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Buyers for Short Sales in Elk Grove Make or Break the Short Sale
About one out of every 3 homes in Elk Grove that I sell nowadays seem to be a short sale. How are short sales in Elk Grove still a thing, you might wonder. I mean, you read about the economic recovery, how much homes have appreciated, and it doesn’t seem to make sense that home sellers can still be underwater. Take 2012, when home prices, on average, shot up about 40% in Elk Grove. Then, along came 2013 and we witnessed another 25% bump. Last year was single digits and not as impressive, so the big increases are pretty much over.
I see the continuation of short sales in Elk Grove to be a mix of several factors. First, Elk Grove was named in 2006 the fastest growing city in the United States. Not in California, the United States. When the market collapsed, Elk Grove was hit very hard, and prices fell more than 50%. To put this into perspective, if a home was worth $500,000, after the crash it was worth maybe $225,000. When that same home appreciates by 40%, now it’s worth $315,000, and another 25% boost would push it to $393,750, which is not enough to pay off those dual mortgages of $500K.
Some people struggle with math. They might think 40% plus 25% equals equity, and I am showing you the numbers so you can see it doesn’t work that way.
Second, the homeowners who were underwater and did not do a short sale and did not elect to grab cash for keys in a foreclosure, often chose the less painful of those options and selected a loan modification. Loan modifications — unless the bank forgave a big chunk of the principal balance — are generally just a temporary BandAid. They also tend to adjust after 5 years and interest rates go up, which increases the mortgage payment, until the homeowner gets to a point where she just can’t take it anymore or perhaps something else horrible happens, something worse, like a death in the family or loss of income or limb.
Naturally, since I represent sellers, I feel an affinity toward my clients — as well as a fiduciary responsibility, which is required by law. I try to help my sellers to choose an appropriate buyer for the home, a buyer who will wait for the approval and has the qualifications to close escrow. We keep our buyers informed throughout the transaction with weekly updates, and they can check updates themselves on my website.
Almost invariably, without fail, the person in the short sale that causes the most problems, the biggest delays, and is the main reason short sales drag on and on and on, is the buyer. They are just some person or couple who want to buy a house, and often possess no feelings for anybody in the transaction, sometimes, not even their own real estate agent. Yesterday, after battling FHA and surviving a transfer to an institutional lender, dealing with partial demands for previous loan mods, paying off utilities and other outstanding liens, cleaning up the preliminary title report and being on the verge of approval from the negotiator, a shiny new listing came on the market across the street from this short sale in Elk Grove.
The buyers lost the faith, which, granted, was probably hanging by a thread in the first place. Because the buyers didn’t adhere to all of our requirements upfront, that was a red flag, and against better judgment we gave them a chance. It was a risk we were willing to take. A risk that at least I regret. Don’t deviate, is my motto. This is what happens with deviation.
At least, on the bright side, all of the really hard work has been done, and the road has been paved for the next buyer who truly deserves this magnificent pool home in Elk Grove. If you’re looking for a home with 5 bedrooms and a pool at an excellent price, you should call your Elk Grove agent, Elizabeth Weintraub, at 916.233.6759.
Why Home Sellers Should Not Pick a Sales Price
What home sellers don’t know about listing prices can fill a book. What makes a home sell immediately while another lingers on the market? How many days should it take to sell a home in Elk Grove, for example? It depends on which part of Elk Grove and the sales price ranges, but if we look at 95757 for the past 30 days, the average days on market are 53 and 63 cumulative, and the average listed price is $384,794 versus average sales price of $382,061, with an average size of 2,377 square feet. But that’s all homes up to a sales price of more than $600,000. The variance between list price and final sales price is about $1.00 per square foot, not much.
However, if you narrow the search criteria to homes under 1,500 square feet in 95757 over the past 30 days, you will see the smaller, entry-level homes are selling in 12 days over list price. It’s subjective. It’s why home sellers should not pick a sales price without this kind of information.
