Condition is such a big deal in today’s housing market. It’s not like buyers ignored it in the past, but buyers today are really scrutinizing homes, and they’re going to wait for the right house rather than act out of desperation. Let’s talk about it.
UPCOMING SPEAKING GIGS:
6/24/26 Windermere Sierra Oaks Q&A
7/1/26 Wisdom Wednesday in Elk Grove
7/13/26 LPT Realty Zoom
7/14/26 Elk Grove Presentation TBD
7/15/26 Stockton Presentation TBD
8/6/26 PCAR Auburn
9/1/26 ROG Talks
10/2/26 PCAR Rocklin
10/21/26 Coldwell Banker Sierra Oaks / EDH
BIGGER ADJUSTMENTS FOR CONDITION
I can’t speak for all appraisers, but I find myself making bigger adjustments for condition right now. It’s not that I’ve arbitrarily decided adjustments should be larger in 2026. Nope. What I’m noticing is there is more of a price premium for properties that are dialed-in, and market appeal has shrunk for dated homes. So, the price disparity between a pristine home and a dated one could be larger today than it was in the past. I find buyers are simply paying closer attention to what they are purchasing, and they’re NOT ignoring any defects or issues.
ARE BUYERS GOING TO WANT TO PAINT THIS HOME?
So much love has been put into this Antelope home that is currently listed for sale, and I appreciate the artistic expression, but it’s also very user-specific. I have to think this isn’t something the market as a whole is going to want because we don’t tend to see stuff like this. So, buyers are likely to be discerning about the cost to paint or cure some user-specific elements. Ultimately, the market gets to decide, and we’ll see what happens. One thing I’ve learned through the years though is it doesn’t matter what the internet or Zillow Gone Wild website thinks. What do actual buyers say? That’s what matters most in the valuation space.
ADJUSTMENTS CHANGE AS THE MARKET DOES
All I’m saying is adjustments can grow or shrink as the market changes, and condition is having a moment right now, so appraisers should reflect that in their reports. As an example of change, during the pandemic, buyers in general in many locations were willing to pay more for built-in pools compared to previous years since a pool became a bigger asset as people were stuck at home. Of course, the cost of a pool also skyrocketed, and that could have played into buyer behavior also.
WHAT IS DRIVING THIS HYPERSENSITIVITY?
Buyers are extra-discerning about what they buy since they’re having to fork out so much money for a home right now. This means buyers are likely to pay closer attention to an old HVAC, an aging roof, the cost to paint the interior, and dated flooring. A lack of affordability has bred hypersensitivity among buyers about condition, location, and price. Moreover, buyers are extra picky about getting into contract, and they’ll walk if sellers start playing games. This is one reason why there can be so much quick attention for a home that is dialed in, but a tired home can linger on the market. I think many sellers are doing an okay job pricing today, but there are still many that maybe don’t believe what I’m talking about either.
NOT DESPERATE LIKE 2021
It’s not that buyers were totally ignoring condition when the market was really aggressive in 2021, but they were much more forgiving about defects and dated elements. They wanted to get into contract to lock in their incredibly low rate, and money was so cheap to borrow, so they just didn’t scrutinize properties as much. Today’s buyers simply aren’t going to overlook older elements as they count the cost of purchasing today, so they’re patient instead of desperate.
FIXERS ARE HOT THOUGH STILL
All that said, fixers are still a hot commodity for investors as long as they’re priced reasonably. I find fixers under $400,000 in particular can generate quite a few offers.
CLOSING THOUGHTS ABOUT COMPS
The best comps don’t need adjustments. If you’re trying to figure out what a remodeled home is worth, find some examples of homes with similar remodeling. If you’re looking at a fixer property, find other fixers. If you want to know what a home with a pool is worth, find some homes with pools and let those set the pace for value. I wanted to mention this because in a market with limited comps, sometimes people start comparing homes to recent dissimilar sales, and that can be a big mistake. Remember, it’s okay to use older more similar sales and adjust for how the market has changed. Here are some tips for choosing comps in 2026. And regarding condition, we technically don’t really have to think much about adjustments if we’re looking at other homes that have the same issues. So, I’m currently looking for some comps in South Sac that are completely dated because that’s what the subject property is like. Original roof, original HVAC, original AC, original kitchen, original bathrooms…. The best comps are going to have similar issues. Know what I’m saying?
CLOSING THOUGHTS FOR SELLERS
One more thing. Sellers, price reasonably and don’t underestimate how important condition is right now. It might help to go to a mortgage calculator to see how much it costs to buy your home (this is why buyers are so sensitive0. You might also consider taking care of cosmetic issues before you list if it’s within your power to do so. And lastly, negotiate with buyers throughout escrow. Be ready for some buyers to offer lower or ask for repairs (or a credit for repairs). This is a market of leaning toward buyers rather than trying to exert power over them.
Anyway, I hope that was helpful. Thanks for being here.
