How to Sell a Sacramento Condo Over Market Value
Ask any seller if she would like to sell a Sacramento condo over market value, and the answer will undoubtedly be a resounding YES. Sacramento condos are a hot commodity right now because those prices, although rising, are still affordable. I hear some buyers complain that they think the HOA dues are too high. Those are the buyers who don’t always fully appreciate the amenities available through certain homeowner associations. Yet, HOA dues are a factor.
On a side note, as we become less and less connected to our home life as I see this trend, I would not be surprised to see home-care lifestyle packages sold to regular homeowners down the road. Companies will provide in-home meal preparation, housecleaning, car washing, gardening, maintenance and repair, spa services like a workout trainer, hairdresser, masseuse and pedicure specialists, all for one low monthly fee to subscribers. Live like a 21st century Downton Abbey. We are turning into little robots, unable to care for ourselves. But I digress . . . and back to how to sell a Sacramento condo over market value.
The seller had called me from Orange County, expressing a desire to sell a Sacramento condo in a complex that had experienced dramatic price shifts over the years. Since the market crash, many of the units were sold as short sales after the values were slashed. The rebounding market in Sacramento helped to turn around prices, but we are not fully recovered. Prices are not at the high of 2005. Naturally, the seller wanted to maximum her profit potential for the condo.
My suggestion was we eliminate conventional buyers from the process and focus solely on cash buyers, but that was not well received advice. I also pointed out that in our hot Sacramento market, buyers would most likely bridge a gap in the appraisal. Sure enough, just like I predicted, we went into escrow with a conventional buyer who agreed to pay the difference between list price and the appraisal. The appraisal matched my original estimate of value.
The buyer could not close because he had a former short sale on his record from 3 years ago, and the underwriter would not grant him an exclusion. Underwriters are not required to. We switched to FHA and got a spot approval on the condo, but that underwriter denied the file because she did not believe a buyer who works in San Jose would commute. All of this caused delays until we canceled the buyer and received a new offer. The new offer was cash, above list price. The condo was already was listed above market.
Just goes to show that if you want to sell a Sacramento condo over market value, you need to price it over market value. If the condo is attractive enough, a cash buyer will pay your price. The real estate police do not insist a home must be listed at market. If you want to hire a Realtor with four decades of experience, an agent who will work with you to accomplish your objectives, call Elizabeth Weintraub at 916.233.6759.