The Good, the Bad, and The Ugly of Our Post Pandemic Real Estate Market

I like to compare our 2021 Sacramento real estate market to one wild roller coaster ride that besides having twists, turns, and upside down loops sending thrill seekers on the verge of fear and elation, it also has unexpected highs and lows that I correlate to our high real estate prices and extremely low interest rates oftentimes below 3 percent. Our real estate market’s frenzy and desperation, especially on the buyers’ side, is directly related to the sudden decline in housing inventory at the beginning of 2021.

Needless to say, I have never experienced this bidding war before in my 21 years in the business as a real estate broker. And how ugly are these bidding wars? How much over the asking price is enough, you might ask? I have had an offer accepted for my buyers at $50,000 over the asking price, and we had to remove appraisal and loan contingencies to be the winning bid.

The good: offer accepted for my happy clients! The bad: $50,000 over the asking price no matter of the appraised value. The ugly: I have submitted about 15 offers for my buyers before their offer got accepted for $425,000, which is such a hot price point. However, with patience, perseverance, and my professional guidance, my clients are happy homeowners. And in the case of other buyers of mine, I got their offer accepted on the very first try, so some luck never hurts.

This wild roller coaster ride has resulted in the following four unique real estate trends:

Million-dollar home sales have had a 126.92% increase since last year. Additionally, as Ryan Lundquist, our local appraiser expert points out in his Sacramento Appraisal blog, there were 94.9 percent more sales above the $750,000 and 27.3 percent fewer sales under $400,000 price range. We have highs in our real estate market not seen since 2006.

The prevalence of the ADU – an Accessory Dwelling Unit is a permanent dwelling unit that may share at least one wall with the primary residence (attached) or be a stand-alone structure (detached) from the primary residence. ADUs provide permanent facilities for living, sleeping, eating, cooking, and sanitation.), or little homes built in the backyard of the main house, as the city of Sacramento is willing to approve ADUs either one home up to 1,200 sq. ft., or two homes 600 sq. ft. each depending on the lot size and setbacks. The approval of the ADUs is an important step in increasing price affordability and addressing Sacramento’s scarce inventory – see more info in my interview about the tiny homes trend with KCRA news.

The big migration, which according to a LinkedIn data, show more workers moving to smaller US cities and away from larger cities in 2020 compared to 2019. Sacramento is in top five smaller US cities as far as positive growth in inflow over outflow of workers.

Sellers’ confidence expected to grow as vaccine distribution is in full force, providing more peace of mind to sellers looking to make their move. According to Zillow economists, who show that 63 percent of sellers are also buyers, sellers’ mobility has increased for the following reasons: their desires to upgrade or upsize their homes, move to different neighborhoods, downsizing, and wanting a better work from home situation.

For more information on the ADUs and the tiny homes and what type of approval process you need to have one in your backyards, stay tuned, as I will have a meeting with the city and county officials next week!

For more inspiration on how to let “AIR,” which stands for adaptation, inspiration, and resilience guide and uplift you during these uncertain and crazy times, please consider buying my print edition or e-book The PR- The Poetics of Running, A Book of Poetry in Motion on Amazon, or buy it straight from my blog by clicking on my books link, which will take you to Amazon. A portion of the proceeds from the sale of the book is going to Girls on the Run Sacramento chapter organization.

For more info on running and real estate, whether buying or selling, please e-mail me at carmenmicsa@yahoo.com, or call me at 916-342-2446. Also mention this blog and receive a great offer whether buying (credit for closing costs), or selling (commission discount). Running for real estate with joy!

Photo credit: Pexels.com

Staging is the key to a successful open house

Holding an open house is no guarantee that your home is going to sell and more often than not sellers end up feeling disappointed after the big day has come and gone. Simply opening up your home to buyers isn’t enough. First, make a few simple changes to boost your home’s buying potential. Too many sellers neglect these easy open house preparations that will make a huge difference.

First Impressions

No matter how much time and money you spend fixing up the inside of your home, it’s the outside of the house that potential buyers are going to see first. Never underestimate the importance of first impressions, particularly in home-selling.

Wash the outside of your home. According to HGTV, this can give you a big boost of curb appeal. Clean out the gutters, wash the windows and make sure the front door is nice and clean. Repaint the door and window trim if needed. A set of brand-new house numbers may also be in order, an inexpensive way to make your home look nice and fresh.

Spruce Up Your Lawn

Curb appeal will get people in the door of your house, and that’s how you find buyers. Make your home look so appealing that house hunters can’t resist. Start by making your lawn look amazing. Mow the grass, get rid of leaves and make sure there are no weeds. Give attention to your flower beds and landscaping. According to House Logic, fresh mulch and nicely pruned shrubs go a long way toward boosting your curb appeal.

Add some pops of color to your landscaping. Plant a few flowers in bright hues of yellow and orange. They will quickly catch the eyes of potential homebuyers. Pansies, tulips and geraniums are easy to find everywhere and grow in pretty, vivid shades.

Consider having the driveway repaved. It’s not as expensive as you think to have fresh asphalt put down and this will greatly increase your curb appeal. A nice, new driveway makes a huge impression.

Don’t forget the mailbox. Clean it or repaint it to make the mailbox look new, and add a pretty border of flowers around it.

What Else Curb Appeal Can Do

Great curb appeal doesn’t just get people to notice your home, but also it can actually increase the resale value of your home, according to Forbes. The money you put into landscaping will actually go back into your pocket when you sell your property, so it’s worth it to put extra care and attention into this detail.

Plant shrubs to fill in empty spaces and bare areas. Shrubs are relatively inexpensive and easy to plant, and you can buy them full-grown so you don’t have to wait for the fruits of your labor to appear.

Use Staging for Selling Success

Once you get buyers in the door of your home, make sure they like what they see. With a little bit of simple staging, you can encourage people to start bidding on your property.

First, remove clutter and knickknacks. Potential buyers want to see a simple design so they can imagine their own belongings, not your favorite family photos. Stick with simple furnishings, but don’t make the interior of your home too bare. Add some colorful pillows to the sofa, put a pretty vase of fresh flowers on your kitchen table and leave just a couple of small appliances on the kitchen counter. Display guest towels in the bathroom, and make up all the beds with beautiful linen and blankets.

Have an Easy Open House

Make some simple preparations before the big day will help you to impress potential buyers. Focus on your curb appeal, stage your rooms, and you will get the results you want.

As a real estate broker working with many sellers and buyers and owning my own company, I can offer a commission discount or two months of free staging for new clients who mention this blog. Some conditions and restrictions apply! When you work with the best, you get the best, so feel free to call me at 916-342-2446, or e-mail at carmenmicsa@yahoo.com. To search online and get free listings, go to www.dynamicsacramentohomes.com.

Author

Suzie Wilson is an interior designer with more than 20 years experience. What started as a hobby (and often, a favor to friends) turned into a passion for creating soothing spaces in homes of every size and style. While her goal always includes making homes look beautiful, her true focus is on fashioning them into serene, stress-free environments that inspire tranquility in all who enter. The Ultimate Guide to Prepping Your Home for an Open House is filled with tips, tricks and other advice based on Suzie’s years of experience in interior home design that will set you up for success.

RUNNING for REAL ESTATE!

Tag Archives: Selling your home

FOUR POST PANDEMIC REAL ESTATE TRENDS