There is a lot of saber rattling today on how strong the housing market is with sales up and prices too. Did you know that the trends come in after they've happened? The Sacramento Home Store is not be fooled by this news as it is 60 days behind the market!
The demand for homes has decrease in the month of July. A couple really important things to look at is that applications for home loans have gone down every week since the middle of June
and the closing out of the Federal First time Home Buyer's Credit and the California Buyer's Credit as well has resulted in even less pressure on the market. Here in Sacramento, CA we are looking at starting at 5% to 10% below listed prices in offers on many homes and even lower where the home is above the trend statistics for size of home and area.
No, I'm not saying go out there and low ball every offer! What I'm saying is that for many of the homes out there, agents and banks are still pricing them with info that was accumulated from two months ago. A Comparable Market Analysis has never been more important than now. And we've really got to look at those numbers. When considering pricing we really need to ask ourselves... What direction is that areas home's values headed? Do we see trends we need to anticipate for? Well, for the most part... yes! The Sacramento Home Store has decided that every home with client interest needs to have the price really scrutinized. For some offers we are even calling in local appraisers and asking a second opinion before even making an offer.
Okay, okay... yes, doing a price analysis on a home before making offers is something we've ALWAYS done (well, at lease the Sacramento Home Store has), but what I'm trying to point out here is this: with the market showing late trends, if an agent is not actively hand holding their clients through the pricing process (buyers and sellers) they are doing a disservice. Not just to their client, but to all of us. Over pricing a home off a late trend may cause your seller to miss buyers. Over valuing an offer causes appraisal issues. Both can make a home stagnate on the market and force these trends to continue to skew true values. This is why I believe that many homes, right now, should be receiving offers 5% to 10% below their list prices.
If you are looking for homes in the Sacramento area, or Carmichael Real Estate, call someone you trust will give you the best, most accurate info. Visit us at www.SacramentoHomeStore.com or call 916-4-My-Key-2 your real estate specialist today!
Thank you Francesco Marino / FreeDigitalPhotos.net for the photo.
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