My parents live out in the country in the Herald area. They have a very nice 2600 square ft. home located on 5 acres and surrounded by similar homes.

Asked by Eager2sell, 95632 Mon Jul 9, 2012

They have been trying to sell on and off for 5 years. They have gradually reduced their price down from 800k to 550k. They are now preparing to go even lower. How bad is the current market/trends and is there any hope of improvement?

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7
Ernest Math…, Agent, Wilton, CA
Thu Dec 6, 2012
Things are inproving in the country You need a agent that knows the area I have live out here for 25 years and this is also were my office is call and we can talk
Ernest Mathews
Wilton,ca
(916)799-7386
0 votes
Ron Caragio, Agent, Lockeford, CA
Tue Dec 4, 2012
The lastest area price opinions have the market prices between $300k and $400k. This depends on acreage and size as well as age, what is on the property besides just a dwelling. Lots of factors are involved.
0 votes
April Cooke, Agent, ELK GROVE, CA
Wed Nov 14, 2012
They have been chasing the market downward. How quickly a house will sell for is determined by condition, location and price. Looking at comparable sales will help. The inventory is low, so if a house is priced right and in good condition you should be able to sell.
Web Reference:  http://www.wiltonranches.com
0 votes
Ron Caragio, Agent, Lockeford, CA
Sun Jul 15, 2012
Hi,

I tried to send an answer a couple days ago but my computer had a malfunction an this is the first time I turned it on since. I apologize to you for not returning an answer sooner.

There is no clear cut answer to your question. I read all the other answers and they all say in one word or another, The market is constitantly changing and the trends for the kind of residential property your parents have is no different than one on a small lot.

I have over 22 years of experience and for the past 5 years mainly focust on BPO properties. ( BPO is Broker Price Opinion) A Lender contacts me and I provide a market anaylsis of a centain property. Many of these are SFR's with acreage anywhere from 1/2 acre to 20 acres or more. I provide the current value based on like properties both active and sold in the immediate area of where the home is located.

Looking at your parents home, square feet and lot size, I can see the market value is not at where the home was marketed at. Just recently I valued a home with 10 acres with a 2000+ sq. ft. home. It had 2 horse barns with multiple stalls, open and covered arenas a tractor barn and this property did not reach 300k.

In essence, your parents property would have to have income to make the selling higher than the current value according to the current market trend which has declined about 3%. Income represents grapes, apples, or other agricultural products.
0 votes
Sue Archer R…, Agent, Palm Harbor, FL
Mon Jul 9, 2012
the real estate market is so entwined with the national economy....that in turn is affected by the global economy that it's difficult to say what is going to happen. My simplistic view is that when we get jobs, then it will turn around.

There is one school of thought that, because inventory is extremely low, prices are improving (and they are in the last few months) with historically low mortgage rates. In the theory of supply and demand, with a low supply there is upward pressure on pricing. Howver, appraisals (which are completed without influence by any parties) create a downward pressure when they must use comparable sales to determine value....it prevents the pricing from going crazy.

There is another school of thought that argues there is shadow inventory with the banks, due to the political atmosphere of picking on the banks as the bad guy. They, in their need to succeed for their stockholders, make strategic decisions on releasing properties to the market and are holding them back. In addition, no one believes the federal government can keep printing money to keep this mortgage rate low forever. Their policy is exacerbating the deficit problem. Those who argue these facts are predicting the market will drop again and go even lower.

No one has a crystal ball. Your parents need to look at their individual circumstances, the current value of their home and make that decision. However, I will encourage you that if they are considering a loan modification, or a short sale, they complete it before the end of the year to avoid tax consequences. The federal and California debt relief act are set to expire and no one is betting that it will be extended (that I know of).

And I do know that realtors would love to have your listing...there are so few. Make sure you select one who is good at negotiating to get them the best price/terms in whatever market.
0 votes
Liza Klagenb…, Agent, Galt, CA
Mon Jul 9, 2012
The market is very wild here, but I do think there is hope in the future. Inventory is at an all time low right now, and I have been selling in this area for 30 years. With inventory this low, the pressure on prices is tremendous! We just have to get enough comparable sales at the higher prices to get consistent appraisals.
Now, it's not like the boom days and I don't think we'll see those kinds of prices any time soon. But prices are definitely going to go up with this much demand and such low interest rates. Unless the entire national economy really takes another dive.
Without seeing your parents house, it's hard to say what it is worth. But there are 3000 - 5000 sq ft homes in the $450,000 - $575,000 range in Wilton that might be the most competition for them. Do they have an up to date markey analysis? Their agent can update one easily. Unless it has an awful lot of bells and whistles, it could be below $500,000 - possibly by quite a bit.
As a thumbnail, the market here has dropped from the top of the market (which in my opinion was July 2005) by 55 - 70%, for comparision.
I hope this information helps somewhat. It will absolutely sell - everything is! We have a about 3 weeks of inventory in town in Galt right now! It just has to be at the right price.
Best to you.
0 votes
April Cooke, Agent, ELK GROVE, CA
Mon Jul 9, 2012
The current market is good! , Your parents made the mistake of "chasing the market down".
Which means they could of sold it for much more had they put it on the market for less than the 800K. It is unfortunate. You may need a new marketing plan, and aggressive pricing. Homes on 5 acres are selling faster because you can have more horses. Wilton is a hot market, so is Herald if the price and location is right. Good luck and don't hesitate to call.
0 votes
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