Condition is such a big deal to buyers. I know, that doesn’t sound like anything new, but there is a true hypersensitivity about condition in today’s market that we need to consider. Let’s talk about it. I have ten counties of local stats today too.
Skim quickly or digest by topic
UPCOMING SPEAKING GIGS:
8/19/25 Navigate Realty (private I think)
9/10/25 Windermere Sacramento
9/16/25 Culbertson & Gray (private)
9/24/25 Keller Williams Roseville
9/25/25 Further Together (register here)
9/26/25 PCAR
9/30/25 Elk Grove Regional MLS Meeting
10/15/25 EDH Coldwell Banker (private)
10/21/25 Orangevale MLS Meeting
10/23/25 CREB Meeting (TBA)
10/24/25 Fusion Rally in Denver, CO
11/4/25 SAR Main Meeting
12/9/25 Downtown Regional MLS Meeting
12/10/25 SAFE Credit Union (TBA)
WHY IS CONDITION SUCH AN ISSUE TODAY?
1) AFFORDABILITY:
Buyers have higher expectations about a home’s condition because it costs so much to buy right now. In other words, if they’re paying an arm and a leg, the condition better be tight. It’s not that condition wasn’t important in the past, but there’s a hypersensitivity about condition today that’s easy to underestimate. I hear consistent feedback from agents about buyers being turned off by dated homes (sometimes pretty minor stuff too). It’s not that there is just one thing, but buyers are far more sensitive about older carpet, whether a home needs paint, and they’re really noticing if cosmetic details are not tidy. There is no sense of desperation like we saw in 2021, so buyers are patient for the right house. Remember, value can change. Just as pools became more valuable during the pandemic, it’s possible that adverse issues today like condition and location could be a bigger negative adjustment. As an appraiser, my antennas are up about this, and I need to be sure I’m really studying the comps to reflect the importance of condition right now.
2) MORE SELECTION:
Buyers have the luxury of being patient and discerning since there are more listings. Locally, with 39% extra active listings compared to one year ago, this allows buyers to sift through properties before making a decision. In short, buyers are very picky because the market is allowing them to be.
3) LACKING EXTRA FUNDS:
For some buyers, they don’t have extra funds to upgrade the home after purchasing, so they need a home that already feels fresh. This is why homes that check all the boxes are a hot commodity in today’s market. So many buyers are looking for that one. And it’s not like a dated home can’t sell. There is a right price for everything. All I’m saying is a lack of affordability has bred hypersensitivity about condition.
ELEVENTH HOUR REPAIRS:
I was talking with Gina LaPlaca (Realtor) yesterday, and she mentioned buyers are requesting repairs at the 11th hour in a transaction to get more from the seller, and they are also tending to disregard timelines. I’ve heard that feedback from others also. Has that been your experience?
PICKY ABOUT STAYING IN CONTRACT
Buyers are picky about getting into contract and STAYING in contract. This means buyers at times will walk away over very minor issues (cancellations are up this year). Or when a seller plays hardball, it can be “the ick” for buyers – making them want to bail. My advice to sellers? Price it right, continue to negotiate throughout the escrow, and be sure the transaction feels like a win for buyer also. I’m not saying sellers need to concede to unreasonable buyer expectations. I’m just saying it’s time to listen to buyers rather than strong-arm them.
BIG MARKET UPDATE
WHAT IS THE MARKET DOING?
“It’s not that bad.” I’m finding that to be the reaction when some people see the latest stats. I get it since price stats in many local areas are pretty flat or even up slightly from one year ago. Remember, price stats can bounce around. They might be up, flat, or down from month to month. NO matter what, price change has been a slow burn, so it’s not like prices have plummeted. Yet, don’t ignore clear growth in supply, so we don’t just want to fixate on prices. Also, there are many properties sitting right now, so there is a sense of the market feeling much softer than stats suggest. Rates have gone down recently, but it hasn’t made a big impact on the local market. One interesting thing to watch is seller behavior. With increased uncertainty, sellers have backed off slightly over the past couple of months, and that’s helped the pile of active listings not grow as much. Ultimately, we’re in a market where prices are mirroring one year ago in the stats, and we can also say there is some brewing downward price pressure. I think when pulling comps, we’re tending to see slightly lower prices. But remember, not every part of the market is the same. This is why you might see appraisers not always checking the “declining” box in their reports.
NOT THE WORST EVER
We had the worst month of June sales volume since at least 1998, but July was at least higher than a couple years (what we expected to see). Is it time to celebrate? Haha. As I mentioned before, 2007 took a major beating during the second half of the year, so we should be able to outdo 2007 ahead. As of now, we’re barely down from one year ago year-to-date, but it’s important to recognize that’s because the first part of the year started out stronger.
NEW CONSTRUCTION WAS BETTER IN JULY
It’s been a tough year for builders, and June was especially brutal. But July did much better. This goes to show concessions and lower prices can work on buyers.
A SHARP CHANGE & UNCERTAINTY
Some of the stats are showing a pretty sharp change, and that’s the vibe with selling above and below the original price. There was an inflection point in the market in April, and we’ve seen that show up in closed sales stats now for three months in a row. What happened in April? Tariffs showed up. Look, this is not a red or blue statement, but consumer sentiment has taken a hit in recent months, and we’ve seen that affect buyer demand in the housing market. Yet, let’s not blame the entire lackluster market on tariffs though because that would be silly. Remember, uncertainty ebbs and flows. It doesn’t last forever.
GOING BELOW LIST PRICE IS POPULAR
62% of homes sold below the original price last month. That sounds stunning, and it is because we’re no longer at a more normal number for the time of year (which would be 47%). It’s become much more common to see homes need a price reduction (or buyers get in under asking even if the property does not need a price reduction before going pending).
YEAR-OVER-YEAR STATS
I’ve lumped some data into 60-day chunks in smaller counties to help tell the story of the market. Stats can bounce around way too much if we’re only looking at 30 days (even 60 days may not be enough in some areas). I added Stanislaus County. Will anyone notice?
NOTE: Pay attention to square footage. Remember, if the mix of homes selling changes, that can change the stats.
MONTH-TO-MONTH
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Questions: What are you noticing about buyers and condition? What are you seeing in the market? I’d love to hear your take.
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