Don't deviate from the plan. That's my motto. Because I've learned that 9 times out of 10, if I make an exception to the way I do business, it comes back to bite me. In other words, it's better to be safe than sorry. Once you've got a system that works, stick to it. Don't back down. Ever. The day you do, you're screwed.
But I know that you won't listen to me because sometimes I don't even listen to me. I've been known to break my own rules. But at least I know better . . .
In the fall of 1998, it was cold in Chicago. I grabbed my then-boyfriend's hand, pulled my fox fur collar closer to my neck and we scurried along Michigan Avenue. The wind was blowing in over the lake. Brrrr. You might think that Chicago is called the Windy City because it's windy, but that's not the case; Chicagoans say it's named the Windy City for its windy politicians. We had flown in from Minneapolis and were headed for that famous building with a sculpture of a rabbit drummer in front -- I believe, if memory serves, it was the John Hancock Center.
My husband was and still is a journalist. Like many journalists from Chicago, he cut his teeth by working at the City News Bureau. It has a fond place in his heart. Rough, rowdy and real. In 1998, the City News Bureau was closing after more than 100 years of service, and we were going to the top of the John Hancock building to attend a farewell party. It was bittersweet for many alumni in attendance. The slogan that every beat reporter knows and repeats from the City News Bureau is: "If Your Mother Says She Loves You, Check it Out."
I latched on to that phrase because I know it is true. It's good to be skeptical. Like Dr. Gregory House says, "Everybody lies." It's even more important to be skeptical as a Sacramento short sale agent -- or any kind of real estate agent, for that matter.
I received a very attractive offer last week from a buyer's agent on one of my Sacramento short sales. Everything about the offer screamed take it. It was well written. Healthy earnest money deposit. The buyer's agent and the buyer promised to wait for short sale approval. It was above the asking price. However, the buyer's preapproval letter did not match the loan amount. It was for less.
When your mother says she loves you, check it out. We wrote a counter offer asking for an updated approval letter that reflected the loan amount. No, problem, the agent scoffed. The buyers are fully qualified. I was tempted to let it go but I didn't. Don't deviate from the plan. Guess what? The buyers didn't qualify for the higher amount. Well, saved myself and my seller 3 months of agony.
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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.
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.
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.
If your mother says she loves you, check it out. I didn't know where this was going, I had never heard that saying before. Good line for a reporter though. Also good line for a Realtor. Kind of like Reagan's, "Trust but verify"
What a disappointment! But, you didn't stray from your plan and found out right away. Great reminder to us all. Thanks, Elizabeth.
I hadn't heard that line before either. But I agree that checking EVERYTHING out is essential - and when you get that little feeling that something isn't right, boy does it ever pay to listen to it!!
Elizabeth,
Another great examples of otherwise boring real estate stuff so interesting, with a lot to learn, and, what is so important, - to enjoy
And what a description of the Windy City and you there...
I just had Buyer's who ended up not qualifying, AFTER they had qualified. How? The condition of their loan approval was to pay off a credit card witha n $11K balance. No problem. At least, that's what they told me and the lender. They have a rich Uncle who promised to help. So we wrote an offer on a Short Sale that got accepted. Six weeks down the road, I am takling with these buyers and the wife says the rich Uncle was being a jerk and not even talking to them. My ears perked up and I got a bad feeling in the pit of my stomach. I asked about the $11K. "Oh. He's refusing to help us with that. But we still want the house." Great. Too bad they don't qualify for it. They didn't understand what their lender and I had been telling them. Very frustrating.
Hi Elizabeth, and this why I love reading your posts! I've never heard of that press saying either, I learn something new everyday. In this business, it pays to check everything out and I'm glad you followed your plan on this one!
Elizabeth, great story and analogy. Haven't been regularly posting, but wanted to stop by and say hi. Short Sales are definitely not "my" thing. Too many non-savvy agents and banks. I actually refer our short sale listings out.....she spends all day on the phone. Meanwhile, I can work with the non-short sale sellers and buyers that I enjoy helping. Cute photo. ;-)
Hey, nice to see you, Jon.
Chris Ann: If they could pay off their $11K, I would have asked them to pay it off and get a new preapproval letter first. People always have the best of intentions. OK, sometimes they don't.
Hi Mary: Well, I learn stuff from you as well.
Hi Teri: Rats. I referred a seller to you last week. Seriously. It was a short sale, I think.
My question is why would an agent submit a pre-approval for less then offer price. Did they not think it would be in question. Hello!
Elizabeth - I heard that "If your mother tells you she loves you - check it out" line, somewhere else within the last 24 hours, but I've already forgetten where. . .LOL
I thought it was cool then, and think it is cool here in your blog. Sometimes however, you need to deviate from the plan. Otherwise it becomes too much like staying the course, and that can be disasterous if there is a lighthouse in the way!
Very interesting post Elizabeth. What a great story (not the part about the closing but the writing in general) to transition into the point. One must always remain vigilant. The phrase "if it seems to good to be true...it probably is" is one that I hold on to. I hate to sound pessimistic and certainly do not enjoy being pessimistic from time to time but it has its place when something just does not feel right in the gut. ~ Doug
I've heard it said a number of ways- Trust But Verify, CYA, to name two. Our job is to check it out.
I like your advice on not deviating from the plan. Verifying is so important in this business. I I always run into trouble when I do not follow my plan.