Erin and Elizabeth are both spot-on with their answers. Elizabeth's explanation of list-to-sale price is 100% correct, but what's left out of the equation is this: there's a big divide in the market right now between what is selling and what isn't. If you're keen on getting a super deal, consider focusing on areas where there's a LOT of competition among sellers and with bank-owned homes (though be warned that all real estate is local and some neighborhoods that still have a glut of REOs may see some declines to come).
If you're looking for a deal, look for the ugliest home you can find that meets all your needs and still has potential to be beautiful. So many buyers have a hard time looking past "ugly" or "broken" and skip to the nicer homes that they don't have to use their imaginations with. This is your opportunity.
And remember: some neighborhoods never crash, they only dip a little. If you're looking for a deal and want to be close to--but not IN--Downtown (http://www.ForSaleinDowntown.com
) or Midtown (http://www.ForSaleinMidtown.com
), I think South Natomas (http://www.ForSaleinSouthNatomas.com
) is a place to consider. Prices have come down dramatically because of foreclosure activity, but at the end of the day it's a nice place to live and convenient to Downtown--and I think it'll rebound nicely once the market turns.
Now you've gotten my three cents (NOTE: adjusted from two cents due to inflation).
Rob McQuade, ABR, REALTORÂ®
McMartin Realty | 2031 K St Ste 100 | Sacramento, CA 95811-4253
Tel (916) 444-7577 or Toll Free (866) 720-CITY (2489)