sacramento realtor
Tips for Helping Sellers in Sacramento to Understand our Real Estate Market
When I take a listing, in turn I am helping sellers in Sacramento by providing accurate data and being painstakingly honest. Part of my directness, undoubtedly, comes from being raised in the upper midwest. My mother always called Minnesota the upper midwest and not just the midwest because I presume she didn’t want to be confused with Missouri or Kansas. Like she lived in Upper Manhattan and not the frozen tundra of Minneapolis. But I grew up believing the only way to relate to others was to be honest and direct rather than embellish or, worse, make up things you can’t remember.
If people don’t like it, they aren’t a good prospect for me. In that photo above, you can see my sisters and brother on the front steps of the first house my parents ever bought. I am on the right, grinning in a red tafetta dress and my fancy saddle shoes. My sister, Kathryn, on the left lives in Robbinsdale, Minnesota, and long ago, without reason, cut off all ties with the family. My brother John died from sarcoma two years ago, and my little sister, Margaret, is still in Minneapolis. We talk every Sunday.
Look at us. No safety railing on those steps. Probably asbestos in the siding. Ha! Lucky we didn’t all die, riding bikes without a helmet.
Yet, now that I’ve been in the real estate business for 40+ years, I’ve learned that being direct is still the best policy. Never deviated from that factor. Although, I am cognizant of what other agents might say to sellers. I won’t go so far as to say they lie, but they don’t always tell the truth. If you ask a listing agent if this a good market in Sacramento to sell, you’d be hard pressed to find an agent who will say the market is softer and demanding. They tend to paint rosy pictures because they don’t want a seller to get discouraged. They also know that sellers tend to gravitate toward those who make them feel good.
But that’s not my method. Maybe that’s why I’m so successful when I’m helping sellers in Sacramento sell a home. I spoke with a potential seller yesterday about selling a home in Citrus Heights. She said it was worth about $300,000, and I know instinctively she pulled that number from Zillow, which is often incorrect. Then she told me it needed work. No updates. She bought it in 1998. Well, there are only two ways an older home in Citrus Heights without updates will sell.
Either you update the home or you reduce the price accordingly to account for condition. Nobody thinks about “condition” when they live in a house. It functions. What’s not to like? But buyers have plenty to say about it, and they will pass you by. This seller’s solution was to either a) sell AS IS or b) remove the carpeting and install ceramic. How do you tell a seller that ceramic floors are a thing of days long gone past? With compassion and empathy, that’s how.
She also thought she could come up with a number that it would cost renovate the house and then deduct that amount from the sales price, and a buyer would hop on it. So, I had to explain it doesn’t work that way. If faced with house A, all fixed up, at $300K or house B, needing $30K of repairs and priced at $270K, which would a buyer purchase? Why, House A, of course. House B would need to be priced around $250K or less to sell. Buyers expect compensation for the hassle.
This seller also did not understand that the $300K homes were much larger than hers. Square foot cost? She never heard of that computation. To her, a 1,500 square foot home would sell for the same as an 1,100 square foot home, except they don’t. Well, I probably talked her out of selling all together, but that’s what helping sellers in Sacramento is about. Helping them to come to their own decisions and making informed decisions.
If you’d like to talk about selling your home, please call Elizabeth Weintraub at 916.233.6759. My full intent is to sell your home at maximum profit potential for you. You can rest assured I won’t tell you what you want to hear, but I will tell you what you need to know.
Spotted a Red Shafted Northern Flicker in Sacramento
When I showed my photo of a Northern Flicker in Sacramento to a friend yesterday, she asked accusingly: how do you the name of that bird? Like I’ve been holding out on her. Um. Because I know the names of birds. Cannot help it; I make it a point to be aware of the wildlife around me. It’s the same fascination I have with most products of nature: the trees, flowers, rocks and certainly the tropical fish in Hawaii waters. But it’s birds that got me started. Both my husband and I became obsessed about the same time. It just happened. One day we were normal people just like anybody else, until one day we realized nope, we are not normal. We are birders.
