Happy September!
In this complex market, we are seeing some homes selling with multiple offers well over the asking price, while other homes are lingering on the market. I created a report of all active single-family homes in the city of Oakland and as I write this, there are 440 properties on the market. Of those active properties, 185 of them have been on the market for more than 30 days and 43 have been on the market for more than 100 days.
Berkeley is a completely different market with only 68 single-family homes on the market and only 19 have been on the market for more than 30 days.
If you’re a home buyer considering the purchase of a property that isn’t selling, you may want to consider the following: In my experience, every home is saleable, even the most extreme fixer-upper. The key is the buyer has to see the value as this will be the place that they will be investing their hard-earned money, whether it is to live there as their primary residence or as an investment. It comes down to dollars and cents, a buyer will need to be 100% committed to your property for a transaction to work.
Is the issue the price? Are the sellers' expectations out of line with the property's condition or neighborhood?
Are there layout challenges and functionality issues?
Are there environmental factors such as heavy freeway noise, towering multi-unit buildings next door, or is the backyard unusable due to steep terrain?
The reality is that unless you are buying into a planned development, each home should be considered autonomous. While comps can be helpful, one simply cannot average the values of sold homes in a specific area and plug in a price valuation for a property. Additionally, if the property has deferred maintenance or other issues of concern, adjustments need to be made.
If you are considering a property that is lingering on the market it is crucial for you to talk with your Realtor about the reasons people are passing this property over, so you can understand what you may be purchasing. Once you understand why others are passing a home over, you have to be absolutely okay with those challenges and also understand that when it comes to resale value, you may have a similar difficulty selling and yield less from the sale than the homes surrounding the property.
I recently met with a few homeowners who are contemplating selling their properties and requested a property valuation. They have seen websites that provide sales price estimates and assume those are fairly accurate valuations. I have said this many times before and I am saying it again, automated online valuations are most often unreliable. Online estimates simply cannot account for all variables in each unique home. Some of the homeowners that I have met with have acknowledged their property challenges and suggested their own price adjustments. It’s great that they are already attuned and aware that adjustments are needed, but in this market, buyers tend to pass over the challenging properties altogether. So as a homebuyer, if you buy a property that is lingering on the market, you have to take into consideration the home’s resale value. If you are a homeowner and have a property with challenges, you might consider waiting for a more seller-centric market before listing it. If you need to sell now, and correcting any challenges is not an option, my best advice is to make it show its best and not overprice it. If you need insight from a professional do not hesitate to reach out to me.
This Sunday, (9/24/23) I will be hosting my sweet Leona Heights listing, 4610 Stauffer Place from 2 pm - 4 pm. Come by and say hello!
Please know that I am an email or phone call away and no question is too small. I look forward to hearing from you!
Xo,
Deidre
