Club Chaos Agents - All Things Hollish, Wacked, and Jacked

The thing about being a Sacramento short sale agent is the surprises just keep coming. No matter that I've been in the business for more than 35 years, I still haven't heard it all. Even though I've been selling short sales pretty much exclusively going on 7 years. See, one of the reasons I write this blog is because there is an abundance of new stuff every single day to blog about. There's always something horrible happening. It's the way of the short sale, grasshopper.

For starters, all of my listings contain verbiage in MLS that discloses to buyer's agents the commission offered might be reduced by the bank. Nobody wants to work for peanuts. I get that. I don't want to work for peanuts, either. But the fact is regardless of how much compensation the seller and I agree on in the listing agreement, that commission still must be approved and authorized by the short sale bank.

Years ago, I used to ask for more than I thought the bank would approve. Because sometimes I would get it. But MetroList put a stop to that practice. MetroList said I could no longer ask my sellers to agree to pay a certain percentage unless I was assured that the bank would authorize it. I can't assure anybody of anything in a short sale, so MetroList knocked out that practice for me. I realize MetroList was trying to stop the crazy agents who were luring the innocent and unsuspecting through doubling or tripling commissions, but its ruling affected my listings instead. So, now I just say we will split the reduction if the lender reduces the commission, and everybody gets the short end of the stick if that happens. Fortunately, it doesn't happen very often.

But enough about money. In my world, the clients come first. The clients always come first. Even if I don't particularly like it, they come first. I have a fiduciary, and I take fiduciary relationships very seriously.

Imagine my shock yesterday when an agent threatened to tell his buyer to cancel the transaction if he had to cut his commission. I can't for the life of me imagine how that conversation would go down. Would he say, "Hey, we have short sale approval but my commission has been reduced so I want you to cancel the short sale?" Or, would he lie and say the short sale has not been approved? Once an agent writes an offer, an agent agrees to the possibility the compensation might be reduced, as stated in MLS.

I believe if an agent can't make an exception for a buyer and give a little now and then, that agent should not be showing short sales. Because nothing in short sales is cast in concrete. But that's just me. Some days you are the rabbit and some days you are the fox.

It seems that Wells Fargo has a newer practice in place regarding commissions. It applies to double Wells Fargo short sales, those with a first and a second Wells Fargo loan, and that second loan is negotiated in Iowa. Instead of cutting the commission on the front end and agreeing to pay more than $3,000 (or 6% of the second lender's unpaid balance), Wells Fargo has devised a plan to do it in reverse. It has something to do with their investor guidelines, I suspect, because I asked and the negotiator did not deny it.

What Wells Fargo has elected to do is pay full commissions on the front end and then take away part of it on the back end. The first will most likely agree to pay the amount stated in the listing agreement, whatever that is. But the second will then demand agent contributions to the second. Oh, they will cheerfully chirp that the buyer can pay it, but the buyers don't have any money. And because of SB 458, the seller can't pay it, either. So, buyers agents need to know that if they write an offer on a double Wells Fargo short sale, yeah, the bank will probably snatch part of their money.

But it's really not any different than snatching it on the front end. It's all the same money. Of course, a buyer's agent always have the right to say: No, I will not show that short sale to you, Mr. and Mrs Buyer. Because if we go into escrow, I won't make as much money as if you bought, say, a Fannie Mae short sale. I believe that Sacramento real estate agents are a lot more ethical than that. Don't you agree?

How do you know that short sale will close? I get asked that question from buyer's agents. Why? Because I'm a Sacramento short sale agent. I am not so full of myself that I would presume that every agent out there knows how much business I do. And even if they did know who I was, my success doesn't imply, necessarily, that I list short sales that won't close. We short sale agents can't always call 100% of the shots. But I come pretty darn close to it. My reputation depends on it.

I want a buyer's agent to feel secure that when an agent goes into escrow with me, we will close. You know why agents show homes? They want their buyers to close escrow. It's my job to make sure that the contract they enter into with my seller gets approved by the bank. I will move heaven and earth to do accomplish that, and I believe my track record proves it.

This is why I don't accept every short sale that comes my way. If I list a short sale, it's because a) I want to work with the seller and b) I believe it will close. Those are my two rules.

If a buyer's agent in Sacramento sees my withdrawn listing in MLS, which is a rarity, the odds are I no longer wanted to work with the seller. There are sellers who try to game the system. It's hard to tell the difference at inception sometimes, but as the listing goes on it often becomes apparent. That's not to say that every seller who hasn't made in payment in 2 years is gaming the system because that would not be a true statement, but some kinda get used to not paying.

