September Sales Statistics

Sacramento area home sale prices decreased by 0.3% in September compared to August. September’s median sales price was $348,000.

 

The amount of single family homes listed for sale in September increased by 1.2%. If you’re wondering if it’s a good time for you to sell, call me and I would be happy to go over the numbers with you.

 

Many homeowners would like to know about how long it would take to sell their home. While the amount of time varies, the average DOM (days on the market) in September was 24. The above chart shows that 76% of homes were on the market for 30 days or less. If you would like to know more about why a home may sit on the market longer than average, then give me a call.

Questions to Ask When Considering Selling

These questions will help you decide whether you’re ready for a home that’s larger or in a more desirable location. If you answer yes to most of the questions, you may be ready to move.

Have you built substantial equity in your current home?

Check your annual mortgage statement or call your lender to find out how much you’ve paid down. Usually you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest. But if you’ve owned your home for five or more years, you may have significant, unrealized gains.

Has your income or financial situation changed?

If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving. If your income has decreased, you may want to consider downsizing.

Have you outgrown your neighborhood?

The neighborhood you pick for your first home might not be the same one in which you want to settle down for good. You may have realized that you’d like to be closer to your job or live in a better school district. 

Are there reasons why you can’t remodel or add on?

Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.

Are you comfortable moving in the current housing market?

If your market is hot, your home may sell quickly and for top dollar, but the home you buy will also be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home. Ask your real estate professional what they see happening locally.

Are interest rates attractive?

Low rates help you buy “more” home, and also make it easier to find a buyer for your current place.

Is the effort and cost of maintaining your current home becoming difficult to manage?

A REALTOR ® can help you decide whether a smaller house, condo, or rental would be appropriate.

 

http://realtormag.realtor.org/sales-and-marketing/handouts-for-customers/for-sellers/questions-ask-when-considering-selling

Selling Your House? Avoid These Mistakes

By Amy Fontinelle 

Selling your home—especially if you’ve never done it before—can be surprisingly time-consuming and emotionally challenging. Strangers will come into your home and poke around in your closets and cabinets. They will criticize a place that has probably become more than just four walls and a roof to you, and then, to top it all off, they will offer you less money than you think your home is worth. With no experience and a complex, emotional transaction on your hands, it’s easy for first-time home sellers to make lots of mistakes, but with a little know-how, many of these pitfalls can be avoided altogether. Read on to find out how you can get the highest possible price for your home within a reasonable time frame—without losing your mind.

Mistake No.1: Getting Emotionally Involved

Once you decide to sell your home, it can be helpful to start thinking of yourself as a businessperson and a home seller, rather than as the home’s owner. By looking at the transaction from a purely financial perspective, you’ll distance yourself from the emotional aspects of selling the property that you’ve undoubtedly created many memories in.

Also, try to remember how you felt when you were shopping for that home. Most buyers will also be in an emotional state. If you can remember that you are selling not just a piece of property but also an image, a dream and a lifestyle, you’ll be more likely to put in the extra effort of staging and perhaps some minor remodeling to get top dollar for your home. These changes in appearance will not only help the sales price, but they’ll also help you create that emotional distance because the home will look less familiar.

 

Mistake No.2: Not Hiring an Agent

Although real estate agents command a hefty commission (usually 5-6% of the sale price of your home), trying to sell your home on your own, especially if you haven’t done it before, is probably ill advised. A good agent will help you set a fair and competitive selling price for your home that will increase your odds of a quick sale. An agent can also help take some of the high emotion out of the process by interacting directly with potential buyers, so you don’t have to and eliminating tire kickers who only want to look at your property but have no intention of putting in an offer.

An agent will also have more experience negotiating home sales than you do, potentially helping you get more money than you could on your own. Further, if any problems crop up during the process—and they commonly do – an experienced professional will be there to handle them for you. Finally, agents are familiar with all the paperwork and pitfalls involved in real estate transactions and can help make sure the process goes smoothly. 

