything in your home to prepare that home for sale, you should ask a Sacramento real estate agent what needs to actually be done. Because your idea of making a home improvement repair might be different than a repair the agent might advise, not to mention, you could end up spending money that you don’t need to spend. This is a valuable service experienced agents provide to sellers, advice on what to fix and whether the home should be sold in its AS IS condition.
If your agent has little to no experience, you’re at a disadvantage when it comes time to sell. But a veteran agent who sells a ton of homes can be a god-send to you.
The advice for what to fix and what not varies from home to home and neighborhood to neighborhood and market to market. I recall way back when I sold my first home, and I grabbed the city home inspection report that I paid for when I initially bought the home. I combed through that report thoroughly and fixed every defect on it as a precursory to preparing the home for sale. What a waste of money, time and effort. Most of that stuff, I discovered later, were items the buyer didn’t give a hoot about.
Obviously, if you have visual distractions, those should probably be corrected but again, it depends on how much money it costs, what’s involved labor-wise and whether the market demands it. I have listing that’s coming on the market next week which has vinyl siding and in some places the posts have been chewed, a few J channels are busted or cracked and, in another area, the siding is missing all together.
It’s almost impossible to match vinyl siding panels on a reorder from the manufacturer because the sizes and colors vary. The seller doesn’t have any extra pieces. Not to mention, vinyl siding is not vogue anymore and stucco is considered a better exterior option. The cost to change out the exterior is more expensive than the return on this particular investment. Plus, for what this type of property is, the siding is OK. It won’t affect the sales price. Not for this home and not in this market.
If you’re thinking about preparing your home for sale on the market, hire the best Sacramento real estate agent you can find, and then follow her advice. Don’t spend more money than you need to spend.
Buying and Selling in a Normal Sacramento Housing Market
You might wonder why about 50% of the homes are selling in Sacramento this spring and the other 50% of homes are not selling — especially when you read that we are experiencing a seller’s market for 2014 — and, as usual, this real estate agent has an explanation for our Sacramento housing market phenomena. For starters, this is not really a seller’s market for all Sacramento housing, because it doesn’t fit all of the criteria for a seller’s market. To have a seller’s market, you’ve got to have buyers, and we don’t have as many as buyers as we probably should for the amount of inventory available.
This means if a tree falls in the forest does it make it a sound?
Yes, our inventory is very low as compared to previous years but I don’t see as many buyers out and about our town. I’m not receiving as many multiple offers as I used to a few years ago, it takes longer to get an offer, and the days on market seem a bit longer as well. So, that would make for a pretty balanced market, wouldn’t you agree? Plus, let’s not forget, prices are up! You can probably get $100,000 more for that home than you could have a few years ago. It’s a great time to sell. Rates are low, so it’s still a good time to buy.
If you need to sell and buy a home, the good news is contingent offers are back! Little signals a normal Sacramento real estate market than contingent offers.
It’s also a Sacramento housing market in which some homes in Sacramento will sell very quickly because there is a high demand for that particular type of home, location, price range — or a combination of those factors. Other homes will take longer to sell. Especially those homes that are overpriced. I realize some sellers are exuberantly enthusiastic, let’s say, and optimistic to the point that they’ve priced themselves out of the market, but by golly, they sure do have that sign in the front yard.
I closed a home in Roseville earlier this week in the West Park neighborhood for sellers who are moving to the Midwest. If they had waited another month, they probably would have received the price they wanted, but since it didn’t sell within 2 weeks, they elected to reduce the price a bit to entice an offer. Bam. Flew into escrow with that price reduction. Of course, then they worried that they sold too low — that’s human nature — but they didn’t. They sold at market value, and we negotiated with the buyers to let them stay for a few weeks free of charge.
So, it all boils to if you’re planning to sell, you need to think about which side of the fence you want to be on. Do you want to be on the side of the fence that is receiving offers, going into escrow and closing? Or do you want to sit on the other side that, well, sits. Because only about half of our inventory is selling right now. But low inventory with low numbers of buyers is still a somewhat balanced market. Could this be the new normal for Sacramento real estate?
Sacramento Will Be Featured in Financial Times
Just to show you how it goes in the life of a Sacramento real estate agent, last week I didn’t put any new listings on the market yet, yesterday, I worked on four new home listings in Sacramento, plus I gave a film interview to the Financial Times. That particular media is covering the collapse and recovery (or what-have-you) of the housing market across America. Because Sacramento was hit so hard by the real estate market-crash asteroids in a double whammy (2005 and 2008), and because we’re one of the first cities to begin our journey down that Yellow Brick Road, our town is of interest to the Financial Times, along with Austin, Texas, and a few others.
The morning started out innocent enough, an office meeting with my peers, during which I briefly and without actual intention mentioned a duplex I am listing in Tahoe Park. During the day, I received 3 phone calls from real estate agents about it. OK, this listing will be hot. It might even receive multiple offers. I conducted my visual inspection of the home a short time later and, as I lifted the door to the electrical panel to determine the amperage, the seller asked how I could read the label. She was stunned, watching me.
Hey, I might be an old fart but I wear monovision contacts. I am also a Baby Boomer, and we are not wearing reading glasses or bifocals if we don’t have to, and we don’t. I explained how distance and near vision works with this particular type of contact lens, and probably opened a new door of possibilities for the seller.
I spent about 30 minutes with a couple of my team members showing how to analyze a listing in MLS and various methods to pull comparable sales. It’s amazing how much information a buyers’ agent can glean about a listing in Sacramento if the agent utilizes all of the tools available. Knowledge is power.
Wednesdays are also my day to complete any last-minute open house schedules for the weekend. This weekend, Lyon Real Estate is holding its Open House Extravaganza for the month of May, so it’s very important to participate with such wide coverage for my sellers. I lined up a bunch of homes, matched with fabulous open house agents, and updated all of my online listing data because I like to tweak the listings myself. I’m such an odd duck, I guess. I do all of my own work on my listings because that’s my focus, it’s what I enjoy.
The best part of any Sacramento real estate agent’s day, though, is calling her sellers to announce their home has closed escrow — and a home in Roseville did close yesterday, less than 6 weeks after we went on the market. List price, all cash. West Park subdivision, at $375,000.
My team member Linda Swanson is filming with the Financial Times today, showing the reporter around Sacramento. I’ll let you know when this news story airs. I can tell you that although my life is pretty much open book, and my opinions are strong, leaning far to the left, I still prefer talking to the Financial Times over 60 Minutes any day. Some of those guys have accents.
