Ryan Lundquist opened his July market recap with a fair concession: no housing headline was going to compete with the Taylor Swift and Travis Kelce wedding. He's right, and honestly, the housing news wouldn't have led the broadcast anyway — because the biggest story in Sacramento real estate right now is a quiet one. In his early-July market recap on the Sacramento Appraisal Blog, the numbers say the market has genuinely improved this year. Almost nobody we talk to believes it. Both things are true, and the gap between them is worth understanding whether you're buying or selling.

The Numbers Behind "A Little Better"

Here's what the first half of 2026 actually produced, per Lundquist's data: closed sales are up 4.9% year over year across the region — roughly 17,000 sales adding up to about $10.6 billion in volume. June was the strongest June for closed sales since 2022. New construction chipped in nearly 250 more homes sold than the same stretch last year. That's real growth after several years of a market everyone described as stuck.

He's honest about the caveats, and they matter. Before June, the year was up slightly less than 3%, and June 2025 was a particularly weak month to compare against — so the June pop flatters the trend. Condo volume has stayed flat while detached homes carried the growth. And he flags some softness in new-home volume in June itself: "We want to watch new homes volume closely and not ignore some weakness in June." A 5% improvement built partly on a weak comparison is progress, not a boom. Nobody should read it as 2021.

Why It Doesn't Feel Better

If sales are up, why does every buyer we sit down with still describe this market as brutal? Lundquist names it plainly: "Affordability is still really challenging," and his bottom line is the one we'd underline twice — "Don't expect a sharper change to the market without a sharper change to affordability."

The mechanics are simple. A buyer doesn't experience sales volume; a buyer experiences a monthly payment. At rates in the mid-6% range — check Freddie Mac's weekly survey for the current number — every $100,000 borrowed costs roughly $630 a month in principal and interest. On a $500,000 home with 10% down, that math dominates the conversation long before anyone celebrates a 4.9% regional volume increase. Sellers, meanwhile, don't experience the region's $10.6 billion either; they experience the three buyers who did or didn't show up to their open house. Small aggregate improvements are invisible at the level where people actually live. That's not a reason to dismiss the growth — it's a reason to be precise about where it's happening.

Where the Growth Actually Lives

This is the part of Lundquist's post we'd tape to the refrigerator: the strongest growth came in the $400,000–$500,000 range, and 19.2% of transactions in that band used FHA financing. Translate that out of statistics and into a person: the buyer driving Sacramento's 2026 improvement is an entry-level buyer with a modest down payment, often using FHA or CalHFA assistance programs, shopping for the most affordable solid house they can find.

We can put addresses to that. In our corner of the region, the $400K–$500K single-family search leads to places like Citrus Heights, Rancho Cordova, Rosemont, and parts of South Natomas. Those are the neighborhoods where this statistic turns into Saturday-morning showing traffic and multiple-offer weekends — and where sellers of clean, well-priced homes are having a better year than the regional averages suggest. Earlier this month we dug into what that FHA concentration means for low-down-payment buyers in a flat-price market: it's the group with the thinnest equity cushion, which makes buying the right house at the right price more important in this band, not less.

The Condo Asterisk

One segment sat out the improvement entirely: condos. Lundquist's charts show condo volume flat while detached homes carried the growth, and we see the reason at kitchen tables every week. HOA dues and rising insurance costs stack on top of the mortgage, so a condo that looks affordable on price often isn't on monthly cost. An entry-level buyer comparing a condo against a detached house at a similar all-in payment usually takes the house and the yard. If condo living is what you actually want, though, the flat volume cuts in your favor — it's one of the few corners of this market where you can still negotiate without a crowd behind you. Our Midtown Sacramento guide covers the region's biggest condo market, HOA math included.

The New-Construction Wrinkle

Those extra 250 new-home sales deserve a comment, because new construction is competing on the one thing resale sellers can't easily match: the payment. Builders can buy down a buyer's interest rate, cover closing costs, and price to move standing inventory — which is exactly how you sell homes into an affordability-constrained market. Peter spent four years as a sales manager for builders before running this team, so we'll offer the advice we always give: the builder's friendly on-site agent works for the builder. Bring your own representation (it typically costs you nothing), get the incentive package in writing, and compare the net deal against nearby resale — sometimes the shiny buydown beats the resale math, and sometimes it quietly doesn't.

