Email ElizabethWhen a Home Seller Cancels the Contract for Non-Performance
When a home seller cancels the contract for non-performance, she must have a specific action that the buyer failed to complete. In this case, it is the buyer’s good faith deposit. The contract specifically states the buyer’s funds must be deposited into the title company within 3 days after acceptance of the buyer’s offer.
In this particular escrow, there have been many conversations about the deposit and several reasons why the funds have not been wired. A car wreck, an illness and then a tragedy in the family with their child. Another reason for the delay just happened this week. The funds were somehow wired to the wrong title company. The seller’s agent has been very patient. Everyone has a line in the sand and the seller and her Realtor have reached that point with the buyer. The buyer has truly tried everything within her means but has been unable to perform.
As we are 12 days into this and no deposit has been made, the Notice to Buyer to Perform was received yesterday. The notice specifically states: “If the buyer does not remove all contingencies within two days from the day after the delivery of the notice, the seller can cancel the agreement.” As the notice was received yesterday, the buyers legally have until the day after tomorrow at 5:00 PM to deliver the earnest money deposit; if they do not, the seller simply cancels and sells to another buyer.
When a home seller cancels the contract for non-performance, this can be sad news for buyers. The buyers in this case are from out of state, so even further complications. This notice is important. The seller has lost valuable time on the market to sell the property as it has been in pending status. Pending sale in MLS detours other buyers from looking at the property.
When a home seller cancels the contract for non-performance, this is a last resort ditch effort. If a buyer wants to save this escrow from cancelling, they must go to the bank today. The seller’s agent needs confirmation the funds were wired and deposited with the title company.
If you are looking to buy a home, always make sure you have your deposit funds ready to go when you sign your purchase agreement. This will ensure that when a seller cancels the contract for non-performance, it will happen to someone else, but not you!
If you are thinking about selling a property, rest assured Weintraub & Wallace Realtors will always insist on a deposit check immediately on our listings. Call us today at RE/MAX Gold, 916-233-6759.
— JaCi Wallace
A Busy Location Impacts Sales Prices of Sacramento Homes
Some homeowners feel the effects of how a busy location impacts sales prices of Sacramento homes. An example was a home we sold on the corner of a busy street in an affluent neighborhood. This was a gorgeous large Tudor style home in mint condition but had not been updated in many years. Its Old World charm was very appealing.
I met a wonderful seller who had been sadly disappointed. She had the family home on the market for months with a different Realtor and very few buyer showings. One of my probate attorneys referred me to this client. My study of the area confirmed the home had been seriously overpriced and lacked staging. The seller, a very bright woman, knew something was not right with the listing. She was looking to make a Realtor change.
This seller wanted to know and understand everything about the listing. After all, this had been her family home and she took her responsibility seriously. Who wouldn’t, when they loved their parents so deeply? She wanted to do the right thing in memory of them in selling this home for the best possible price. She caught on so quickly to everything we explained. She took a real interest in what we were doing and it was very positive. She was gracious and appreciative.
The distance between the current listing price to a realistic sale price was quite high, so I suggested an appraisal. They had completed a previous appraisal, but it lacked adjustments for mint condition versus comparable remodeled homes. The appraiser made no significant adjustment for how a busy location impacts sales prices of Sacramento homes. The seller understood a new appraisal was needed and the appraiser needed to be familiar with the area. The appraiser did make the adjustments to the value.
We staged the home with a top stager in the Sacramento area. Our photographer shot beautiful artistic photos in brilliant vivid color using high resolution photography. The brochures turned out spectacular. The yard was detailed and the home was professionally cleaned. The windows sparkled (a pet peeve) and we went on the market listed for sale in the MLS.
We had so many showings and no offers. The buyer feedback was often the location and the lack of updated kitchen and baths. Because the home was situated on the corner of a busy street, the seller definitely felt the effects of how a busy location impacts sales prices of Sacramento homes. She received my activity reports each week and understood the marketing cycle and what was necessary to sell the home. She agreed to lower the price after seeing months of our diligent efforts. Also, a huge number of buyers had seen the home but did not make offers. Previously, she had had very few showings.
Then, an offer comes in and the inspections determined: asbestos ceilings and insulation. Combined with the estimated high costs of estimates for asbestos remediation and cost of updates, the buyers canceled. We worked day and night and obtained another offer, this time cash! An appraisal value is not always absolutely a correct value as the buyers determine the price by what they are willing to pay for a home.
Our previous sales efforts included weekly open houses with a lot of buyer traffic. Mailers, ads to the Bay Area, social media marketing, direct agent marketing, local magazine ads and so much more. We had launched a very aggressive marketing campaign from Day One. When you have a beautiful home with so much to offer, it still will not be an easy sell on a busy corner, even in a premium neighborhood. The seller had every confidence in us and we did sell it. She gave us a fantastic recommendation.
So, are you seeing how the effects of a busy location impacts sales prices? When selling Sacramento real estate, a seller should hire an agent they respect and trust, with references. It may take a bit longer to sell a home in a busy location. As long as the seller is getting a consistent high number of buyers coming to look a property, it will sell. We knew that we needed to have as many people through each week as possible, so that was our focus, and it worked!
If you have a challenging location and want to obtain the highest offer the market will deliver, we work diligently and put in long hours, whatever it takes, to sell your property. For results call Weintraub and Wallace Realtors at RE/MAX Gold at 916-233 6957.
