One out of 4 foreclosers go to investors

In Sacramento County one in four foreclosure sales went to investors during the 2009 year.

Prices have come down enough so that rental properties purchased with cash can yield a 5 to 9 percent return, much better than the stock market.  This return does not include home appreciation.

Price point homes go pending quickly, usually in 5 to 10 days.

Nine out of ten foreclosures priced under 200 thousand sell for over asking price with multiple offers.

Multiple offers are the norm with banks instructing buyers to bring their highest and best- no time for countering back and forth.

I have been up against 20 other cash offers on well priced foreclosures.

One HUD foreclosure priced at 53 thousand accepted an offer for 136 thousand.  This is on 10th ave in Tahoe park!  No joke,  see this listing here……….. http://prospector.metrolist.net/scripts/mgrqispi.dll?APPNAME=Metrolist&PRGNAME=MLSLogin&ARGUMENT=Ok7KmNi58nbInAxeCH8GTewqhdlV8u%2BS18SoY4VDiZQ%3D&KeyRid=1&Include_Search_Criteria=

First time buyers that need financing for their purchase are forced to offer more than the cash buyers for their offer to be accepted.

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Real Estate investors swoop up sweet deals

Real estate news for the Sacramento area

  • Residential- single family homes priced under one hundred thousands dollars are the investor’s delight in the Sacramento area.
  • Multiple,  cash offers from real estate investors  are the norm in Sacramento-especially with homes priced for less than one hundred thousand dollars.
  • Most foreclosure properties under $100,000 get multiple offers within 2 days after being listed on the Sacramento MLS.
  • Most properties asking $100,000   or less sell for over the asking price.
  • Properties listed under $150,000 and less sell quickly, usually less than 34 days after being listed.
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California Unsold Inventory Index declines to 3.8 months for December

The unsold inventory  index indicates how many months it will take to deplete the supply of homes at the current sales rate.  The current rate of 3.8 months is the lowest it has been since 2005.   In December of 2008 the California Unsold Index, or  UII was 5.8 months.  Real estate investors acquiring foreclosures within three or four days of being listed can explain the low Unsold Inventory Index in California.  Homes as low as forty or fifty thousand are selling in Sacramento to cash buyers.  With so many real estate investors presenting cash offers banks are not willing to look at offers that require financing.

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Foreclosures in Sacramento fuel economic activity

Flipping foreclosure in Sacramento is one job sector that is growing.  Builders, investors and Realtors are staying busy looking for discount foreclosures in bad shape.  They make a clean cash offer to help secure a deeper discount.  Once the Sacramento foreclosure property has been purchased it is time for the crew to come in for a quick face lift, majors repairs, or both.  The home has to look good and qualify for financing. A minimum set of health and safety criteria is met to make sure the home will be marketable to a wide range of buyers. (sorry FHA borrowers, you have to wait 90 days)   Fresh carpet and a two-tone paint job later the house is thrown back onto the market.  The home is now available to population of first time home buyers that has much more demand than the market has supply.  Also, there are investors that demand this type of product as they scramble to safeguard their cash from economic uncertainties.  Homes under the 200k price range frequently go pending in less than 10 days!  That is smoking fast!  Quick flips for quick profits.  this is how many builders, handy people, and realtors are making a living in tough economic times.

Contact Mark Divittorio if you are considering this type of purchase contact

markdevo@gmail.com          or at

530 957 1577

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