Everybody knows it's a huge mistake to work with an agent who doesn't know an area like Land Park -- primarily because all real estate is local -- yet, they do it anyway. It's especially true in the Sacramento neighborhood of Land Park. I see some Land Park listings hit the market priced $200,000 over the amount that I know those homes are worth. I ask myself, how do those listings happen? Why would any Land Park seller want to list with an agent who doesn't live and sell in Land Park?
Then I recall my former listing at the corner of Land Park Drive and Vallejo -- that 2-story Spanish home with a tile roof. There are a lot of top-producing agents who live and work in Land Park; I include myself among those Land Park agents. In fact, all but a handful work for Lyon Real Estate, like me. But the seller of that home listed with an agent in San Francisco. When that million-dollar plus listing expired, she listed with an agent in Roseville.
Of course, after I put a reasonable price tag on that home and listed it as her third Land Park agent, it immediately sold. It sold at list price, around $700,000.
In today's Sacramento real estate market, the number of homes selling over $400,000 has been hovering between 5% and 6% all year. But does that mean the over-$400,000 homes in Land Park aren't selling? It depends on which homes you're talking about and on which streets those homes are located.
I am working with a Land Park area buyer who made an offer that was in negotiations for 5 solid weeks before we arrived at a mutual meeting of the minds. She's presently in escrow and delighted. But 5 weeks of negotiations is nuts. Last week I showed a home to a Land Park buyer who couldn't make up his mind whether he liked that $500,000 home. It was one of those homes where instinctively I knew it would quickly go into pending status. An experienced Land Park agent can tell those things. Sure enough, 10 days later it was sold.
Land Park home buyers who are looking in that over $400,000 price range have a fairly good chance at grabbing that dream home at a substantially reduced price from asking price. However, if that home is one of those highly desirable homes in Land Park and listed correctly, you may also find yourself in a multiple-offer situation.
To date, 5 homes are pending sales in Land Park. Of those 5, two were on the market for 10 days. The next two, more than 100 days, and one around 2 months. We have 35 homes for sale over $400,000 in Land Park. Over the past 30 days, only 6 homes in Land Park over $400,000 have sold. Here is how the numbers break down for the last 30 days of sales in Land Park by list price versus actual sales price:
- List price: $409,000. Sales price: $410,000. (on market 47 days)
- List price: $425,000. Sales price: $429,500. (on market 15 days)
- List price: $550,000. Sales price: $450,000. (on market 292 days)
- List price: $480,000. Sales price: $465,000. (on market 56 days)
- List price: $499,900. Sales price: $495,000. (on market 10 days)
- List price: $899,900. Sales price: $875,000. (on market 34 days)
You can see that a couple homes sold for more than list price. Three homes sold within 3% of list price. One sold for $100,000 less than list price, at about a 20% discount from list price. But it was also overpriced and listed by an agent who works in Roseville.
A few months ago I worked with a seller who wanted to list her home a bit over the comparable sales, to "test the market." That was against my advice, but it was her home and her decision to make. We made a few minor price adjustments. When showings did not result in an offer, she asked me to reassess the price. She was ready to listen. Then I suggested a price point to her based on market activity and not based on the comparable sales. Finally, she was motivated. It sold within 10 days at full price.
Wherever you are buying or selling in Sacramento, please choose an agent who knows that area. I referred out a Land Park buyer a few days ago when he decided instead to look at homes in Gold River. I've never been to Gold River and don't know that area at all. He was better served by working with a Gold River agent, so that's where I sent him, kicking and screaming all the way. "Buuutt, I want YOU," he complained. Sorry, ethical agents must do what is best for their clients.
Elizabeth Weintraub is an author, columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.
Too bad they don't listen right away it would put a lot less stress on the move with a quick sale.
Elizabeth
Sound advice. I love the home in the picture.
There can be another side to this coin. Once I was working with a buyer who called me when he happened upon a listing with an out of town agent who didn't know the market... and I called to get the info and showing instructions to find it was priced WAY below market value for the area. My buyer got a great deal. I felt bad for the sellers, but it was their choice. Worked out great for my buyer though.
For the amount of time, money and effort that listing agents put into a listing...buying it by pricing it too high at a price only a buyer with cash who doesn't want an appraisal can purchase...makes no sense...log on Lady !
Elizabeth, I don't live in Land Park, but I see this happen a lot.
Out of area, lists home, goes in the wrong area, over priced. Many times it is a relative "helping" out a family member.
Takes soooooooo many more days to sell IF it is even priced right.
Local agents know the neighborhoods and the sales go much better.
I'm curious, w/ the homes you have selling over list price, are you seeing any appraisal issues? I love following your market because we tend to trend behind you by about 6-8 months and our appraisals have quickly become HUGE hurdles due to the new rules.
Elizabeth,
Often these underpriced properties are terrific deals for the buyers. Seller may never find out that he/she could get a much better price for their home or condo
Hey Missy: I tell my clients to separate friends / family from business. I do it with my own family. Otherwise, it's hard to be objective.
Hi Colleen: I'm not having appraisal issues because I'm pricing my short sales under the comps. Then the lender's BPO agent sees that price and comes in low with the BPO. Sometimes, just before we move to Phase III, I raise the list price in MLS.