Mistake No.3: Assuming You Must Hire an Agent

On the other hand, some people do manage to sell their homes themselves. You’ll need to do your own research on recently sold properties in your area and properties currently on the market to determine an attractive selling price, keeping in mind that most home prices have an agent’s commission factored in and you may have to discount your price as a result. You’ll be responsible for your own marketing, so you’ll want to make sure to get your home on the Multiple Listing Service (MLS) in your geographic area to reach the widest possible number of buyers. Also, you’ll be the one showing the house and negotiating the sale with the buyer’s agent, which can be time-consuming, stressful and emotional for some people.

If you’re forgoing an agent, consider hiring a real estate attorney to help you with the finer points of the transaction and escrow. Even with attorney’s fees, though, selling a home yourself can save you thousands. Keep in mind, however, that the buyer’s agent will expect to be compensated, so you won’t be able to save the entire commission, as you’ll need to pay 1-3% of the home’s sale price to the buyer’s agent. 

Mistake No.4: Setting an Unrealistic Price

Whether you’re working with an agent or going it alone, setting the right asking price is key. Remember the comparable market analysis you did when you bought a home to figure out a fair offering price? Buyers will do this for your home, too, so as a seller you should be one step ahead of the game.

Absent a housing bubble; overpriced homes do not sell. Don’t worry too much about setting a price that’s on the low side because, in theory, this will generate multiple offers and bid the price up to the home’s true market value. In fact, underpricing your home a bit can be a strategy to generate extra interest in your listing. 

Mistake No.5: Expecting To Get Your Asking Price

Any smart buyer will negotiate, and if you want to complete the sale, you’ll have to play the game. Most people want to list their homes at a price that will attract buyers while still leaving some breathing room for negotiations. This will allow the buyer to feel like he or she is getting a good value and allow you to get the amount of money you need from the sale. Of course, whether you end up with more or less than your asking price will likely depend on whether you’re in a buyer’s market or a seller’s market and on how well you have staged your home.

Mistake No.6: Selling in Winter (When You Have the Option Not To)

Winter, especially around the holidays, is typically a slow time of year for home sales. People are busy with social engagements, and the cold weather makes it more appealing just to stay home. Because fewer buyers are likely to be looking, it may take longer to sell your home, and you may not get as much money. However, you can take some consolation in knowing that while there may not be as many active buyers, there also won’t be as many competing sellers.

Mistake No.7: Skimping on Listing Photos

So many buyers look for homes online these days, and so many of those homes have photos that you’ll be doing yourself a real disservice if you don’t offer photos as well. At the same time, there are so many poor photos of homes for sale that if you do a good job, it will set your listing apart and help generate extra interest. Good photos should be crisp and clear, should taken during the day when there is plenty of natural light available, and should showcase your home’s best assets. Consider using a wide-angle lens if possible – this will allow you to give potential buyers a better idea of what entire rooms look like.

Mistake No.8: Not Being Properly Insured

With the above-average number of people who will be on your property, you want to make sure you are insured in case someone has an accident on the premises and tries to sue you for damages. You also want to make sure that there are not any obvious hazards at the property or that you take steps to mitigate them (keeping the children of potential buyers away from your pool and getting your dogs out of the house during showings, for example). 

Mistake No.9: Trying to Hide Significant Problems

Any problem with the property will be uncovered during the buyer’s inspection, so there’s no use hiding it. Either fix the problem ahead of time, price the property below market value to account for the problem, or list the property at a normal price but offer the buyer a credit to fix the problem. Realize that if you don’t fix the problem in advance, you may turn away a fair number of buyers who want a turnkey home. Having your home inspected before listing it is a good idea if you want to avoid costly surprises once the home is under contract.