This is the sort of analysis I prepare for myself when I’m getting ready to list a home in Elk Grove or Sacramento. I also study the competition, meaning homes for sale now, as well, because those are the homes that buyers will see. Buyers won’t see the homes that are sold and, in fact, many of their agents will not share those comparable sales, for a variety of reasons. Home buyers tend to have limited vision because they compare homes that are for sale to other homes that are for sale and then try to discount the sales price from that inventory, which is really an ineffective method to use to buy a home.
That’s not to say that positioning is not important because it is paramount. But in the end, it is always what the market will bear. It’s the figuring out of what the market will bear that separates the struggling real estate agents from the top producers. It’s also a reason why home sellers should never pick a sales price by themselves without input from a seasoned agent.
Sure, sellers own the home and enjoy a vested interest, but they really don’t know how much that home is worth. Being right on the nose is an art developed by experience and backed by numbers. If you’d like to hire a top listing agent in Elk Grove or Sacramento, call Elizabeth Weintraub at 916.233.6759.
How Long Does it Take to Sell Homes in Elk Grove, CA?
Ask an Elk Grove Agent About Selling Homes in Elk Grove
Home sellers always seem a bit astonished when I talk about how long does it take to sell homes in Elk Grove, and I give them hope that their home will quickly sell. Sometimes I see the uneasiness in their eyes, like why would I say that? Could it possibly be true or am I just saying those words in order to get the listing? Yeah, I know that it can be hard to trust every Elk Grove agent and some of them earned a bad name, but my clients come to respect the fact they can rely on me, no matter what. I do what I say.
I have no reason to predict that a home will sell faster or for more money than a seller expects unless it is true. There is nothing but heartache for the agent who can’t perform or live up to expectations, and I never want to be in that boat. I would much rather under-promise and over-perform because it delights sellers to get even more money than they hoped to get and to sell faster than they anticipated. If anything, I might deliberately set expectations a little bit lower. My goal is happy and ecstatic clients.
Speaking of happy, I was watching the Grammy’s last night, Pharrell performing Happy, which won him a Grammy, and was happy to see some of the other performers included from the 1970s and 1980s (but I don’t know why they were there). My husband says some of them are under various CBS contracts / subsidiaries, and that’s why.
But AC/DC? There are many bands I have never seen perform live and probably shouldn’t. It can alter your long-held opinion based solely on the music. That’s because when I was growing up, if you wanted to see a band you either checked for a schedule with the venue where they were likely to play, or you waited until you heard an announcement on the radio or somebody else told you; maybe somebody plastered a playbill on a telephone pole. I knew what the musicians looked like because I had an album cover to stare at. And sometimes, I hate to admit, from magazines at the grocery store. Maybe, if I was lucky, I’d catch a band on Ed Sullivan or some other variety show.
Ah, kids today don’t know how good they have got it with the Internet at their fingertips and cheap air fare. I wasn’t flying anywhere much less hopping a bus to St. Paul to see a show as a kid.
And Elk Grove sellers don’t know how good they have it until they hire this Elk Grove agent to help them to sell a home. The market right now, this very instant, is hot. There is almost no inventory. How long does it take to sell homes in Elk Grove? A home sells as fast as the best one above it goes into escrow. That’s your real answer, and the one that you’re looking for. And you can rely on it.
Elk Grove Sellers Who Buy With a Contingent Offer is Becoming the Norm
We just closed escrow yesterday for an evening news anchor and his family. They were able to sell an existing home, rent back for a while and close on another home, and we helped them every step of the way. Further, it was a contingent offer that scored the family the home of their dreams. Now, I know there are potential sellers who don’t believe it is possible to get an offer accepted to buy a home when their own home is not yet sold, but that is a common procedure for experienced Elk Grove agents. The trick is to make sure your home is on the market before you try to buy a home. Make it contingent.
I talk to scores of people all day long who call to ask about buying a home when they also have a home to sell. Each is different, and there is no cookie-cutter solution. I have many scenarios to choose from that will work, it just depends which is best for the client. But I do know, beyond a shadow of a doubt, if a seller needs to sell in order to buy, I’m your Sacramento REALTOR who will get the job done.
