A seller in Granite Bay expressed interest yesterday in possibly selling her spacious two-story home near Douglas Ranch. The problem is she wants a home in the seven-hundred range to be worth at least $900,000 to maybe a million. And why not? Everybody wants to make a profit from an investment, even if it's a home that they are moving out of and away from to another city. Because they always have the option of renting their home and paying negative cash flow. Negative cash that might not make up for little appreciation, but not my call; not my home.
She agreed with my assessment of her market value and said it was not enough. The thing is in this market it's hard to say whether a home will sell at the price it appraises. Because those can be two very different things. There is the acceptable sales price that a buyer is willing to pay and a seller is willing to sell at (called market value), and then there is the appraisal, based on comparable sales. Today, those two values can be very far apart. And I suspect that's what makes sellers hope that home prices are about to double in Sacramento.
Read more in my personal blog today about Game of Thrones, House of Cards, and I also talk about When Will Home Prices Double in Sacramento?