What This Means for You

If you're buying: the improvement is concentrated in exactly the band where you're probably shopping, which means more competition, not less. Get fully underwritten before you shop, and don't assume "the market is better" headlines mean you can wait — in the entry-level band, the good ones are moving. If the payment is the wall, ask about buydowns, assistance programs, and the new-construction route.

If you're selling: be careful reading a 4.9% headline as permission to price ambitiously. The growth is a $400K–$500K story; if your home sits above that band, your market is still slow-dancing, and overpricing into it remains the most expensive mistake available. What is working in every band is condition — Lundquist notes that homes in good condition are a hot commodity, which is the condition gap we wrote about in June still doing its work.

The Bottom Line

The market really is a little better — and "a little better" is doing a lot of load-bearing work in that sentence. Volume is up almost 5%, the entry-level band is genuinely busy, builders are buying their way to sales, and affordability still sets the ceiling on all of it. Lundquist's advice to agents was to pick optimism and go where the change is. Our version for buyers and sellers: skip both the doom and the hype, and get specific about your price band and your neighborhood, because that's the level where this market is actually decided. Lundquist's full breakdown with the charts is worth your time — and his question to readers ("Are you noticing any volume change?") is one we're happy to answer for your specific street.

Want to know what "a little better" means for your address? Search Sacramento homes for sale, get a real home valuation, or contact us.

Or call us directly: (916) 739-2424

The Peter Parker Team | DRE# 01257844 | eXp Realty DRE# 01878277
Market data referenced from the Sacramento Appraisal Blog (July 8, 2026) and approximate as of mid-2026. Market conditions and mortgage rates change frequently; verify current figures before making a decision. This is general information, not financial or legal advice.

Sacramento buyers in 2026 pay a premium for exactly one thing: a home that's ready. The same floor plan on the same street can sell in a week over asking or sit for two months with a price cut, and the difference usually isn't the market — it's preparation, pricing, and how the first ten days are handled. Here's the playbook we run with our sellers, including the parts that are less fun to hear.

Know the Market You're Actually Selling Into

Prices are technically above last year, but as we covered in why the "prices are up" headline needs context, that's a soft comparison, not a boom. Buyers are payment-sensitive at today's rates (check Freddie Mac's weekly survey for the current number), inventory has been tightening, and the market has split in two: move-in-ready homes draw crowds while dated or overpriced listings accumulate days and reductions. Local appraiser Ryan Lundquist has documented that appraisers are making bigger condition adjustments than they used to — the condition premium is now showing up in the appraised value, not just in offer behavior.

Top dollar in this market means positioning your home on the right side of that split.

Price It Right in Week One — You Don't Get Week One Back

Buyer attention on a new listing peaks immediately. Historically, a large share of Sacramento homes that go pending do so in their first week — and the listings that miss that window tend to linger. That's why overpricing is the most expensive mistake a seller can make: you spend your peak-attention days advertising the wrong number, then chase the market down with reductions while buyers wonder what's wrong with the house.

The counterintuitive part: pricing at or slightly under the comps is how sellers get over-asking results on well-prepared homes. A sharp price creates competition; competition sets the final number, not the list price. Start from a real valuation built on your block's actual comps and your home's actual condition — get a real home valuation, not a portal estimate that's never seen your kitchen.

Spend Where Buyers Pay: The Condition Premium

We wrote a full piece on the condition gap; the seller's version fits in one sentence: buyers pay for what they don't have to do. The improvements that reliably return money at sale are the unglamorous ones:

• Paint — whole-interior neutral paint is the cheapest transformation in real estate.
• Flooring — replace worn carpet; refinish what's refinishable.
• Light — bulbs, fixtures, cleaned windows, trimmed shrubs off the glass. Dark rooms photograph small.
• The first 30 seconds — front yard, door, entry. Buyers decide fast and confirm slowly.
• Small repairs — the dripping faucet and cracked switch plate cost little to fix and a lot in buyer confidence.

What usually does not pay: full kitchen or bath remodels done just to sell. You'll spend at renovation prices and recover at appraisal adjustments. If the house needs real work you don't want to do, that's fine — price for it honestly up front rather than pretending, and the as-is buyer pool will respond.

