Does the thought of selling your property have you down? Roof repairs, and assessments, and open houses… oh no. If selling a home in Sacramento seems like it’s getting harder, you’re not imagining things. Your friends and neighbors may be struggling to find the right buyer for quite a few reasons. In today’s market your property needs to meet comparable homes in both price and condition. It’s expensive and time consuming to fix up your home for sale, and if you’re behind on the mortgage or your last tenants trashed the property you could find yourself in a real pickle.
Here are some of the reasons it can be hard to sell your property on the real estate market in Sacramento and why an all-cash investor might help you avoid them.
Changes to the Average Mortgage Rate
It’s becoming harder for buyers to get an affordable mortgage payment thanks to the recent, steep increases in mortgage rates imposed by the Federal Reserve. The average 30-year fixed mortgage peaked at 4.8 in May 2018… but that isn’t expected to be the highest rate we see in the next few years. In fact, experts say the rate could top 5% by the end of 2018/beginning of 2019.
Higher interest rates drive up monthly mortgage costs and could reduce the amount a buyer is qualified to borrow. In other words: you could have a very interested buyer on the hook but if they don’t pull the trigger and buy immediately, a mortgage rate jump might just price them out. Having an all-cash buyer means you aren’t at the mercy of mortgage rate trends.
Home Values are Increasing in Sacramento
Between November 2017 and October 2018, the average home price in Sacramento went up by 5% (according to Trulia). The real estate website also notes that during many months when home prices went up, the number of sales went down. For instance, between November 2017 and May 2018, the average home price in Sacramento increased from $308,000 to $335,000. During that same period, the average number of home sales per month went from about 3,000 to just over 2,500.
Now, it isn’t always true that when value goes up the number of buyers goes down. But it only makes sense that price increases mean some potential buyers have to put off their purchase to save more money. The steady climb in home prices can be great for you as a seller — so long as you can afford to wait a few months and deal with an unsuccessful escrow or two before the sale is final. If you’re in a hurry, a sudden increase in market value means you either have to sell way under the recommended price or risk foreclosure as you hope for a buyer to come along. Working with an all-cash offer means dealing with investors who can afford to pay a fair price even if the market changes over the course of a few months.
The Market is Swinging to Buyers’ Favor
Speaking of considering a discount just to sell your home quickly, one report from Zillow shows that more than 14% of sellers had to cut their initial asking price in June 2018. While home values are still steadily rising in most parts of country (including Sacramento, as we previously mentioned), if buyers can’t or won’t pay the full price in your neighborhood… sometimes a price cut is the only option. This indicates the shift from what has been a solid seller’s market in the last few years into a season of a buyer’s market. If you’re not prepared to weather the change, working with all-cash investors could relieve a lot of your stress.
More Options for Selling Your Property Than Ever Before
Yes, selling on the open market to a retail buyer is still an option. Even with a trend of cost reductions and undesirable mortgage rates, you may be able to list and sell your property with a real estate agent. However, if you need to sell your house fast in Sacramento, there are more options today than there were 20 years ago. You can also work out a rent-to-buy arrangement with a tenant, consider selling it yourself, or work with a cash buyer in Sacramento to unload the property in as little as a few weeks!
Are you ready to sell your home fast in Sacramento? California Family Homebuyers will buy your home (as is!!) with no messy escrow or waiting for a loan approval. Whether you’re ready to dump your investment property or you just don’t have the funds to fix up your home to put it on the market, we’re here to help.
Give us a call today to set up a time to talk about selling your house!