• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Sacramento Appraisal Blog | Real Estate Appraiser

Real estate appraisals for divorce, estate settlement, loans, property tax appeal, pre-listing and more. We cover Sacramento, Placer and Yolo County. We're professional, courteous and timely.

  • About
  • Appraisals
  • Order
  • Ask Ryan
  • Areas
  • Classes
  • Press
  • Trends
  • Share
  • Contact

Investment properties in Sacramento

Flipping and sparce sales under 25k in Sacramento

September 6, 2012 By Ryan Lundquist Leave a Comment

Everyone and their Mom wants to flip houses. After all, we see people doing it on HGTV reality shows, and so many of us know someone who knows someone who has flipped a house before. The idea of course is to buy low and sell high, which can work out at any price level. But how much opportunity is there in Sacramento to pick up a property for dirt cheap? And by “dirt cheap” I mean under $25,000. Here is a graph of all single family detached sales on MLS since 1998 in Sacramento County (not condos).

Sacramento County Sales under 25K - Graph by Sacramento Appraisal Blog

What do you notice? Here are some observations:

  1. There were almost no sales under $25K during the real estate boom.
  2. Despite the market being hot right now, there are still occasional sales under $25K.
  3. Anything under $25K is a severe fixer, and is usually described as “just needs a contractor” or “imagine the possibilities” or sometimes “value is in the land.”
  4. There were only 23 sales under $25K last year in Sacramento County, which makes up 0.001% of all sales (there were 19,317 sales in Sacramento County last year).
  5. If you’ve been following the Sacramento market,  you know the market right now is similar to the market 10+ years ago, which shows up on this graph since both sides above give off somewhat of a book-end feel.

If you’re considering investing in the Sacramento market and need some analysis, an appraisal or a referral to a trustworthy Realtor or contractor, let me know.

Questions: Anything you’d like to add? Have you flipped a house before? What tips would you give to a first-time investor? What do you think are the potential downsides of buying a house under $25K? (there are some)

If you have any questions or Sacramento home appraisal or property tax appeal needs, let’s connect by phone 916-595-3735, email, Twitter, subscribe to posts by email (or RSS) or “like” my page on Facebook

Share:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)

Filed Under: Market Trends, Resources Tagged With: $25K houses in Sacramento, Fixer Properties, foreclosures, graph of sales in Sacramento, Home Appraiser, House Appraiser, houses under 25, Investment properties in Sacramento, real estate appraisers, real estate investors, real estate market trends, Sacramento County sales

Should you get an appraisal when paying all cash?

March 21, 2012 By Ryan Lundquist Leave a Comment

stack of cashAfter completing two appraisals in the past 10 days for buyers for all cash transactions, I wanted to throw down some thought about getting an appraisal when paying all cash in the Sacramento area. I think there is a time to do that and also a time to not do an appraisal. This isn’t legal advice, but here is my opinion:

Get an Appraisal during a Cash Purchase:

  1. If you feel like you’re overpaying (or your client is overpaying).
  2. If you think an appraisal can be used as a bargaining chip to lower the price.
  3. If the seller will not budge on the price and says, “show me an appraisal”. I’ve seen investors and owner-occupant buyers lower their purchase price by providing a credible appraisal to the seller. I had an investor client this year able to lower the price on two fire-burned houses by getting an appraisal.
  4. If your funding source wants to see something in writing.
  5. If you plan to rehab the house through NSP or another program, get an appraisal since it’s probably required already (I just finished an NSP appraisal yesterday).
  6. If you are an out-of-town buyer, make sure you’re not overpaying. Investors from the Bay Area and out-of-state do tend to overpay because they are less familiar with the market. Moreover, when investors are coming from areas with higher values, lower prices can seem incredibly attractive, which only breeds an environment for overpaying. But even the two appraisals I did recently with all cash local buyers were overpaying (see last paragraph).

Don’t Get an Appraisal during a Cash Purchase:

  1. If it’s painfully obvious you’re price is fair (just be sure).
  2. If you specialize in the neighborhood and know prices and values like the back of your hand, why bother?
  3. If the price is just a bit high, but it’ll kill the deal if you walk, it still might be worth it to go through with the purchase so long as the investment pencils out. That’s a very subjective point of course and everyone must ask how much they are willing to overpay for something.

Multiple Offers and Overpaying: I have noticed buyers tending to make offers higher than the sales price right now to get into contract. Since there has been a much lower inventory in the Sacramento area it seems like listings are hoarded by potential buyers. A byproduct of fewer listings has been buyers offering more than the contract price to beat out their competition and get into contract. All things considered, if paying cash, there is a risk of overpaying in a climate like this. I would simply say to be cautious and consider getting an appraisal if you think the number isn’t quite feeling right. The two houses I appraised recently in situations like this were in contract 10-15K too high.

