sacramento real estate
Sacramento real estate and the election are always are high on the list in people’s minds during the fall of an election year. Some people say they will hold out on making a buying or selling decision as they feel the market prices could fall dramatically, depending on who is chosen as the President.
There will always be a high demand for a place to live in the USA. In the greater Sacramento Valley of California, our current real estate environment has not had enough home inventory for years. New homes are the only way to add inventory, and they are slowed down due to covid.
Fires and Buyers
Manufacturing is down, and fires have destroyed a lumber mill in Oregon. Where do all the homeowners go who lost homes in the Bay area fires? Well, with Covid, many can now work from home, so they need no longer live in the bay. They can take the insurance money and buy in our northern California 6 county area of Sacramento, San Joaquin, Yolo, Placer, El Dorado, and Nevada counties.
Building Homes & Interest Rates
It is currently challenging to obtain building materials. Contractors are reporting a concrete shortage. Wood is behind on many orders. Experienced construction workers are high in demand and hard to find. The interest rates are at historically record lows. What does all this mean? This Realtor predicts an ongoing high demand for Realestate in the median and entry-level price points. Entry-level and median level home sales to $799k are flying off the shelves. Jumbo loans are now available but not as EZ to qualify, so talk with your lender. Our preferred lender Dan Tharp with Guild mortgage as many videos on loans and price points. Call him for advice in the previous link.
White Elephant Trophy Homes
The upper-end price points depending on the high demand areas and amenities are also selling. Those “White Elephant Trophy Homes” are not flying off the shelves in record-breaking numbers, but that’s another blog; stay tuned for it in the next few weeks. A seller’s market does not apply to every home; keep that in mind.
People still need a place to call home regardless of who sits in the Whitehouse. With over four decades of experience within our Real Estate team, we have observed very little change to overall real estate in the past elections. Yes, absolutely no matter what side of the fence you are on, get out there and vote and buy real estate. There are several essential items on the ballot, and interest rates have never been better. Call Weintraub and Wallace Realtors with RE/MAX Gold to navigate your home sale or purchase. We can be reached at 916-233-6759.
— JaCi Wallace
How California fires are affecting Sacramento area real estate is a timely and brilliant blog. It is written by our exclusive buyer’s agent, Josh Amolsch. Enjoy, — JaCi Wallace.
I have realized over the years that things that are obvious to me are not always obvious to other people, and vice versa. We all live in our own little bubbles or “echo chambers” as I heard someone once say. We live “our own truth”, a sad but true reality for the misled.
If you were to ask my dentist how California fires are affecting Sacramento real estate, he might tell you that homes are sitting on the market longer right now because buyers don’t want to go out in the smoke to see homes. Well, no. Homes are flying off the shelf as if they were the mad rush in March 2020 for toilet paper. People don’t seem to care about the smoke-filled skies right now when it comes to buying a home. A steady stream of buyers keeps on coming in from the Bay Area. Since companies have found out that their employees can work from home, it seems they are taking advantage of that momentum. Boy, some commercial real estate is going to take a hit due to the lack of demand for brick and mortar.
One big way how California fires are affecting Sacramento area real estate is with affordability in the foothills. I recently wrote an offer on a property in Colfax, and the insurance quote came back at $8000/yr. That pre-approved buyer is suddenly not able to buy that home, even though it is in his price point. With fewer buyers for these types of properties, with astronomical insurance costs, we might start to see properties come down a bit in Placer and El Dorado counties. Heck, as long as I am speculating, we all might see our insurance rates go up if we keep having these fires in California. #%^& flows downhill, right? Yes, it does, especially when all the trees and absorbent-brush have been burned up.
Displacement is another way that California fires are affecting the Sacramento area’s real estate. I can’t imagine all of those people who lost their homes in the fires will just wait. Who wants to wait in a hotel room for their insurance company to build them a new house right where theirs burned to the ground. Many sellers will move out of the area or out of state.
Sacramento area real estate is, ahem, on fire and has been since before it was trendy. To navigate this absolutely crazy market, you need an experienced agent, a legendary team. Give us a call if you want to buy or sell, and we will hit it out of the park for you. When we take on a client, we dedicate our lives to making their goal come to fruition.
— Josh Amolsch
Metrolist Sacramento MLS pending sales March-May 2020 is a clear snapshot of the current surge in pending sales. Clearly, May 2020 forward shows increased buyer confidence. We would customarily see an uptick this time of year; however, Covid19 has some buyers nervous about home buying. Many buyers we talk to are surprised when they see the reports like this graph. If they are out shopping, they know as buyers are only allowed two at a time, so buyers are waiting outside in a line on some listings. The above market snapshot is a good example of simplicity and EZ to follow. The inventory is increasing slowly, but not by much.
The buyers are out looking, and our phones are ringing off the hook! Today we have offers on several of our listings; one, in particular, may have multiple offers. It is like a switch came on. Many of the buyers who were waiting to buy since the Covid19 shelter in place occurred in March, decided they had waited long enough. It’s time to take advantage of the historically low-interest rates. The market is hot right now. Since May 1rst, the pending sales are on the rise. Don’t miss your opportunity, as it is knocking at your door.
