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How to Determine if the Offer is a Solid Purchase Offer
All viable offers look like a solid purchase offer to a Sacramento Realtor.
First off, a Sacramento Realtor cannot predict a solid purchase offer. No way, no how. Yet that does not stop eager buyer’s agents from calling about pending sales to ask: how firm is that purchase offer? It’s not a question I can really answer. Do I know the buyer personally? No, I do not. Do I represent the buyer? No, I do not. Much of the time, I don’t know the buyer’s agent, either. We have 5,000 agents in our Board. Turnover is high. Many agents aren’t in the business long enough to renew their licenses, which is at the four-year mark.
On top of this, the buyer’s agent might not know the buyer, either. The buyer could be some dude who plucked an agent out of the blue because the agent advertised on a website that contains property listings, like Zillow, for example. Strangers working with strangers working with strangers . . ..
Basically, we have two types of purchase offers. The kind that close and the kind that do not. Both of these look exactly identical to each other. They each contain a strong preapproval letter, and the buyers have coughed up an earnest money deposit by wiring or writing a check to escrow. They have scratched a signature on an offer and are contractually bound.
Which is a solid purchase offer?
You won’t know until closing.
In our hot 2017 real estate market in Sacramento, most of the obviously flakey buyers do not make it into escrow. Given a choice between a badly written purchase offer, submitted without a preapproval letter and an offer that adheres to standards, sellers will take the offer that meets requirements and ignore the screwed up messes.
We received 9 offers the other day for a property and only 7 were viable. Of the 7, most likely one of those might not close. Is it our present escrow or is it one of the offers we did not accept? There is no way to discern. After 40+ years in the real estate business, I can spot a crummy offer a mile away, but I cannot determine which viable offer is a solid purchase offer. It is impossible.
I don’t care if the buyer’s agent promises us the moon. They can say their buyer strolled by this home every day as a child and fell in love, dreaming about the day it would be available for sale; implying they would give up their first born to buy this home, and they can cling to the mailbox, refusing to budge until closing, proclaiming their love by screaming into a forhorn for all the neighbors to hear, and I don’t care.
It doesn’t mean they will close escrow.
If your buyer wants to write a backup offer, just do it. But please don’t call me to ask if we have a solid purchase offer.
The Insane State of Our 2017 Real Estate Market in Sacramento
Agents can’t work with every buyer in our 2017 real estate market in Sacramento.
Because of our bizarre 2017 real estate market in Sacramento, buyer’s agents right now have to be very selective when choosing respective clients. The basic problem is we have thin inventory (few homes for sale) and an excessive number of buyers. There are only so many homes available to buy, meaning there are not enough homes for every buyer who wants to buy a home. If agents are hauling around buyers who want to make lowball offers, those agents are wasting valuable time that could be spent working with serious buyers who desperately need our help.
Agents don’t get paid for their good looks, you know. We get paid when an escrow closes. If buyers are not listening to their agent nor being realistic, those unfortunate souls are not players for our 2017 real estate market. Agents, your buyer either conforms or the buyer doesn’t. If the buyer does not conform, you need to let go. If you’re not responding to new business because you’re beating a dead horse, that’s not good for anybody.
Instead, refer the buyer to another agent who can knock himself out trying to write offers that go nowhere. Maybe a new agent who needs offer writing practice. But don’t you waste your valuable time with these guys. These kind of buyers will always be with us and they are often oblivious to the market movement. These types of potential clients are immune to external forces and refuse education. Especially when these buyers lowball brand new listings that others drool over. You can talk yourself blue in the face and they won’t listen.
Well, agents, why don’t you stop? You have the power to say no.
Over a 24-hour period this weekend, I sold every listing I have (thank goodness I have a new listing on the market Monday). And one of those listings I sold wasn’t even on the market. It was in off market status. Yet, I received two offers. We are witnessing a May market in February. I put 5 homes into escrow, many with multiple offers. We had sent out 5 seller multiple counters on one property, eliminating the buyers who did not quite fit our profile, and while we were evaluating the 4 counters that returned accepted, a high cash offer slipped in the door and stole the house.
I was asked about a potential open house for a brand new listing yesterday, and the truth is I don’t think we’ll make it to Sunday. I think the home will sell with multiple offers over the next couple of days. I cannot plan that far ahead. Five days is too long to predict whether the home will still be available. The average sold price to average list price for our 2017 real estate market in Sacramento is 100.40%. That the statistic for ALL home sales within 30 days on the market since January 27th in the entire county of Sacramento.
