Sellers | Love's Real Stories

To Tell or Not to Tell

Realtor Brady Seacrest was asked by his seller-client Deena Sandini, “How is everything going?”

Seacrest had to think fast. He was on the horns of a dilemma, which is an uncomfortable place to be. Should he tell her the truth; that her sale might be dying? He knew her to be fragile when she wasn’t hot-headed and explosive. He opted for concealment of the truth. Concealment of the truth requires skill.

“Just a second Deena,” he said skillfully. “Hey, Johnny, give your brother back his mitt. Sorry, Deena, I’m coming back from the park with the kids, and yes, everything is going fine here.” That was the truth.

“Well that’s nice, dear. We’re just about all packed up and ready,” said Deena. “We signed the contract with those nice young men from the moving company. So we just want to make sure all systems are go, Captain!”

“Oh, great…. I mean, Ship Ahoy,” he said half-heartedly.

“Are you all right, dear? Is anything wrong?”

“I’m sorry, it’s been a long day,” said Seacrest. That was the truth. “Have a great weekend and I’ll check in with you on Monday.”

The truth Seacrest concealed from Deena was the bad news he heard this morning from the buyer’s lender. The lender had conducted a last-minute “Field Review” of the appraisal on Deena’s property; in other words a second opinion. The Field Review came in $15,000 low.

It was a deal-killer. Low appraisal equals no loan equals no sale.

Seacrest spent that Friday afternoon begging the lender for another Field Review- a third opinion. He spent a gut-wrenching weekend, swallowing Tums, having nightmares of Deena Sandini weeping when she wasn’t raging, in her living room amid stacked boxes and scattered furniture, her sale dead, her dreams of moving to her new home crushed.

Seacrest spent Monday morning uncomfortably riding the horns of his dilemma, avoiding direct conversation with Deena. Monday at noon he received a miracle: A new Field Review agreed with the original appraisal. The deal was back on track.

“Hello Deena,” Seacrest said whole-heartedly, “this is your Captain speaking. All hands are on deck for smooth sailing into port. All systems are a definite go.”

“Well, of course they are,” said Deena, “I knew there could be no trouble with you at the helm, dear.”

Seacrest popped a few more Tums and pondered the merits of concealment of the truth.

February 28, 2013

Sellers Have the Blues

Buyers are snapping up houses as fast as they hit the market, and sellers often have the luxury of picking and choosing among multiple offers. Home prices are moving up. Conditions such as these are generally referred to as a “seller’s market.” But sellers aren’t convinced their future is so bright, according to the 2012 California Home Sellers Survey by the California Association of Realtors.

The survey says only twenty per cent of California sellers believe home prices will rise in ten years. 12 per cent think prices will rise in the next five years, and only nine per cent believe prices will rise in a year.

Buyers have a completely different outlook. 73 per cent see prices rising in the next ten years; 41 per cent in the next five years; and 25 per cent in the next year.

So what’s with all the seller pessimism? The President of C.A.R., Don Faught, said, “In contrast to record high housing affordability and record low financing rates experienced by home buyers in 2012, the real estate market looked quite different from sellers’ perspectives. The last few years have been extremely difficult for many homeowners, which may indicate why more than twice as many sellers (74 percent) considered strategic default in 2012 than last year, reflecting homeowners’ hardships in a difficult economic environment.”

An Eeyore-type outlook among sellers is understandable. It’s been a rough six years of fallen prices, foreclosures, short sales, defaults, and as President Faught mentioned, “strategic default.” A strategic default could be called ”pre-meditated foreclosure” wherein a homeowner decides “I’m sick of throwing money at this depreciating asset of a house, the bank can have it. I’m taking a walk.” Not many homeowners actually did strategically default, but if 74% contemplated it, as President Faught says, we get a good picture of a bad situation.

The seller outlook might be glum, but you have to admit, things are looking up, or at least not down. Read the latest headlines, seller: “Home Prices in January Reach Levels Not Seen Since 2006”; “Home Sales Reach Highest Level in Four Years”; “Conditions Ripe for Further Price Appreciation in 2013.”

The seller’s life might not be a bowlful of cherries, and you might not be laughing all the way to the bank; but wait, is that a little smile I see?

October 10, 2012

A Rare Time

Houses for sale are in short supply, and buyers for houses are abundant.

“We had four offers the first three days on the market,” said one seller. “We were stampeded. Buyers were coming through when I was getting dressed for work in the morning, and when we were eating dinner in the evening. I just told ‘em ‘don’t mind us, make yourselves at home’!”

True, the competition among buyers is tough, but houses are still on sale. Prices are steady- with a small upward crawl.

Houses are on sale and money is on sale, too. Interest rates are lower than your grandparents could get. A low interest rate means a quicker pay-down on your loan; quicker than your grandparents could pay down their loan.

“Our lender showed us the payoff rate on our loan, and we were amazed,” said a buyer. “Because our interest rate is so low, about 30 per cent of our payment goes toward paying down the principal- it’s not all interest. That means we’re gaining equity fast.

The sale on houses and money means people who want to sell and buy higher get a break. The difference between their current loan payment and the loan payment on a new home is smaller than ever before. Big gains for little pain are out there right now.

Houses and money won’t stay on sale for long- not both at the same time anyway. The small upward crawl in house prices will inevitably get up and start walking. Interest rates don’t make a habit of lying low, either. Their natural urge is to head upward. When prices and rates make their move, buyers won’t have it so good. Neither will sellers buying up. Big gains will be more painful.

But right now the sale is on. For buyers it is tough maneuvering through the frenzied crowd, but worth it if you have the bucks. For sellers it couldn’t be better if you plan on buying, too.

It’s a rare time when houses and money are on sale- you might want to look around and see if there is a deal out there for you.

Love's Real Stories

Category: Sellers