However, I have, unfortunately, had sellers get short sale approval and then decide they want to continue living rent free. They did not want to accept the short sale. Nobody will make them do it, either. So, they go back to requesting a 4th or 6th loan modification that they won't get until they find another unsuspecting agent to list the home as a short sale. This can go on indefinitely because our mortgage system is totally messed up. But it's not fair to the agents who put in all of the work and who care about these sellers. Because these agents are working with a scam artist.

You Sacramento short sale agents -- look out for these scam artists. Don't get suckered by them. Qualify your sellers. If you're sitting at the kitchen table and your gut tells you something is wrong, listen to it. Get up and leave.

My second rule is if I don't believe a short sale has very high odds of closing, I also won't list it. A potential seller called me a few days ago to say she adopted 3 kids and needed a bigger house. So, she and her husband bought a new home and now want to short sale their existing home. Strike 1. They have a hard-money second loan. Strike 2. They have no hardship and can afford to own both homes. Strike 3.

While I understand the need for a larger home with 3 additional children, the bank will see that move as a lifestyle choice and not a hardship. I might even have been tempted if it was a Bank of America short sale, but it was not. The second lender, in their case, could go after them after a foreclosure and would be unlikely to grant a release of liability. No release, no short sale, not since SB 458. There is little incentive for the second to approve that short sale.

So, rest assured that if you spot a Sacramento short sale listing by Elizabeth Weintraub, that listing is probably going to close escrow. I do my homework. I don't work with deadbeats, and I work on the short sales that will close. If I say it's likely to get approved, you can pretty much take that to the bank. Not to mention, my short sale clients are some of the sweetest, nicest people you'd ever want to meet.

Is was an unusually busy weekend with quite a bit of activity. As a result, my Monday is fully scheduled out with housekeeping tasks that need to be completed today.

I often wonder what causes the “switch” in business to be thrown from “off” to “on.”

If I had to guess, I would say that there are three significant factors that contributed to the current floury of consumer interest:

1) Amazingly low interest rates. Rates are so low now, they are barely significant. In many cases, there is not enough mortgage interest being paid to even consider itemizing deductions on an income tax return. And since mortgages are long term notes, a buyer can fix mortgage expenses for years to come.

2)Decreasing inventory. InCowetaCountyGeorgia, we are at about one third of the number of listings compared with the peak months of available inventory. Less houses for sale equals more activity per listing. We are now down to a four month supply of homes.

3) More seller flexibility. After years of adapting to the buyer’s markets, sellers are now entrenched in the mindset of doing whatever it takes to get the house sold. Sellers that negotiate with an open mind and a realistic attitude towards buyer concessions are getting the deal done!

We still have a long way to go, but at least now there is some light at the end of the tunnel.

And we are ready to roll up our sleeves and get to work. Bring it on!

One of the biggest fears sellers often harbor about short sales is what if it doesn't sell? They have those fears because they are not in real estate. When you're in real estate, like this Sacramento short sale agent, you know that anything will sell if the price is right. Even a flooded-out house with mold the size of basketballs will sell. And yes, I've sold one of those, too.

There are a variety of reasons why a home might take longer than usual to sell, though. These are sometimes the reasons that some sellers don't want to hear because they are reasons the sellers should have thought of before they bought a home. I often tell people that the time to think about selling is when you buy a home.

Maybe it's in a bad location. You know, location, location, location is what drives real estate. Maybe there's something about it that other homes have and yours does not. I ask buyer's agents who show my listings to give me buyer feedback. From this I hear about things we can rectify. If we can't rectify those things, we can adjust the price to account for it.

Or, we can wait for the buyer who is just like the seller of this beautiful short sale. Because the seller bought this home for a reason. That is most likely the same reason a new buyer will buy it. Nobody is that unique.

There is a buyer for every one of my Sacramento short sales. If this agent is listing and selling that short sale, you can count on it.

Life With Wee People: Exercise Little Minion Style

Noah the Net Geek has been training for Track and Field (among other things) so yesterday we packed the boys up for some fun under the sun at the Special Olympic County Summer Games.

While en route to Merritt Island, Stephen the Minion Blur gave wee people orders regarding what the next Kim Harrison cartoon should look like. I'm saving that insane argument and collection of new sketches for another blog post (LOL). We're in love with the British covers so Shorty has been quite vocal about me learning the girls features and getting the hang of illustrating burning bunnies shields.