An MLS search reveals 1,409 homes for sale in Sacramento County. Pending sales, those in escrow, are 1,658. With pending numbers like, we could sell every home in about 3 weeks! If you need a Realtor, call Elizabeth Weintraub at Lyon Real Estate at 916.233.6759.
Can a Sacramento Seller Pull Back a Counter Offer After Signing?
Any time prior to delivery of acceptance, a seller can pull back a counter offer.
After I answered the phone last night, I could sense the tense irritation in the caller’s tone. Uh, oh, these were the buyers who just lost a home because they did not sign the counter offer fast enough. They certainly did not want to hear that I am not their agent and cannot engage in a conversation with them; no sirree, these were folks who felt they understood exactly what had happened and they were royally screwed with a Capital R and no orgasm to boot. Except that is not what occurred. What occurred is they did not believe a seller should pull back a counter offer.
These buyers had an interest in my listing which, after a couple weeks, became a temporary off-market property. They called me directly and wanted information shortly after I listed the home. I explained that I would not work with them because I don’t do dual representation. I will not work with a buyer while representing a seller. If they needed an agent, I offered to refer them to a team member, but they suddenly had their own agent. Well, as long as they had their own agent, then problem solved. They can call their agent and ask her to call me.
Their agent called to ask about the property in temporary off market status and inquire when it would go back on the market. Not until next month. But if the buyers wanted to submit an offer subject to inspection, that might be the way to go, I suggested. I try to suggest that solution to every buyer’s agent who calls on a TOM status listing. I’ve had several agents call about this particular listing. This is a tight market with limited inventory. If buyers can’t find a home to buy, asking their buyer’s agent to scour the TOM listings and call listing agents is a good strategy.
My sellers had personal reasons for wanting to take their home off the market for a little while. Early yesterday morning, I received an offer from an agent who represented the now irate buyers. Their offer contained an element or two the sellers wished to counter, so they accepted the purchase offer subject to their own counter offer. I received the seller signed counter offer from DocuSign, sent it to the buyer’s agent and received a confirmation of receipt late morning. Tick, tick, tick. Can you hear the Sacramento real estate clock? Timing is everything. You know what happens next, right?
Late afternoon I suddenly received another offer from another buyer. What are the odds of that happening with a TOM listing? I guess in this market, those odds are pretty high. There were things about that offer that were very attractive and enticing to the sellers. As their agent, I am required to deliver that second purchase offer immediately and to point out that the sellers have a counter offer out to the first set of buyers. If that counter offer were to be signed and delivered to me, they would be in contract. Done deal. But they also had a small window of time to consider withdrawing the counter offer, if they chose to accept offer #2. Their call. Tick, tick, tick.
Of course, you know by now they did exactly what you would do. They authorized a Withdrawal of Offer, signed the WOO and I delivered it pronto to the buyer’s agent; but I also called her to explain what had happened. These things happen. Sometimes sellers pull back a counter offer. I felt empathy for the agent. I suggested her buyers could go into backup. The first set of buyers are very angry now that I did not try to persuade the sellers to stick with their offer. They felt I owed them an ethical obligation to try to keep them in contract. I’m afraid they don’t understand real estate 101. The only ethical and legal obligation I owed at that point was to my sellers.
The first set of buyers had many hours in which to return the counter offer and they didn’t sign it within that time frame. Don’t ever sit on paperwork thinking the transaction is complete. It’s not completed until all documents are delivered. Before that time, sellers are free to pull back a counter offer if they choose.
The moral of the story is if you receive a counter offer from your agent, sign it right away. Make sure it is delivered immediately. Don’t make the mistake of believing you have the luxury of time on your side. The Sacramento real estate market in its present frenzied state waits for no one.
How I Listed a Centex Home in Elk Grove Near Sheldon
This Centex home in Elk Grove is for sale at $425K by Elizabeth Weintraub, Lyon RE.
Although this new listing, which is a Centex home in Elk Grove, was a referral to me, the sellers were interviewing a number of agents at the time they talked to me. They asked when was the latest I could shoot photos in order to be on the market on Friday. I should know by Wednesday at least, I figured. Shoot photos on Thursday, go live Friday. We talked, I gave them a few pointers and we discussed where they might move to.
Taking a listing is always a holelistic approach, sellers don’t really want to sell as much as they desire what the final outcome will bring. Plus, they can sense the desperate agents a mile away, the guys who will do anything to nab a listing and don’t much care what happens to the sellers. There aren’t many agents like that in the business, but when inventory dries up, more seem to come out of the woodwork.
I left the Centex home in Elk Grove feeling like I might get the listing and I might not. It would be unusual not to get the listing. Usually, after people talk to me, they just about always decide I am a good fit for them. I have an easy-going demeanor, have been in the business over 40 years, and I sincerely care about my clients. My personality comes through when I talk with them. And I really liked the sellers, but I also felt like there was something else going on.