Have you ever had an appraisal during an all cash situation? Why? Why not? What points or tips would you add to the lists above?

If you have any questions or Sacramento area real estate appraisal or property tax appeal needs, contact me by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.

Share:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)

Filed Under: Appraisal Stuff, Resources Tagged With: appraiser in Sacramento, decisions when investing in real estate, hire appraiser during cash purchase, Home Appraiser, Investment properties in Sacramento, lower inventory, multiple offers, overpaying, paying all cahs for Sacramento property, should you get an appraisal when paying all cash

Unpacking the real estate market in Sacramento: The Wright Report

March 7, 2011 By Ryan Lundquist Leave a Comment

If you want to understand the real estate market in Sacramento, check out The Wright Report. I am not aware of any other report in the area that is so comprehensive. The Wright Report is birthed quarterly by Real Estate Broker Joel Wright. The latest version is packed full of graphs and details to help the reader understand exactly what went on during the last quarter of 2010 in Sacramento’s four county region (Sacramento, Placer, Yolo, El Dorado). This is helpful for local agents, residents and anyone considering investing in the Sacramento region. I recommend downloading and printing the document since it is over 40 pages.

I’m honored to have contributed a few paragraphs at the beginning of the report too. Check it out below or see a full screen view or direct link).

What do you think?

 

If you have any real estate appraisal, valuation consulting, or property tax appeal needs, contact me at 916.595.3735, www.LundquistCompany.com or via Facebook.

Share:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)

Filed Under: Market Trends, Resources Tagged With: appraiser in Sacramento, appraisers in Sacramento, data and graphs, Duplex, Fourplex, Investment properties in Sacramento, Investment Sacramento, Joel Wright, Joel Wright Real Estate Broker, Lundquist Appraisal Company, multi-unit real estate market in Sacramento Region, residential-income market, Sacraemento Investor, sacramento appraisers, Sacramento Real Estate Appraiser, Sacramento Real Estate Market, Triplex, understanding real estate in Sacramento Placer Yolo El Dorado Counties, Wright Real Estate Sacramento

Primary Sidebar

Connect with Ryan

 Facebook Twitter LinkedIn YouTube Instagram

Subscribe to Weekly Post

* indicates required

Search this site

Blog Categories

  • Appraisal Stuff (407)
  • Bankruptcy (3)
  • Divorce (4)
  • Estate Settlement (6)
  • FHA Appraisal Articles (56)
  • Internet (53)
  • Market Trends (476)
  • Photos from the Field (126)
  • Property Taxes (70)
  • Random Stuff (231)
  • Resources (566)
  • Videos (161)

Blog Archives: 2009 – 2021

Lundquist Appraisal Links

  • Appraisal Order Form
  • Appraisal Website
  • Rancho Cordova Appraiser Website
  • Sacramento Appraisal Blog Sitemap
  • Sacramento Real Estate Appraiser Facebook Page
  • Twitter: Sacramento Appraiser (@SacAppraiser)
  • YouTube: Sacramento Appraiser Channel

Most Recent Posts

  • My new sewer line adds huge value, right?
  • The housing market nobody predicted
  • Real estate trends to watch in 2021
  • You carried me & a spreadsheet for Christmas
  • Real estate drama (and a market update)
  • Goodbye California. Is everyone leaving?
  • How much are buyers paying above the list price?
  • What would happen to the housing market if we went on lockdown again?
  • Overpricing, multiple offers, & hot ranges
  • Why your home isn’t worth 16% more today

Disclaimer

First off, thank you for being here. Now let's get into the fine print. The material and information contained on this website is the copyrighted property of Ryan Lundquist and Lundquist Appraisal Company. Content on this website may not be reproduced or republished without prior written permission from Ryan Lundquist.

Please see my Sharing Policy on the navigation bar if you are interested in sharing portions of any content on this blog.

The information on this website is meant entirely for educational purposes and is not intended in any way to support an opinion of value for your appraisal needs or any sort of value conclusion for a loan, litigation, tax appeal or any other potential real estate or non-real estate purpose. The material found on this website is meant for casual reading only and is not intended for use in a court of law or any other legal use. Ryan will not appear in court in any capacity based on any information posted here. For more detailed market analysis to be used for an appraisal report or any appraisal-related purpose or valuation consulting, please contact Ryan at 916-595-3735 for more information.

There are no affiliate links on this blog, but there are three advertisements. Please do your homework before doing business with any advertisers as advertisements are not affiliated with this blog in any way. Two ads are located on the sidebar and one is at the bottom of each post. The ads earn a minor amount of revenue and are a simple reward for providing consistent original content to readers. If you think the ads interfere with your blog experience or the integrity of the blog somehow, let me know. I'm always open to feedback. Thank you again for being here.

Copyright © 2021 Sacramento Appraisal Blog