Yeah... he's into custom art (my fault entirely) and usually crayons a lot of it after we're done (to give it a personal touch - LOL). We're trying to find a cool after school sports program for the shorties to get their gym on that also caters to giving their wee people client the benefit of an individualized education program full of personal touches like the instruction provided by their current teachers who are volunteering a lot of personal time to coach 'em.

I tried talking them into an arts and crafts kind of thing but they claim that's what they have me for. I may have to set up a free class at a library since libraries are always looking for volunteers to do creative stuff. My kids would love that: Little Minions Art Classes coming to a blog post near you (but I digress - LOL).

Feel free to give me educational sporty links to Orlando, Indialantic, Cocoa, Vero Beach, Palm Bay and Melbourne people. Will keep you guys posted on what we discover as we go along. We're experimenting. There' a lot to sample in Brevard County and the Special Olympics gives the kids a chance to train for different events and hang out with really cool people who care about their development, dedication and hard work. One rule: must be hands on, interesting and fun. My kids are visual learners (LOL).

Noah did basketball the last time we participated in the Special Olympics and the fact that they quite happily discovered team sports are mad fun helps keep my kids dedicated to learning them.

This event took place at a very cool high school with tractors that made my 5 year old drool (LOL). It started out cold and gray but eventually warmed up (when it was almost time to go - Murphy's Law - LOL).

Irony is, my kids took to running up and down the bleacher steps to keep warm. Sad is the adults couldn't keep up. Mike snagged them in front of the press box and put their hoodies on (which did not last long because running amok made them "too hot" and they ditched their clothes every chance they got - LOL).

Little Dude did his Hulk Hogan poses and showed me his Ozzy Game Face, then went out and placed first in TBT and the 50 meter dash in his division heat. That's my boy!!! Shorty brought home two new blue ribbons. How cool is that? Very!

My Guy Pie loves Track & Field. Every time I turned around Little Dude was dancing in the grass. I was waiting for him to do a cartwheel but 145 photographs and several digital films later I realized I was going to be denied the flip shots. It seems he saves those for the gentle abuse of our furniture at home during The Noodle Wars.

I bet he won the TBT throw because of battling hubby with those blue bowling ball pins (LOL). Yeah... we rough house a lot in my house (happy sigh). 

He gets his victory dances from watching football. We're huge sports fanatics. ;-)

Athletics are mad fun. Anyone can enjoy participating in sports... I'm thinking while I wander around looking for cool business organizations to join I should check into how to help officially coach the wee people in a sanctioned sport. I may introduce them to boxing next and look into forming a small team of wee people warriors (LOL). There's a cool gym in Vero Beach I want to check out which doesn't have a website. Seriously? SERIOUSLY??? I could be linking to you and sending fun social media peeps your way. Just sayin... (snerk).

I'm not leaving my current gym because I love Planet Fitness but it's a fact that there isn't a speed bag, heavy bag or boxing coach there so a gal's gotta do what a gal's gotta do when she's raising active rough and tumble boys. I may have to join a boxing gym if I want to get my kids into a mainstream program (or not join and ship 'em off for coaching so I can read my fave authors in an uninterrupted bubble bath - LOL).

My kids have an amazing group of friends full of energy who are mad funny (LOL). It's always a pleasure to spend some time with them, their parents, siblings, teachers and coaches. We're already cooking up our next bit of play date mischief. When it comes to occupational therapy my house is an explosion of arts an crafts projects (LOL). My keyboards take an amazing beating and everyone loves the electronic drum machine (LOL). I need a new amp (sigh) and have to replace the Sony (melodramatic eye roll) and shall take care of it soon. Right now I have other things on my mind that need my immediate attention like finding an after school sports program to tire my shorties out (silly grin). Swim team maybe? Hmm...

What ever it is I want to see more smiles like this one (happy sigh). There was a lot of giggling going on all freakin' day. We could barely keep them contained (and sort of didn't want to - LOL). Will show you guys Cocoa Beach next...

That's where we took the boys for a victory dinner on the pier after dinosaur shopping (LOL). I'd tell you more but it's time for me to go to the gym. If I don't work out before it rains I wont survive the next Noodle War (which is a serious work out in itself and is scheduled for 10AM - LOL).

