One of the best questions asked in real estate is what does the market expect, and this is because it keeps us focusing on what buyers are actually looking for in terms of prices and neighborhoods. In other words, what are those things that people are willing to pay more or less for in an area? For example, some areas of a neighborhood may vary in prices all because there are more built-in pools there.
It’s safe to say that when there are more built-in pools in certain neighborhoods and when price ranges are relatively similar in those areas, then that is what the market wants. This is especially true when more than 70% of the homes in specific areas have a pool. If a town has an area where less than 2% of homes have a pool, then the market probably doesn’t expect a pool in those areas. Keep in mind this doesn’t mean that the pool is not worth anything in those areas, but you do want to consider that a pool may be worth more or less in different areas.
Sure, it may be tempted to give a token $12,000 adjustment for a built-in pool. However, this may only make sense in certain areas in different neighborhoods. This is because not everyone’s expectations are the same.
Keep in mind that it’s not just all about pools because we have to get an idea of what the market expects for things such as lot size, square footage, landscaping, bedroom count and upgrades to name a few. Many of us want answers right away, but there is noway we can get instant answers in regards to knowing what the market expects. At least not without comparing sales, as well as speaking with professionals in the real estate industry, as well as talking with buyers. Not only that, but some serious number crunching would have to take place in order to get answers.
We want to mention another thing. In the past, we discussed how Blackstone was selling homes directly to tenants, and a few years ago, they bought many homes in the Sacramento area. Even to this day, they still buy, but the volume in which they purchase homes is not what it used to be.
It was mentioned that Blackstone would probably sell a certain percentage of their inventory to tenants. The percentage they said they sell is about 5%, but we don’t know if this is true for the Sacramento area. However, people will want to keep an eye on this because it is worth watching.
However, some landlords are selling their properties to their tenants now. This means they are not listing their properties on MLS. In other words, Blackstone is not the only one selling properties directly to tenants.
So, the big question is how do you actually get an idea of what the market wants and expects in a specific area, such as areas located throughout a specific city? Feel free to give any advice on how to understand the expectations of the market better because we’re sure that some people may have a good idea and could answer this question better. With that said, feel free to answer that question because we are interested in learning what you think