Email Elizabeth
JaCi Wallace
November 2019 Sacramento Fall Home Sales
Our November 2019 Sacramento fall home sales is an interesting time. The article below in italics, “Welcome to the Sacramento Fall Home Selling Market,” was written in 2012 by my partner, Elizabeth Weintraub. So, let’s now look at current interpretation of current market trends in 2019 and you will see how similar they are to conditions in 2012. It’s uncanny.
Our November weather has been many warm sunny days, high 70s and even a few 80 degree days. This has extended the fall selling season as it is busy right now and we are fast approaching Thanksgiving.
The 2019 quarter, compared to the same quarter last year, shows 2,059 homes for sale in Sacramento County. Further, 1536 are pending, and 1461 homes are for sale. They are selling for 97 % of the selling price at an average of 34 days. We only have 1.4 months of inventory, which is down by 31.8% compared to the same fall quarter of last year.
What does all of this mean for our Sacramento fall home sales? Homes are selling quickly, and demand is high, but buyers are still looking for a deal. I’m receiving meager offers on some properties.
Yesterday, we received an offer 10% low from the list price, and the home is one of the best values in the area. The Realtor submitted nothing with her offer as to why she felt this was reasonable. There were no comparable sales, nothing. It leaves one to wonder what Realtors are telling their clients! If they showed buyers the market trends right now, they would stop wasting everyone’s time. Much like the fall of 2012 in Elizabeth’s article below, this is a seller’s market as far as the numbers go. With such low inventory, the listings should be selling like hotcakes.
The buyers are somewhat hesitant writing offers and cancel the same day or the next day. Wake up, Sacramento, as we have minimal homes for sale. If not one Sacramento listing agent listed another house in the next six weeks, the existing inventory would be zero. As we move into December, I suspect even less property for sale so that December could be a good month for sales, especially 1031 exchanges. — JaCi Wallace
After the vacations are over. After the kids are back in school. After it’s no longer considered cool to wear white, that’s when your real estate market in Sacramento takes off. The only problem with this is the market was already steamin’ hot in August. It’s a seller’s market in Sacramento, for those of you who have been living under a rock. It’s no longer a buyer’s market and hasn’t been for some time.
The conditions in Sacramento are tough, almost as tough as driving down the hill from Lake Tahoe after Labor Day in crawling bumper-to-bumper traffic. I swear, we probably would have been better off if we had turned off at the intersection and drove out of our way to Jackson than continuing to inch along Highway 50 from Tahoe.
We have tough conditions in Sacramento because we have about 10% of the number of homes for sale that we had five years ago. Mix that with low interest rates, below 4%, and throw in first-time home buyers on top of cash investors, hit the chop button, and you’ve got a blender full of something inedible.
If you would like to hire a real estate team (pictured above) to sell your property in this robust Sacramento fall home sales bonanza for sellers, please call Weintraub & Wallace Realtors, with RE/MAX GOLD. We will maximize your profit! We can be reached at 916-233-6759.
— JaCi Wallace
Multiple Offers are Happening in Sacramento Real Estate
Multiple offers are happening. The Sacramento real estate market in 2012 VS 2019 is similar in so many ways. The article below in italics, A Twist in the Sacramento Real Estate Market, was written in 2012 by my partner Elizabeth Weintraub. So let’s now look at my interpretation of 2019. I just sold an investor-type listing; we had 6 offers, all investors. Several were over the list price. The final selling price was 10% over list. This was the same thing happening in 2012. Multiple offers are happening on properties priced to sell. Low-interest rates, too, at 3.75%. Rents are matching purchase price monthly payments.
Rentals pencil.
Inventory is still low. New construction is adding inventory, but they can’t build them fast enough. When investors pay 10% over the list on a fixer,it contributes to higher appraisal values. While many people are nervous about the political climate, people still have to find housing. Wages need to go up to help people afford homes. I think 2020 is going to be a bumper crop year for real estate. 2012 was a big year and eight years later, we are experiencing very similar market conditions. Currently, the economy is doing quite well and unemployment is very low.
–JaCi Wallace
I prepare offer tracking sheets for each of my listings. That way, if I need to know years from now about the offers I had received for any particular real estate listing, I’ve got that information at my fingertips. Each of these sheets give me an overview of what happened. For the first time since 2005, I’m receiving over-market offers from investors who are paying cash. That’s the sign I’ve been waiting for. I disregard the first-time home buyers. It’s the investors I watch.
For months now, multiple offers are happening in Sacramento and have been the norm. That’s due to low inventory, low interest rates and high demand. It’s cheaper to buy in the buy or rent scenario. When it’s cheaper to buy than to rent, it also means investors will get positive cash flow even if they finance a home. So, investors and first-time home buyers have been competing, often for the same home.
Here is something to understand about first-time home buyers. When a first-time home buyer bids over list price for a home, that home buyer is not taking extra money out of her pocket. She is rolling the excess into her mortgage. So, it’s not really costing her a lot of extra money to make a purchase offer over the seller’s asking price. If she offers an extra $5,000, her mortgage payment changes by about $30. That’s peanuts. Using that formula, at 3.5% interest, she can bid $15,000 over list price and still not change her mortgage payment by more than a hundred bucks. Of course, it might not appraise at that amount, and therein lies the major problem with first-time home buyers overbidding.
If there are no comparable sales available at that price, the appraiser won’t submit a value at the purchase contract price. If the buyer gets a low appraisal, her only solution to move forward is to pay the $15,000 difference out of pocket, in cash. Most don’t have that kind of cash and, if they did, they wouldn’t pay over market with it. Not just for the opportunity to buy a home, nope. Unless they would. Unless they were that desperate to buy a home.