— JaCi Wallace
Buyers Hesitate To Write Offers On a House, Consequences?
A scenario we are seeing as of late, buyers hesitate to write offers in a timely manner, consequences? Well, yes, in a spring Sacramento market, homes sell faster than in the winter. A listing located in Midtown Sacramento we already put in escrow. Of course, now another couple who had seen it 4 times didn’t write soon enough. They submitted an offer a little too late, and are trying to get into back up offer position.
Another listing in Natomas, the buyer wrote three consecutive offers; however, the first two were not viable. Of course, another offer comes in! Now, they are competing in a multiple-offer situation. If the first buyer had written a substantial offer instead of writing lower offers, they would have been in contract long before today.
When buyers hesitate to write offers, in a timely manner, consequences almost always happen in Sacramento real estate. Time will tell if they are the successful buyer. Waiting can cause buyers to lose an opportunity or can drive the price up. When you have multiple offers, demand can create a feeding frenzy.
As buyers hesitate to write offers in a timely manner, consequences for both of these properties happened. One lost out and the other faces multiple offers. Buyers, a bit of advice, always write your offers quickly. Just because a property isn’t sold today, it doesn’t mean it won’t be sold tomorrow.
If you want to buy a house and beat out other offers we will guide you to write offers as soon as possible. This could help you to avoid this scenario above. Call Weintraub and Wallace Realtors at RE/MAX Gold Real Estate 916-233-5769.
— JaCi Wallace
A Buyer Makes Offers on the Same Property Three Times, Is It The Charm?
A buyer makes offers on the same property three times, is it the charm? This really just happened. In decades of selling real estate, this was a surprise. The first time the buyer wrote a very low offer per the seller, when there was a substantially higher offer on the table. The second time the offer was a bit higher offer, same buyer. The third time it is a viable offer, but is that high enough for the seller?
The first offer the sellers did not respond. They felt it was too low given the comparable sales on homes that had the same floor plan. Meanwhile the home went pending into contract with another set of buyers. So this same buyer submits a second offer, as a backup offer. The seller rejected the backup offer, still too low, he said. The property then fell out of escrow through no fault of the seller. The seller has been working hard every day to ensure the home shows well.
Believe it or not the same buyer submits a third offer, and it was presented to the seller. We all appreciated that the buyer had not given up. The seller is currently thinking it over, felt this was an improvement and is considering the offer. We had several agent showings at our open houses, held by our team members, this last weekend. The open house traffic reported several agents through our listings with a few interested parties. This was the feedback the seller was waiting on to make a decision.
The buyer’s agent called me to say the buyer was very committed and truly wants this home. I explained the seller wanted to wait over the weekend to evaluate the market and the feedback from the open house. The buyer’s agent said she would wait for the seller’s response. Stay tuned to the Blog for an answer this week to the question: If a Sacramento buyer makes offers three times on the same property, is it the charm?
If you would like to make a strong offer on a property and get it accepted, call Weintraub & Wallace Realtors today. One of our experienced exclusive buyer’s agents will be happy to help. Call us at RE/MAX Gold Real Estate 916-233-6759.
— JaCi Wallace
Can a Counter Offer On a Sacramento Home Come Back to Life?
There are always second chances to sell a property, but one question a seller asked yesterday was interesting. He asked, can a counter offer on a Sacramento home come back to life? Last week, we received an offer on his Sacramento listing in Midtown. The offer needed a counter offer as there were some things that needed to be much improved. The good faith deposit, for instance, it was very low. I had not seen such a low offer of a deposit amount in many years. We write offers with three percent down as that is the liquidated damages amount. A generous good faith deposit tells the seller a buyer is serious.
In purchase agreements there are many things a seller can be really picky about. We stick to the important items. The deposit, verification of funds needed to close, the offering price, the time frames, a lender loan approval, and what costs they ask the seller to pay for. The escrow length of time frame is critical and often depends on the type of loan. Possession can be tricky if the seller is living in the property.
After everything was put onto the counter offer and the seller signed, I sent it to the buyer’s agent. The buyers were taking some time thinking it over evidently. I asked the buyer’s agent the next day when we could expect to receive it. He said they had decided not to move forward. I immediately let the seller know, he was so very disappointed.
The next day the buyer’s agent called me to say the buyer had changed their mind and he was sending over the buyer accepted counter offer. I let the seller know right away and he was thrilled that the counter offer was resurrected! Can a counter offer on a Sacramento home come back to life? Yes, it sure can as the seller had not withdrawn the counter offer with a “Withdrawal Of Offer” form. (C.A.R. Form WOO) Counter offers expire automatically on the third day after it is signed at 5:00 PM. A counter offer can however, expire sooner or later, depending on how long a buyer or seller offers the other party to respond.
As the buyers had decided they were now willing to accept the seller’s terms they had signed the seller’s counter offer. As the listing agent, I’m authorized to receive it on behalf of the seller; however, I immediately sent to the seller as is our policy. The seller initialed and dated the confirmation of acceptance on the counter offer. A copy was emailed to the buyer’s agent. The buyer’s agent then confirmed receipt of the acceptance.
A binding agreement is created when a copy of the signed acceptance is personally received by the seller or seller’s authorized agent within the time frames before the counter offer expires. A seller can however, agree to extend time on a counter offer, if it has expired.
If you are interested in selling your home, please call the Weintraub & Wallace team of RE/MAX Gold today at 916-233-6759.
— JaCi Wallace
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