Trust and Your Sacramento Real Estate Agent

Trust Sacramento Real Estate AgentIf a client doesn’t trust and believe in his Sacramento real estate agent, the two have no business working together. And vice versa. Wha-what you say? What does trust or belief have to do with anything? Plenty, I say. Whether it’s a seller and listing agent or a buyer and buyer’s agent, there is a legal document signed that creates what is called a fiduciary relationship between the parties. If the fiduciary relationship is broken, so is the business.

This point was so beautifully illustrated in Mad Men, Season 6, Episode 6. OK, maybe a bit of it was a trifle narcissistic, but it doesn’t make it any less true. Don is sitting in a restaurant with Herb, the slimy Jaguar account guy. Don is about to ask Herb about the reason for the meeting. Herb says, hey, there’s this guy at the company who is new and doesn’t know much, but he’s got some good ideas, I think. I’d like you to pitch your campaign to him and get his input.

Don reaches into coat pocket, retrieves a business card and hands it to Herb. What is this? asks an astonished Herb.

This is the guy who will be handling your account from now, Don replies.

When Don gets back to the office, his co-workers and partners are royally ticked at him for dumping the Jaguar account. Don defends himself by saying it was already over. And it was over. He was absolutely correct. There was no trust and no belief in Don’s abilities anymore.

Furthermore, when the office learns that they’re about to land the GM account, which I presume was the new Corvette — because let’s not forget I was growing up during the time period in which Mad Men is set and was actually there — everybody is ecstatic. Suddenly, losing the Jaguar account is not all that important anymore. You close one door and another door opens.

I have a client who started out a little bit wary with this Sacramento real estate agent. I could sense he didn’t quite trust agents, probably because he had had such a bad experience the first time around. Rather than walk away, though, I gave him my time. His friend had referred him to me. I explained to him how I work, how the business works, what he needs to do to sell his home and buy a new home, how I would help him to accomplish that, and I insisted on his trust — not blindly, I would earn it. He gave me that precious commodity. Trust.

We put his home on the market last week, sold it over market and closed it yesterday, while he is in a contingent contract to buy a new home. Sold and closed in fewer than 7 days. The buyers gave him up to a year to rent back at a greatly reduced market rent, with the ability to move out as soon as he closes on his new home. His new home happens to be a short sale. This seller did not want to move until he could move into his new home. Agents who work in this business will know a situation like this is almost impossible to do.

In case you’re thinking I knew the buyers for his home, I did not. I found them. They were investors from the Bay area and they had their own representation from San Francisco. I solely represented the seller as his Sacramento real estate agent. Trust and belief — it’s everything in real estate. If you don’t have it in your business relationships, fix it or cut the ties.

Sacramento Short Sale Approval Delays Can Raise the Sales Price

Approve Reject Computer Keys Showing Accept Or DeclineI wrote on Sunday about how I listed this Sacramento short sale from a remote corner in the world, using a spotty internet connection at Rangiroa Atoll during Christmas vacation. I also mentioned the fact that if a short sale takes too long to negotiate or a Sacramento short sale agent has to start over because a buyer walked, the price of that short sale can go up. In this particular short sale, the seller had received a short sale approval but some mismanagement or confusion caused, he said, by his previous agent, resulted in a cancellation. Hence, he hired me.

Of course, I could daydream that all sellers should just list with me in the first place and avoid those types of hassles, but the truth is I could not handle the volume of every single short sale in Sacramento, nor would I want to. And there are other good short sale agents in Sacramento, some of which work at my company and to whom I occasionally refer business.

We went on the market at the price the banks had previously approved for the seller. Part of the problem was one of the banks sold the servicing of the loan since then. This is a phenomena I am seeing more of — banks dumping underwater loans and / or servicing to the market that was created to purchase worthless debt, some of which the banks own. The bank ordered a new BPO, even though the previous BPO had not expired.

Whoa. Prices were bouncing upwards. Now the bank wanted 20% more than it wanted a month ago. It’s a seller’s market in Sacramento. I presented that counter offer to the buyer, and the buyer immediately canceled. I don’t know what that buyer thought he could buy now that he was no longer in contract. Not my problem, though.

Found a new buyer and put that buyer into contract at the higher sales price (which by now, I should point out, is much higher still but the buyer has the price locked). We thought everything was going smoothly until the new second lender decided it wanted a lot more money than what the first lender was willing to allocate. The investor was Fannie Mae, so unless that bank has never dealt with Fannie Mae before, the bank should know that Fannie Mae has its maximum, and that’s the maximum. Fannie Mae does not allow anybody else in a short sale to pay the second lender, either.

That was little battle with the second lender, to get the bank to understand a) the first loan was really owned by Fannie Mae and b) the max is the max per Fannie Mae. After what seems like another couple of months, the second finally agreed and issued its approval letter.

