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Showing Homes in Today’s Sacramento Real Estate Market
July 12th, 2007 categories: Real Estate, Real Estate Market, Sacramento, Sacramento County
Real Estate in Sacramento as in many of the surrounding areas is spattered with quite few homes in Short Sale, Foreclosure and REO properties (owned by the bank). Every now and then, we see a home for sale that isnt distressed and part of the back lash of the irresponsible loans issued in the past 3 years.
It is such a pleasure to show a Sellers home who can actually accept an be part of an offer on their house.
Recently, I read that 22.4% of the homes listed for sale are either a short sale or Bank owned property for sale (called a REO) on Sacramento Real Estate Statistics. It is easy to see the Bank owned properties just look for the burned up lawns and the house that sticks out like a soar thumb in any neighborhood. All of these distressed properties have a direct impact on the neighboring homes in their area. In other words, this effects each and everyone of us.
As of today, July 11, 2007 there are currently 9,839 single family homes for sale in Sacramento County. Based on the fact that 936 single family homes sold in June 2007, this means that Sacramento County has 10.5 months worth of inventory on the Real Estate market right now. And thats only if no other homes come up for sale. Sellers can expect that it may take up to 10 1/2 months to sell their house.
I personally, have written 4 offers on homes in short sale the past few months and none of them have come even replied. It is important to realize that even though the bank may have okd the short sale, the second lien holder has not. If the second has a recourse loan (typical on a refinance loan), you can rest assured that unless the homeowner signs a note for their debt, the second will not accept the short sale offer.
There is very little motivation for the banks to accept a short sale offer since there is no tax write-off when the banks accept short sales, so Im told.
You ask why then, do you show these homes? Good question. I dont discriminate. I show all properties if they fall within the price range and specifications of my Home Buyers request. Of course, my Home Buyers are informed if a property is in a distressed situation and I explain that it may take weeks and months to hear from Bank on their offer, if it all. So far, out of 4 short sale offers we have heard back from none.
Out of the 4 short sale offers, three of my Home Buyers have moved on and found other homes for sale and are currently in escrow. Yes, its double the work but you never know when that one Bank will come shining through with an acceptance. So, Im willing to do the extra work and go the extra mile for my Home Buyers, if they truly love the house that is in short sale. I feel that I have a duty to my client to show all homes whether in short sale, bank owned or for sale by the actual homeowner.
Yes, the banks pay a lesser commission and yet I still show them, because as I said, I have duty to my Home Buyer to show all the properties that fall within the specifications that they have given me. I strongly suggest that other Realtors and agents do the same. Remember, your pledge of Service and Performance as a Realtor.
If its any consolation to you, every 10 years Real Estate goes through this correction and it is still a very good sound investment to buy Real Estate. Many of those going through the Short Sale and Foreclosure process right now are learning how important it is to have a good loan and not be over extended as well as to deal with reputable professionals.
There are Home Buyers out there who are buying homes and I applaud you, you took the first step toward the American Dream of home ownership, you made sure that you were working with a professional who put your interests ahead of their own and you are getting in before interest rates rise and home prices go up. You will be sitting pretty! In fact, I have two new First Time Home Buyers right now, who before even signing on their new home, the appraisal for their home has come in with $40,000 of pure equity. Those are some very happy new First Time Home Buyers.
The best advice I have for the new Home Buyers of today, is
DONT USE YOUR HOME LIKE AN ATM MACHINE
more to come later.
Related Articles:
Sacramento Real Estate Gets Hit AGAIN by Auction Company
Gena Riede of Sacramento Real Estate Voice on Channel 13 News
Sacramento Foreclosure Auction Looking for Suckers!
Sacramento Short Sales and Foreclosures
Are Short Sales and Foreclosures A Good Deal?
Foreclosures, Buy or Dont Buy?
Do You Understand Foreclosure?
2007 Where Knowledge is Power in Real Estate
What Sellers Need to Know About Receiving Offers
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Great post, Gena.
I’ve noticed that my neighborhood in Land Park has quite a bit of listings. I was told that many of them are owned by “speculators”, and there really are few foreclosures in the Land Park area. Is there a breakdown somewhere that lists the distressed homes by zip code?
Seth,
I find 2 actively for sale homes in the Land Park area for sale that are currently Bank owned. There are foreclosure sites that charge money that list the properties that are in foreclosure. However, I simply looked on MLS for those properties that are currently in short sale and banked owned. Land Park is holding its own.
I short sold my home earlier this year. It’s definitely not an easy process by any means. Even once I had a offer on the house, it still took nearly 3 months to finally close the deal. I was lucky and had a real estate agent with alot of short sale experience so that helped a ton.
I think doing the short sale was a good move though, but I started the process early and had good support. Good luck to anyone facing a short sale, make sure you have someone (family, friends, etc) that you can share your thoughts and frustrations with.
Regards,
DK