Every so often I get the delicious opportunity to list and sell a Sacramento short sale that is in extremely high demand. The home is in high demand because of location and condition. It could have expensive upgrades or be unique. Whatever it is, those types of homes tend to receive multiple offers. That's because many buyers want homes like that. They go nuts.
Sometimes the price is at a particular point that also drives buyers insane. The price point could be a break-even point for investors. It means investors can get positive cash flow. If investors are receiving positive cash flow, it's because the mortgage payment, taxes and insurance, the entire PITI, is less than rent. If the payments to support the property are less than rent, it also means first-time home buyers would be better off buying instead of renting. You get head-to-head combat and cash offers.
All of this can cause a feeding frenzy, especially if all 3 points are inherent in the transaction. If you've got price, condition and location going on, you'll get multiple offers. The one thing a Sacramento short sale agent looks for is a committed buyer. A buyer who will wait through the short sale process until approval is obtained. Not all buyers for a short sale are actual buyers. Some of them are players. The trick is to recognize the difference.
It surprised me yesterday to receive a phone call from a disgruntled buyer. This guy had apparently put in an offer on a short sale a while back, and his offer was not accepted. It's also possible that his agent did not present him in the best light. That happens more than buyers realize. I don't recall in this case. But I know the guy was very upset because he saw that the property sold for $1,000 more than his offer.
So, you know what he thinks. But he is wrong. I don't care who buys the home. The seller chooses the offer. When buyers know there are multiple short sale offers, buyers are smart enough to figure out how high the bidding might go. They often tend to bid $10,000, $5,000, $1,000 or even $20 over the highest price, all without knowing the highest price. I don't divulge prices. I tell buyers and their agents to submit their best offer.
If yours wasn't it, look to your agent. Don't look at this Sacramento short sale agent. Because I can assure you without question there was nothing fishy going on. It's not how I do business. If the seller chose your offer over another, it might not even have been about price anyway. It might have been the way your offer was written. There might have been something in the tone of that offer that made the seller shy away. From the sounds of it, at this point, the seller absolutely chose the right buyer.
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
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The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.
