The Chenore Real Estate Group
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A “Long File” closes today!
Today is gonna be a good day Tater!
Today we (The Chenore Real Estate Group and Transfer Title) close a short sale that, from initial contact with my seller to today…Is nearly 2 years old! The process of actually LISTING the house took nearly 8 months. Why? The seller, who lives in North Florida and owns 5 other homes (rentals) was very nervous about what the ramifications of a short could do to him. He had visions of liens being attached to some of his other houses, thoughts of the bank attacking his accounts…Judgements, etc. Many of these are “old” concerns at this point in time…Banks are not reacting like that any more!
The process of gathering all documentation needed for a short was long as well. Bank statements, hardship letter, tax returns, pay stubs, P & L, took a while as well. Short sales, for the seller, initially are overwhelming in what’s needed to configure the file.
The actual SELLING of the house (and our seller was initially upset at the list price we gave the house-he thought we were under pricing it) was rather quick. We needed 3 extensions from the buyer and the approval from the sellers lender was initially issued incorrectly! Yes! They actually completed a financial work up on the home my seller LIVES IN up north! They thought THAT was the house we were attempting to sell short! They even did a drive by BPO on THAT house! What a CF!! Once we got that cleared up…the process was smooth! When you have a team, all working to a common goal and all very competent at their respective jobs…Good things happen!
Today we close. NO cash settlement, no judgement, full release of liability…It doesn’t get much better. Short sales are closing more frequently now. Banks dont like the lengthy foreclosure process…Sellers need to take advantage of the market right now, just like this one did!!
-Jeff
Feature blogs...
Stay with me on this…One of my short sale listings in, let say, Laguna Isles had sold a couple of months ago but when the sellers lender did the BPO (Broker Price Opinion) to “check” the contract sales price for accuracy…They didn’t like the $219000 figure and countered the buyer at $245,000. This home is NOT close to being worth that amount and the buyer/agent left…I begged for them to counter the bank as that’s what’s customary but they left…Leaving us with a home STILL needing to sell!
Enter a first time buyer, let’s call him…Tom with his agent…Let’s call him Jerry. Jerry has what seems to be little experience in actually managing a client, he’s more of an order taker and one who simply repeats what he’s told. I deal with this a lot as a listing agent so no real big deal. Tom, in making his offer…INSISTS on an answer (in writing) from my sellers lender on the short sale offer he’s making in 5 (FIVE) days!! What!!? He further insists through Jerry that his father bought a short under these same circumstances…5 day response! Folks, that don’t happen…
OK, we (I) successfully explain that we’ve had one offer die, we have a negotiator waiting for another offer and I expect it will be much LESS than the normal 2-4 months to wait for a formal response…Tom gives us 30 days! My title company that handles all my files is now under the gun to get it done and they do! We get an approval (Quite a nice one for my seller actually…No promissory note, full release of liability with a relatively small cash contribution!) and the world seems to be a wonderful place…
Now the contract starts to run with the buyers inspections being first to be completed. The buyer offers 2 times for the inspections and my sellers can accommodate one of them so in comes the inspector…Let’s call HIM Elmer. Now I have been present at…what…1000 inspections? I know what they do, what they say, what they look at and for…Elmer does little to none of it and got paid nearly $400 for 90 minutes of time…
While in the garage, Elmer calls Tom, Jerry myself and my seller out to show a piece of drywall in the garage m(maybe 18″ square) that appears to have (his words) mold on it…Sitting right next to the “mold” is a portable generator…What we use during storms and outages for power. As Elmer is showing this to us I step back 2 feet and look at the outside wall of the garage for a crack or something that would be allowing moisture intrusion because as we all (Elmer, Tom, Jerry…) know, it takes moisture to create mold. Elmer sees what I’m doing, and says…”No there is no crack, no moisture…This is dry…Maybe its from the generator?” but he indicates concern.
