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Listing Agent Wrapped Around the Axel of a San Jose Short Sale

By
Real Estate Broker/Owner with KD Realty - 408.972.1822 CA DRE#01366594

Listing Agent Wrapped Around the Axel of a San Jose Short Sale

This San Jose Short Sale Agent is wrapped around the axel, so to speak, on a San Jose short sale. 

cartoon depiction of an auto crash

We have all seen the results of a vehicle that was subject to a collision. Perhaps the collision was the result of being in the wrong place at the right time or perhaps the driver was asleep at the wheel or distracted while talking on the phone or texting while driving.

The same thing can happen, metaphorically speaking, with a San Jose short sale when a seller is focused on the illusion of a golden carrot. 

For two solid days, one particular San Jose short sale has consumed me. The buyer, an all cash investor, offered to provide “cash for keys” to the tenant yet failed to fully and completely execute the offer. 

The seller, so focused on the golden carrot (cash for keys) could not see that there can be no cash for keys if we do not have an executed contract. We need to move forward with another offer yet the sellers wants the cash for keys.

This is just one reason why this San Jose short sale agent does not get too excited about “all cash” offers from investors. This is not to suggest that all investors or all cash offers should be thrown under the proverbial bus but rather a seller must be realistic and not be lured by an offer for cash for keys when the buyer fails to execute the offer. 

More to follow on this once this San Jose short sale agent unwraps the non-executed short sale offer from the axel … the result of an unscrupulous offer from an all cash flip investor.


Listing Agent Wrapped Around the Axel of a San Jose Short Sale - by Kathleen Daniels, San Jose Short Sale Agent - San Jose Homes for Sale


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Comments(13)

Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Hi Kathleen, An offer's not an offer until all i's are dotted and T's are crossed.  So much hype, so little follow through can frustrate us all.  Good luck with the property.  Sometimes you just want to poke some eyes instead of dotting them.

Feb 28, 2013 03:57 PM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

I am that cash buyer from time to time, often on a short sale. On one recent transaction we were supposed to close a dozen different times over the last two months. There was a problem getting a tenant out. The tenant is supposed to move out this weekend. We'll see.

Feb 28, 2013 06:19 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Far too many "cash buyers" who are all talk and no follow through (written offer). 

They want the seller to say "YES" first for the price they toss out.  Then if they do go to a written offer, the conditions present so many barriers, the entire thing has been a waste of time.

 

Feb 28, 2013 06:55 PM
Cliff Keith
SF Bay Homes - Redwood City, CA
Redwood City Real Estate

Good witty post. The nature of Short Sales are hurdles like these on a regular basis isn't it? It's getting harder to do Short Sales these days. I think SamCar has passed a rule you must pay the commission state in MLS for short sale even if the bank refuses to pay initially agreed amount. The listing agent has to take the cut not the selling agent. How you like them apples? Scary uh? thank you for the fun post.

Feb 28, 2013 07:21 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Kathleen, rule number one with a cash buyer, "Show me the money!" Verbal offers aren't worth the paper they're not printed on.

Feb 28, 2013 09:30 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Show me the money.  Based on an interview with a prospective cash buyer, if they are a simple residential owner/occupant buyer, no problem.

It's the investor buyers that are problematic.

Feb 28, 2013 10:20 PM
Ann Nguyen
eXp Realty of California, Inc. - Truckee, CA
Lake Tahoe Truckee Homes For Sale
Most often, I don't even discuss offer with sellers until I have a written one in hand, and with the hot market right now...you also require a prequal letter or proof of cash to go along with the offer.
Feb 28, 2013 11:04 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Dan, That is exactly what I keep telling the seller. Time is of the essence and we must move on.

Joe, I understand the issue with getting the tenant out. That was addressed with the cash for keys. The buyer/investor who did not the time to meet with his agent to sign the offer required that the offer be sent to the admin for processing. The offer was sent back missing several signatures ... requests to complete so the contract could be ratified went ignored.

Lenn, "the entire thing has been a waste of time" were exactly my words and sentiments.  Short sales don't need these kind of delays or the buyers who cause them.

Mar 01, 2013 12:07 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Cliff, that is scary.  At the bare minimum whatever the lender approves should be split 50/50.  There is no way a listing agent should take the hit and be paid less. 

Micheal, You are right about that.  This was not a verbal offer. They did show us the money. They delivered the LLC docs, proof of funds and everything we needed except a fully executed contract. Apparently, the three people working the file at the investor group could not somehow manage obtaining the missed signatures on the original offer.

Lenn, It is for this reason that I do not like working with investors. They don't care. The attitude of most is they are doing us the favor.  To the contrary.  I've done this dance with Investor/Flippers before. They are quick to release contract because they found a better deal or were able to close on another property sooner.  These guys talked a good talk but could not deliver. I've got more on this ... more blog fodder. 

Ann, You are right. I do the same. This was a matter of poor execution and delays in responding ... or not responding at all. This was not a matter of providing a Notice to Perform because the issues is we did not have a valid, executed contract.  Now that the wasted time is behind us and we have moved on to another offer ... I'm actually grateful for the experience.  It reinforces the risks of working with Investor/Flippers.  We lost  a few days in processing the short sale ... they lost a golden opportunity.  Now, a nice young couple who want to start a family will get to be the new proud owners. 

Mar 01, 2013 12:18 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kathleen, I know you were talking about this one in our conversation, so HOPE you get it to close my friend.   If anyone can do it --- YOU can!

Mar 01, 2013 02:18 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Joan, With the right buyer in contract we can and will close this.  Thank you!

Mar 01, 2013 04:14 AM
The Villages Realty
The Villages Realty - San Jose, CA
"Our Performance Will Move You!"

Nice post loaded with some good information. Thanks for sharing.

Dec 28, 2016 06:14 PM
Eagle Ridge Realty
Eagle Ridge Realty - Gilroy, CA
"Our Performance Will Move You!"

Nice post loaded with some good information. Thanks for sharing.

Dec 30, 2016 08:19 AM