Presentation: Photos Win the Showing Before It Happens

Nearly every buyer sees your home online first — that's what buyers see searching Sacramento homes before they ever get in a car. Professional photography, decluttered rooms, and staging (full staging when vacant; strategic editing when occupied) are the cost of entry. Twilight shots, floor plans, and honest wide angles help; dark phone photos are how $20,000 quietly leaves the deal.

Timing Matters Less Than Readiness — But It Still Matters

Spring has historically been Sacramento's strongest listing window, with a second push in early fall. But a prepared home priced right sells in any month, and an unprepared one struggles in May. If your timeline is flexible, we'll look at what's actually on the market in your neighborhood right now — competing inventory matters more than the calendar. In supply-tight pockets like Folsom and Fair Oaks, thin competition can make an "off-season" listing the best-attended show in town; in more negotiable areas like Elk Grove, preparation and pricing carry more of the load.

Inspections: Get Ahead of the Renegotiation

Most Sacramento deals renegotiate once — after the buyer's inspections. Sellers who inspect first control that conversation instead of reacting to it. What we typically recommend before listing:

• Pest (termite) inspection. Wood-destroying-organism findings are a fixture of California escrows, and "Section 1 clearance" (active infestation and damage items) is a common buyer ask. Knowing your Section 1 number up front lets you fix it cheaply, credit it knowingly, or price around it.
• Sewer line scope, especially in older neighborhoods. Homes from the 1950s and earlier — common in East Sacramento, Land Park, and parts of Carmichael and Fair Oaks — often have original clay or cast-iron laterals. A $6,000–$15,000 sewer surprise in the buyer's inspection period kills more deals than it should; a $200 camera scope before listing takes the surprise off the table.
• Roof and HVAC age documentation. If they're newer, that's marketing material. If they're old, you'd rather know how the appraiser and buyer will see them before you set the price.

You'll disclose what you find — that's both the law and the point. A disclosed, priced-in issue is a footnote; a discovered one is a renegotiation.

The Offer Is More Than the Number

When offers come in, top dollar means the money that actually reaches closing:

• Financing strength. A pre-approved buyer with verified funds at a slightly lower price often nets more than a shaky offer $10,000 higher that dies in escrow.
• Contingencies and timelines. Shorter inspection and appraisal periods reduce your risk window; rent-backs solve your moving math.
• Appraisal exposure. If an offer is far over comps, ask how the buyer handles an appraisal gap before you celebrate.
• Credits are currency. A clean pre-listing inspection lets you fix or disclose issues on your terms instead of renegotiating on the buyer's.

What Selling Actually Costs

Be clear-eyed on the net: commissions (negotiable, and in the post-settlement era you'll decide explicitly what, if anything, you offer toward the buyer's side), title and escrow fees, any negotiated credits, and your payoff. On the tax side, IRS Topic 701 covers the home-sale exclusion — up to $250,000 of gain for single filers and $500,000 for married couples who've lived in the home two of the last five years; given Sacramento's appreciation over the past decade, long-time owners should run this with a tax professional before closing, not after.

A rough shape of the math on a $600,000 sale, so nothing surprises you: selling costs — compensation on your side, anything you elect to offer the buyer's side, title, escrow, county transfer tax, and miscellaneous fees — commonly land somewhere in the range of 6–8% all-in, or roughly $36,000–$48,000, before any negotiated repair credits. Subtract your loan payoff and you have your walk-away number. We build an actual seller net sheet with real quotes for every listing before it goes live, so the number you plan around is the number you get.

California also requires thorough seller disclosures — the Transfer Disclosure Statement and related forms (the California Association of REALTORS publishes the standard set). Disclose honestly and completely; it protects your sale and you, since disclosure problems are the classic post-closing lawsuit.

Seller FAQ

Should I sell now or wait for prices to rise?

Nobody can promise appreciation, and waiting has carrying costs. Prices have been roughly flat; if the move makes sense for your life and the equity works, the market is sellable right now — especially with inventory tight.

Do I need to remodel before selling?

Usually no. Paint, floors, light, and repairs return money; full remodels usually don't. We'll walk your specific house and tell you where the line is.

What if my home needs too much work to compete?