Question: Have you been noticing any change with buyer perception about condition? What did I miss? Anything else you would add?
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Quality post as always. I spoke to a local agent yesterday who mentioned something new: buyers having a home inspected by a foundation repair company instead of an engineer, then using the foundation repair bid as part of the renegotiation. Apparently, this is a new trend in my market imported from the Bay Area. Since the foundation repair company gets paid when a foundation is repaired, the costs will likely be higher than if an engineer inspects. Have you heard anything like this? Anyone else?
Thanks, Joe. Hmm, interesting. I wonder how effective this is. I’ll keep my ears open about this. Bids can be all over the place. That’s for sure. I find sometimes buyers want to argue the entire cost of the issue should be subtracted, but then again, the buyer might not have that luxury if there are other buyers on the hook.
Hi Joe,
This actually happened to me a few weeks ago- the short version- Seller got a FREE inspection from “Groundworks” estimate came to $30K. Seller was NOT happy- so seller hired & paid $450 for an Engineer to give them their assessments … Drum roll please…
Engineer said the foundation was fine -no repairs needed- Normal settling. Buyers were so perplexed with the difference in the two assessments they decided to cancel the contract- House is still on the market. Heartbreaking for both parties.
Thanks for confirming Andrea. Something to watch.
Wow, thanks for sharing. Doesn’t sound like a good situation. Sometimes repair reports can be a hot mess. And by hot mess, I mean made-up.
This post makes me think back to an older blog post of yours that showed in a graph how the home on a busy road is more of a negative in a slower market than in a market where there are many buyers and few choices. Buyers will live with stuff when the don’t have a choice. If condition was easier to graph, you would see the same thing.
Thanks, Gary. I should try to find some ways to graph this. I think you nailed it. They’ll live with stuff when they don’t have a choice. But today, they do have a choice… Despite supply still being subdued, it hasn’t made buyers act hastily.
This was very timely! I just sold a beautiful home in Land Park that was the most detailed, pristine house I have ever listed. We listed it for $1,350,000 (what I could prove to an appraiser) and it received 6 offers, selling for $1,500,000. Most of the offers were $100,000 over, so this wasn’t a unicorn. People recognized the condition of the home.
Thank you, Paula. I really appreciate it. Congrats also. That’s awesome.
This is exactly what I’m talking about. I think some people blame buyers by saying things like, “This generation is so entitled and they don’t know how to fix anything.” Okay, that may be relevant for some people, but this is about the market rather than skill level or a sense of entitlement. People are sensitive to price and condition because of the cost of housing today. Bottom line. Mic drop. That’s the issue. And rightly so. It’s always easier to point the finger and blame others – especially younger people. I find this sentiment shows up in the narrative online, but I think it’s disconnected from the actual market. And it’s probably being said by someone who is maybe not in touch with actual buyers and sellers and the cost of housing… 🙂
Okay so is the Land Park area known for over $1M, $2M in pricing. I ask since I am not from the area (not even close). For (non Unicorn) to jump 11% in price confuses me, which of course is not all that difficult, I do wear a Stetson. How big was the home, how big was the lot? How many actives/pending were there at the time of the listing and is this area, because it is semi close to capitol is that a big benefit. I ask because our faithful leader brought the condition question up. Just trying to understand how a home that is “pristine” can find itself jumping 11% with multiple bids just because it is “pristine”. Is this a market where $150,000 won’t get you much in updating? 34 years tells me time to ask some questions. Where the other listings a pile of junk, looking for investors? or? Was something was going on at the time of the sale? And YES big congrats to the RE agent who was able to get this bad boy done, but I have more questions than answers. Especially since she indicated $1.35 was what she could convince folks wearing a Stetson. And of course, the last question was there a loan on the property when purchased or was it a cash sale? Was the jump in $ other than condition? Always find the market fascinating but a bit crazy especially since COVID.
Brad, these are such good questions, and they are the right ones to ask. Land Park does have some high-dollar units, and 24% of sales this year have been above $1M (in 2026). Sometimes homes are priced low, and that explains how stuff like this can happen. Other times buyers seem to really show up for certain homes for whatever reason, and it can be hard to quantify at times. Sometimes it’s surprising maybe too. I think on paper we like to think it’s easy to quantify value, but in the real market, sometimes the response is stronger than expected. I suspect it’s not just about condition though. It could be layout or maybe it’s something like a backyard that is perfect. Or to your point, maybe it’s other stale listings or even a lack of listings. This neighborhood currently has ten active listings and ten pendings. I do find Land Park has been a stronger market though compared to some other areas. Very strong closed sales volume this year so far. 32 sales last year from January through May, and 59 so far this year. This is higher than the last few years, so we’re not just comparing to a dull year in 2025. I’m finding more market strength lately in some of the neighborhoods with classic architecture near Downtown. Nearby East Sac has been a more competitive market too (volume stats aren’t as strong as Land Park though). This is where some markets could be showing increasing prices while others are more stagnant.