Metrolist Sacramento MLS pending sales March-May 2020 shows it’s time to buy, and an excellent opportunity exists to sell your property right now while there is little competition. Call us today. Weintraub & Wallace Realtors with RE/MAX Gold can help you navigate the market successfully to achieve your real estate goals. We can be reached at 916-233-6759.
— JaCi Wallace
It takes a village to close a Sacramento escrow is a blog previously written by Elizabeth Weintraub. I have included an excerpt in italics below as this is a broad stroke topic that deserves more dialogue.
Before the escrow begins we have the title officer order a Preliminary Title Report. We order the natural hazard report. Next, our pest and roof report. To sell a home as-is, for me, if the reports are upfront, then they know what they are buying. I’ve always practiced real estate this way for 25 years and it has never been a problem. Let me say though that this is not the only way to practice. Some agents order no reports and, in fact, do not want to know anything and that is just as correct. It’s all a matter of the path you feel confident using.
I sell a lot of probates and these are sold As-Is. My fiduciaries and attorneys prefer I order the reports. I put right in the counter offer that any attempts to renegotiate or ask for credits you will be canceled at the first opportunity. I have the buyer sign the reports and a receipt for reports. No matter how well you prepare, agents still may come back asking for repairs and the seller says “no dice, no repairs.” They threaten to cancel and then they come back around, if they are truly serious. Stupid game to close a Sacramento escrow.
Welcome to home buying stress. Almost anybody who is buying a home in Sacramento today is stressed out. I don’t care who you are. There is no way to buy a home and not be stressed about it, so don’t feel alone. Even if you’re lucky enough to have beat out all of the competition and get your purchase offer accepted, you still need to get through underwriting. Lenders are much more strict than they were 5 years ago, more restrictive than a year ago or last month, it seems. Just because your lender says you’re fully approved does not mean you will get a loan.
I’m not trying to give you one more thing to worry about but getting approved by underwriting is a concern. I had one seller cancel an escrow a few months back because the buyer asked for too many extensions. It was a home in Elk Grove. No matter what the buyer did, she could not close her loan. The reason she could not close her loan was because the IRS was backlogged. She needed her tax returns from the IRS. She couldn’t get them. My seller got tired of waiting and canceled. I didn’t blame her.
Another buyer in Lincoln could not close on her escrow. Something happened to her financial situation so the USDA loan she was trying to get was no longer a reality. She could not afford the FHA loan under its program terms, so she ended up losing the house. She lost her earnest money deposit, too, if I recall correctly, or maybe they are still fighting over it. My seller sold to another buyer who could perform.
Just last night, a Roseville buyer found out her “fully approved loan” did not pass underwriting. She needs to now haul in her parents to be cosigners, which means escrow will be delayed. My seller expected to close this week, and now she will have to wait another couple of weeks or start with over with a new buyer. Oy.
You can see that nothing has really changed over the years. This stuff is still going on. But here at Weintraub & Wallace Realtors at RE/MAX, we know how to close a Sacramento escrow. If you would like a relatively stress-free transaction, please call us at 916.233.6759.
— JaCi Wallace
How do Sacramento appraisals work? Appraisals are something that is always interesting to talk about. This excerpt below was provided from a blog, which Elizabeth wrote some years back. It got me to thinking about the various appraisal challenges we have had. A great subject to write about today for our blog.
One of the actions we take to assist with the appraisal process is to provide the comparable sales that support our list price. When our listings go pending we change showing instructions to not reflect a lockbox. This ensures the appraiser calls us to get in so they can’t enter without us. As if they can get in and out they may leave with very little information and then a low appraisal. Additionally, we provide the appraiser all the upgrades and features that support our list price. Many appraisers want to bring the value in however, without the added information we provide the appraisal can come in below the sales price. What does a low appraisal mean to a seller? A topic for another blog, the impacts of a low appraisal in escrow.
— JaCi Wallace
“People think Sacramento appraisals are etched in stone, but that kind of thinking is flawed. Appraisals represent an opinion of value. Get 10 appraisers together in a room, and you’ll have 10 opinions of value, and some of them will undoubtedly be worthless. But that doesn’t stop people from thinking their home in Sacramento is worth a certain value because the appraiser said so or the agent said so.
Market value is that price, at which a seller is willing to sell and an able buyer is willing to buy. It’s when you throw a lender into the mix that appraisals come into play. This is a reason sellers tend to prefer cash buyers. When you throw an appraiser into the transaction, it’s not unusual for market value to vanish — poof! The appraisal is for the lender, to protect the lender’s security; it’s not for the buyer, even though the buyer pays for it.
So, how do Sacramento appraisals work? When you hire full-service Realtors to list your property, we work with the appraiser to do whatever we can to reduce appraisal value issues. To ensure your appraiser is provided all information available, call Weintraub & Wallace Realtors with RE/MAX Gold. We can be reached at 916-233-6759.