About 30 minutes later Elmer begins to present his total findings to Tom, Jerry my seller and me…Tom is visibly uncomfortable that the results of the inspection of my SELLERS home are being divulged to my SELLER and asks Elmer and Jerry outside to continue the overview…That;’s uncommon as we need to know what’s “wrong” based on the inspection to address the issues to the letter of the contract limits. In this case the contract has a $2000 limit. Meaning as long as the repairs are estimated at under $2000 we have a solid deal. All we are told about is broken caulk/grout in the master bath shower, the doorbell is INOP and exposed wires in the ceiling in the hallway (Hey Elmer…That’s a smoke detector)
10 minutes or so later, without warning Elmer, Tom and Jerry leave and the inspections are over. Now we wait for the report to see if we’ve gone over $2000. My seller, who is now off the rest of the day, and who has 2 very small kids…Grabs a rag, some water and bleach and cleans the garage wall…It comes perfectly clean! Cool!! Right!!?
Now it’s been nearly 2 hours since Elmer, Tom and Jerry left and Jerry calls stating the inspector wants to come and do an interior air sample mold test tomorrow…He gives me 2 times that Tom gave him and I call my seller to schedule. My seller agrees to either time and says “guess what! I wiped the wall and it’s perfectly clean!” Great I say and call Jerry to inform of the acceptable interior mold test and inform that the seller did clean the wall………Uh OH! That sets the trio into a real tail spin! “Why did he do that?” they scream!! “He’s compromised my test” explains Elmer…”You’re trying to hide something” says Tom…No, my seller simply cleaned a spot on the wall of HIS garage that was pointed out to him after Elmer moved his generator. It IS still my sellers house, right!? Why did you all go outside and discuss the findings and leave…Not hinting at another inspection? Had you done so, we would have done nothing. But you left us in the dark.
For nearly 90 MORE minutes I am bombarded by nasty emails and calls from Tom nad Jerry (of course, Tom’s telling him to call I suppose) and the mold test is cancelled while Tom “considers his options”. Did I mention we finally receive the inspection report and it’s coming in at $3800!! (enough to allow the buyer to back out if he chooses) and that’s before the mold test. The inspection is…I’m sorry…Silly and the estimates are…Unbelieveable. That said, we are now waiting to have the mold thing rescheduled which it finally is…That happened yesterday.
Elmer brings his air sample equipment…(basically a small compressor that sucks in air through a membrane to collect airborne samples) He does one in the garage, one it the master bath and a control sample outside. Jerry is there, I am, my seller but no Tom, anyway…As we finally are leaving Elmer says he will “push” the report and get the results for Tom by tomorrow at an extra cost (he said that 2 times, and his grin got bigger each time)
So we wait…For the results…Today…With a pissed off buyer, agent and inspector all because…IN GOOD FAITH, my seller…WIPED his wall! Is the deal going to die? I don’t know. But I do know this…Someday I’m going to write a book, not just a BLOG because you simply CAN’T make this stuff up!
-Jeff
Like this:
I was recently hired to sell a woman’s home in N Miami. My area of expertise is West Broward. That’s where I “Geographically Farm” and focus my business…This listing was a referral from a previous client who asked me as a favor to help her friend. No way would I turn a request down from someone asking for my help…And after all, Real Estate is Real Estate in Broward, Dade or California!
The “knock” on me is that I am unfiltered and brutally honest. You either respect that in a person or it’s a HUGE turnoff. Never will a client have to wonder what I think or where I stand. If value is not in line I will not hesitate to tell you…If expectations are out of line, again…I will let you know. This is what my client wanted and needed from me…To be that honest with her friend who she explained NEEDED to sell her home.
My price recommendation was $219,900 list and ESD of $just over $200,000. The sellers hope was that her home was worth nearly $300,000. After 2+ months of no contact I was called and asked to list the home for $$289,900. I refused and “settled” at $259,900 with a promise to reduce in 30 days if no offer was presented to MY suggested price.
