Buy a House in Elk Grove – Where’s the Inventory?

Buy a House in Elk Grove – Where’s the Inventory?

It’s funny how many Elk Grove buyers think it’s a buyer’s market. That’s just not the case. Inventory is the lowest it’s been in since 2004!  With just over 1 month of inventory, Elk Grove buyers are having a hard time finding a house.  My listings are getting multiple offers and selling quickly.  It’s turning into a seller’s market!

Does low inventory mean the bottom of the real estate market? It’s possible.  Prices in Elk Grove didn’t go down this month and probably won’t go down for the next couple months.  In fact, prices went up almost 3% in the last month.  However, they are down almost 6% overall from this time last year.

I don’t usually make predictions but here is my opinion on the Elk Grove real estate market: There will be low inventory through this summer.  Elk Grove homes will continue to get multiple offers and prices will remain steady.  This Fall and Winter, the banks will release more foreclosures and more Elk Grove sellers will realize the need to short sale their home.  The inventory will increase and sales will slow due to the slow selling season.  Prices may dip slightly or stay steady.  One thing is for sure, house values will not start substantially increasing in 2012.

What does the low inventory mean for Elk Grove buyers and sellers? For sellers, it means it’s a good time to sell.  You’re house will sell quickly and you’ll have your pick of the most qualified buyer increasing your chance of a smooth sale. As an Elk Grove buyer, you should team up with an experienced Elk Grove real estate agent who can advise you on the best way to get your offer accepted.  Here are my tips for scoring a great house in Elk Grove despite the competition:

• The highest price doesn’t always win. Sellers consider other offer terms as important as the price. Length of escrow time, transfer fees, loan type, and the buyer’s flexibility will all contribute to the sellers decision.

• Submitting your offer first is important. On well priced Elk Grove homes with multiple offers, sellers and their agent can be overwhelmed be the amount of offers received.  Submitting your offer first insures you’ll be noticed and shows you’re serious about buying.

• A complete and neat offer is key. This falls on the shoulders of your Elk Grove real estate agent.  Your offer should be sent to the seller and their agent in one complete package.  It should be typed, easy to read, and not have missing signatures and dates.  Your lender pre-approval (dated in the last 30 days) or proof of funds should be included.  An incomplete or messy offer is a turn-off for the seller and shows lack of organization.
• Ask the sellers what they are looking for. This is another job for your real estate agent.  Maybe the sellers need to rent back for a month or two.  Perhaps a quick escrow is more important to them.  If it’s an Elk Grove short sale, the seller may want to know how committed your are to waiting for a short sale approval.  Writing your offer to fit the needs of the seller carries a lot of weight and will help you get your offer accepted.
• Pick an experienced Elk Grove real estate agent. Your agent is a reflection on you.  Your Elk Grove real estate agent should have at least five years experience.  Real estate should be their only job and they should have at least 100 sold homes under their belt.  Experienced real estate agents understand how to best write your offer and give you the greatest chance of getting accepted.

Buy a House in Elk Grove – Where’s the Inventory?

Posted by Elk Grove Realtor – Allan Sanchez