New Natomas Homes vs Resale Homes by Same Builder
Much of the new Natomas homes vs resale in Sacramento are not constructed on spec today. Builders found out the hard way how quickly they can get stuck with inventory when markets shift. Today, many builders expect a commitment to buy new Natomas homes before they break ground. It is especially important to know this as a Sacramento Realtor when selling resale homes by the same builder. Because given a choice, new or used, you know which buyers would pick.
So that was my challenge when I was called upon to list and sell a resale home in Natomas that had not yet met its first year anniversary. Circumstances beyond the seller’s control led him to need to sell his dream home. He paid for many thousands of dollars of upgrades, which had now slightly depreciated. Not only that, but his home was located on a busy street, and his cul-de-sac was so narrow that you couldn’t turn around without driving into somebody else’s driveway.
Let me say a word about upgrades in new Natomas homes vs resale. Buyers pay through the nose for those upgrades. They are new for about 3 months. Then, for the rest of a buyer’s life, she will remember exactly how much each item cost, and she will decide much later in hindsight that the money she spent just wasn’t worth it. There are no years and years of builder upgrade enjoyment.
Another drawback to this home was the funky layout. You entered through a long hallway, with a bedroom / den at the front of the house. A bit creepy. After moving through this enclosed tunnel, then it opened up to a beautiful entertainment area, dining space and a gorgeous, simply drop-dead WOW-factor kitchen. Straight outta HGTV.
Our best bet to sell this house would be pricing it in direct competition to the newer homes. The benefit to passing on new Natomas homes vs resale homes by the same builder is the fact buyers do not have to wait. They can buy the home of their dreams right now, and it’s already built with a ton of upgrades.
Plus, the seller had a time-sensitive incentive, a valid reason why he needed to quickly sell. Still, he wanted to try a higher sales price, so that’s what we did. After a few weeks, it was pretty clear buyers were not warming to the over $500K price tag for the resale home. More research that I presented to the seller indicated the home should be priced at $485K. That was about what he paid for it a year ago.
Fortunately, the seller took my advice and adjusted the sales price. Next day, bam, into escrow. He said he should not have questioned me because I was right. Hey, I’m always right, I laughed. Mostly always.
Unfortunately, it took the buyers forever to close escrow. They ran 3 weeks over the deadline for closing. Their mortgage company wholesaled the loan to Citadel. Remember that name because everybody I know who has worked with that group has awful things to say. It’s like the loan got approved with the mortgage lender and then they started the process over from the beginning with Citadel. Slow as molasses. Bad communication. Buyers were almost as disturbed as the seller over the horrid ordeal.
However, we did close yesterday, a bit over list price. 16 Lake Katerina Ct, Sacramento, CA 95834 closed escrow at $488K.
When it closed yesterday, I told the buyer’s agent, this deal with Citadel, well, I prefer dealing with Hurricane Lane. Which, when you read this is banging the hell outta Big Island. I am at our house in Kailua-Kona for the Labor Day weekend. Actually, it is not a choice. Now that I pause. I had to do both.