Short Sale Buyers Win Big -- But The Odds Are Against It

Sometimes, I live vicariously through my clients. When they strike the jackpot, for example, I get so excited for them that you'd think I was handed the keys to a new Lamborghini and an around-the-world first class plane ticket.

Anybody who knows me realizes that I believe short sales are no bargain for buyers. Generally speaking, there are at least 11 good reasons to avoid the short-sale market in Sacramento, but every so often, one pops up that can't be ignored.

Even though it was a long shot, when buyers called me three months ago to say they wanted to submit an offer on a short sale, I agreed to do it. I immediately jumped in my car, buzzed over to the house, showed it and wrote the offer.

Then it went into limbo -- that place where many offers go to die.

This was a home that had been extensively remodeled by building a second floor and renovating everything within an inch of its life, adding top-of-the-line designer touches. It was a white elephant. Overbuilt for the neighborhood. The sellers owed a bazillion dollars for the remodel.

But it is my buyers' dream home. I explained to them that even if the bank accepted their offer, they most likely would have to live there forever and ever because it would be difficult to sell down the road since every other home around it was much smaller and not quite so grand. Didn't matter. They wanted it.

During the course of the last three months, other offers were submitted to the bank. Some for more than my buyers' offer. We slightly bumped the price and waited with fingers crossed. It was a toss up as to whether the bank would accept a price at 60% of the loans. Then, last week, the second lender agreed to release its $200,000 loan for a few thousand. Our hopes increased. Yesterday, the first lender accepted their offer and issued its short-sale approval letter.

I felt like throwing the buyers a ticker-tape parade.

When I told the buyers I was thrilled for them and excited, they said, "Oh, you can't possibly be happier than we are." It's difficult to measure happiness, but at least in the short-term, this transaction has made my spirits soar this week.

It goes to show that even when you secretly might believe that all hope is lost on pursuing an offer, never give up, keep pursuing it because even long shots pay off every now and then!