Short Sale Low-Ballers Are Active in Sacramento But Wasting Their Time

By
Real Estate Agent with Lyon Real Estate BRE #00697006

http://shortsaleagentsacramento.comHere is a photo of a new short sale listing in Natomas that received a spammer lowball offer yesterday. It's in active contingent status right now, meaning the seller has accepted an offer. Since it's been on the market for about a week so far, we've received a number of offers for thousands over list price and one of those is in back-up position.

But that doesn't stop the lowballers from sending short sale spam offers. They send an email with the offer -- the offer price is generally about 30% less than the short sale list price -- explaining that the offer is not a reflection of value but rather a mathematical calculation to generate a profit for the buyer. Why do they think we care about the buyer's profit? Besides, I know how they arrived at value. List price X 70%. That's a pretty simple equation.

The spammers are sending this crap on hundreds of short sale listings in Sacramento, I imagine, with the thought that if they throw enough crap at the wall, one or two might stick. But what a waste of time.

It's a waste of time because I am obligated by my fiduciary relationship to the seller to send that spam to the seller, along with an explanation about the idiotic offer and advising the seller to flip it into the recycling bin. It's a waste of the seller's time, too, who is wondering why I had to email that spam. And it's a waste of the spammer's time because any decent Sacramento short sale is enjoying multiple offers above list price.

I receive at least several of these short sale spam offers every week. I have asked to be removed from the brokerage's database, sort of like "put me on your do not email list," but it's unlikely to do any good.

http://shortsaleagentsacramento.com

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 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.

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.

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Elizabeth Weintraub is an author, home buying expert for About.com, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area with an emphasis on Elk Grove. Call Elizabeth Weintraub at 916.233.6759. Put 40 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. BRE License # 00697006.

The Short Sale Savior, by Elizabeth Weintraub, available with free shipping.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

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Show All Comments
Rainmaker
996,108
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Elizabeth:  I am sure this is just as you have said... if you throw enough spaghetti up against the wall... sooner or later something just might stick.  Although this can be very frustrating, it sounds like you've got just the right approach in dealing with nonsense like this.  Keep up the great work.

Jun 16, 2009 09:34 AM #1
Ambassador
802,801
Russ Ravary
Keller Williams Commerce - Commerce, MI
Metro Detroit homes - Michigan Real estate & Mortg

You can't blame a smart investor for trying, though it does waste our time.  Somebody may be hungry

Jun 16, 2009 09:45 AM #2
Ambassador
1,541,919
Tammy Lankford
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Your Lake Sinclair Expert (706-485-9668)

I recently had some low ballers waste my time.  They had a letter from the bank saying they could pay cash up to 1,000,000.  They made an offer of $415,000. on a house listed for $649,000.  I cut them loose.

Jun 16, 2009 10:28 AM #3
Rainmaker
598,882
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Elizabeth - kind of reminds me of the hack lenders that I continually get junk from.  I will always unsubscribe or opt out whenever possible.  I have even gone so far to do the same thing you have done by emailing them to take me off their email list.

So far, the only thing that has worked is to label their address as spam and then it gets thrown into my spam folder and they get a notice, every time they send me something, telling them that they have been blocked by my spam blocker.  Eventually, many get the hint and stop sending me their junk.  However, some just never get the hint.

Jun 16, 2009 11:49 AM #4
Ambassador
750,715
Steve Shatsky
Prudential Texas Properties - Dallas, TX
Dallas Real Estate & Short Sale Specialist (214)213-0340

Hi Elizabeth... I use the same analogy that Karen Anne mentioned about the spaghetti.  It's annoying as hell to receive those offers and have to deal with the pointless submission of them... but I guess it comes with the territory as a Short Sale Specialist.  Hang in there!

Jun 16, 2009 12:15 PM #5
Rainmaker
1,164,966
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Elizabeth - There is no motivation to pussy-foot around the "low-ball offer" scenario.  Quite honestly, the more that we publicize the comps demonstrating that short-sales often close significantly above list price, the less time will be wasted by bottom dwelling buyers and the agents involved.