Turns out, there was. I didn’t hear anything from them on Tuesday. Wednesday afternoon, no word. Then just before I turned off my computer on Wednesday night, they contacted me. The seller’s fiancee texted to ask if I would discount my standard real estate commission because they found agents who would charge less. I quickly launched into an explanation about why they can’t choose an agent based on commission, and then finally I just said: Oh, what the hell. Just go to Zillow and read my last 2 reviews from sellers who initially chose a discount agent they later had to fire.
The seller explained that she kept looking at other agents, talking to other agents but she continually was drawn back to me. I’m all over Elk Grove. Top Producer in Elk Grove, so it’s no wonder. But I was also very pleased she kept pushing my name to the top of the pile. She also said one of the agents she had talked to had put a lockbox on the front of their house, although there was no key in it. Seemed an odd thing to do. For starters, lockboxes should go on the gas meter for safety, if at all possible. It’s too easy to remove a door handle. Plus, why would an agent attach a lockbox without a key? Well, I have my own thoughts about that. Maybe he felt it would push them into listing with him. Like a dog marking his territory.
I’m making an executive decision for the two of us, the seller’s fiancee announced. I want you to list our home. No matter how many listings I take, it’s still a thrill to be selected. My heart takes a little leap every time it happens. That feeling of excitement just never goes away. I uploaded the listing paperwork immediately to DocuSign.
When I arrived at their home yesterday to meet the photographer, the first thing I did was access the rejected agent’s lockbox with my display key. I asked the seller who that listing agent was and she could not remember his name. Well, I sent him a message, I laughed. She didn’t ask me how that was possible. I waited for it. You know, how could I send him a message if I didn’t know who he was? Well, he will see on his Supra lockbox setting that Elizabeth Weintraub opened his unassigned lockbox yesterday, that’s how. And then he will figure who the new listing agent is.
This is a 3 bedroom, 3 bath, over 2,400 square feet*, built in 2009, a Centex home in Elk Grove on the edge of new construction. It will be held open on Sunday from 2:00 to 4:00 PM. This beautiful home features chocolate cabinets throughout, granite counters, ceramic flooring, stainless appliances. The entry boasts high ceilings up to the second floor and clerestory windows. Beyond the railings on the second floor is an open loft area, which makes a great playroom.
3 Donson Court, Elk Grove, CA 95758, is offered exclusively by the largest independently owned real estate company in Sacramento, Lyon Real Estate, and your top Elk Grove Realtor, Elizabeth Weintraub, at $425K. Call 916.233.6759 for more information.
*according to the Sacramento County Assessor and this measurement has not been verified by Elizabeth Weintraub.
Hey See This New Listing: Remodeled Home in Foothill Farms
5901 Meghan Way, Sacramento, CA 95842 is for sale at $180K.
My new listing hit the market yesterday, it’s under $200,000, and it’s a remodeled home in Foothill Farms. That’s all you really need to know but I’ll give you the rest of the details. The living room has laminate flooring that looks like real wood, and crown molding. You will also note an oversized stained glass front door and a ceiling fan.
The seller is a house painter by profession, evident by some of the two-toned rooms. You’ll find ceramic flooring in the kitchen and dining area, an updated kitchen with granite counters, newer cabinets, stainless appliances, and plenty of storage space. Seller says the refrigerator can stay, but you’ll need to ask for it in the purchase contract.
One thing you need to know about this new listing and the remodeled home in Foothill Farms is it is a short sale, and not just any ordinary short sale, it is a Freddie Mac short sale with two loans. This means it will take a considerable amount of time to negotiate, perhaps 90 days. So enter that time frame into your equation for buying a home. If it works for you, then this might be a good time to buy a home in Foothill Farms.
The home features 3 bedrooms and a remodeled bath, with ceramic floors and a new vanity. There is also a big back porch that is enclosed and presently used for storage. Of course, the garage holds two cars and is attached. The seller will remove the above ground pool in the back yard.
The main thing this home needs is to repair or replace the siding. For that reason, it probably will not pass inspection for an FHA or VA loan. But if you’re willing to fix the siding prior to closing, and that can generally be arranged during your 30-day escrow period after approval, you could probably use a government loan to buy this remodeled home in Foothill Farms.
Call the listing agent, Elizabeth Weintraub, at 916.233.6759 for more information. 5901 Meghan Way, Sacramento, CA 95842 is offered exclusively by Lyon Real Estate and Elizabeth Weintraub at $180,000.
