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Sacramento Short Sale Agents: If Your Buyer Walks, You Need to Tell the Listing Agent

This doesn't happen very often, thank goodness, but yesterday a short sale buyer flaked out. I had called a Sacramento agent to let him know that Chase Bank was about to approve a short sale for his buyer. The agent blurted, "Oh, that buyer bought a home last month." Bear in mind that we've sent communication to this agent since the offer was presented in early August.

At first, the agent could not recall the buyer at all. Well, no problem, we have a back-up offer. I called that agent. Her buyer had withdrawn her offer as well but she did not contact me to let me know.

Minutes after taking the home out of active short contingent status in MLS and returning it to active short status, I received a call from a buyer's agent who has been unsuccessful at finding a home for her buyer. It was a familiar story. Every time she wrote an offer, a cash buyer beat out her buyer's offer. So, this particular Sacramento short sale may be perfect for this buyer.

Fortunately, I have an assistant to the negotiator expediting this file and know exactly what Chase Bank wants. I relayed this information to the buyer's agent. This means there should be no surprises on the short sale approval letter.

The biggest problem I face as a Sacramento short sale agent is buyer's agents and their buyers. Some of the agents write offers like crazy with no intention of following up on them, leaving those buyers with little commitment to the transaction. As a result, I now require that all buyer's agents send me an email promising not to write any more offers for that buyer and to withdraw any outstanding offers upon acceptance. Article #1 of the REALTOR Code of Ethics requires honesty. Those who violate that promise could find themselves facing discipline by the Board of REALTORS.

But for crying out loud, Sacramento agents, if your buyer walks away, have the decency and professionalism to inform the listing agent. To do otherwise is disrespectful and unfair to the seller, the title company, the escrow company, the short sale bank, the transaction coordinator and the listing agent.

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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.

Posted by Elizabeth Weintraub, Sacramento Short Sale Agent, 916.233.6759, Lyon RE on 10/29/2009 09:11 AM

Comments (9)

Sacramento Short Sale Agent in the Regional (Localism) Channel

sacramento short sale agent, short sale, active short contingent, short sale approval, realtor code of ethics, buyer walks away, elizabeth weintraub

Originally posted at: Elizabeth Weintraub • Sacramento Short Sale Agent • Land Park: Sacramento Short Sale Agents: If Your Buyer Walks, You Need to Tell the Listing Agent

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9 Comments on Sacramento Short Sale Agents: If Your Buyer Walks, You Need to Tell the Listing Agent

OCT

Elizabeth: I think this is just awful. I would certainly remember this agent for the next time (if any) she presents an offer to you on one of your listings. And... I would certainly do everything I could to make sure her buyer did NOT get their earnest money deposit returned. Wow !

Elizabeth,

I just have one question for you. Did you have a "ratified" contract with either of the buyers who walked? If you did you would have known they walked when you recieved the "release of earnest money" from the other agent.

Honestly, I do not know how I would respond to your promise request.

Elizabeth: I encounter the same problem here in Northern Virginia. Buyers walk away and you're left with no idea. It is as rude as can be.

Elizabeth - I agree that if a buyer who has an offer on a short sale ends up getting an offer accepted on another property, the least the buyer's agent should do is grant the listing agent the professional courtesy of knowing that their buyer is withdrawing the short sale offer because their client is buying another property.

However, I am going to agree with Ross on the promise of not writing any other offers. While that may work in some markets, that would never fly here in Los Angeles & Ventura counties. The competition here is absolutely FIERCE and I don't know any buyers agents thay would agree to take their clients off the market for months waiting to hear back on a short sale that might never happen.

However, because you are an absolute short sale GODDESS who has a proven success rate of closing short sales, I most certainly understand your position and perspective. You go girl and I hope it all works out for you.

It is absurd and insane to expect a listing agent to submit a short sale offer to the bank from a buyer who is not dedicated to buying the home, Donne.

As for agents who don't want to make the promise, I don't have time for them and neither do my sellers. The sellers throw away offers without a promise because those offers are worthless.

Hi Elizabeth, I'm surprised that the buyers agent wouldn't at least call, and I'm thinking they should have also cancelled in writing ...aren't they still bound by the terms of the contract if they don't? Call me silly, but I don't get it :-)

Sure seems like common courtesy to me what are these agent thinking. I wonder what they might say if it happen to them on their listing.

OCT

Hi Mary: Yes, they do need to sign a cancellation because we were in escrow. Will they? Probably not. If the agent isn't responsible enough to call, I sort of doubt the agent will respond to a request to send a cancellation. But I ask for it anyway.

Hi Terry: It's entirely possible that these agents don't take listings. They probably don't understand the concept of what goes around, comes around, either.

OCT

If they don't sign a cancellation, escrow can't release the deposit! So I sure they will! thanks for sharing your story.

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