Thursday, February 21, 2019

Bay Area Home buyer Exodus to Sacramento CA? 107924606

As a Sacramento real estate agent, I use a separate marketing blog, directed to the Bay Area, to draw interest from the many migrating home buyers and investors that are interested in our Sacramento area.  I began that project last summer.  The average home in San Francisco is selling for $1.37 Million dollars.* (Note, I said "average.")  The average home in San Jose is selling for $1.09 Million dollars.* 

We also have a Facebook, Instagram and You Tube Audience in the Bay Area that follows our listing and blogs. We even do a video tour of your home and show it to all of those Bay Area buyers who have cash money to buy your home. 

Imagine if their home is above average. That is who is exiting the Bay Area, looking for better values in Sacramento and Roseville/Rocklin, etc., and they are carrying boatloads of cash with them as they come. No wonder they make all cash offers, and they don't mind over bidding everyone else. They can sell an average home over there and come over here and buy an exceptional above average home in Sacramento or surrounding communities for all cash and still have cash to put in their pocket also. Some Sacramento based buyers are angered at having to bid against Bay Area money and with good reason. But Sacramento sellers love it. 

Let's say they sold their home in the Bay Area and netted $1.3 Million in cash. Then let's say they see your home you just listed for $800,000. Someone brings you $790,000 as an offer. But this Bay Area person, who netted $1.3 Million in cash on the sale of their home, offers you an over the bid price of $830,000. Done deal. Were they injured at all for over paying you for your home? No, they used inflated money from their home and your $800,000 home was probably much bigger and nicer than their Bay Area home they sold for well over a Million. It does make you stop and think, doesn't it.

A new survey says that 53% of Californians want to leave the state.* The article I quote below cites the high cost of living as the main reason. But a huge problem which most will agree on in California, is the difficulty in finding affordable housing.

So, if there is a looming exodus in seed form on the minds of many Californians, which may or may not happen, what we do know is that there is an exodus already happening from the big cities, including the Bay Area, due to prices and economics. Apparently, the Sacramento region has been the biggest recipient of the Bay Area outward migration which has resulted in the influx of home buyers to the Sacramento Valley. I want to show you an excerpt from the San Francisco Chronicle SFGate Online article from 2/13/19:

Excerpt begins:

"There have been other signs of the California exodus. In December, it was revealed that one of the most frequently Googled questions in California last year was "Should I move out?" The Bay Area was also found to be leading the nation in outward migration, meaning more people are leaving the region than moving in. However, most people who moved out of the Bay Area didn't go too far; the number one destination was Sacramento, followed by Los Angeles, Seattle, Portland and San Diego."*

End of Excerpt!    To read the full article, go here.

I have set up a marketing system for our clients in the tri-county area to maximize their chances of getting their home noticed by Bay Area home sellers who have cash. It is all about strategic positioning. If our market has softened, then skill and finesse and experience are again going to be in demand as qualities needed in a local real estate agent and firm. In some cases, the way the market was the last few years, a 6th grader could have sold a person's desirable and hot home as the market and the house did its own selling due to low inventory. Commissions nevertheless were paid just the same. Contact us today to discuss your needs and to see how we can help you succeed in selling your home and receiving the best possible offer.

*Source: 53 percent of Californians want to leave the state, according to new survey!
By Alix Martichoux, SFGATE-Online, Chronicle, Published 12:13 pm PST, Wednesday, February 13, 2019

Disclaimer/Indemnification:  This blog is meant for informational purposes only and is not meant to be advice for daily real estate practices. Readers using the materials and sources in this blog understand that the facts are shared as principles, and are not exact advice for specific persons or specific situations. The principles and notifications and facts shared in this blog are meant to raise awareness for consumers so that they may make decisions based on knowledge they obtain from many different sources including this blog. Readers agree to indemnify and hold harmless Greg Nichols and any sources used from liability due to any decisions readers may make in real estate matters based on reading this blog. Readers need to seek out advice from their attorneys or from real estate brokers that they are in contract with who are acting as their legal agents.

Greg Nichols
eXp Realty
DRE # 00632894

A Licensed California Real Estate Broker

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