Mistake No.10: Not Preparing Your Home for Sale

Sellers who do not clean and stage their homes are throwing money down the drain. If you can’t afford to hire a professional, that’s OK – there are many things you can do on your own. Failing to do these things will not only reduce your sale price but may also prevent you from getting a sale at all. For example, if you haven’t attended to minor issues like a broken doorknob, a potential buyer may wonder whether the house has larger, costlier issues that haven’t been addressed. Have a friend or agent with a fresh pair of eyes point out areas of your home that need work. Because of your familiarity with the home; you may have become immune to its trouble spots. Decluttering, cleaning thoroughly, putting a fresh coat of paint on the walls and getting rid of any odors will also help you make a good impression on buyers.

Mistake No.11: Not Accommodating Potential Buyers

If someone wants to view your house, you need to accommodate this person, even if it is inconvenient for you. And yes, you have to clean and declutter the house before every single visit. A buyer won’t know and won’t care if your house was clean last week if it isn’t clean when he or she views it. It’s a lot of work, but stay focused on the prize.

Mistake No.12: Signing a Purchase Contract With an Unqualified Buyer

It’s more than reasonable to expect a buyer to bring a pre-approval letter from a mortgage lender (or proof of funds for cash purchases) showing that he or she has the money to buy the home. Signing a contract with a buyer whose purchase of your home is contingent on the sale of his or her own property may also put you in a serious bind if you need to close by a particular date.

The Bottom Line

Even if you do all of these things when selling your home, it’s best to prepare mentally and financially for less-than-ideal scenarios. The house may sit on the market for far longer than you expect, especially in a declining market. If you can’t find a buyer in time, you may end up trying to pay two mortgages, having to rent your home out until you can find a buyer, or in dire situations, in foreclosure. However, if you avoid the costly mistakes listed here, it will go a long way toward helping you put your best foot forward and achieving that seamless, lucrative sale every home seller hopes for.

 

 

 

http://www.investopedia.com/articles/mortgages-real-estate/08/home-seller-mistakes-selling-house.asp

Essential Tips for First-Time Homebuyers

Sandra Rinomato

House Hunting

  • Before you begin to house shop, you need to have an idea of what kind of neighborhood you want to live in and the style of house you want.
  • Real estate never sleeps. If you’re trying to buy a hot property, you have to move quickly, or you could possibly lose it.
  • When you are looking at a house, you have to have a wish list, but you have to understand that no house is going to be perfect.
  • Don’t judge a book by its cover. Same goes for a house. Go inside and look around before making a decision.
  • Properties in good shape are rare, and they don’t stay on the market for long.
  • When it comes to investing, the best place to invest is in an up-and-coming area.
  • You have to see past the junk and see the potential. When you buy a house, it’s not just a place to live in, it’s an investment. Keep in mind your dollars down the road.
  • Brand-new condos tend to be smaller, sometimes no larger than one bedroom, while older units typically have more square footage.
  • You can’t negotiate maintenance fees with a condo, and those fees tend to go up periodically.
  • You don’t necessarily want to buy in a building that has a high percentage of tenants because they don’t take care of the property the way they would if they owned.
  • If you’re going to live in a city, you often have to sacrifice space.
  • A middle-unit townhome is often less expensive than an end unit.
  • Feelings often take over the first time you go through a house, but the second visit allows time to do a thorough inspection led by your head, not your heart.
  • It is especially important to have a home inspection if you are looking to buy an aging or older house. They look past the visible surface to the infrastructure, inspecting plumbing and looking for faulty fixtures and waste lines. They check electrical systems to make sure they aren’t overloaded or a safety hazard. They also look at possible structural problems like the foundation, walls and floor joists.
  • Reality often outweighs fantasy when it comes to buying a home.
Financing

