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Important Tips You Should Know About Selling Your Auburn CA Home

By Edited Jul 3, 2016 0 0

Auburn California, an important gold rush historical town located in Placer County has some specifics you should be aware of if you reside there and are considering selling your house.

The Auburn Real Estate Market is Depreciating

For one thing, you should realize that houses in the area have depreciated considerably over the last 12 months. Average prices have fallen around 18% in that time frame, even more if one looks at longer time frames. Like much of California, Auburn was hit quite hard by the sub-prime mortgage crisis. There are currently 1148 houses in foreclosure, a little fewer than 300 houses actively for sale, and only 3 new houses for sale. Given this depreciating market for Auburn CA real estate, somebody trying to sell a house at a good price in the area has their work cut out for them.

Auburn Sellers Should Know Their Potential Buyers

auburn ca real estate
Sellers in Auburn CA need to know who their buyers are likely to be. This depends on many factors such as the size of the house, market conditions, house condition, and the status of the mortgage. Given that house prices are falling in this area, a seller is probably looking for buyers that are not interested so much in houses as investments, at least not short term ones, but more so in simply finding relatively inexpensive houses to buy. So the majority of buyers will be families, possibly with children, probably not in the highest income bracket. These people may be hoping that the market will turn around at some point in the future and are currently looking for good deals on houses to reside in.

Auburn Sellers Should Know the Selling Points about Their House

A seller needs to know what the good points about the house are so he or she can present those points to a buyer convincingly. In the case of Auburn there is the fact that it is about midway between Sacramento and Lake Tahoe. The Auburn locality is definitely out in the country, but these popular locations give it appeal. Auburn is also the town nearest to the Auburn State Recreation Area, a 40 square mile state park in the heart of the gold country that hosts many endurance sporting events throughout the year, earning Auburn the title of Endurance Capital of the World.

Sellers Should Carefully Assess the Condition of the House

Especially given the nature of the Auburn CA real estate market, sellers need to get a clear idea of what the condition of the house is and how that will affect the price. This may even involve paying an inspector or appraiser to thoroughly assess the house's condition and value. Though it may seem like a hassle, this in depth analysis is usually worth it. If there are repairs that need to be done, the seller should decide whether having them done before selling, or simply coming down in price is recommended. Keep in mind that if the houses are being sold to families rather than investors as such, those families will probably want to move in sooner rather than later, and not spend a lot of time and money on repair and rehab for the house. Therefore it's probably in the bests interests of buyers to think in terms of bringing the house up to move in condition before putting it on the market.

Sellers Should Know What Will Make Their House Attractive To Investors

auburn ca homes for sale
Though the primary sales targets are families in Auburn, sellers should still know, as a backup plan, what will make the house attractive to investors. Most investors are looking for houses significantly below market value. So this means that in a depreciating market, investors will want even lower prices than the already going rate. In the case of Auburn CA, the best scenario here is probably a house that needs mainly cosmetic repairs. This will allow a seller to find a buyer that will put a small amount of money into the house to bring it up to move in condition and then resell it. Thus the amount that a seller will have to take off the price will not be as exaggerated as in the case of larger repairs.
This should be a kind of plan B or second option, because the fact that the investor buyer is looking to make a profit means that you will still have to take more off the cost than the cost of repair. There is also the fact that you will be competing against foreclosed houses that are being sold possibly at greatly discounted rates. So selling to investors really is not the optimal goal to pursue in Auburn. Nevertheless, it helps to know what investors are in the market for in case a seller has to go that route.

Auburn California is a great location, but the real estate market definitely presents some challenges to homeowners and sellers looking to get out with any kind of profit to show. The best chance of getting a reasonable amount for a house is to focus on getting it into very sellable condition, and then targeting families by telling them about the locational and recreational advantages of the area. There is no reason to dismiss selling a house here as an option, but sellers should know what they are getting into before they start.
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