Jun 16, 2009 12:42 PM #6
Rainmaker
514,412
Mary Douglas
United Country Ponderosa Realty - Red Feather Lakes, CO
REALTOR, Red Feather Lakes, Colorado

It's terrible to waste everyone's time - especially if you have multiple offers coming in - you are busy enough! I remember when my brother and I threw spaghetti on the ceiling to see if it would stick -- it didn't, but my mom was really mad when she noticed all the starchy squiggles up there! LOL!

Jun 16, 2009 08:08 PM #7
Ambassador
1,339,560
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Elizabeth,

I am reading comments and the unison surprises me. Things are usually never the same everywhere.

My scenario. In Plaza Resort and Spa. Units from $40K to over $400K and really not that much difference between these units. My client likes a particular unit, but it is under contract, and it was listed for $70K. I am looking for the same floor plan and the next unit for sale is $149,900. So, I am writing the offer for $70K, submit the list of solds, and the list of Active, and I get the Seller sign it. He want to short sale, so how on earth can he do it for $149,900 when the least expensive is from $31,680? He is not standing to get a penny out of the sale, and told his agent he would not have a problem with 1099.

Did I lowball? Yes.

Was his price over the roof? Depends how you look at it.

Jun 16, 2009 08:53 PM #8
Rainmaker
573,927
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re

The must have some success or they would stop doing don't you think?

Jun 16, 2009 10:32 PM #9
Rainmaker
160,681
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Hi Elizabeth, nice post. Every investor training I attended and book I read uses the magic 70% number. When I get those, I ask where are they are getting their comps. I have no issues with low balls, but it has to make sense or we will be wasting everyone's time.

When I get a 350k offer on a 500k low comp listing, I respond by saying if I could get this at 350k, I would buy it myself!

So you are seeing signs of recovery as well? Same here in SoCal. It must be the summer months. Also, the state put a hold on foreclosures for 90 days.

 

Jun 17, 2009 04:03 AM #11
Rainmaker
1,394,178
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

Low balls are a waste of everyone's time....and most especially agents who submit them to the banks without a second thought which is part of the reason that the REAL offers take longer to process...the file piles are plugged with garbage offers...grrrrr...

Jun 17, 2009 06:28 AM #12
Rainmaker
1,225,212
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

Karen Anne: You've got to wonder if the agent typing all those offers isn't as frustrated, though.

Russ: There are better ways to be an investor but each has his or her own style. There are those who plaster cardboard signs all over chainlink fences and telephone poles, too.

Tammy: Cash buyers -- gotta love 'em. But some think they walk on water.

Donne: Must be some email system you've got there. I don't believe my spam filter sends out messages. I set up "rules" to delete obnoxious stuff I receive time and time again, but sometimes the spam filter misses it for some reason. What do you use?

Steve: Yes, LOL, the downside could be I would have no listings, so I'm grateful for the work. Lowball spammers come with the territory.

Myrl: It's important to get the word out to buyers. Unless it's in a headline, though, many don't read through the entire story they find online or in the newspaper. They sort of scan it for sub-heads, read one or two paragraphs . . .

Mary: While I have not personally thrown spaghetti on the ceiling, I have thrown a pie crust at the wall.

Jon: It sounds as though your market in Florida is very different from ours in Sacramento. Although we have overpriced listings in MLS as well. Those are the little hidden gems that many agents won't even show because they figure why bother if the seller is unreasonable. But I show them.

Terry: I agree -- they must have some degree of success. Like the guy at the bar who asks every woman he meets to go home with him. The first 99 might slap him but one may say yes.

Amiri: I hear the southern Cal market is fairly similar in temperature to the northern Cal market . . . inventory has decreased and multiple offers are the norm. However, I have my reservations about seeing results from the 90-day moratorium because so many banks are exempt. On the flip side, it may encourage more short sales!

Sally: The only nice thing I have to say about the lowball spammers is at least most of them email the offers rather than FAX and kill more trees.

http://shortsaleagentsacramento.com

Jun 17, 2009 08:23 AM #13
Rainmaker
598,882
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Elizabeth - it's actually the company spamblocker and I only know it as "SpamBlocker".  The message that goes out says that their message has been blocked and that I need to add them to my address book, which I never do.

Jun 18, 2009 05:33 PM #14
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Rainmaker
1,225,212

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