Sacramento Real Estate Views

Paying Too Much at Auction for Sacramento Homes?

I’m working with an investor right now who was telling me a story about a friend of his who has a big team of people working to help him purchase homes at auction in south Sacramento.  My investor heard him boasting about getting a beat up Sacramento home for $100K.

For my client, we acquired two homes.  One for $77K with $1200 in pest work and about $5K in updating and another at $100K completely pest clear with new carpet, newer HVAC and ready to rent to the highest bidder right now.  Positive cash flow immediately.

What’s he doing wrong?  He is under the impression, like a lot of people are, that buying a home at auction is always the cheaper way to go when buying foreclosed homes in Sacramento.  While this can sometimes be the case, often times it will cost you more money than if you were working with someone working for you.

3 Reasons Why Buying at Auction is Risky

Buying a home at an auction is the riskiest way to purchase a foreclosure for the following reasons:

1.  You may not be able to inspect the home prior to purchasing.

2. You may have to come up with the money to purchase in hours rather than having a few days to get the money together.

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Tags: bank owned homes, foreclosed homes, foreclosures, homes in sacramento, real estate auctions, Sacramento homes, sacramento real estate

The Calm Before the Storm

There is a Glut of Inventory Coming

A week or so ago, I wrote an article on the foreclosure rate dropping 61% from August to September due to a law that the State of California created to stem the tide of foreclosures in our state.  The likely consequence of this was that foreclosures, while some will be averted, would be backlogged and the Sacramento region would be in “foreclosure constipation”.  Well, folks, that’s what we’re seeing.

Yesterday, the team that I’m on had to bring in additional people to handle all of the BPO’s (broker price opinions) that we had to get done on homes given us by the bank.  We did 55….in one day.  55 BPO’s in one day.  That is simply incredible and a testimony to the fact that government might want to think twice about intervening in this mess.  A pipe dream I know but look at what’s happening here.

An Increase in Inventory at Just the Right Time….For Who?

Traditionally, this time of year, things begin to slow down, inventory decreases and values tend to hold their own without much appreciation or depreciation due to the lack of inventory.  Not this year.  No this year, the State of California has guaranteed you that you will lose more value on your home over the holidays.  Merry Christmas!

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Tags: bank owned homes, homes in sacramento, sacramento real estate, sacramento real estate agent