Right before the lender’s property preservation company called and was about to shut off the water and change out the locks. But fortunately, that did not happen, and we were able to move forward to close. If you’d like more information about a short sale in the Sacramento region, please call Elizabeth Weintraub at 916.233.6759.

Listing a Sacramento Short Sale From Anywhere in the World

Gauguin's Pearl Farm-300x200The problem with some short sales today is if they take too long to negotiate, the value of that short sale could go up and the bank could want more money. This was not a problem with Sacramento short sales in 2012, but this year some banks are asking for updated BPOs before the 90-day mark. Not to mention, once a short sale is approved and falls apart, there is no guarantee the next go-around will mirror the first. A smart Sacramento short sale agent knows this and takes precautions.

We are closing a short sale next week that came into my sphere sometime around Thanksgiving of last year. The seller called to complain about his agent — for what, I don’t recall — and asked if I would agree to take his listing. He had approval from the bank, too, but at the last minute something went haywire. I agreed to take the listing once the seller and his listing agent terminated the existing listing and removed it from MLS.

I should point out that the reason a seller is unhappy with a real estate agent sometimes lies with the seller and not the agent. I am typically hesitant to pick up a listing from a disgruntled seller because that seller could be the problem. One thing being in real estate for so long teaches me is there are a lot of nut-jobs in the world and people who don’t take their medication. On the other hand, about 90% of all Sacramento agents sell fewer than one home every two or three months, so what does that tell you? But, in this particular instance, my gut instincts told me the seller was not at fault. I told him to let me know when he was ready to go on the market.

You know what day he was ready to go on the market? Christmas day. Yup, Dec. 25th. And there I was: lounging about in my gorgeous overwater bungalow, watching the waves gently lap the piers, gazing at brightly colored fish swimming about under my glass floor. I was on vacation at Rangiroa, the second largest Atoll in the world, located in a remote chain of archipelago islands called the Tuamotu in French Polynesia. This is a place where it’s a miracle we were able to connect to the internet through satellite. It was a slow connection, and proved too much to smoothly connect to CAR’s antiquated ZipForms.

Even though the internet was sporadic, I received the email from the seller asking to go on the market. I managed to whip up all of the required listing documents through a combination of working with my dedicated team members and emailing forms to prepare and forward. One of my team members volunteered to go over to the home on Christmas and shoot photos and send them to me. I then uploaded all of the documents to DocuSign, my seller signed, and we went on the market the day after Christmas.

You can count on Elizabeth Weintraub. I take care of my clients no matter where I am in the world.

. . . Part II of this Sacramento Short Sale to follow on Monday.

photo: Gauguin’s Pearl Farm on Rangiroa, by Elizabeth Weintraub

Have Sacramento Short Sales Dragged Down the Market?

sacramento short salePeople think that short sales are dragging down the economy in Sacramento and messing up neighborhoods, yet little is further from actuality. Sacramento short sales are turning around neighborhoods and revitalizing entire pockets of homes that have been drowning underwater for years and years. In some areas, especially among neglected, board-up homes, a short sale is a chance for that home to live again, to bring life to itself and make a welcoming home that will begin to build memories for some lucky first-time home buyer.

I am on the tougher end of the rope, the more difficult side of the transaction, because I work on hundreds of Sacramento short sales. I’ve heard it rumored that some real estate agents have pointed to me and scoffed to their clients, saying I can’t sell traditional homes, although it’s not true because I do. I sell a lot of traditional homes with equity in the four-county area. They seem to believe, whether it’s through spite, green-eyes or ignorance, that an agent who is very successful at selling Sacramento short sales should never sell a regular home, and that’s pretty insane. Just because they can’t do two things doesn’t mean they should point fingers at those of us who can do more than one thing. Besides, before short sales, I sold traditional homes for decades, and I still do.

A Sacramento Business Journal article quoted me last week as saying that selling a short sale is like selling 5 homes in one. And that is true. If I can sell a short sale, by George, I can certainly sell any seller’s home with equity. A short sale is 5 times the work, and much more complicated. Selling a home with equity is an activity I can almost do blindfolded. Trained monkeys can sell a home with equity in Sacramento in a seller’s market, with buyers camping out in your yard. But an experienced Sacramento real estate agent is the person who bring you the most money and the smoothest transaction, and that’s what every seller wants.

I spotted a new home listing this morning come on the market in Carmichael. It’s a home I sold for $100,000 a year ago as a short sale. It’s also a home that took me 12 months to sell. I listed it in May of 2011 and it did not actually sell and close until May 2012. Well, it sold a bunch of times, and buyers flaked out. That helped me to get the bottom line from the bank, though, and I told every buyer who called the home could be theirs for $100,000. I had buyers who walked away completely and then came back crying, others who walked when we wouldn’t take their offer of $98,000. You ask yourself: What is wrong with people? Why do they let their egos get in the way?

