The real estate market is in one of its more complex modes as we deal with a tide of market changes, appraisal problems, and shifting supply and demand conditions. The most fundamental element of the Sacramento, Roseville, and Rocklin markets is CHANGE. Each day brings incremental changes that ripple through the housing market. Keeping up with these changes takes constant attention and outreach.
Declining prices and varying rates of price decline are making appraisals and comparable market analysis very challenging. Lenders very critical of appraisals and appraisers are worried about being banned by lenders if their appraisals are reviewed and found to be suspect. The end of each transaction is loaded with suspense, wondering what the final appraised value will be.
Foreclosed property demand is very stratified. While most smaller/cheaper properties have 10+ offers, many large foreclosed properties are sitting on the market, getting big price reductions. These larger properties can be very good buys relative to replacement cost, but remain the target of appraisal problems.
Short sales may be the most lucrative buys. Short sales require the lender(s) to approve a pay-off which is less than the original amount borrowed. Banks are flooded with these requests, creating long delays for approval of purchase offers. The good ones also generate multiple offers, and are often bid beyond the eventual appraised value. This results in the need for new approvals, and substantial delays. All of these conditions have the potential to create extraordinary situations that can be deal-killers.
Realize that these situations are all part of the real estate market's recovery, but buyers have to be ready for unusual situations and a willingness to work closely with their agents to solve problems that arise.
Patience is the virtue that creates successful buyers in today's market.
See Foreclosure and Short Sale Listings: http://jscottcarpenter.com/hotsheets/hotsheets.html
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Bye for Now,
J.Scott Carpenter
Carpenter Properties
call me at (916) 267-7653
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