In this particular instance, I had sold this Elk Grove seller’s home 3 times. Three times! Flakey buyers. Buyers who get all the way to escrow closing, two days away and then suddenly realize, oh my gosh, we can’t get our money out of China! If I had a dime for every time I heard that excuse I still couldn’t afford an oceanfront home in Maui. Or, they are trying to sell a home but won’t price it in accordance with the comparable sales so we have to cancel them because we want to be in escrow with buyers who will actually close. We lost our first two buyers for reason #1 and reason #2.
But our third buyer stuck. Our third buyer was in a multiple-offer situation with another buyer, too. This was a home with no upgrades, no granite counters, no stainless appliances, no crown molding, nothing really special except the view. We worked out all of the details before the offer was formally presented to the sellers, the amount of the rent back, the duration, which made the entire process that much more pleasant for all parties concerned.
The home the sellers found to buy was also their third escrow. The first two homes, well, after presentation of all the facts, the sellers found some terms?that were unacceptable, and we helped them to cancel. It is not up to us to try to talk anybody out of canceling. If the home is not for them, it’s not for them, next. We want happy sellers and buyers.
Sure, sometimes it seems like we do 3 times the work to get the same results we used to obtain years ago without all of that work, but that’s how the business is these days. We do what we have to do to keep our clients smiling. It doesn’t have to be a pain in the neck to sell a home and buy another at the same time. Not if you’re dealing with pros. I say, bring on the contingent offers, boys, this is where we shine!
Some Homes in Elk Grove Sell 3 Times Before Closing
There are ten million stories in Elk Grove, and this is only one of the homes in Elk Grove that has been sold several times before the buyer stuck with the program. The listing in Elk Grove closed on Friday, a mere 21 days after going into escrow. The buyer’s agent was on the ball, efficient, reachable by cell and text, and an all-around pleasant guy. I’ve been so fortunate lately that I’ve lucked out with such great buyer’s agents to work with because they can make the entire experience memorable or forgettable.
I tend to put fresh hell situations out of my mind. There is no sense in dwelling on them. But I do want to revisit this particular transaction because it is indicative of other listings of in Elk Grove. It is not an anomaly.
First, this home was initially listed by a property management company. To me, this like a mortgage broker trying to sell real estate. Or an Elk Grove listing agent deciding to manage rental property. We all have our specialities and should not try to wear 2 hats. The qualities that make a person a good property manager does not equate to making a person a good listing agent. The seller lived in the Bay area and didn’t know the difference. She thought a property manager could sell her home, but the property manager tried for 3 months and didn’t get anywhere.
The main problem with this Elk Grove home was the carpets were filthy. Why didn’t the property manager notice this? When buyers spot dirty carpeting, the first thing they think is it will cost $20,000 to replace, or some other crazy number, and they pass on buying the house. I recommended an excellent company that specializes in cutting out and replacing damaged portions so it’s invisible. They also do a bang-up job of removing spots.
I listed the home in mid September and we eventually received 9 purchase offers. The first offer was 10% under list price from “a throw offers at the wall and hope they stick” cash buyer. Unacceptable and we countered, no response. The second offer was a bit under list price, we issued a counter and the buyer accepted. A few days later, for no reason, the buyer canceled. We went into escrow with a second buyer near the end of September, and a few days later that buyer canceled. Then came 5 more offers, most with closing cost concessions, and another offer I couldn’t open because the file was corrupted and I had to wait 2 days for the agent to fix it.
I was a bit worried that the seller might be getting discouraged or start to believe that all buyers for homes in Elk Grove were off their rockers. In actuality, she was very happy with my performance and continued to comment all through the transaction that she had wished she had found me in the first place.
Then came the offer the seller could accept. It was clean. No concessions. No mistakes. No lowball offer. We zinged through escrow in 21 days with no request for repairs, just like it should be for a fairly new home in Elk Grove built in the last decade. Eureka, we closed. It was a relief but it wasn’t easy to close on this home in Elk Grove. It just goes to show that one can easily put a home under contract; it’s not so slam dunk to get it closed. This is when you need a professional, an experienced Elk Grove agent who doesn’t give up and doesn’t quit until the keys are dangling from the buyers’ hot little fingers.