Not only am I seeing owner occupants who are willing to play all loosey-goosey with cash, but now investors are, too. Investors are no longer guarding their cash like a precious commodity. They are willing to pay above market value, because that’s the last thing to give in negotiations. It’s no longer enough to pay cash. Now, it’s got to be over market. That’s what it takes to make prices go up. An investor who is willing to pay more than the going rate. Investors who pay over market result in higher comparable sales. Higher comparable sales pave the road for higher appraisals, which opens the flood gates for first-time home buyers. — Elizabeth Weintraub
This is a great time to sell. Cash in on how multiple offers are happening today. Call Weintraub & Wallace Realtors, with RE/MAX Gold. 916-233-6759
My Sellers Are In Europe Using WhatsApp To Close Escrow
My sellers are in Europe using the WhatsApp. They tried several times to sign documents by email. The iPhones are not working there well except when using the WhatsApp. The property located at 8109 Sloughhouse Road in Elk Grove, CA 95624, was all set to close escrow, or so we thought. Before the sellers left for an extended vacation to Europe, we signed everything at the title company, and we checked in with the buyer’s side for any additional documents. They said nope all good on their end.
Unfortunately, a few things came up that needed signatures from the buyer’s agent though it was a three-month-long escrow. She had waited until the end to send in her buyer’s Agent Visual Inspection Disclosure forms. There are three residences, so she had three forms that needed seller signatures. Additionally, her buyer decided to change one of the terms her buyer had insisted on from the start, so I insisted they submit an addendum to keep my seller protected if there were any issues after the close with the tenant.
We tried again by communicating through the WhatsApp at midnight California time, as it is 8:00 AM on the cruise ship. The good news, the sellers were able to sign the documents. Finally, with these last steps to close escrow, we should not have any further issues. Twenty-five years ago, I could not have imagined how technology would change our industry.
Call Weintraub and Wallace Realtors, with RE/MAX Gold, if you are thinking of selling. Even if you are in Europe, we are using WhatsApp to do business and close escrows even if it’s Midnight. Call us today at 916-233-6759.
— JaCi Wallace
Closing Escrows In Rural Elk Grove, South County of Sacramento
Closing escrows in rural Elk Grove, the southern part of Sacramento County, is one of my favorite places for selling real estate. There are many aspects to rural sales such as there are several environmental issues to be aware of. Be aware of the utility easements for power. The fire department has access as well. There are some areas of flooding to be aware of. Lenders have federal requirements for flood insurance certificates. Of course, if you buy with cash no insurance is required, but use common sense as flooding repairs can be costly.
Freshwater wells and septic tanks can be problematic depending on age and use. There are zoning restrictions and numerous other factors such as the Williamson Act. Pricing rural real estate is anything but cookie-cutter, as these properties are not subdivisions. This is all about custom pricing and knowing an area.
There are also fencing requirements for livestock and the usability of the land. Having custom gated entrances is a big plus. Some properties have horse amenities, such as mare motels, hot walkers, covered riding arenas, round pens, feed storage, tack rooms, shavings bins and palpation chutes. Ponds and trees, too, have so much appeal to buyers.
This is a photo of 80 gorgeous acres. The barn is an old original dairy barn. When you walk through this barn, you can imagine the cows eating hay out of the mangers and mooing while being milked. You can almost imagine all the pails of fresh milk.
The photo above gives you an overview of the stunning acreage. Closing escrows in rural Elk Grove is always appreciated by the sellers. Stay tuned over the next few weeks as we will be posting some new photos of another gorgeous rural property located in Sloughhouse, California,
Call Weintraub and Wallace Realtors, with RE/MAX Gold, to list and sell your property. We can be reached at 916-233-6759.
— JaCi Wallace
Being Named A Successor Trustee As A Professional Fiduciary
Being named a successor trustee as a Professional Fiduciary is a seriously responsible job. What made me think of this is I work with Professional Fiduciaries. They represent people who need representation as they don’t have a family member or a friend they trust enough to take the job. Often, they have no family.
A Professional Fiduciary gets paid, of course. They go to doctors’ appointments, hospital stays, pick up prescriptions. They even purchase memory foam mattresses to keep their clients more comfortable. It is not inexpensive to have professional care, but it is a lot less than going into a care facility. Professional Fiduciary cases often prolong independent living in most cases.
One of my fiduciaries was at the hospital yesterday for four hours as one of her clients had a procedure. I often talk to her at night, and she is at the hospital until the early hours after midnight. She also pays bills for them. Her job entails taking care of their home and whatever else needs doing. Being named a successor trustee as a Professional Fiduciary is a vast job and carries so much accountability to the courts.
A few years ago I met a couple who wanted to buy a home in Elk Grove at Del Webb. I became very close friends with them. Unfortunately, the husband was also very sick with a horrible disease. They had no children. Sadly he passed away. I became the Successor Trustee for their trust. I am not receiving anything from the trust and I don’t want a red cent.
My friend has family members to help with the daily functions. I would be called in the event she became unable to care for herself, or doctors feel it is time for hospice. In the event she passed away, I would then administer the trust so her assets could be liquidated, including her primary residence. After the liquidation, the assets could be distributed to her heirs. She is doing well so I expect many happy years of visiting my friend.
Please call Weintraub & Wallace with RE/MAX Gold, if you would like to buy or sell a home. We represent a large number of Trustees and Successor Trustees as well as probate court sales. We can be reached at 916-223-6759.
Weintraub & Wallace