Guess what! Offers DO come in…for $185,000-$199,000!! They of course are turned down and when I ask for the reduction it’s refused because…”we’ve had offers!” Now after 3 months I get a reduction to $239,000 and showings increase…Offers continue to come in at and around $200,000 as expected.
I finally get an offer of $210,000 and as with all others we counter at $225,000 (This offer and almost all others were all cash!-No appraisal!) The $210,000 agrees to $225,000 AND MY SELLER IS NOW AWOL!! She’s making times for me to come and sign the contract and she stands me up! No calls to cancel, no calls to apologize…Just NOT home! Repeated phone calls and emails go unanswered, are you kidding me!? I got you what you asked me to get you…It’s easily $25,000 OVER what your home is worth and NOW you get cold feet!?
This must be why my previous client wanted ME to list her friends home…I have to keep reminding myself…”Jeff, this is what you were brought in for”
Bottom line is tomorrow…I am supposed to meet my seller to sign the deal. I know this because the BUYER agent and the BUYER have called her! My seller won’t TAKE my calls!
To be continued…………….
Hi Everyone…Adding to the file of “You simply can’t make this %#&@ up”…A seller of mine in N Miami (A referral from a very good previous client) insisted on listing her 35-year-old home for nearly $35,000 over what I projected its value at. The listing is (or appears to be) the gem of the street. The neighbors on either side, if you can see past the knee-high weeds and multiple cars on blocks in the front yards, are a true eyesore.’
The listing has been in my inventory for nearly 5 months and we’ve had surprisingly good traffic! We’ve have no less than 4 offers and each one was at or under my estimate of value. (That’s always a feel good moment but never helps a seller who is…Dug in) All offers to date have been cash buyers, a fact that seemed to be of no real consequence until recently. My seller would respond to any/all offers the same way…$225,000! Regardless of the quality or content of the offers it was always a quick, get me off the phone, “$225,000 Jeff”
Enter a woman…Let’s call her Mabel. She makes an offer of, guess what…The same as the 4 others. Just like to the others my seller barks out…”$225,000″ and slap me on my bum and call me silly, the buyer agrees!! Are you kidding me!? Cash, as-is and $225,000! After a week wearing a neck brace from the pain of snapping around in disbelief we move towards inspections…Since there will be no appraisal to worry over that’s about all we have to do…Right!??
The agent for the buyer indicates from the inspection that only 2 things seem to trouble the buyer…A opening in the siding near the roof peak (I dub this a rodent hole) and the fact that the washing machine is being drained into the lake behind the house. (Yes, I said that…I also said N Miami if you were paying attention) If we address these 2 items, all will be good…BUT WAIT! We still havent seen the FULL report!
Yesterday I was supplied the report and well! Let’s see…The existing roof was installed (no permits) ON TOP OF the old roof, rotten wood and all. The windows and doors throughout were installed with no permits (same with the garage conversion into the 4th bedroom) The AC system is in need of replacement and the duct work in most of the house is non existent…The system simply blows cold air into the attic (and out the rodent hole) and that air eventually makes it to the house below…The electrical system is so “rigged” I actually fear for my sellers life. The pool is leaking (into the lake) The washing machine I already mentioned and the slab the home sits on is cracking…Yikes! (Interestingly enough, 2 things…My seller is totally surprised at all of this and to look at it…The home doesn’t show any outward signs of any of this)
Now, I present the estimated $60,000 repair report to my seller…The buyer has the ability to back out of the deal still but offers to proceed!!! IF the seller lowers her sales price by only $15,000!! Yes!! $15,000 buys my seller out of $60,000 in repairs!! My seller has plenty of equity and can afford to do this. She simply HAS to be aware of all the maintenance items discussed above, right? She lives there and has for nearly 30 years! 15 for 60! Every day and twice on Sundays! Take the deal I implore! What does she say? What’s the response to such a great offer from a buyer who for whatever reason REALLY wants this house? Everyone together now…..”$225,000 Jeff, $225,000″
I am asked to fax the report to my seller so her lawyer (you don’t have a lawyer for crying out loud! You have 3 children who live in other states that must surely no a hell of a lot more than I do) can review it…So I stand by, watching a great deal vaporize with the sky writers at North Perry Airport on stand-by, ready to fly over and leave a message to my seller…Don’t call me, I’ll call you!