I can’t count the number of offers we received that were between $90,000 and $99,000 but these guys just refused to inch over and join us at the winning $100K offer price. It wasn’t a secret. They knew they had to pay $100K, they just wouldn’t do it. They walked away due to a $2,000 or a $5,000 difference. Doh, doh, double-doh. But persistence prevailed, I don’t give up, no matter what, and it did sell at $100,000.

This particular home just came back on the market at $229,900. And you know what? That’s a good price. Those sellers will get it. I just wish I had this end of the listing, too, where the living is easy.

My Very First Job at the Minneapolis Grain Exchange

Modern, comfortable, elegant and stylish chair illustration in red and orange color on white background.Today I want to tell you about my very first “real” job and the unfortunate battle that followed it. I wasn’t always a successful Sacramento REALTOR. I’m looking back at my first job because a) it’s a funny story and b) I am not that disconnected from my sellers in Sacramento, especially those who have lost a job and must do a short sale.

To buy a home, for example, most people need to work, to be employed, to qualify for a mortgage. If one is unemployed, it’s difficult to obtain credit for anything much less a loan to buy a car to transport oneself to interviews. Being unemployed is not always as much fun as people think it will be. They say things like if they weren’t working they would write a book or they would learn to play guitar. But time gets away from them. When you have all the time in the world, you have no time at all.

The year was 1971. I had been working as a secretary in the Minneapolis Grain Exchange building at Checkerboard Grain, a division of Ralston Purina. One day I came into work and looked at the woman chain-smoking across from me. Betty was in her late 30s, single, and had worked at Checkerboard since high school. I didn’t know what I wanted from life at that young age, but I knew one thing very clearly, I did not want to grow up to become a Betty. I said so, in no uncertain terms, to my boss. I asked for a transfer to the Ralston Purina plant in Denver, Colorado, to take a position with a bit more authority and chance for advancement.

Back in those days, companies would transfer employees if they liked the person enough to keep them. Today, not so much. So, I bypassed the Human Resources department at Ralston Purina in Denver and went to work as a production assistant. My department kept track of the packaging supplies, ordered new supplies when we ran low and made sure if the outside of the package offered a promotional coupon inside, that a coupon was placed inside the bag.

The ingredients that were used to make dog food and cat food in the 1970s depended on the price of grain. I don’t know if that’s how it’s done today, but back then, if the price of midds went up, the percentage of midds in cat food went down. The percentages of ingredients was listed on the packaging and needed to match the ingredients inside. This sounds like a simple task, but it was not.

I discovered that the plant was not putting the right ingredients into the right packaging. It’s my analytical mind. So, I devised a system that production managers out in the plant had to use to ensure that the right ingredients went into the right packaging. I should have been promoted to VP right then and there, but instead, I was given some kind of raise and told not to discuss my pay scale with others in the office.

The head of the Human Resources department did not like me. I didn’t like him much, either. I was the darling of the company who had slipped into employment without going through his department. He had power issues. One day, he ordered all new chairs for the office. We sat in an open room of about 60 people in rows of desks. No cubicles back then. The chairs this guy ordered were blue swivel chairs and orange swivel chairs. Remember, this was the early 1970s.

He put an orange chair at my desk. I was not an early morning person then, like I am now. I did not want to sit in an orange chair. So, I defied authority and traded chairs with another employee. A blue chair better suited my personality.

The next day when I came into work, the orange chair was back in its spot. I knew who did it. He knew I knew who did it. I switched chairs again. This little scenario went on for a few weeks. One day, I could not come into work because I had rolled my jeep down the mountainside and injured myself.

When I finally hobbled into work to pick up my paycheck, the guy from HR called me into his office. The first thing he did was threaten to take away my paycheck. I refused to hand it over to him. He began yelling obscenities. He was upset that I had taken time off work to recover and that I was getting paid for it. And like I mentioned earlier, I was not on his birthday card list.

I stared this jerk in the face and said the words that many employees at many companies in the world have probably longed to say:

If you don’t like it, you can fire me.

And he did. He fired me on the spot. Told me to go clean out my desk and turn in my keys. I did not cry, although I probably wanted to. I packed up my stuff and was about to head out the door when the HR Jerk waived at me to come back into his office. He had a second person in his office holding a note pad. He realized the pending liability, I suppose, and decided to document my departure.

He looked at me and said, Elizabeth, please tell this person to my right what you just said to me 10 minutes ago. He looked so smug.

I let my eyes tear up. My lips trembled. I raised my head to look up and said, “You said if I didn’t show up for work, injured or not, you would fire me.”

 

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