Whats My Stockton House Worth? It really does depend on who you ask.
What is My House Worth in Stockton?
It is on every homeowners mind when they decide to sell a house… after all if the pricing is too low you’re concerned that you’re giving the house away and if it is priced too high it will sit forever and Never Sell. It’s also the one question that everyone that is a real estate agent thinks that they know the answer to… But Do They?
If they did then why do over 40% of all real estate listings go unsold? Its a real number. If you’re thinking about selling your house and need to do it quickly, the traditional route of selecting a real estate agent may not be for you.
The Stockton real estate market is not one size fits all and yet the Real Estate Industry has convinced the public at large that somehow if we analyze the sales of properties over a certain period of time generally comprising the past 3 months, for a specific geographic region we can determine the value of any house. Is that true?
By and large it is, but make sure you are comparing apples to apples and make sure that your house is in top condition. Just because your house is in the same zip code as a million dollar beauty does NOT mean your house is worth more by virtue of the zip code or address alone.
My name is Peter Westbrook and I am a home buyer is Stockton, Manteca, Modesto and Sacramento, CA and I can tell you that the true value of any house is what someone that is willing to pay cash for it. That is the real value. So what happens if a house needs a lot of work and no bank will offer financing… what is the value then?
This article is about that and chronicles a conversation that I had with a real estate Agent about the value of a house that I had made an offer on.
My Conversation with a Real Estate Agent: Whats That House Worth in Stockton?
Yesterday I received a phone call from a real estate agent, I’ll call her Sally. She told me that she was talking to her sister’s best friend about an offer that I had made on a house (located at ABC Street) that she owned, and that she wanted to discuss the offer with me.
It all sounded reasonable enough, so I bit, with my usual… “How can I help you?
She continued; that she had run a Comparative Market Analysis (CMA) for the house and that her research showed that the house was worth considerably more than what I was offering and wanted to know why my offer was so low?
I remembered the house and the owner so I asked her; “Have you seen the house in question?”
She replied that she had and that it needed some cosmetic work inside and out”.
I was a little surprised by the answer, so I asked her to verify the address because I may have looked at a different house or made a mistake. She verified the address and I calmly explained that the collapsing front porch was not cosmetic and that it was symptomatic of the entire roof collapsing because it had not had any maintenance since the tree had fallen on it 12 years ago”. I also explained that there were dry rot issues around most of the windows and doors, settling issues and cracks in foundation and the plaster had cracked throughout the house. Not to mention the mold in the bathroom and dry rot under the bathtub and toilet.”
I asked; “Can we really compare this distressed house to what you found through your MLS CMA?””Did you request any Title Company sales comparisons for houses not sold through MLS?”
Her response was textbook… she replied,” I searched for properties sold and listed in MLS for the past 90 days within a quarter mile of the house and this was the high, median, and low”. She continued, “I have been in the real estate business for 3 years and I know how to run a CMA and I am really concerned, it sounds like you are trying to steal the house”.
I responded; I understand that you think MLS is complete, but what we are comparing are apples and oranges because had you run or requested comparable data from the title companies as well you would have found the houses that were not sold by real estate agents and were not listed on the MLS. You would have found the cash only purchases as well and they tell a completely different story and indicate a wide range of market values.
She insisted that it didn’t matter and that the MLS data was the most accurate and that the Title Company data was irrelevant.
I responded; “Sally, I understand your concern, but this may be a good exercise for both of us. Maybe we both can learn something and we can help your sister’s friend at the same time.” Do you realize that the MLS data is isolated to properties that are only sold by real estate agents?”
She insisted I was wrong. I then asked if she was aware that the data provided by MLS did not include cash only transactions and/or concessions by the buyer to the seller? Another point she immediately rejected.
So, I asked “if you are convinced that the property is worth considerably more than what I offered; “May I ask why you aren’t selling the house for her? If somewhere between the low, median and high is what you think that she can get, why don’t you list it and sell it?”
Her response was priceless… “Peter, I don’t sell these types of houses and the house would never qualify for financing because of the repairs needed and the owner has already told me that she has no money to fix it up.” “I was just calling you to ask why your offer was so low?” she continued to tell me that she could sell it for what I offered.”
So I said … “Sally, you’ve already admitted that the house cannot be sold conventionally with financing and I bet that you could eventually sell the house and if you did, could you with a straight face to do so and charge your sisters friend a sales Commission?”
Without hesitation she said, “of course I would, I get paid to do this.”
My response was simply… now who is taking advantage of whom?” Your sister’s friend can sell her house to me, without any fees and commissions and I’ll even pay the closing cost. Why should she sell it through you and pay a commission?” How are you going to add value without increasing the sales price?
There was silence on the other end of the phone. Sally understood my point, but the real point is that in an industry so vast, with so many markets and niches, no two houses are the same and sometimes the CMA is just a guess. If it weren’t’, then there would be no reason for some houses to sell in one day and others that sit for a year. The truth of the matter is that over 40% of all houses listed on the Real Estate MLS DO NOT SELL within their first listing period. The condition of the house and the high prices Real Estate Agents place on the house to buy the listing from the seller is why we have so many expired listings. The truth is that not all houses are created equal and the notion that Investors buy properties at discounts is NONSENSE.
Stockton Home Buyers (Investors) pay fair market value for houses minus repairs. It really is that simple and if all buyers were paying cash only the best houses would sell at a premium.
Now the rest of the story: I purchased that house for the amount of my original offer. There were no inspections ordered, no contingencies, no appraisals and no banks. I used the same tools that everyone has available to determine the market value of that house in its current As-Is condition.
When the preliminary title report was released it was discovered that the house had $7,384.00 in code violations/liens and an un-permitted garage conversion. I think that sometimes we forget who takes the risk when purchasing distressed properties, but one thing is for sure I have never stolen a house.
Some Real Estate Problems Are Resolved with the Sale of the House to a Cash Home Buyer in Stockton
At “Westbrook REI” and “We Buy Houses Stockton“, we are the best at what we do because we work at it every day. We understand that a commitment to customer and a commitment to our business only happens with hard work. We have years of experience and a plan that we follow. We are a real company with real people that are committed to helping you achieve your goals.
Again, we’re not real estate agents. We are actually Stockton home buyers and we have our own cash… so we can make you an offer on the spot. Once we make you an offer, you can take that offer, shop it around if you want, talk it over with friends and family, and think about what you want. We won’t pressure you one bit.
If you want the best LOCAL We Buy Houses Company in Stockton, Sacramento, Manteca and Modesto then give our company a call today, we offer simply solutions to complex selling issues. Our house buying process is very easy with no hassle and we can close on YOUR time.
We Buy Houses Stockton CA, Get Your Offer at http://www.ibuyhousesstockton.com or call Peter Westbrook today at (209) 481-7780.
Other Conversations and Case Studies follow this Link http://www.westbrookrei.com/who-will-buy-my-house-in-stockton/