When I get finished at the gym I have to shower, pack a saddle bag, grab my laptop and head down to Miami to see the fabulous Kim Harrison. I want to get my book signed and meet a few blogging buddies for some digital mischief (LOL).

Kim is on the A Perfect Blood book tour. Will post more about that after I find a cool Miami beach to haunt with my laptop. I am being treated to my first Mojito later today. This should be very interesting...

I've never been to Miami so I'll have to cover something for Localism while I'm wandering around down there. Nothing like the hunt for eye candy to keep me all perky and jogging with my Nikon (LOL). ;-)

Through shadowed vales and sheltered coves
Blue serpents writhe ‘long graveled roads
Cold vernal surging streams of blue
To baptize fields with life anew!
                        (R Weisser 2012)

Climate is as much a part oaf any locale as any other attribute. Weather affects everything from industry to attitude, and especially lifestyle.

In Georgia, late Winter and early Spring offers cool nights and moderate to warm days.

It’s a great time of year to get outside and do yard chores and landscaping projects.

There are few annoying insects and still some time for plants to establish a good root system before the heat of Summer envelops the region.

I love observing Nature’s annual wake-up ritual. It is both invigoration and inspiring at the same time, and it’s a good kick in the pants to get up and GET GOING!

Which I will do after another cup of coffee … or two!

Lyon Real Estate keeps its awards secret until its annual Awards Banquet. That is why I did not know which awards I would win until yesterday. Apart from being the Number 1 real estate company in Sacramento, Lyon Real Estate has more than 900 agents. To rank in the top 1% means an agent would have to have sold more than at least 891 other agents. It means an agent sells enough to be ranked with the top 9 agents in the company.

Yesterday, I received that honor. It's the first time that has ever happened to me. I know I did well last year because my bank account shows it and my numbers of closed sales reflect it. But I did not know that I earned the 2011 #5 position in the entire company. I am the #1 Agent in the Lyon Real Estate Downtown office for 2011, which is actually located in Midtown Sacramento. My peers assume my success happened because I specialize in short sales. As a Sacramento short sale agent, I surely do sell my fair share of short sales in town. That's no secret. But that's not necessarily why my production is so high.

My production is high because I do not deviate from the norm. I am focused. I am organized. I know how to close real estate, and I focus on closing. I've been in the business since the 1970s. If something works well for me, I do not change it. Because to change a method that works well would mean I have Twinkies for a brain, and let me assure you that I do not have Twinkies for a brain.

I analyze what works and what does not work. I discard the things that do not work. I use the things that do work. There, you have it.

Sometimes agents get ticked off. They expect me to make an exception. They might say, "I know this client and therefore yada yada." You know what? That doesn't work with me. I don't know you, most likely, and I certainly don't know your client. I have shared with you precisely what you need to do to get your short sale offer accepted. I spell it out in MLS. If you choose not to do it, you should look in the mirror because it holds the answer as to why your offer was rejected.

A buyer's agent yesterday lost out on a short sale because the agent did not submit the buyer's lender's paperwork as requested. While the agent waited for the buyer's mortgage broker to get around to it, another offer arrived. An identical offer with all of the requested documents. Guess which offer the seller signed?

Another buyer's agent submitted an offer with a $500 earnest money deposit. The buyer had previously been informed that $500 was too low. When countered to deposit more, the buyer decided she would not release any money at all until the bank formally approved the already preapproved short sale. This reminds me of that scene in the street from Bridesmaids. Experience has shown that buyers who do not want to deposit funds or who try to deposit pennies are not committed. Non-committed buyers are those who are unlikely to close. No short sale for you. Sorry.

I represent the seller. I never lose sight of that. I truly believe that closing the short sale for the seller is in the seller's best interest. That's my goal every single day. To get closer to closing for my sellers . . . and to eventually close. If buyer's agents and their buyers don't wanna get on that train, they can hop off. Preferably before the train leaves the station.

In Coweta County Georgia, we are starting to see some houses listed as short sales and REO and HUD sales for the SECOND time in the last few years.

How did this happen? Did we learn nothing from the past? Have year after year of buyer incentives and continued low down payments completely eroded the fundamental concept of ownership?

True ownership involves skin in the game. It is too easy to just walk away and there are fewer and fewer consequences with each passing month. And yet the clamoring continues for easing mortgage qualification requirements.

Leverage has toppled the market. The notion of only losing OPM has created economic chaos.

Call me simple-minded, but I will always feel that people will act more responsible when THEIR money is at risk.

