Insights into the Sacramento Real Estate Market


Clarity is one of the most important aspects of real estate, whether buying, selling or investing.

Most real estate decisions are emotional, yet being clear about what you want, and the process to obtain it, will help you attain goals faster, with less stress and risk.

Some basic information about the process shorten the process and avoid many unnecessary pitfalls.

The Sale or Purchase of residential real estate has for basic steps:

  1. Identify the property you will to sell or a buyer who will buy your property.
  2. Negotiate and agree upon terms of sale.
  3. Provide disclosures and perform inspections.
  4. Sign closing (and loan) documents, transfer the property.

While each transaction looks similar like this process, the amount of variety in the field is enormous.  Each property is different, each buyer / seller has their own priorities and unique situation.

We have found that a variety of basics also apply to buyers, sellers and investors.  Here are some examples.


Hire a professional agent.  Hiring an agent to assist you is free, paid for by the seller, and they will guide you through the process and avoid pitfalls you did not know were there.  There is just no reason not to.

Don’t be house poor.  Before the crash it was customary for people to buy their dream home with the low cost financing that was available at the time.  The problem buyers found was they had the home they always dreamed of, but could not do anything else because they had not extra money for vacations, eating out, celebrations, etc.  They put themselves into a beautiful financial prison.

Quality of life.  What will your life look like once you move in?  How will your life be different because of the location you purchase in?  What will your commute be daily?  Are you close to store you frequent, family and friends?  Do you like the neighborhood, weather, local politics?


Don’t improve too much.  Most large repairs that can be done to home before sale will not pay back what they cost when the home sells.  While there are some inexpensive cosmetic fixes that can be done prior to listing, larger projects typically don’t pay back.  Consult and experienced real estate agent/broker for their advice of what should be completed prior to marketing.

Selling by owner.  Some owners are do-it-yourselfers and feel they can sell their home better than a professional agent.  Some probably can, and many can do it better than a terrible agent (to find a good agent get a referral).  There is still no market replacement for the MLS (Multiple Listing Service) which agents use to share their listings with other agents who have buyers looking for property.

Get professional help.  The MLS is not the only reason to hire a quality professional.  If I sell a property I want to know what the market is doing, and the direction it is headed, so I can price accordingly.  I want to know what is commonly written into contracts, so I don’t have a big problem in the process and can keep the buyer engaged.  Also having a professional between me and the buyer to negotiate without emotion is beneficial.


It is a business.  Investing in real estate is like many other businesses.  They are not hands off, and require direction from the owner and the manager.  It is crucial that an owner treat their property like a business, because it is.

2 ways you make money, cash flow and increase equity position.  The first you get every month, the second you receive when you cash out.  There are many techniques that can be used to add to these 2 strategies for making money: utilizing the tax structure to reduce tax on rental income or defer gains at sale (1031 exchange), buying with an equity position, improving the property for additional equity, etc.

Understand the Market.  Knowing where the real estate market is at now, what direction it is going, and how fast it is getting there are very important factors.  Some of the things to understand is the current median sales price, days on market, months of inventory and have a view of historical perspective for these same numbers.  What was it last month, and last year?  What are the seasonal trends?

Each market is unique.  Real estate markets are different.  Each region of the country has different weather, employment prospects, proximity to other areas, and cultural identity.  Not only does every major metropolitan area have a different market, but cities and neighborhood react differently within a metro area.


Look through our side for other quality information to expand your knowledge of real estate.

If you want to be introduced to top quality real estate professionals outside of the Sacramento area, give us a call at 916/726-8308 or drop us an email at  We would be happy to connect you with a couple who can really help.

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Let’s talk. Whether you are a real estate buyer, seller or investor, I can help.