You might if you sell this year.
I put in an offer for a client last weekend where she made her offer $20k over the comps in order to compete with two other offers. The Roseville home was mostly updated, a coveted SINGLE STORY and had a pool. Well, we lost to a Bay Area buyer who went $50k over the comps. Please let that sink in for a moment. The home was priced at $499k.
We’re heating up again not just with multiple offers but with ridiculous offers. So what’s going on? Not enough inventory for one. I’ve been talking to agents, Escrow Officers, and Lenders and this is stacking up to be another CRAZY year in real estate. Where’s the tipping point?
We’ve seen 12% price appreciation in some areas of Sacramento: Roseville, Rocklin, Folsom, and El Dorado Hills and 9% year over year for Sacramento as a whole (6% per year is NORMAL). My friend, Jessica Fraga, sent me an article that said U-Haul rentals to go from San Jose to Las Vegas are $2000, but only $100 to return. Bay Area residents aren’t just fleeing to Las Vegas – they are fleeing the Bay Area and Sacramento is on their roadmap. Those Bay Area buyers impact our market prices.
The low inventory situation gauge remains stuck on Empty. One factor that affects pricing is that many folks who currently own here have low interest rates, low property taxes, and mortgages that are nearly paid off and they want to cash in on the rental market crisis by turning their homes into rentals. Less houses in the For-Sale-Inventory puts the squeeze on prices.
Compounding a frenetic early season is the fact that a higher than normal percentage of homes are falling out of escrow due to the emotionally charged bidding war to win a house at all costs. The joy of winning an exuberant bidding session may soon turn to regret when the reality of how much they’ve overpaid sets in. Or we’re seeing people put more than one offer in at a time in hopes to get one to stick – NOT advised unless you want to be on the hook to purchase two homes, but desperate people take desperate measures…
When I call around in neighborhoods where my buyers want to live, the answers tend to be one of the following:
- “We’d like to sell but where would we go?”
- “We’re never moving. They’ll be taking us out feet first!”
- Occasionally, “we are going to move the hell out of California”.
For #1, while it’s not easy to find another home, it’s not impossible. I’ve been successful at helping my clients find off-market properties and I’m a strategic agent that plays to win so let’s talk. We might not win the first one, but we will get you into a great home.
For #2, Smile It’s always great to be in a home you love. No one’s trying to make you move! I hope you live a long and fruitful life but if you ever change your mind, there’s lots of people who are looking to buy!!!!
For #3, I’m a full service realtor with end to end service. Not only can I help you net the most amount of money here, but I have great referral network in different cities and states (heck, even different countries!) The advantage of me helping you locate an agent is that you have TWO agents working for you! Yes, I get a small percentage of the commission the buyer’s agent receives, but it doesn’t cost you anything and you can be assured that I’m incentivized to make sure your experience is a great one.
So, what about you? Is this the year you want to cash in on the real estate lottery? Let’s talk! Your home could be worth more than you think!
The last couple of weeks, I’ve been absent because my mother passed away. A lovely life of 90 years however, there’s grief, legal stuff, and physical possessions and then there’s real estate which continues through it all. I highly recommend that if you have a parent or are a parent that you get a Living Trust. I highly recommend Jackie Jolley at Mt. Diablo Trust! Don’t leave your assets to chance (or Probate). It’s interesting too because just like a child doesn’t come with a How-To book, neither does navigating the end-of-life aspect either. Feel free to share what you learned or ask me what I know…
I was awarded the Master’s Club designation for selling over $4.5M in volume in the Sacramento area. In fact, I sold $8M in Sacramento. I also sold $2.5M outside of Sacramento with the help of referral agents that I highly recommend and trust. Only 10% of agents sell over $4.5M in this area. It’s not by chance that I’m a Top Producer.