Because I list and sell so many homes in the Elk Grove area, I get a lot of calls from appraisers asking about home pricing strategies and what happened during our offer negotiations. It’s a good thing I am organized. I keep all of my offers and notes on each in a separate spreadsheet just for reference. There is no way I can pull this stuff out of my memory. I’m lucky if I can recall the name of the street. The calls from appraisers generally center on how to substantiate the sales value without enough comps.
In my real estate practice of Sacramento home sales, I draw upon my 40-some years in the business when I advise my clients. Experience pays off. My sellers know I will share all aspects of the home sales process with them, and not just say what they want to hear. Of course, every seller loves to listen to praise, they want to hear their home is beautiful, but they absolutely need to know the downside, too.
I’ve heard of some Realtors who spend a lot of time criticizing a home, and what that kind of approach accomplishes, even if the criticism is deserving and true, is cause the seller’s heart to slip into her stomach. Often, sellers are suspicious of agents anyway. They know there are agents they can’t trust — just like there are people in all walks of every profession who are untrustworthy. But they especially mistrust the motives of an agent who can find nothing but bad things to say about their home.
Having just sold a home on 5 acres in Auburn when I work primarily down the hill in Sacramento was no easy feat but thank goodness the sellers hired this Sacramento Realtor. Now, I know what some of you are probably thinking, so I’ll bring up the White Elephant in the room right away. I am not a specialist for Auburn real estate, but I have sold many homes in Placer County and I’ve done a fabulous job for my sellers. I get 5 star reviews. My position is if a seller has to choose between a Realtor like me with 40 years of experience or a newbie neighborhood agent who attended school in the area, has family in Auburn and knows everybody in town, the sellers are still much better off with an experienced Realtor from the big city. And Sacramento is about as big as we get around here.
When the appraised value of homes in Placer County are less than the prices of homes for sale in your particular neighborhood, you may encounter problems selling that home in Placer County. Prices have not appreciated in all neighborhoods over the past couple of years in Sacramento and Placer, especially in certain high end gated communities when the attraction specifically targets a certain kind of buyer for a luxury home.
In some of those areas, when a listing agent is doing research it helps to look at the market from the eyes of a buyer and not the seller nor the appraiser. After all in the end it is always the buyer who determines the price, regardless of what the seller, the agents or the appraiser may believe. If a buyer wants to pay more than the appraised value, the buyer is rarely prohibited from doing so by financing restrictions.
There are a few neighborhoods in Natomas that comprise such a high percentage of rental homes that the unbalanced situation is negatively affecting property values. Home buyers relocate to Natomas because they want that close-to-downtown urban commute but they also want the suburban lifestyle offered in part by other homeowners who live nearby and who are just like them. If they wanted to live near tenants, they’d live downtown Sacramento or in Midtown. No matter how you cut it, if your street begins to dip toward more tenant-occupied homes than owner-occupied homes, your property values will undoubtedly suffer.