  • It’s great to have your financing in place before you look because houses are bought and sold overnight. You could lose your dream property waiting to secure the financing.
  • The rule of thumb is that you should be able to afford a mortgage three times your income.
  • Lenders subtract any debt payment from your income, so if you have a big debt, you have a lot less income — and a lot less house.
  • Don’t forget to set aside money for closing costs when budgeting out what you can afford. It’s typically 1-1/2 to 2 percent of the purchase price. That goes toward the land transfer tax and pays a lawyer.
  • When you buy new, you have to put down 10 percent within six months or 15 percent within nine months. Also, until the place is registered, you can’t get title. Until you get title, you can’t place your mortgage, so during that time you’re paying what’s known as a phantom mortgage or an interim occupancy fee that goes toward nothing — it’s like rent.
  • It’s better to walk away if you’re not comfortable with the situation.
Making an Offer

  • When you’re house shopping, you can’t pull a number out of a hat. Find out what other homes in the area have sold for, how long ago the sale was and what amenities they have.
  • It’s the market that determines the value of a house.
  • When figuring out the price of a property, sometimes it makes more sense to look at the price of a house in terms of monthly payments instead of focusing on that big number.
  • When making an offer, you want to go as low as possible without insulting the sellers.
  • What you want to pay for a house has nothing to do with the fair market value (an estimate of what a buyer would pay a seller for any piece of property). Also, what you can or cannot afford has nothing to do with the value of a house.
  • Try not to fixate on the list price of a house, but rather the fair market value (an estimate of what a buyer would pay a seller for any piece of property).
  • When a renovated house is priced low, it is a good indication that the owners are looking for a bidding war — they want to get as much money as possible out of the sale.
  • Sometimes people think that by starting really low they’ll end up with a better price on a house, but actually it usually works the opposite way.
  • The three most important matters when it comes to negotiation are information, preparation and realism.
  • When you buy a property, you should always have a home inspector come through. You never know what they’re going to uncover, so don’t crack the champagne just yet. If the home inspector should find something, then you can use it to your advantage to renegotiate the deal. Or you might have to walk away.
  • The key to success when buying a home is to trust the experts.
Home Improvement and Resale

  • For resale, curb appeal goes a long way. But make sure you don’t over improve for the area. Some houses have a cap on them, which means it is only gonna be worth a certain amount no matter what the homeowners do to make improvements.
  • Before you start renovating a condo, live there for a year to make sure you’re doing the right thing.
  • You can make changes to the inside of a condominium, with the proper condo board approval, but never to the exterior.
  • A simple renovation after the sale can boost the value of the investment by thousands.
  • The old adage holds true. If it ain’t broke, don’t fix it.
  • When a house is empty, buyers can see the actual size of each room and can better visualize their things in them.
  • Home staging is big business. It can add thousands of dollars to the selling price. An unstaged house that has not been properly prepared for sale will sell for much less than the asking price.

 

 

 

http://www.hgtv.com/design/real-estate/essential-tips-for-first-time-homebuyers

August Sales Statistics

Sacramento area home sale prices decreased by 1.6% in August compared to July. August’s median sales price was $349,000.

The amount of single family homes listed for sale in August increased by 5.4%. If you’re wondering if it’s a good time for you to sell, call me and I would be happy to go over the numbers with you.

Many homeowners would like to know about how long it would take to sell their home. While the amount of time varies, the average DOM (days on the market) in August was 22. The above chart shows that 84% of homes were on the market for 30 days or less. If you would like to know more about why a home may sit on the market longer than average, then give me a call.

 

How to Prepare to Buy a Home

Talk to mortgage brokers.

Many first-time home buyers don’t take the time to get prequalified. They also often don’t take the time to shop around to find the best mortgage for their particular situation. It’s important to ask plenty of questions and make sure you understand the home loan process completely.

Be ready to move.

This is especially true in markets with a low inventory of homes for sale. It’s very common for home buyers to miss out on the first home they wish to purchase because they don’t act quickly enough. By the time they’ve made their decision, they may find that someone else has already purchased the house.

Find a trusted partner.

It’s absolutely vital that you find a real estate professional who understands your goals and who is ready and able to guide you through the home buying process.

Make a good offer.

Remember that your offer is very unlikely to be the only one on the table. Do what you can to ensure it’s appealing to a seller.

Factor maintenance and repair costs into your buying budget.

Even brand-new homes will require some work. Don’t leave yourself short and let your home deteriorate.

Think ahead.

It’s easy to get wrapped up in your present needs, but you should also think about reselling the home before you buy. The average first-time buyer expects to stay in a home for around 10 years, according to the National Association of REALTORS®’ 2013 Profile of Home Buyers and Sellers.

Develop your home/neighborhood wish list.

Prioritize these items from most important to least.

Select where you want to live.

Compile a list of three or four neighborhoods you’d like to live in, taking into account nearby schools, recreational facilities, area expansion plans, and safety.

 

 

 

http://realtormag.realtor.org/sales-and-marketing/handouts-for-customers/for-buyers/how-prepare-buy-home

Five Reasons Why You Still Need A Real Estate Agent

Written By: Tara Struyk

The proliferation of services that help homebuyers and sellers complete their own real estate transactions is relatively recent, and it may have you wondering whether using a real estate agent is becoming a relic of a bygone era. While doing the work yourself can save you the significant commission rates many real estate agents command, for many, flying solo may not be the way to go–and could end up being more costly than a realtor’s commission in the long run. Buying or selling a home is a major financial (and emotional) undertaking. Find out why you shouldn’t discard the notion of hiring an agent just yet.

1. Better Access/More Convenience

A real estate agent’s full-time job is to act as a liaison between buyers and sellers. This means that he or she will have easy access to all other properties listed by other agents. Both the buyer’s and seller’s agent work full time as real estate agents and they know what needs to be done to get a deal together. For example, if you are looking to buy a home, a real estate agent will track down homes that meet your criteria, get in touch with sellers’ agents and make appointments for you to view the homes. If you are buying on your own, you will have to play this telephone tag yourself. This may be especially difficult if you’re shopping for homes that are for sale by owner.

Similarly, if you are looking to sell your home yourself, you will have to solicit calls from interested parties, answer questions and make appointments. Keep in mind that potential buyers are likely to move on if you tend to be busy or don’t respond quickly enough. Alternatively, you may find yourself making an appointment and rushing home, only to find that no one shows up.

2. Negotiating Is Tricky Business

Many people don’t like the idea of doing a real estate deal through an agent and feel that direct negotiation between buyers and sellers is more transparent and allows the parties to better look after their own best interests. This is probably true–assuming that both the buyer and seller in a given transaction are reasonable people who are able to get along. Unfortunately, this isn’t always an easy relationship.

What if you, as a buyer, like a home but despise its wood-paneled walls, shag carpet and lurid orange kitchen? If you are working with an agent, you can express your contempt for the current owner’s decorating skills and rant about how much it’ll cost you to upgrade the home without insulting the owner. For all you know, the owner’s late mother may have lovingly chosen the décor. Your real estate agent can convey your concerns to the sellers’ agent. Acting as a messenger, the agent may be in a better position to negotiate a discount without ruffling the homeowner’s feathers.

A real estate agent can also play the “bad guy” in a transaction, preventing the bad blood between a buyer and seller that can kill a deal. Keep in mind that a seller can reject a potential buyer’s offer for any reason–including just because they hate his or her guts. An agent can help by speaking for you in tough transactions and smoothing things over to keep them from getting too personal. This can put you in a better position to get the house you want. The same is true for the seller, who can benefit from a hard-nosed real estate agent who will represent their interests without turning off potential buyers who want to niggle about the price.

3. Contracts Can Be Hard To Handle

If you decide to buy or sell a home, the offer to purchase contract is there to protect you and ensure that you are able to back out of the deal if certain conditions aren’t met. For example, if you plan to buy a home with a mortgage but you fail to make financing one of the conditions of the sale–and you aren’t approved for the mortgage–you can lose your deposit on the home and could even be sued by the seller for failing to fulfill your end of the contract.

An experienced real estate agent deals with the same contracts and conditions on a regular basis, and is familiar with which conditions should be used, when they can safely be removed and how to use the contract to protect you, whether you’re buying or selling your home.

4. Real Estate Agents Can’t Lie

Well, OK, actually they can. But because they are licensed professionals there are more repercussions if they do than for a private buyer or seller. If you are working with a licensed real estate agent under an agency agreement, (i.e., a conventional, full-service commission agreement in which the agent agrees to represent you), your agent will be bound by common law (in most states) to a fiduciary relationship. In other words, the agent is bound by license law to act in their clients’ best interest (not his or her own).

In addition, most realtors rely on referrals and repeat business to build the kind of clientèle base they’ll need to survive in the business. This means that doing what’s best for their clients should be as important to them as any individual sale.

Finally, if you do find that your agent has gotten away with lying to you, you will have more avenues for recourse, such as through your agent’s broker, professional association (such as the National Association Of Realtors) or possibly even in court if you can prove that your agent has failed to uphold his fiduciary duties.

When a buyer and seller work together directly, they can (and should) seek legal counsel, but because each is expected to act in his or her best interest, there isn’t much you can do if you find out later that you’ve been duped about multiple offers or the home’s condition. And having a lawyer on retainer any time you want to talk about potentially buying or selling a house could cost far more than an agent’s commissions by the time the transaction is complete.

5. Not Everyone Can Save Money

Many people eschew using a real estate agent to save money, but keep in mind that it is unlikely that both the buyer and seller will reap the benefits of not having to pay commissions. For example, if you are selling your home on your own, you will price it based on the sale prices of other comparable properties in your area. Many of these properties will be sold with the help of an agent. This means that the seller gets the keep the percentage of the home’s sale price that might otherwise be paid to the real estate agent.

However, buyers who are looking to purchase a home sold by owners may also believe they can save some money on the home by not having an agent involved. They might even expect it and make an offer accordingly. However, unless buyer and seller agree to split the savings, they can’t both save the commission.

The Bottom Line

While there are certainly people who are qualified to sell their own homes, taking a quick look at the long list of frequently asked questions on most “for sale by owner” websites suggests the process isn’t as simple as many people assume. And when you get into a difficult situation, it can really pay to have a professional on your side.

 
 
 
 
https://www.forbes.com/2010/05/25/why-you-need-real-estate-agent-personal-finance-commission.html

July Sales Statistics

Sacramento area home sale prices increased by 2.1% in July, compared to June. July’s median sales price was $354,700.

 

The amount of single family homes listed for sale in July increased by 13.8%. If you’re wondering if it’s a good time for you to sell, call me and I would be happy to go over the numbers with you.

 

Many homeowners would like to know about how long it would take to sell their home. While the amount of time varies, the average DOM (days on the market) in July was 18. The above chart shows that 84% of homes were on the market for 30 days or less. If you would like to know more about why a home may sit on the market longer than average, then give me a call.

 

Low Inventory Becomes Our New Normal

By Ryan Lundquist

It’s a seller’s market, and potential homebuyers need to up their game

One of the most pressing topics right now in housing is low inventory. Frankly, there just aren’t enough homes for sale in the Sacramento region, and it’s a problem. If you’ve bought or tried to buy recently, you certainly know this.

Since 2014, we’ve seen the supply of homes for sale in the region cut in half. I won’t bore you too much with numbers, but right now we have about a 45-day supply of homes for sale compared to about a 3-month supply of homes just three years ago. What does that even mean? There are only enough homes listed right now to last for 1.5 months. There are easily three months worth of buyers trying to compete for this small amount though. This is exactly why the market feels so competitive.

What’s causing this shortage? Over the past decade, we’ve had population growth in the region, and new construction has not kept pace. It’s been nice to see more infill projects, but the truth is homebuilding has been weak since the real estate bubble burst nearly 10 years ago. We are nowhere near the level of construction from 2003 to 2005. On a related note, many builders are struggling to find skilled workers because so many laborers left our market when construction came to a standstill.