This would have been a better photo if I wasn’t on the phone talking with a new client about selling her home. She had asked me if she couldn’t simply raise the price a little bit so she could make more money. This is not the first time a seller has asked that particular question. It seems like an odd question to me, but it can’t be that odd if many sellers ask the same thing. Sellers are really asking whether they could inadvertently leave money on the table — that is the underlying fear. The fear of pricing it too low.
So the natural instinct seems to be to raise the price over market value. Which is a bad idea. There isn’t much chance of a home selling too low. Reason is it’s on the market at a particular price based on comparable sales. That price may or may not be the price at which it will sell. That price should be the price it needs to be to attract an offer. To make buyers interested in buying the home. Raising the price above market only increases the possibility that buyers won’t make any offer at all.
Maybe if we held a Fukuburkuro sale. Yeah, I’m just kidding.
I’m explaining these concepts while I’m standing in my family room staring out the window at the red shafted Northern Flicker in our back yard. He’s foraging and singing. Not enough time to grab a camera with a zoom lenses, and let’s face it, my conversation with the client was more important. Still, I can’t really say, hey, would you mind holding on for a moment while I snap a photo of a Northern Flicker? Well, I suppose I could say that. But it wouldn’t be appreciated.
As a result, I snapped a few pictures through the glass window with my cellphone. Multi-tasking. Above is about the best photo of the Northern Flicker. How do you like the black phoebe to the right that I shot a while back in my front yard? Big difference when one uses a zoom lenses and a quality camera that is not a cellphone.
How to Say No to Lowball Offers from Home Buyers
We’re not gonna go all Nancy Reagan on you by insisting we just say no to lowball offers from home buyers because words matter. Just saying no doesn’t cut it. Doesn’t even begin to scratch the surface. I mean, let’s say a home buyer calls out of the blue. Upon further discussion, the buyer’s agent learns the home buyer has made several offers already through different agents. Every time the offer gets rejected, the buyer fires his agent. And now the buyer wants to work with you. This is where Wally says, “Golly, gee, Beaver, that’s swell.” Sure, how lucky can we get?
Pretty darn lucky, this Sacramento Realtor says. Because we have something those other two agents don’t have. Perspective and information. They came into this blindfolded but our eyes are wide open. The buyer has already told us what he expects, including what he will do if he doesn’t get it. This is where being an experienced Realtor really shines.
Means, we can just say no to lowball offers from home buyers, or we can choose a different plan of action. We have plenty of options available before us.
One option of course is to just say no to lowball offers. Tell the buyer we cannot work with him and send him on his merry little way, but that doesn’t resolve anything. It just puts more distance between you and the problem.
Another option is to hang in there, do what an agent would ordinarily do and hope for a different outcome. That’s not an option I suggest. Sets up the agent for failure. And the buyer. Because his present way of thinking is not working very well given the facts he is not buying a home and popping from agent to agent.
Question, Clarify and Educate is the best way to say no to lowball offers from home buyers
The best option is explore why the buyer expects to get a lowball offer accepted. To dive into the reasons the buyer feels the need to make such an offer. What does the buyer think of his percentages of success? Does he give himself 50 / 50 odds? 70 / 30, what? Where did he come up with this strategy, a strategy that leads him to failure?
An agent can produce comparable sales and show the days on market, list-price- to sold-price-ratios, but you might not get a logical response. It’s better to ask enough questions to determine motive. An experienced buyer’s agent will try to understand and empathize with the buyer. Empathizing is not the same thing as sympathy. Empathizing is putting yourself in the shoes of the buyer. Not feeling sorry for them. That would be sympathizing and no buyers need our sympathy. They need our empathy.
When a buyer throws out, “What harm can it do just to ask?” Instead of mumbling, an experienced buyer’s agent will not agree with that question and will explain the harm it can do. Sellers don’t want to be blindsided by lowballs. It ticks them off. Makes them angry. Selling is an emotional issue.
There can be isolated circumstances that call for lowball offers and markets that do not. This is not a market for lowballs. Besides, most lowball offers are just a cry to meet in the middle. Buyers don’t want to show their hand out of the gate. They don’t want sellers to know how much they will pay. Most offers in a normal market get accepted when the sellers come down a little bit and buyers go up from that initial offer. Which means buyers today expect a counter offer.
