The tides are turning folks! These past few weeks have been very busy for me and for a lot of my colleagues. I wanted to talk about some of my experiences in the past few weeks to give you a "bird's eye view" of the real estate market in Sacramento.
The first Buyer, I will refer to as Mr. K. Mr. K wants to purchase an investment home in certain targeted areas. He is looking at homes that are priced under a $100,000. He prefers that the homes he looks at, needs some repair work. Seemed like a simple task. I had heard that there were a flood of these homes on the market. One other key factor that would make my job a bit easier, Mr. K, was going to pay cash for his investment home and close in 10 days. A motivated Buyer is a good thing!
Off we went. To the specific areas that he had targeted. To our surprise, there were not that many homes to look at. We pared our list down to five homes and checked them all out. We really liked this one home near the Valley High area in South Sacramento. The home was listed for $89,000. I knew the listing agent and I placed a call to her and told her I would be faxing an offer to her. She told me that she expected multiple offers "So come in with your best shot David.." We wrote the offer up and I emailed it to her. We were notified the next day that our offer was NOT accepted, someone else had offered more than us. We offered $94,000! We felt that the home was well worth $94,000, so we offered more than full price.
Not to be discouraged, we set out with a new set of homes to look at. We even went out to the North Area and toured some homes off of Elkhorn Boulevard. Our thoughts were that this area may not be as competitive as the South Area. After we looked at 4 homes, we decided to submit and offer on a nice home on Longdale Drive. The listed price was $79,900. Once again, I called the listing agent and informed her that we would be submitting an offer on the home. She told me that there were already three offers submitted! What!?!??? Needless to say, we did not get this home neither.
Several more times since those two initial tours of duty, and we have submitted 6 more offers and Mr. K is still without an accepted offer. We are awaiting on an answer on an offer we submitted on Monday. From what I hear, we have a good chance to get this home. I will keep you posted. Amazing how the view looks from the trenches. The media should pay attention to what is really happening. The market is definitely getting better!
Tomorrow, I will tell you about the buyer I will call Ryno.
It's October 7, 2009 and I am very Bullish on Sacramento