Price honestly for condition and market it to the right pool. As-is sales close every week in Sacramento — the mistake is pricing a project like a turnkey.

How long will it take to sell?

Prepared and priced right: often under two weeks to contract, then roughly 30 days of escrow. Overpriced: months, plus reductions. The first number you pick is the biggest variable.

What's my home actually worth?

Not what Zillow says — an estimate that's never seen your foundation, your remodel, or your street. Start with a real valuation and we'll show you the comps behind it.

The Bottom Line

Top dollar in Sacramento's 2026 market is earned in the three weeks before the sign goes up: honest pricing against real comps, targeted preparation where buyers pay premiums, and presentation that wins the online showing. Get those right and the market's split works for you instead of against you. Talk to us for a no-pressure walk-through of what your specific home needs — and what it doesn't.

Or call us directly: (916) 739-2424

The Peter Parker Team | DRE# 01257844 | eXp Realty DRE# 01878277
Market conditions are approximate as of mid-2026 and change frequently. This is general information, not financial, tax, or legal advice; consult qualified professionals for your specific situation.

Twenty percent down on a $475,000 Citrus Heights starter home is $95,000. We open with that number because it's the one that keeps renters renting — and for most first-time buyers, it's a myth. The real minimum is a fraction of that, California will help you cover part of it, and the harder parts of buying your first Sacramento home are the ones nobody puts in a headline. Here's the whole picture, the way we walk clients through it.

What a Starter Home Costs in Sacramento

As of mid-2026, realistic entry points look roughly like this (ranges, because markets move):

• Citrus Heights, Rosemont, Rancho Cordova: roughly $375,000–$525,000 for a single-family starter. These areas see the region's heaviest first-time-buyer competition.
• Natomas: newer stock, roughly $400,000–$600,000 depending on which side of the basin (budget for flood insurance).
• Elk Grove: roughly $450,000–$650,000, family-oriented, and more negotiable lately than the close-in value areas.
• Condos in Midtown/Downtown: entry from the mid-$300,000s if you're open to HOA living.

A well-priced, move-in-ready home under $500,000 can still draw multiple offers in this market, so the cheapest bands are also the most competitive ones. Plan for that rather than being surprised by it.

The 20% Down Myth

What you actually need down:

• Conventional loans: as little as 3% for qualifying first-time buyers — about $14,250 on that $475,000 house.
• FHA loans: 3.5% — about $16,625 — with more forgiving credit requirements (often from around a 580 score, versus roughly 620+ for conventional; exact thresholds vary by lender).
• VA loans: 0% down if you're a veteran or active-duty service member.

Putting less than 20% down means mortgage insurance — PMI on conventional loans, MIP on FHA — typically some hundreds of dollars a month at these price points. That's a real cost, and we'd rather you know it up front. But do the other math too: saving an extra $75,000 while renting takes most people many years, during which you're paying a landlord and betting prices stay put.

Also budget for closing costs — lender fees, title, escrow, insurance, prepaid taxes — which typically run around 2–3% of the purchase price here. Sellers can credit part of these in negotiation, and slower-moving listings are where those credits get won.

CalHFA: California Will Help With the Down Payment

The California Housing Finance Agency runs the state's main assistance program, and it's the first thing we check for eligible buyers:

• MyHome Assistance Program: a deferred junior loan of up to 3.5% of the purchase price (FHA) or 3% (conventional) to cover down payment or closing costs. It's a "silent second" — no monthly payment; you repay it when you sell, refinance, or pay off the house.
• Requirements: you must be a first-time buyer (generally meaning no ownership interest in a principal residence in the last three years), live in the home, fall under CalHFA's income limits for the county, and complete a homebuyer education course.
• Dream For All, the state's shared-appreciation program, has operated in limited funding rounds that get claimed fast — check current status rather than planning around it.

Stack MyHome on an FHA loan and your out-of-pocket down payment can approach zero, leaving closing costs as the main cash hurdle. See CalHFA's full program list — and note the loans come through CalHFA-approved lenders, so tell your loan officer you want to be evaluated for it. If the payment math is the sticking point, talk to us and we'll connect you with lenders who work these programs weekly.

