Leander, TX

Hey Mr. Seller:

My buyers didn't buy your house and they could have done so. We prepared for weeks for their trip to the Austin area. I sent them listings, we narrowed down the list. We had a full loan approval. All we needed to do was find the house. They flew in on Thursday evening to see 13 homes. I asked for permission to pick one listing myself. They agreed. I chose your house. It's a lovely home. It shows very well. It fit their criteria. We had seen 8 homes when we arrived at yours. My buyer stood in your doorway and smiled telling me this could be the one. We continued our journey and came back later in the day for a second look.

I did my market analysis on Friday evening and this is what I discovered. Your home is the largest in the subdivision. You chose to have it built there. You chose the amenities. You built at the top of the market in 2006. With approximately 1000 homes in the subdivision there are 2 builders still putting up spec homes. The new homes are significantly smaller than yours. They are less expensive. The builder is offering incentives.

I found numerous sales in your subdivision. I adjusted for the increase in square footage, but did not go outside your neighborhood for other comparables. My client is using VA financing. Where the money comes from should not matter. Money is money at closing.

I could not justify your price. We wrote a reasonable offer. I sent it to your agent on Saturday morning. You know, the person who has been doing this for 30 years and knows everything there is to know about pricing homes. I know that because she told me several times. You've been on the market for 90 days. You countered our offer. I asked your agent for the comparables she used to price your home. Wow. In order to justify your price she used comparables that were 10 miles away and in another city. I spoke to 3 different appraisers last night and was told that if there are sales in the subdivision I should use them and adjust for square footage. I should not consider anything older than 6 months and no more than 2 miles away. Hey Mr. Seller, there aren't any homes in close proximity like yours. My buyer decided to walk!

Today we found another home that is now their number 1 choice. It is not yours. You built a white elephant house that is 700 square feet larger than 99% of the neighborhood. Your home is beautiful but it is the top end in a neighborhood that has a lower price point. If you hold out long enough, you may get your price. I called your agent and discussed the situation. I was trying to make this a win-win situation for all involved. My client might budge a few thousand. Your agent told us not to bother.

Don't be mad at my buyers, be mad at all the people who saw your home and didn't write an offer. Apparently no one has told you that your first offer may be your best offer. It is sure better than the one you had yesterday.

Congratulations. You just bought a house, your own. My client will probably buy a home that is the lower end of a neighborhood where the average price is significantly higher. They won't make the same mistake that you have made.

They come in the night. The cement trucks. It has been so hot and dry here that they have been pouring the concrete for the new skate park under the cover of darkness. I took these pictures a few days ago before all the rain started. Then I drove back into the Benbrook Ranch and had to avoid kids skate boarding in the street. They are sure going to have fun when this opens and the neighborhood will soon have an appropriate place for this sport.

Yesterday I posted about a recent short sale success story. Boogie Boogie!!! This morning I got a call from an investor in the 954 area code. He wants to work with me. Thrills!!! He wants me to steer him to properties that are worth 300K and he will do his own negotiating to buy them at 200K. He offered me half the profit on a resale and a listing commission. What did he want me to do? He said I could be the BPO agent and supply the value that was needed for him to buy the property. He said I could find the properties before I list them and then contact him. Hmmmm! He said his purchase would be a cash transaction and he would prepare a HUD-1 for the bank. Hmmmm?

I protested that I really did not want to do business that way. He said I didn't understand his business model. I understand it! The profit you want to make is coming from somewhere. It's not coming from the seller, it's coming from the bank. You are asking me to change my valuation strategy so that you and I can make a profit that I want no part of. Then he offered me a 15% commission. WOW!

I politely declined his offer. My blog post was written last night and this morning he called. It was my 2nd call from an Active Rain post. Someone read what I wrote and responded. That's good. That's very good. ACTIVE RAIN does work, but not always in ways we anticipate.

It came today, an approval letter and HUD Form 90045 on one of my listings and I am elated and I danced around the room. Boogie Boogie!!! We will be closing sometime next week. I have handled short sales for years, long before the mortgage melt down. I have developed my own set of procedures and checklists to aid in the process. I give potential clients my criteria for accepting them into my program at our first meeting. I listen carefully. Do they really want to sell or do they want a loan modification? Are they wiling to provide and sign a letter of authorization to allow me to talk to their mortgage company? Will they provide me with the information necessary to do my job properly? Are they willing to provide things like their pay stubs, bank statements, tax returns, and a financial statement. Together we discuss a hardship letter and the circumstances that have put them in financial peril. Based on their answers I determine whether they are a viable candidate for success for either program. I don't list the property until I know that I have full cooperation from the seller. Short sales are hard work, and my time is too valuable to waste on those who don't want to cooperate. In this case, I had the dream client. The list of items I needed were completed within 48 hours. We first tried to do a loan modification which I knew was a long shot. It was rejected because my client could no longer afford the property. That denial was a Short Sale qualification and our case was transferred to a Loss Mitigation Specialist. We provided updated financial information and waited for the buyer to show up. Then we dance during negotiations. Within 2 weeks of submitting an accepted offer the approval letter arrived. My client is ready to close the book on this property and her credit is not ruined in the process. I am elated!

Here is an update on the city's progress on completion of the Benbrook Ranch Skate Park currently under construction. From the picture you can now see the ramps starting to take shape. The Skate Park is due to be completed in late September, about the time that the road construction is to be completed at 2243 and Bagdad Road.