home buying tips
For some reason, it has been drummed into the heads of Sacramento home buyers that it should not be OK to pay list price for a home. Which is the silliest thing I’ve ever heard, and yet I hear it a lot. I heard it back in the 1970s when I started selling real estate. My mentor at that time taught me that owning real estate is the most important thing. Even if I pay list price, it’s OK. There is nothing wrong with paying what a home is worth. Yet, we always want to get a deal . . . when the truth is there are no deals if you don’t buy the home.
This is a story that needs to be shared in hopes you won’t ever end up in the position of making Sacramento home sellers refuse to sell the house to you. In its telling, the Sacramento buyer’s agent is not the focus of this incident, although she bears some responsibility. She was the last person who could have told the buyer NO, the proposal is a lousy idea. Or, she could have refused to accommodate the request. Or, she could have disclosed her buyers’ intent in the purchase offer. But she allegedly, by her own admission, was in no condition to do any of those things. The point here is she is not necessarily a bad agent.
One of the worst things that can happen in any escrow is dealing with adversarial buyer possession that can arise when the seller refuses to move out on time. The reasons a seller may refuse to move out are numerous. The seller might not have been made aware of the date of closing. Although our transaction coordinators send out an estimated timeline, not every listing agent will respond to the timeline. Some will not send it to their sellers. Some listing agents don’t hire a transaction coordinator, either. Or, sometimes listing agents don’t know how to count the days to closing in a purchase contract. In which case they give the wrong date to the sellers.
For some lucky sellers, it is definitely possible to pursue buying a home before selling a house in Sacramento. How one goes about this depends on basically two things: the type of real estate market you’re in and your financial ratios. At the moment, we are experiencing a strong seller’s market in Sacramento. This means sellers are in the driver’s seat. We have low inventory and high numbers of buyers. It’s the principle of supply and demand at work.
Sure, we have buyers who say, my house is so beautiful, it will sell right away, so why can’t I look at buying home before selling? As Sacramento Realtors, we have to bring these buyers into reality. Move them outside of their own situation and get them to look at this through the eyes of the seller. I say to them: Ok, pretend YOU are the seller of this house and YOU have 5 offers. Four of those offers are from buyers who don’t have a house a sell, they have no contingencies. They can get a loan and close right away. And then there is YOU. You who have not even put your home on the market, and you who wants the seller to wait while you get around to it.
Agents who don’t prepare an agent visual inspection deserve what they get. For many real estate agents working in Sacramento today, the 1984 case of Easton v. Strassburger is nothing but a legal phrase they recall from a real estate exam and meaningless to them today. Since I had already been working for years in real estate when the California court of appeal ruled on this legendary case, the ramifications of Easton v. Strassburger struck fear in my heart and it’s never left. This landmark lawsuit changed the way I forever since have done business.