FHA, Conventional, or VA: Picking the Loan

The 2026 loan limits are comfortably above starter-home prices here — FHA lends up to $763,600 on a single-family home in Sacramento County, and FHFA's conforming loan limits allow $832,750 for conventional. So the choice is about fit, not ceiling:

• FHA suits buyers with thinner credit or smaller savings; the trade-off is mortgage insurance that, in most cases, stays for the life of the loan until you refinance.
• Conventional suits stronger credit; PMI drops off once you reach 20% equity, which matters over a decade of ownership.
• VA is usually the best deal on the table if you qualify — no down payment, no monthly mortgage insurance.

One Sacramento-specific note: FHA is common here — roughly one in ten regional purchases, and far higher in the entry-level areas — so a well-prepared FHA offer absolutely can win. It just needs to be complete: full pre-approval, clean terms, and an agent who presents it properly.

California Costs Nobody Warns You About

• Property taxes: expect an effective rate of roughly 1.1–1.2% of your purchase price per year in much of Sacramento County (the Sacramento County Assessor is the authority). Under Prop 13, the assessed value resets to what you pay — so the previous owner's tax bill tells you little.
• Mello-Roos: parts of the region — including sections of Natomas, Elk Grove, Rancho Cordova's 95742, and Folsom's newer neighborhoods — carry special-district taxes that can add thousands per year. Always ask for the full tax rate and any special assessments on a specific address before you write an offer.
• Insurance: California's insurance market has been rocky; get a homeowner's quote during your inspection period, not after, and factor flood insurance in the Natomas basin.
• Disclosures work in your favor: California sellers must provide extensive disclosures (the Transfer Disclosure Statement and Natural Hazard Disclosure among them). Read them — they're the house's confession letter.

The Process, Step by Step

1. Get fully pre-approved (not just pre-qualified) before touring anything. In competitive price bands, the prepared buyer wins.
2. Set your payment ceiling — the monthly number you're comfortable with — and let that, not the pre-approval maximum, define your search.
3. Tour and shortlist. Search Sacramento homes for sale and expect the good ones to move in days, not weeks.
4. Write the offer. Price is one lever; so are your escrow timeline, contingency periods, and seller credits.
5. Inspection period. Keep your inspections — this is where repairs and credits get negotiated, and it's your honest look at what you're buying.
6. Appraisal and loan approval. Your lender verifies the home's value and finalizes underwriting.
7. Close — typically 30 days or so from acceptance, then the keys are yours.

Mistakes We See First-Time Buyers Make

• Waiting for the perfect rate. We've written about why waiting for rates is usually the most expensive plan — you can refinance a rate; you can't re-buy the house that sold.
• Financing changes before closing. No new car, no new credit card, no job change between pre-approval and keys. Underwriters re-check.
• Waiving inspections to compete. There are better ways to strengthen an offer; we'll show you.
• Shopping the pre-approval maximum. Lenders approve what you can pay, not what you should.
• Ignoring the tax line items. That Mello-Roos surprise shows up every year, forever (or at least for decades).

First-Time Buyer FAQ

How much down payment do I really need in Sacramento?

As little as 3% conventional or 3.5% FHA — roughly $14,000–$17,000 on a typical starter home — and CalHFA's MyHome program can cover most or all of that for eligible first-time buyers. Zero down if you qualify for a VA loan.

What credit score do I need to buy a house?

FHA loans are often available from around a 580 score; conventional generally wants 620 or better, with pricing improving as scores rise. These vary by lender — a good loan officer will tell you exactly where you stand and how to improve it.

How much are closing costs in Sacramento?

Plan on roughly 2–3% of the purchase price. Seller credits can offset a chunk of this, especially on homes that have sat on the market a few weeks.

Do I count as a first-time buyer if I owned a home years ago?

Usually yes — most programs, including CalHFA's, define "first-time" as having no ownership interest in a principal residence during the previous three years.

Is 2026 a good time to buy in Sacramento?

The honest answer: rates near 6.5% are lower than a year ago (check Freddie Mac's weekly survey for the current number), prices have been roughly flat, and sellers of slower-moving homes are negotiable. Well-priced starter homes are still competitive. Good time or bad time matters less than whether the payment works for you and you plan to stay a while.

