Looking for a fixer in Sacramento CA?

There are ton of investors out there currently looking for fixers right now.  I get hit up daily from buyers that are all cash looking for a good house to fix and flip in Sacramento.  We're seeing it become difficult with the low inventory and the margins are minimal.  Some investors are buying a paycheck.  They will make money on the deal but it's mostly from their labor that they are putting into the property.  I'm no stranger to doing home improvements and I know what things cost.  Everything from materials to labor has increased dramatically since Covid.  

I reciently went to look at a property in Sacramento that was inherited by my client and he wanted me to take a look at it to see what he should do.  It's a 2 bedroom 2 bath, 1400 sqft on 1/3 of an acre built in 1944.  It comps at $400,000; however, it's going to be well over $100,000 to rehab the property.  There's a ton of dry rot, electrical isn't grounded (2 prog), the kitchen and bathrooms need a full gut.  It can become a rabbit hole and end up costing $150,000.  For this to pencil, I would be comfortable around $225,000.  The crazy thing is, I could sell it today for $275,000 no problem.  My advise was to sell it "AS IS"!  Don't put money into it.  He's not a contractor and it makes more sense to walk away from it.  Take the money and run I said.  I also told him I wasn't interested in buying it as it needs too much work.

I have several fixers coming on the market soon.  2-3 houses in Sacramento, 2 in Roseville, 1 in Orangevale...  Many of the fixers I get are court ordered partition sales.  They are properties that are owned my multiple owners and one if forcing the sale.  These typically have differed maintenance.   As I'm a remax agent in Roseville, I'm also a court appointed referee on these properties.  I'm not allowed to represent the buyers in these transactions; however, I can put you in touch with a broker.

January 2024 roseville real estate agent

 We’re off to a strong start in 2024. Inventory is starting to pick up and rates are holding steady. Personally, I have a half dozen listings I’m working on to sell soon. I have a Listing in Serrano, El Dorado Hills, two Partition sales come in in Sacramento, I’m selling 42 1 acre lots and El Dorado Hills off Green Valley Road, I have a townhome coming for sale in Natomas 2200 ft.² four bedroom three bath Priced at 540,000. I also have a subdivision for sale in Roseville located at 1028 Main St.  This is a 10 lot project, quarter acre lots. Several conditions left before final map is approved. This project is priced at 1.2 million.  

I can tell you we’ve already seen a decrease in them out of agents and lenders in the business. 2023 was a difficult year with minimal amount of home sales and placer Sacramento and El Dorado counties.  For example, our office typically has around 90 to 100 agents, we’re down to 60.  Much of what the Roseville real estate market is experiencing is sales that are life events. What I mean by that is either a forced sale like a partition, or marriage divorce…  People are holding off on buying up and this is keeping inventory tight. 

We have 14 different builders in Roseville California right now and they are all building as quick as they can. Financing incentives and they’re able to sell new construction rather quickly.  

Having been in real estate for 20 years, I’ve seen many changes in the market.  I just came across my BPO last week since 2011.  I reached out to accompany. I used to do foreclosures with to get an idea of what the market might look like this year. They told me they had 80 houses in the foreclosure process in the Roseville area.  It seems we’re gonna have an uptick of short sales and foreclosures and Sacramento placer County starting this year.  The cost-of-living in California has gone up substantially, and a lot of people are relying on credit cards to bridge the gap.  Folks might be looking to sell as they have equity. However, they’re not able to keep up with the payments.  

If you find yourself in a tight situation and looking for a solution, you should reach out to Roseville real estate agent, Chad Phillips.  If it’s through me or other business professionals, I can help guide you and offer the best solutions for your situation.

  2024 real estate projection in Placer, Sacramento and El Dorado Hills real estate market

There's a general conscientious that the real estate market as a whole will improve in the coming year.  We're expecting interested rates to tick down further which will help overall affordability for home buyers.  On top of interest rates expected to come down we're estimating that prices will remain stagnate with more likelihood of coming down slightly.  Zillow and other online real estate companies are suggesting a decline in Roseville home prices around 1.4% in 2024.  This is a small percentage, I'm sure the over under percentage of error in the estimate is higher than the prediction.  I can tell you that we've seen new home construction cranking out houses in 2023.  New homes accounted for 25% of all home sales in Placer, Sacramento and El Dorado counties in 2023.  They will continue to build new homes as home builders have projects lined up.  Some of the larger projects like Folsom Ranch is going to be under construction for 3-4 more years.  Foslom ranch is going to be beautiful when it's all done and built out.  Some of the features I've seen with the commercial and shopping centers there will be amazing.  Personally I think they need to address the traffic there at E. Bidwell.  It can be crazy around 5-7pm.  Those new homes in Folsom are on small lots and going for big money, around 1 million.  I've already sold a house in there, it was a resale 3600 sqft for 950K, and that was almost 2 years ago.  I think we'll continue to see people say put with there sub 5% interest rates and the market will be mostly folks moving for work and life changes; such as, divorce, marriage, death...  Plenty of people are wanting to move up but I think the numbers have to make more sense before people want to take on more debt.  

When it comes to the industry, we're seeing more and more people getting out of the business.  Lenders, real estate agents, title officers and so on are finding themselves in a situation where they are depleting all their cash and need to get a new job.  At the end of the day, there's simply not enough transactions to support the amount of people that got into the business.  This is a cycle and trend and I've seen it before.  When the Roseville real estate market is hot, then people jump on the band wagon, but when things get tough it thins the herd.  I've been at this for 20+ years now so I've been able to work multiple angles to generate business.  Some of my new clients come via google, but most of my business comes from repeat clients and professional referral.  I specialize in partition sales so I've networked with attorneys in the area to assign me as the listing broker in those situations.  I've also focuses on land development thru clients and I'm also doing my own subdivision in Roseville.  It's only 10 lots on Main St. in Roseville; however, it's been a great first hand experience as to the process.

At the end of the day, it's a good time to buy a house in Roseville area.  Make sure you have a good local lender, I can recommend several if you need.  As long as the monthly payment is in your budget, it's likely you'll be able to refi in the near future and get that payment even lower.  If not and rates go up then you'll still be happy with your rate and payment.  Another key is to have a broker like myself who knows most of the other brokers in town to help negotiate on your behalf.  People tend to be more frank and forthcoming with people they know.  

I look forward to another productive and exciting year selling real estate in Roseville 2024!