The madness will not end until attitudes do as well.

NAPW

Melodious isn't home. I'm sitting on the floor with my laptop pouting. I want to hear about the baby being born (I'm excited and impatient - sigh). In a few weeks I'm going back to TX to see the latest bundle of joy popping into my virtual world and I have to admit the suspense is really killing me (LOL).

It's a boy and I bet he's beautiful. I can't wait to see him and enjoy the benefits of being a virtual grand-aunt without the pain of giving birth. Yeah... I love babies... they smell really good, cuddle great and melt hearts (happy sigh).

Right now I'm stalking her Facebook page and trying not to call her cell phone. One message at home is good. My fave TX family is busy and should not be distracted from the drama of a new grandkid making his debut on the world. I'm supposed to be going jogging so I'm gonna get dressed and take off in a few minutes. We all know I have to get my jog on before the kids get home from school (and our brand of insanity begins - LOL).

I'll leave in a minute but before I go run off to haunt the causeway I'm gonna leave you guys a link to the National Association of Professional Women.

I was thinking this would be a very cool organization to join (yeah - I actually got an invite - sweet). If this works out there will be functions full of business executives I can study and make friends with while I organize my brand spanking new corporation into sub-divisions.

Florida is different from New York. I have a lot to learn. I wont just be doing real estate while I'm floating around down here. The music studio has to relocate, I'm writing my a$$ off and have to publish all of my music sheets. The graphic art is staying in New York City so I'll have to go back four times a year (if not more) and the girls want to form a Private Investigation firm because they miss me doing their legal investigations for pizza.

Me? I miss retaining them for a dollar, good pizza and all that snarky banter while noshing on great food (LOL). If creating a P.I. firm will get them to come play in Florida then what the hell - I shall start range classes in Orlando immediately.

Okay - after the Kim Harrison tour and my wedding anniversary. I need to behave for that before I go run amok on my next road trip adventure to cook and start kissing beautiful babies. Will be in Miami on Sunday and Palm Beach on Monday. Tuesday is a secret (can't tell you everything - LOL). 

I found a really great range to check out in Orlando. Did you know you could rent some really cool firearms to practice with down here? Yeah... I definitely need to make new professional friends and find out what else I don't know about Brevard County. It's time to join some fun organizations and get busy. The girls are coming down for a Girlie-Girlie Day paintball marathon. I need to be ready for the invasion and have to test run a few locations with hubby and the little minions (evil grin).

I need an interesting list of stuff to join. I'm starting with a library card and working my way up to who knows what. Will keep you guys posted (LOL). ;-)

Some people think you don't have to do anything to sell a short sale, much less to sell a fixer upper. I believe that every home deserves a chance to shine and show off its best characteristics. It doesn't matter if it's a short sale or a regular home in which the seller has equity. Because a buyer doesn't really care. A buyer is not buying the previous mortgage. The buyer is purchasing a home. The condition of that home's existing financing is not really important.

As a Sacramento short sale agent, I try to make suggestions to my sellers of ways they can improve the way their home appears. Even fixer uppers. I have a fixer listing in a beautiful neighborhood of well manicured lawns, and it needs a lot of work. It needs work because there are no updates and the home has not been maintained. It's a grandma's house.

I'm not one of those agents who believes 100% in remodeling a home. My husband would disagree with that assessment because he knows I have a passion for home improvement projects. But not every home needs to be remodeled and, in fact, removing some of its original characteristics can permanently damage a home by altering its architectural style.

However, one thing a seller can do without much trouble is remove old carpeting, especially if the floors are hardwood underneath. People are reluctant to do it because they think the floors will need too much work. But that's not always true. On the plus side, it shows the true condition of the wood floors, so buyers are somewhat relieved. They don't have to guess.

I asked sellers to tear up carpeting from a home in Sacramento. I explained how to dispose of it, and that they should remove the tack strips along the perimeter too. But they did not need to refinish the floors.

What a difference. I just saw photos this morning, and the floors are random plank, in beautiful gleaming condition. Not to mention, grandma was a smoker, so the carpeting smelled like cigarettes, most likely. Getting rid of it should greatly improve the scent of that home.

Bad odors and old carpeting do not sell a home, and a short sale home's price could suffer because of it. That's because a BPO agent will not discount the home's price for that condition. But a buyer might not buy it at all. Don't be afraid to tear out the carpeting before selling a home.

Check out these before and after photos of the living room, by Elizabeth Weintraub: