Thursday, February 4, 2016

Update on current market conditions

Well,  you've been hearing it over and over and over.....our inventory is sooooo low!  Our market isn't exactly like the Bay Area and San Francisco with their $100k overbids, but I'm telling you it's pretty tough out there for buyers.  The last several offers I've written were in "multiple counter" offer situations.  Doesn't matter whether you're looking to buy an investment property (that pencils out) or a single family dwelling.  The multi-units that are on the market currently in Sacramento, for the most part,  are either over-priced,  in bad condition or bad locations.  Certainly that doesn't apply to ALL of them, because indeed there are a few new listings that are in beautiful condition,  in good locations, but also priced so high it's almost laughable.  

With regard to single family dwellings,  East Sacramento values are higher than Land Park....average 2 bdrm home in Land Park is between $350-$480,000 and in East Sac most are at that higher price point.  And you can forget duplexes!  Once those come on the market, if they're priced where they should be,  they're snapped up lickety-split!  Duplexes are hot right now.  Regardless of the neighborhood.

If you're a buyer and looking to buy .... definitely be pre-approved before you either go out looking or make an offer on a property.  Seller's definitely shy away from offers that come in without that pre approval letter,  a decent earnest-money deposit and a cover letter showing your interest.  The more down payment money you have, the better.   And contingencies pertaining to the sale of your current home?  That's a tough one.  Unfortunately,  unless there are no other offers on the table, most seller's will counter that condition.  And in some cases,  they'll ask you to remove the appraisal contingency!
(Which means if the house appraises at lower than the selling price,  you come up with additional cash to make up the difference.)  If the seller DOESN'T ask you to remove that contingency in your original offer, at least you have the security of being able to re-negotiate the price if the appraisal comes in lower.

If you're a seller.....HURRAY HURRAY for you!  That doesn't mean you can ask whatever you want for your home (necessarily), because you too are going to deal with the buyers' lenders' appraisal......but it does mean,  if your home shows well and is priced right,  it's money in the bank!
Of course, having windows washed,  clutter removed,  weeds pulled,  maybe fresh paint and some last minute maintenance items're going to sell quicker.  Sometimes sellers don't realize how important it is to clean out closets and shelves,  de-clutter knick-knacks, books, kids toys and stuff you're not going to need while the house is on the market.  It really really makes a big difference.   And curb appeal is especially important too.  $40 worth of nice bedding plants can make a very nice first impression.  Painting and touching up the threshold and front door makes a difference too.

If you need help deciding how to prepare your home for sale.....or if you're thinking about buying a home, CALL can call, email, text me or go to my website.....I'd love to help you.
Put 37 years of experience to work for you!  Let's get it done!

No comments:

Post a Comment