I am a first-time real estate investor. I am planning to put some offers for SFH in Sacramento area (mostly Roseville). The prices are still going down so I am thinking to underbid by at least 5%. Is that reasonable? How to decide if to underbid or overbid ?
Get an Real estate investor agent preferably involved and they will guide you. I hope you have run the preliminary numbers and have decided the amount to put and the property range you want to get. That will help when you are working with an investor agent.
Bel Air, CA · Member since 2017 · 165 posts · 47 votes
3y
Just a year ago everyone was expecting 1,000 over asking cash and let seller stay up to a month in order to get the property!
now most everyone's stimulus and/or crisis drill checks have dried up already so houses are sitting longer whether berkeley or newtown cuz most remaining buyers need loans.
i start as low as 30% less than mktval/asking and work way up to meet in middle if they counter
cash is still king but fewer and fewer investors actually have any
Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
3y
Prices are currently going down in most markets. Unless the property you are looking is way undervalued and there is a lot of activity, there is no sense to overbid. Mortgage rates may continue increasing as well. I would try to get about 15-20% under asking in most markets
Some markets are holding steady but it sounds like yours is not one of them so underbid on a few and see what happens.
Real Estate Broker · Rocklin, CA · Member since 2020 · 221 posts · 82 votes
3y
@Akash Agrawal It all depends from property to property. Some seller still list high which stays in the market for longtime. Roseville is a great area to live and have 3 zip codes 95661, 95747 & 95678. 95747 is growing a lot. I'm a real estate broker in Rocklin which is right next to Roseville. I been living here for more than 25 years so seen the city growing. Last week showing one of buyers brand new homes and it was for $625k and my buyer offered $575k so they countered back to $621k. Again it all depends from house to house. Please let me know if I can be any help. All the best!!!