Sacramento Housing Trends for September 2018: Twice the Homes
The biggest news to hit our Sacramento housing trends for September 2018 is increased inventory. Our inventory doubled this year. This is welcome news for home buyers, including sellers who plan to move up. For all practical purposes, our market inventory is still low enough to qualify for a seller’s market, even if the market is no longer fully cooperating with that notion. That’s because there are too many opposing forces to make our real estate market in Sacramento a true seller’s market.
Generally, in a true seller’s market, we have the following character attributes:
- Single-digit days on market
- Over list price offers
- Multiple offers
- No seller repairs or credits
- Few price reductions
- Rising prices
Except for highly desirable properties or under-market pricing, those characteristics are not really inherent in our present day Sacramento housing trends for September 2018. Our market is fairly stable and moving toward a buyer’s market.
Surprisingly, here are the characteristics inherent in our present Sacramento real estate market:
- Longer days on market
- Under list price offers
- Single purchase offers
- Seller credits and repairs
- Many price reductions
- Stable prices
However, it doesn’t mean the sky is falling or that the market is collapsing. Just means fewer closed sales, fewer pendings. For example, when I looked at my listing inventory, I have only one pending sale for this month. That is low for me. So I checked out the pending sales for a few other top producers, and we’re all pretty much the same. Some top producers show zero pending sales. It’s unusual for me to enjoy any breathing room.
In our present Sacramento housing trends for September 2018, we’ve got sellers clamoring for information. Everybody wants to know what they can do differently to quickly move a property and few, really, want to lower their prices where they may need to be. Our median sales price in Sacramento County is $360,000, identical to last June. In contrast, our inventory has doubled from January of this year.
What does this mean? It means it’s an excellent time to buy a home in Sacramento. High inventory means more choices. More choices means better chances to negotiate benefits such as repairs or closing cost credits. Not to mention, buying this year means lower interest rates. Next year, buyers will pay more for financing. Call your Sacramento Realtor Elizabeth Weintraub at 916.233.6759 and put 40 years of experience to work for you.
Home Buyers Not Looking for Home Improvement Projects
Just because you and I may love tackling home improvement projects does not mean everybody shares our point of view. Especially not first-time home buyers in Sacramento or, for that matter, even move-up buyers. Today’s home buyers want move-in ready homes. They do not want to make repairs. Gone are the days of buying a resale home in average condition. There are two instances under which a buyer would purchase a home in average condition. Either the home is priced way below market value, making it an absolute steal, or wait . . . there is no second reason.
Trying to sell your home without making repairs is like inviting guests for dinner and expecting them to bring their own food and cook it, too.
I was thinking about this as I drove yesterday to Rosemont. The traffic on Highway 50 is always a bit rough on that stretch of freeway between downtown and Watt, but yesterday I spotted a hearse. When I saw it, the first thought in my head was not party-time! Nor did I wonder how many people we can stuff into it. Hearses were very popular as a vehicle for private citizens when I was a kid. We painted them psychedelic colors and drove them around like they were a limo. People lived in them, too, and held wild parties. But no, this hearse made me feel respectful of the cargo it may have carried. A different point of view than my initial instincts.
Also, the hearse was in the lane next to the fast lane. I guess there was no reason for it to be in the fast lane. Who is in such a rush in a hearse? Nobody, that’s who. In fact, I would feel rather uneasy watching a hearse exceed the speed limit in the fast lane. Wouldn’t you?
Sometimes sellers are in a big rush, too. They can’t wait to put their home on the market, even though it might need work. If it needs work or updates, then sellers should complete those tasks before putting their home on the market. You will not get top dollar for a home that needs work. I talked with sellers last night who said a bath might need work, but they want to let the buyers use their own vision for that job. I had to explain that buyers are not looking for home improvement projects. Buyers would rather pass on a property and will buy another home that doesn’t need any work.
The mindset today seems to be they just want the work done. They will pay a bit more for a remodeled house but they want it to be perfect. No major flaws or defects. No home improvement projects.
In fact, I visited with several sellers this past week. Two of them are not sellers. They think they are selling their homes, but they aren’t. I can tell just by chatting with people. I’ll be visiting new sets of sellers next week and helping them to fix up their homes prior to selling. If you’re thinking about it, give me a jingle at 916.233.6759. Put 40 years of experience to work for you.