Additionally, investors went on a spending spree after the bubble burst. Thousands upon thousands of homes were purchased and made into rentals — instead of hitting the market for sale. For instance, the investment fund Blackstone (DBA Invitation Homes) bought the bulk of their 2,892 homes in Northern California during 2012 and 2013. With so many locals lacking the funds to move or unable to qualify for a mortgage because of a previous foreclosure or short sale, investors picked up the slack.

Let’s be real: We’ve loved low-interest rates over the past five years, and it’s been great when buying or refinancing. Yet, we’re starting to see the unintended consequences of historically-low rates. Many owners are sitting on a 3.3 percent interest rate from five years ago, and they just aren’t going to move out and trade up for a higher mortgage unless absolutely necessary. And potential sellers aren’t being pulled out of the area by wage growth or job opportunities elsewhere to make a move, so they’re staying put.

This all sounds negative, but there’s a positive: Low housing inventory means sales volume has been increasing in the region. In simple terms, there are less available listings because more buyers are on the hunt. Also, in years past, a flood of foreclosure listings contributed to greater inventory, and we just don’t have that type of market any longer. In the thick of the economic recession, we saw some dark days in real estate as over 70 percent of all sales in Sacramento County were bank-owned — it’s now only 3 percent.

We frankly need more homes and apartments built, but that’s a marathon approach. For now, having low inventory has become our new normal. This is welcome news for sellers, but it can be discouraging for buyers — they end up feeling hopeless. There are things buyers can do though to better position themselves to get an offer accepted:

Prepare emotionally: Sorry to be a downer, but you probably aren’t going to get into contract on the first home you offer on. Remember, real estate is a bit like dating. You often don’t marry the first person you go out with. So take heart and expect you’ll submit many offers until something sticks.

Shop below your price range: If you are qualified up to $350,000 and money is tight, you might want to consider homes priced $320,000 to $350,000 instead of only looking at houses priced at $349,000. This allows you some space in case of a bidding war.

Remember, it’s not just cash winning contracts: There’s this idea out there that cash investors are gutting the market and leaving everyone else on the sidelines, but it’s simply not true — cash sales in the region only make up about 15 percent of sales each month. In contrast, FHA loans require very little money down and yet are consistently making up 25 percent of all sales in Sacramento County.

Find a way to make your offer stand out: We’re in a market where a house will get multiple offers, so buyers need to make their offers especially desirable to sellers. The offer probably needs to be at list price or above (assuming the list price is reasonable of course). Don’t ask for every little thing to be repaired, because sellers will get some offers without those requests. Try to make an emotional connection with the seller by writing a letter or doing something out of the ordinary. For example, while touring a home, my wife and I heard the seller was going to send her son to a private school at $1,400 per month. So in our full-priced offer we said we’d give the seller an extra $1,400 at the close of escrow to help pay for her son’s school. That made an impression and we got the house.

For now, we can expect sellers to continue to have more power than buyers, for a culture of multiple offers to be commonplace, and upward value pressure to persist in some price ranges and neighborhoods (particularly at the lower end of the market). The reality is nobody has a crystal ball to tell us exactly what values will do in the future, but in terms of inventory, there isn’t any indication it’s going to change for awhile. 

 

 

 

 

 

 

https://www.comstocksmag.com/commentary/low-inventory-becomes-our-new-normal

June Sales Statistics

Sacramento area home sale prices increased by 1.4% in June, compared to May. June’s median sales price was $347,250.

 

The amount of single family homes listed for sale in June increased by 8.8%. If you’re wondering if it’s a good time for you to sell, call me and I would be happy to go over the numbers with you.

 

Many homeowners would like to know about how long it would take to sell their home. While the amount of time varies, the average DOM (days on the market) in June was 18. The above chart shows that 84% of homes were on the market for 30 days or less. If you would like to know more about why a home may sit on the market longer than average, then give me a call.