The problem with some listing status modifiers such as "active short contingent" in the Sacramento MLS -- and other MLS systems around the country -- is that home buyers don't know what they mean. Some agents don't understand the modifiers either. In fact, MetroList abbreviates this modifier as "active short cont," which seems to add to the confusion. People wonder are they talking about writing a contract on a short sale? What does it mean?
I uncheck this status when I set up automatic MLS listings for my prospective home buyers. But, then they pop around other web sites and email me with questions about them anyway.
As a Sacramento short sale agent, daily I receive dozens of phone calls from agents and home buyers asking questions about my active short contingent listings. Sometimes the calls come one right after the other, bam, bam, bam, and although I always try to answer my phone, I may not have enough time to explain the entire history of an active short contingent listing nor to educate callers.
I used to try, though. This is my active short contingent script: "This listing is active short contingent. This means the seller has accepted an offer. We have received 16 offers (or whatever number) on this home, most thousands and thousands over the list price. Plus, we have a fully executed and signed contract in back-up position. Only one offer was sent to the bank, and that's the offer the seller first signed. That buyer is committed and has deposited funds into escrow. If the first buyer cancels the contract, we will go to the back-up buyer. If that buyer cancels the contract, we have 14 more buyers behind him."
But sometimes callers don't listen. They reply: "Um, how many bedrooms does it have?"
Now I say that I'm sorry, but the home is no longer available.
What do you mean it's no longer available?
It means the home is no longer available.
Can I write an offer?
I can't stop you from writing an offer, but it may be a waste of your time.
Why is that?
Because the home is no longer available.
An agent called me a few days ago about an active short contingent home that has a bad foundation. We are very close to closing on this and expect to receive short sale approval from the bank any day now. Received tons and tons of offers. All-cash offers, way over the list price. I can't wait for this to go into pending status so the torture will cease. I went through my this-home-is-not-available-speech, but the agent wouldn't give up. So I launched into my active-short-contingent-script and yet the agent asked, "Well, what's wrong with the foundation?"
What difference does it make if you can't buy it? She started to laugh, "I like you," she giggled.
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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.
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Elizabeth,
So, what's wrong with the foundation? (LOL)
Our MLS was talking about having a similar thing, but never implemented, and it is a mess. Some keep it active, some keep it contingent, and it is confusing. Instead they have a line "Potential Short Sale". Which is very confusing as well.
If my sellers owe certain amount and priced the home so that they just cover the payoff and the closing costs, the offer that comes $5K lower would put them into a short sale situation. So, you never never what the story is.
Nice script. Agents that don't do short sales, don't listen, and don't get it. It is my 2nd biggest frustration after dealing with the banks. LOL
Elizabeth: That's why I like you too. You don't beat around the bush. I'll have to remember this quick comeback next time I'm in the same conversation loop.
REOs and Shorts can be such a hard pill to swallow at times... the delays are maddening...
I love it when they don't "hear" you when you tell them something. Had a buyer tell me yesterday she was going to "just get a no doc" loan. She'd heard nothing I said about the changes in the lending industry lately. I repeated myself and she said- "well I got one before", I replied with:
"well, latida, so did I"
Elizabeth - I like your active short contingent script. . .I like it a lot!
Seems like pending is a more accurate description of the status. We are trying to come up with a status between a short sale that the seller has signed but the bank has not agreed in writing to the offer.
Jon: You make me laugh. But you always make me chuckle.
Terry: Well, swipe our status. It's not the best but it's better than "active" or "pending." I'd like nothing better than to tell callers that the home is sold, but that's not a true picture.
Everybody else: Thanks for chiming in. If you've got a better solution, I'd sure love to hear it.
Hi Elizabeth... I LOVE THIS POST! You have this one nailed! I am only bitter because I didn't think to write it first! :)