Those who know me, know I don’t worry about money…Thank God I don’t have to. I do this because it’s a career that allows me freedom and time to do what I love…I care about my sellers more than they can imagine. When I see mistakes being made I try to fix them. When people need a gentle nudge I usually push hard…But some people, I can’t help. Not for lack of trying however. Please Mrs. Seller, at least fix the electrical issues before the home catches fire and good luck.
-Jeff
Some more...
- Hi All,I haven't been able to get this in writing for some time and I'm sorry but you just HAVE to hear this! We listed a home for some clients back in September...Listed it for $625,000 and SOLD it in 5 days for full price! That deal (because we were in control as the listing agent) closed without a hitch. Inspections and the appraisal both had issues which we solved...That is our job! Our clients want to move north about 90 minutes to PSL (Port Saint Lucie) and they tell us the 3 different agents thay have spoke to and met with are simply not acceptable. They ask if we are willing to travel to assist them in the purchase of their new home, we of course agree! They are fun people and we are blessed to know them...Why wouldn't we?!Many trips later we write an offer on what we call the "old woman's house" (This is a 55+ community) The offer was fair based on comps and the "old woman" takes the offer to her children (the one's she plans on moving in with) and they tell her NOT to sell! They tell her to take the home off the market!! My guess is the children didn't really want Mom to move in! OK, so we lose that house...It sucks but it happens when dealing with elderly clients who have just lost their spouse. It's understandable to a degree.We find a larger, more expensive home and it's perfect! We make another full price offer which is accepted and we begin to move towards closing! Nearly $2000 in inspections later, which include a Chinese drywall inspection because the general inspector "smells something"!! Problems begin to surface. (It turns out that smell was his upper lip! NO Chinese drywall was found and it was a waste of time and money! I can't wait to send him the report to prove he was wrong. He insisted he's been in a lot of houses and "KNOWS Chinese drywall when he smells it") Well friend...Check the sniffer and try to not be so condescending...It's embarrassing when you're dead wrong! Putz! (And Thank You VERY much for scaring our buyer into that $800 inspection) Turns out, I'm in a lot of houses TOO! Imagine that! There were NO signs of Chinese drywall and the smell...MOTH BALLS! (See above...55+ community...Duh!) The seller however isn't packing, and rumblings of an ex-wife we knew nothing about that will need to sign the deed look to be problematic.The owner of this home has had a change of heart and says..."I don't want to sell...I'm not going to close" He understands after nearly 30 minutes on the phone with me (how he got MY number I still don't know-He seems to be more comfortable speaking to me rather than his agent) that he will be sued for specific performance by our buyers, he will be sued for commissions by Coldwell Banker and he'll be liable for attorney fees also. CB doesn't make a habit of suing clients but in this case he's openly admitting he's in default and agrees to pay the costs.This owner continues to call/text me and I'm left to tell our buyer we have a SECOND deal falling apart...They are livid as closing is 5 days away! The seller agrees to pay them all expenses and offers $5000 to settle. After a lengthy discussion with me again...He agrees to double the offer to $10,000. We head BACK to PSL and find yet a 3rd home and wish to make an offer on that one but can't until the seller who doesn't want to sell signs our release...He calls me and says..."will your buyer still close on MY house?!" It seems after seeing some $25,000 in penalties and seeing our buyer ACTUALLY moving on...He has what, sellers remorse in reverse? He wants to sell? Really!? WTF man! You're messing with peoples lives here I explain!It's November 30 and today by noon, this seller promised me he'll sign the release and pay the penalty or he'll sign the extension to closing date addendum he asked me to prepare...My buyers WILL still close, if the seller does remains to be seen but we will know soon...I'm told.MANY details and names are left out to protect the innocent, crazy, incapable and inadequate parties to this deal...I see no good coming from naming names. What I do see is a buyer who has been put through hell and a seller who lead the way. Wish us all luck on this one!-Jeff
