Monday, May 6, 2019

Quoted in a Sacramento Bee article this weekend about the spring Sacramento real estate market...

I was quoted in a Sacramento Bee article by Tony Bizjak over the weekend about the local market conditions. True to the norm for this time of year, the Sacramento area real estate market is going nuts. It's spring. And this is what predictably happens here every year. And in the hot (temperature) part of the summer, things will likely slow down a little, and that too will be normal and part of the predictable Sacramento real estate cycle.

In any market, the key is to be strategic.

If selling, how does the home present online and in person? If the property does not look amazing, buyers may not be as interested or willing to pay market value. Is it priced correctly and in line with comparable sales? If it is not priced correctly, you will miss your target buyer audience. Have you properly disclosed inspection reports, known material facts, and issues up front? Not disclosing potential issues up front before and during contract negotiation will be an engraved invitation for a renegotiation later. Are you realistic in your expectations? Most homes do not sell to the unicorn bay area buyer over-paying with all cash.

If buying, what are your short and long term goals? Are you rushing into things? Contemplate your options. The best decisions are usually not made impulsively. Are you comfortable with this monthly payment in the event of an economic issue? Don't get in over your head. Are you doing enough due diligence and property investigation? Inspect, inspect, INSPECT. Please know what you are buying before you close the transaction. What are the comparable sales? Is the listing over or under priced? Look at comparable sales with your agent and make an appropriate offer whether that is below the listing price or above. Sorry, looking at Zillow doesn't count. What does the seller need out of the transaction? Especially in competitive situations, tailor your offer to the seller's needs - often, the right terms may be a win for the seller over highest price. Are you realistic in your expectations? I know your parents, favorite uncle, and BFF said to make a lowball offer because that is what they did 30 years ago or that's what worked in Texas or what they saw on HGTV, but seriously that may be a total waste of your time.

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