Pushing Up Values for Homes in Elk Grove
A few years ago seems so ancient when I recall how first-time home buyers back then were complaining to this Elk Grove agent that they were getting beat out by cash investors. Home buyers began to wonder if prices were moving up when prices were still pretty flat. I predicted then that the appreciation push would happen when cash buyers bid against other cash buyers. Because offers are dependent upon appraisals when there is financing involved, and the appraisers typically do not appraise a home for more based on pending sales. They look at the comparable sales. Without cash offers, the comparable sales generally won’t move upward. This is not 2005.
Sure enough, I see that happening in Elk Grove now. In fact, an agent in my office had pointed a finger at me and said one of my equity sales in Elk Grove was establishing a new record, and it was my fault. This real estate agent lives in that particular neighborhood in Elk Grove. She saw I had listed a home on a cul-de-sac that was absolutely gorgeous. This was one of those homes that when you walk into it, you automatically know that buyers will be clamoring for it. As an Elk Grove agent who sells a lot of homes in Elk Grove, I know it when I see it. This was one of those.
The sellers had purchased this home as a short sale several years ago. It had a open floor plan, was a single-story with granite counters in the kitchen. Trying to figure out the list price was difficult because although many homes had sold in that area, few were not a short sale and none matched this square footage. Based on the median sales price and adjusting for square footage, I figured it would comp about $235,000, maximum. If we got an appraisal. And given the way prices were moving in Elk Grove, coupled with the extreme desirability of this particular home, I figured we could easily shove that price another $10,000.
But I don’t choose the sales price. The seller chooses the sales price. Always. It’s their home. All I can really do is give the seller what they are paying me to give them, which is my professional opinion from almost 40 years in the business. It’s up to the seller to take this information, digest it, and decide upon a list price.
These sellers chose the list price of $245,000. I then positioned this home to receive multiple offers and began to market it. We received more than 30 offers. The highest offer was cash at $275,000. The sellers accepted the offer with a fast closing. A few days later, that buyer’s agent confessed that she had written several offers and her buyer now wanted to cancel the transaction. Her excuse for what can be considered unethical behavior was my seller had 30 offers and her buyer did not enjoy that luxury. If you’re nodding your head in agreement, you’re probably not a real estate agent and, if you are a real estate agent, that nodding head probably ought to be hung in shame.
We then chose the next 3 highest bidders in line, whom the seller would consider. The seller asked each of these buyers to make a highest and best offer. They bid against themselves, and we sold the home for $268,000 cash. It closed last month in 3 weeks. Almost 14% over market value. That’s the value of a full-service listing agent. You would think the real estate agent in my office would be happy that we’re pushing up the value of her home in that neighborhood. But this is how homes price can go up in Elk Grove. If you’re thinking about selling a home in Elk Grove, call this Elk Grove agent at 916.233.6759.