Where to Find Short Sales and Foreclosures in Sacramento

Short sales and foreclosures in Sacramento are often not what people think.

Almost every few days I get a call from a potential buyer hoping to find short sales and foreclosures in Sacramento. Bear in mind that probably fewer than 5% of the short sales and foreclosures in Sacramento are a terrific deal, and it’s the “terrific deal” that buyers want, not necessarily the short sales and foreclosures in Sacramento. That’s just where they think the “deal” lies. Further, our short sale inventory has dropped by about 90% since 2011. Short sales comprise pretty much a very small fragment of listings.

Actually, the best deals are those mom-and-pop transactions, the For Sale by Owners: sellers who don’t hire a Sacramento Realtor. But explaining that to buyers who are dead set on buying short sales and foreclosures in Sacramento is pretty much wasted breath. People are glued to their beliefs. No sense trying to change ’em. These guys just get upset if a Sacramento Realtor tries to set them straight because they know what they’re doing, gall dang it, and agents like me who have been in the business for 40+ years do not. Gotta love ’em.

First, banks typically do not sell individual foreclosures directly to an investor. Banks prefer to sell either through an agent working with an asset manager or in pre-packaged bulk sales. A buyer can go to the courthouse steps and try to bid on a home there, but the buyer will be competing against the professional investors and auction sharks who make a living buying foreclosures at a trustee’s sale, plus those sales are generally cash only on the spot.

Another place to look for short sales and foreclosures in Sacramento is in our MLS. The foreclosures will be listed by a Sacramento Realtor who typically lists those properties through the bank’s asset manager at market value. If the homes need repair, they are sold AS IS and the price discounted to account for the repairs. Fannie Mae HomePath often lists foreclosures above market value. Zillow lists preforeclosures that are not for sale and probably never will be.

Also, my educated guess is maybe 20% or 30% of the short sales in our MLS are not actually short sales. They are homes listed by a naive Realtor who does not understand she needs to prequalify the sellers first. If the sellers aren’t qualified for a short sale, listing it that way does not make it so, grasshopper.

Generally, the great deals in short sales are those that have been previously approved and fell apart because the buyer split at the last minute. But working with a knowledgable Sacramento Realtor is the way to find the best short sales and foreclosures in Sacramento. You might come to realize that what you really want to buy is an investment property to hold for a long-term rental, and it doesn’t much matter whether that property is a short sale or foreclosure.

Front-end profit potential is a small part of the overall investment picture. Not owning any property at all is often the end result when the focus is solely on the front end. If you would like to work with a Sacramento Realtor, call Elizabeth Weintraub at 916.233.6759. Today or years from now, makes no difference to us. We’ll still be here, diligently working in Sacramento real estate.