This week, I showed a property in Oakland that my clients were very excited about. It had room for them to both work from home, an open floor plan (something they are craving), and the inspection reports and disclosures illustrated that the house was well maintained. They saw it on Sunday, were still thinking about it on Monday and we toured the house together on Tuesday. We spent more than an hour in the property and during this time I looked very critically at the home’s components and asked questions which I tend to do at all of my private showings. This is not done to talk someone in or out of placing an offer on a property, but in an effort to get buyers to think about things that they may not readily notice upon the first few visits (and could potentially bother them later). During this showing, I observed that the driveway was sloped, shallow, and very narrow, and I suggested that before we left that they test the driveway and garage. Unfortunately the car did not fit. Later, they brought their second car over to test and that too did not fit. They sent me a text message and said that after much consideration this was a deal breaker for them. But what a blessing – waiting until an offer is accepted or even worse, after you close escrow, is not the time to find a deal-breaking feature.
Since the market has been shifting there are a few things that I am noticing: while inventory levels are slightly higher, there is a diverse assortment of housing stock, some properties are still selling right away for over the asking price (and for numbers just shy of the spring market), other homes are lingering. The previous market was such that buyers were so eager to get into the market that they would take on more risk and accept high-cost repair items, but now buyers are less willing to take on unknowns, such as further inspection recommendations that have not been investigated or homes in need of an overwhelming amount of repair. What I encourage all of my buyers to do in this or any market, is to only buy something that you have fully investigated and feel really good about. Perhaps the home has the space you need, or is in the neighborhood you desire, whatever it is, only place an offer on a home that you will be excited about if your offer is accepted. With the shift to a more balanced market, this is the time for buyers to really hone in on what is most important to them in a property. Take advantage of this new market and enjoy the slightly slower pace that this time brings.
A tip for sellers: If you are thinking about selling but are discouraged that prices have declined, consider this: while home prices are not what they were this past spring, in Oakland and Berkeley, September’s sales prices are still 5% higher than they were in September 2020 and values have tripled within the last 10 years, up 205%.
I suggest talking to your tax advisor to learn if a slightly lower sales price will have some benefit such as a reduced capital gains bill. Additionally if you are looking to sell and buy, then perhaps your purchase will be cheaper as well as your future property tax bill, as property taxes are based upon sales price.
I am excited to have two listings on the market right now, www.4127Norton.com and www.456Stow.com. Both will be open this weekend!
Thinking about making a move? I would love to partner with you, your friends and family. I’ve been a Realtor now for over 18 years and I love what I do. You get an honest, straight talking professional when you work with me. I pay attention to the details and want only the best for my clients, even if it means passing up a sale.
As we wrap up October, take a moment to enjoy the change in weather, the colors of the leaves and go enjoy something delicious!
More at 456stow.com
