I have been around long enough to know that nothing really surprises me anymore, but when it comes to pricing houses or estimating their value there is a range where buyers and sellers find themselves within a narrow window that I call that sweet spot where everyone can end up very happy.
I write a lot of articles regarding the values of houses because it remains a mystery for a lot of people. While not all houses are created equal and neither are their builders or all of the past inhabitants, they have a lot of things in common that either add or detract from value.
It is hard to believe that at one time every house was. As it sat, it had a value and that value was based on what it cost to build and how it compared to the other houses in the neighborhood. That value over the years presumably increased and is probably worth more today. That is called appreciation and if you have lived in your house since the beginning, another word will creep into the equation, “capital gains” and that can be taxable. But that is a whole other conversation and another blog topic.
Most people dont have that kind of history or intimacy with their house. I’d venture to guess that most people dont really want it and I guess that is ok too. We are much more transient. Families are dispersed all over the country and family houses that get passed on generation to generation are harder and harder to hold onto. So houses and their histories are harder to maintain. But when it comes time to sell that house, that history is going to become important for about 60 days when the offer is made and accepted and the inspections and the appraisals are ordered. At that point your house will be poked and prodded and the value will come out one way or another.
Disclosure, I am a general contractor, a real estate investor and an armchair expert when it comes to being on the receiving end of inspections and appraisals. When I buy houses I expect problems. I have bought so many houses that I dont even order inspections anymore because they tend to be long on findings and shallow solutions. I say armchair, because once the inspections start I am like the rest of the house selling universe and I have to sit back, be quiet and wait until the verdict comes back.
It never gets easy. I have been through enough houses to know that 100% of houses are imperfect. We can try to assemble them with wood, and concrete and tile and metal and at some point something mechanical or not is going to fail. There are external factors that come into play. Rhodents, the weather, the landscape, the maintenance deferred and not. You name it, a house gets lived in on the outside and on the inside and not always with the inhabitants that you would expect. There are empty houses and in vacant and full houses and people and animals that live in them are all unique.
So what does that have to do with the topic… Cash For Houses In Sacramento – How Much Can You Get For Your House?
Everything!
I can assure you that what someone will pay is not based on an algorithm that Zillow, Trulia or the other real estate portals use. It is however a mathematical calculation of sorts that places an estimated value on a house. Doing that with just an address is next to to impossible as there are just too many variables that need to be taken into consideration before anyone that has a checkbook will make that leap. At some point, whoever is interested in buying the house will want to see it.
The Three Factors That Really Determine Your Houses Value
The value of your house is intrinsic to itself and while sentimental and other value may be implicit they do not factor into what someone else would normally pay. Certainly there are people that would pay a premium for a house that has some historical significance, but they are not the in the norm and unless you can find them the value of your house will be based on its age, its location and its condition… having said that your house is only worth what someone else is willing to pay for it. That still holds true and your house will always be worth more to someone that wants to live in it.
That coupled with our current sellers market, rising real estate prices, low interest rates and a growing economy we have a recipe for homeowners to sell their houses for the best prices that we have seen in over 10 years. A word of caution, however… not every house in every neighborhood has appreciated at the same rate and your houses age, condition, and location are going to be the variables that affect the price of the house the most. That shouldn’t come as a surprise.
As a real estate investor and cash home buyer in Sacramento, I am not looking for houses that are move in ready or that I can purchase at top of market value. I am looking for the opportunity to buy a house that needs lots of work that I can buy at fair market value minus the cost of repairs plus some holding cost. I am looking for the seller of a house that understands that they can take advantage of a house that has appreciated in value without having to put tens of thousands of dollars into and
My name is Peter Westbrook and I am a real estate investor in Sacramento, Stockton and Modesto. Over the past 10 years I have helped hundreds of families and bought and sold houses and helped It is my experience that all houses have a value that is greater to the current homeowner
There are always ballpark numbers that fall into price ranges for every house and every neighborhood. Drilling down on a specific house becomes much easier Not too many cash for home buyers can adequately tackle this question even if it were for a specific house. Certainly some It is because there are so many factors that need to be accounted for beginning with the top four.
Some Important Distinctions
On Market: When a house sold “on the market”, that means that is under contract with a real estate agent and listed on the MLS. The fact that it is under contract means that it is On Market. The process for all on market listings is pretty much the same. Open Houses, a parade of people. Offers and counter offers… inspections and appraisals.
Houses that are sold on market will often be sold for approximately the same amount that other similar houses in the area have sold for. This is called “market price”.
Off The Market: When a house is sold “off the market”, that usually means the homeowner has decided to sell their home directly to a buyer instead of list their home. Houses sold off the market will often be sold for slightly less than their market price, this is called “below market price.”
“Why would anyone accept a Fair market price, minus repairs? Does that Mean Less Cash for Houses in Sacramento Than Others?”
That’s a good question but there’s so much more:
- Selling on the market usually means you’re selling it to a person who will choose to live in the house. They’re buying the house for themselves and their family. But when you sell off the market, you’re often selling to a company that might be investing in your house to turn it into a rental property or to renovate it and sell it.
- Selling on the market usually means the buyer needs financing. Selling off the market, in a private sale, often means that a professional home-buying company is will to pay cash for houses in Stockton. (That’s why some people prefer to sell off the market – they don’t want to wait for the seller to get financing; they want to know they’ve sold the house right away).
- Selling on the market actually costs money… sometimes a lot of money. If your house needs renovations and repairs, you usually have to spend money to fix up your house before you sell it on the market. However, when you sell it off the market, such as to a company like us at Westbrook REI, you may be able to sell your house as-is – saving the money (and the time and hassle).
- Selling on the market through an agent will often result in commissions and fees to the agent for the work they did to sell your house. But selling off the market to a home buying company like Westbrook REI usually means no commissions or fees or closing costs.
How much can you get for your home? Selling on the market may mean you sell your house for more money but it takes longer and costs more; selling off the market may mean you sell your house for fair market price minus the repairs, some holding cost and NO RISK… it’s faster and there are no expenses or fees.
So, how much cash do sellers get in for houses in Sacramento? It depends on how you sell – on the market or off the market… and that is determined by how quickly you want to sell and how much time and money you’re willing to invest to sell.