- Hi Everyone...Adding to the file of "You simply can't make this %#&@ up"...A seller of mine in N Miami (A referral from a very good previous client) insisted on listing her 35-year-old home for nearly $35,000 over what I projected its value at. The listing is (or appears to be) the gem of the street. The neighbors on either side, if you can see past the knee-high weeds and multiple cars on blocks in the front yards, are a true eyesore.' The listing has been in my inventory for nearly 5 months and we've had surprisingly good traffic! We've have no less than 4 offers and each one was at or under my estimate of value. (That's always a feel good moment but never helps a seller who is...Dug in) All offers to date have been cash buyers, a fact that seemed to be of no real consequence until recently. My seller would respond to any/all offers the same way...$225,000! Regardless of the quality or content of the offers it was always a quick, get me off the phone, "$225,000 Jeff" Enter a woman...Let's call her Mabel. She makes an offer of, guess what...The same as the 4 others. Just like to the others my seller barks out..."$225,000" and slap me on my bum and call me silly, the buyer agrees!! Are you kidding me!? Cash, as-is and $225,000! After a week wearing a neck brace from the pain of snapping around in disbelief we move towards inspections...Since there will be no appraisal to worry over that's about all we have to do...Right!?? The agent for the buyer indicates from the inspection that only 2 things seem to trouble the buyer...A opening in the siding near the roof peak (I dub this a rodent hole) and the fact that the washing machine is being drained into the lake behind the house. (Yes, I said that...I also said N Miami if you were paying attention) If we address these 2 items, all will be good...BUT WAIT! We still havent seen the FULL report! Yesterday I was supplied the report and well! Let's see...The existing roof was installed (no permits) ON TOP OF the old roof, rotten wood and all. The windows and doors throughout were installed with no permits (same with the garage conversion into the 4th bedroom) The AC system is in need of replacement and the duct work in most of the house is non existent...The system simply blows cold air into the attic (and out the rodent hole) and that air eventually makes it to the house below...The electrical system is so "rigged" I actually fear for my sellers life. The pool is leaking (into the lake) The washing machine I already mentioned and the slab the home sits on is cracking...Yikes! (Interestingly enough, 2 things...My seller is totally surprised at all of this and to look at it...The home doesn't show any outward signs of any of this) Now, I present the estimated $60,000 repair report to my seller...The buyer has the ability to back out of the deal still but offers to proceed!!! IF the seller lowers her sales price by only $15,000!! Yes!! $15,000 buys my seller out of $60,000 in repairs!! My seller has plenty of equity and can afford to do this. She simply HAS to be aware of all the maintenance items discussed above, right? She lives there and has for nearly 30 years! 15 for 60! Every day and twice on Sundays! Take the deal I implore! What does she say? What's the response to such a great offer from a buyer who for whatever reason REALLY wants this house? Everyone together now....."$225,000 Jeff, $225,000" I am asked to fax the report to my seller so her lawyer (you don't have a lawyer for crying out loud! You have 3 children who live in other states that must surely no a hell of a lot more than I do) can review it...So I stand by, watching a great deal vaporize with the sky writers at North Perry Airport on stand-by, ready to fly over and leave a message to my seller...Don't call me, I'll call you! Those who know me, know I don't worry about money...Thank God I don't have to. I do this because it's a career that allows me freedom and time to do what I love...I care about my sellers more than they can imagine. When I see mistakes being made I try to fix them. When people need a gentle nudge I usually push hard...But some people, I can't help. Not for lack of trying however. Please Mrs. Seller, at least fix the electrical issues before the home catches fire and good luck. -Jeff
