With a shifting market comes the need to re-frame what defines a ‘win’ in Lamorinda real estate. For 2 years during the pandemic, a win for buyers was defined by the mere act of getting into contract, usually after several frustrating attempts against multiple bidders. For sellers, many walked away with an all cash deal that set a new record for a sales price in their neighborhood.
However, those “wins” were not indicative of a balanced market and, as we’ve quickly realized, they were not sustainable. While low interest rates and rapid home equity growth are still yearned after, we now have to understand what winning looks like in the current market environment. We wanted to share a few recent case studies that indicate how our team can still help you achieve successful real estate outcomes amid a shifting market.
Winning with No Regrets!
Uncertainty is the enemy in real estate. We work hard to educate our clients so that together we can all make the best possible decisions. In this case study, we wanted to show how our clients defined winning, with no regrets, right as the market started to turn.
Lafayette Case Study
The Dana Green Team listed a fantastic single-level, Lafayette home with views at the end of April 2022. This was right at the cusp of early changes in our market. We (the Dana Green Team and the Sellers) expected the home to go pending within seven days with multiple offers. Unfortunately, this was not the case. We punted and lowered the price.
Our Sellers did everything correctly to prepare their home for sale: pre-market inspections, fresh paint, new carpet, and recommended repairs. It took 18 days for their home to go pending, which at the time was not the norm, and the accepted offer was below the list price, which again was not the norm.
When it was clear we had to pivot, together, we reviewed goals, weighed the pros and cons of selling at a lower price, and did a deep dive into market stats. We all worked hard to keep the big picture front and center. The Sellers understood they did not control the market and also knew it would be their turn to be Buyers next. But most of all, they placed a high value on moving closer to their daughter, son-in-law, and a first grandbaby on the way!
Today, our Sellers are renovating a 100-year-old house in the Pacific Northwest they just purchased, walking to local coffee shops, and loving life just down the road from their family. Their first grandbaby is due any day.
Did they hit the top of the market? No. Did they hit the bottom of the market? No. Did they get to the next chapter in their life? Yes!
Moving Fast to Make Informed Decisions
It’s easy to want to buy something, but sometimes hard to know if it’s a good financial choice. Especially, when dealing with an investment property. In this case study, we break down how our clients can call our team to action to utilize our broad base of knowledge and skill sets, even if it doesn’t lead to a sale.
Investment Property Case Study
Recently, I received a call from a past client interested in a four-plex in Walnut Creek. Sarah, Matt and I moved quickly to set an appointment to show the property Monday night. Our client was intrigued with the possibilities and wanted to learn more. By Tuesday, we received the disclosures and learned offers were due at noon on Wednesday. We needed to sprint and a four-plex is complex. We decided to divide and conquer.
Todd read hundreds of pages of disclosures and summarized them beautifully for our clients. Matt began to draft an offer that required the client to assume three tenants. Sarah and I crafted a market analysis to determine if the list price of the building was accurate. In addition, we analyzed current rent prices and what rents could possibly look like if the building were upgraded in the future. We were able to do all of this by 5 p.m. Tuesday so that I could re-group with our clients.
After much discussion surrounding our client’s long-term goals, we determined the complexity of this building and the issues surrounding an unpermitted sewer line were risky, complex, and ultimately, not in alignment with their goals. Our team’s ability to analyze a complex property, in record speed, was incredible. The ‘win’ was not buying the property because it didn’t align with our client’s big picture.
I hope these examples shed some light on how our team of specialists functions. We truly could not do the work that we do for our clients without each team member. We are here to help guide you through this market in any way we can so that you can secure your ‘win’.