One of the coolest birthday presents I have ever received was a wind chime made out of tiny, ceramic, hand-painted houses. Because my friends know that real estate is my passion.
I met a buyer last week who is the same age as me. Let's say her name is Patricia. She called to say she was looking at Lyon Real Estate's website and I was the first agent she called. Joking around I replied, "And lucky for you, I'll be the last agent you call."
Patricia had found a specific home that caught her eye and called the listing agent. He was rude, she said, and refused to show the home unless Patricia was prequalified through a lender. We talked about her search for a new home, the Sacramento neighborhood she wanted, why this particular home met her needs, and I referred her to a mortgage broker for loan preapproval.
The following day we met at the property, with preapproval in hand. Patricia is a bird lover, just like me, except I don't have birds tattooed on my legs. The home she wanted to buy was a flipper, bought by an investor either at auction or through a bulk REO purchase. I had researched this property for her because it's tough to pick a purchase price on flippers.
I ran the seller's name through the tax rolls and discovered this seller had purchased over the last year 37 foreclosure homes. Then, I printed out a report from MLS showing every home the listing agent had sold over the past 6 months for this seller, which were 9. Of the 9 sales, 7 were at 100% of list price. One sold at 102% and 9th at 97.8%. From those numbers I concluded that Patricia could most likely buy that home at 2% less than list price.
But to reach that price, I suggested that she offer 5% under list price. We were in a multiple-offer situation, too, because other buyers wanted that home as well. Sacramento home buyers don't always have to offer more than the listed sale price to win the home. Acceptance depends much on the seller's motivation and other factors.
The home had been recently updated, but it wasn't completely finished. There were minor things that still needed to be completed. Stuff like installing an exhaust fan, replacing a window sill, caulking around the tub, trimming out a window, reviving a dead lawn and attaching receptacle plate covers over outlets.
We sat on the living room floor under a ceiling fan to sign the offer. I showed Patricia the comparable sales, which were 15% more than the price I hoped she would get. I showed her the print-out of the seller's sold homes, too, so she could see the ratios of list prices to sold prices. But we also talked about a bunch of other stuff.
Patricia made the comment that I obviously was a lot younger than she. I laughed. She is 56. So am I. Until today, that is, because her birthday isn't until winter, which makes me older than Patricia.
She also said that she really did not like the listing agent because of his attitude. Hey, I pointed out, I told her the same thing, that she needed to be preapproved, but I must have conveyed that message in a different tone.
"This home needs so much work," she lamented, as we walked around the home for a final inspection. Patricia had not seen other homes in that price range, nor the horrible conditions of those homes. In comparison, this home was turnkey. She asked if it's unusual for a buyer to buy the first home a buyer sees.
Actually, it's not unusual at all. It's also not unusual to ask that question. I'd say about 1/3 of my Sacramento home buyers pick one home to see and that's the home they buy. Probably because buyers are smarter these days and do a lot of their homework upfront. They pour over MLS listings online and know exactly what they want. Sometimes, they don't give themselves enough credit.
Later that afternoon, I emailed and faxed Patricia's offer to the listing agent. I included a note that pointed out the benefits of accepting Patricia's offer and mentioned that my buyer would take care of all the little unfinished items. I reasoned that other buyers would demand the finish work. And it was so minor. It could mean the difference between irritating the seller or getting the offer accepted. I explained my rationale to Patricia. She agreed.
We received a multiple-counter offer the following day. A multiple-counter offer means the seller has countered more than one buyer. The counter offers can be completely different from one another and, even if each buyer accepts the counter terms, the seller still reserves the right to select which offer will be accepted.
Sure enough, the multiple-counter offer was at 2% under list price. I tried to temper Patricia's excitement because it ain't over until the fat lady sings (meaning the seller accepts it). There was no guarantee that she would get this home, and I didn't want her to be overly disappointed.
I am happy to report, however, that Patricia got the home! The listing agent called to say that Patricia's offer was accepted, and he emailed the accepted multiple-counter offer and contract to me. I called Patricia to share the good news, who is still talking about "all the work." But she's thrilled.
And that's my birthday present to myself today. To win a home for a deserving home buyer that's priced 15% under the comparable sales, in excellent condition and to beat out other buyers in a multiple-offer situation.
It's funny, after all my years of selling real estate, I still get excited for my buyers. That's probably why I am still in this business.
Elizabeth Weintraub is an author, 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
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.
Sacramento Short Sale Agent, Elizabeth Weintraub, has the answers to your Sacramento short sale questions. 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.
Photo: Elizabeth Weintraub, 35 years ago on June 28, 1974.
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