An agent called me last night on one of my short sale listings to say he wanted to write an offer. His reason for calling was to say he could not believe his lucky stars when he ran across one of my short sale listings in Sacramento to discover it was listed by a "regular real estate agent."
I'd like to think my short sale listings get offers because I have priced them appropriately and marketed them well -- little did I know that sometimes it can be name recognition. But I see his point. I don't want to deal with a mortgage broker-slash-real estate agent any more than the next guy out there, but sometimes we have to deal with the cards we are dealt.
I firmly believe it is pricing that makes the difference. Unlike some agents, I don't make up prices, and I don't deliberately price them so low as to attract offers from lowballers who don't stand a snowball's chance in you know where of getting them accepted by the bank.
Instead, I examine the comparable sales in many formats. I look at a radius within a 1/4 mile. Again at a 1/2 mile. Over a year ago, within the past six months, within the past three months. I run a separate search on the subdivision. I study the Active Short Sales versus the Short Contingent; the Active listings versus the Sold and Pending comparables. I apply a ratio regarding price declines over the past 12 to 24 months. I look up the history of pendings and solds versus last sales history. And within all those figures, I pluck a number that I think the bank will agree with.
If the short-sale lender doesn't agree, you don't have a sale.
Now, some people might say, hey, you're supposed to be getting the highest and best price for the seller, and with that sentiment, I disagree. The ultimate seller is not the home owner, it's the bank. I'm supposed to get the home SOLD. The only way to get a short sale sold is to get a buyer, that buyer's agent and the bank to agree. So, I'm working a three-sided coin.
Maybe I'm just lucky. What the heck do I know? But I do know 3 new short sale listings from last week all have multiple offers. Two of those have the BPO completed already, both of which support the sales price. I know that 90% of my last three year's worth of short sale listings have closed escrow.
What I really love about listing short sales is there is no argument from the owner over price. The second loan (if there is one) is almost always wiped out, especially in Sacramento, so you know the price is going to be less than 80% of what the sellers paid. There is no deficiency judgment in California on a first mortgage (regardless of whether it's purchase money or hard money) under a trustee's sale, which means it's no skin off the seller's teeth whether the home sells at 80% or 40% of that mortgage.
Unlike many hissing agents who cross forefingers and back away from short sales, I'm not afraid of them. I love short sales. If you need to sell your Sacramento home on a short sale, call me at 916.233.6759. I'll get it sold for you.
The Short Sale, by Elizabeth Weintraub, coming from Archer Ellison in January 2009.
Photo: Big Stock Photo
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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 Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available through bookstores everywhere and at Amazon.com.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