Your Next Step

You don't need $95,000. You need a clear picture of your payment, your loan options, and which Sacramento neighborhoods fit your budget — and that picture costs nothing to get. The federal CFPB's home-buying toolkit is a solid primer; for the local version, talk to us. We'll connect you with a CalHFA-savvy lender, tell you honestly what your budget buys, and go from there. Already own and wondering what you'd walk away with? Our home valuation tool is the place to start.

Or call us directly: (916) 739-2424

The Peter Parker Team | DRE# 01257844 | eXp Realty DRE# 01878277
Program terms, loan limits, and rates are approximate as of mid-2026 and change frequently — verify current figures with CalHFA and your lender. This is general information, not financial, tax, or legal advice; consult a qualified professional for your specific situation.

For the first time in a long while, Sacramento price metrics came in higher than a year ago. Before anyone pops champagne or panics about a new run-up, the fine print matters — and this month the fine print is most of the story.

Key Numbers This Month

• Median sale price (Sacramento city): roughly $500,000–$550,000 depending on the source and month you look at — Redfin's Sacramento data has run near the low end of that range this spring. Regional medians sit higher.
• Mortgage rates: the 30-year fixed averaged 6.49% in Freddie Mac's weekly survey as of July 9 — stuck in a narrow 6.4–6.5% band since mid-May, and notably below the 6.72% from this week last year.
• Days on market: low 40s for the city per Redfin, a bit slower than last year's high 30s — though this varies enormously by price point and condition.
• Sales volume: roughly flat compared to last year, with more homes selling above their original list price than at this time in 2025.

What's Happening With Prices

Prices are technically up year over year. Ryan Lundquist's June recap explains why that "technically" is doing heavy lifting: the 2025 market peaked unusually early, so this summer's stats are being compared against a dull stretch of last year. Same house, friendlier yardstick.

The honest read is that price declines have been compressing for months — things stopped getting more negative, and now the line has poked above zero. That's stabilization, not liftoff. One month of positive year-over-year data after an easy comparison isn't a trend, and we'd caution both buyers and sellers against building a strategy on it.

Inventory & Days on Market

The quieter story is supply. Active listings have been shrinking lately — partly because pending sales firmed up, and partly because would-be sellers are pulling back or holding off. Fewer fresh choices is what most of our buyers are actually feeling, whatever the headlines say. (Months of supply — how long it would take to sell everything currently listed at the current pace — remains in the high-2s to around 3, which historically leans mildly toward sellers.)

At the same time, homes that are overpriced or dated are sitting well past the average, while clean, well-priced listings keep moving in days. We wrote about the condition gap recently, and it has only widened: this is a market that pays for move-in-ready and punishes wishful pricing. Distress, for the record, remains minor — see our honest look at Sacramento's distress numbers if the doom videos have reached your feed.

What This Means for Buyers

Rates near 6.5% are lower than a year ago, and sellers of slow-moving listings are negotiable — that's your leverage. But don't expect bargain-bin conditions on the good stuff: with listings tightening and more homes selling above original list, the well-priced, move-in-ready home still draws a crowd, especially under $500,000. Get fully pre-approved, decide your payment ceiling before you fall in love with something, and treat stale listings as your negotiation pool.

What This Means for Sellers

The year-over-year headline is finally on your side, and thinning competition helps. Use that honestly: price to today's comps — not to the "prices are up!" narrative — and put real effort into condition and presentation, because that's where 2026 buyers are paying premiums. If your home checks the boxes, you may be pleasantly surprised; if it needs work, price for it up front rather than chasing the market down with reductions. Start with a real number, not a portal estimate: get a free home valuation.

Neighborhood Spotlight: Citrus Heights

Entry-level is where this market's tension is sharpest, and Citrus Heights is its poster child. It has the region's highest FHA share among the areas Lundquist tracks — 17.9% of sales since 2022 — which tells you first-time buyers are competing hard here. Well-priced homes in the $375,000–$525,000 band see some of the fastest action in the region, while anything overpriced sits just like everywhere else. If you're weighing an entry-level purchase, our Citrus Heights guide covers the neighborhoods, schools, and trade-offs in depth.

The Bottom Line

A stabilizing market with a misleading headline: prices barely above a soft 2025 baseline, rates parked in the mid-6s, supply quietly tightening, and a wide gap between homes that show well and homes that don't. Boring, honestly — and boring markets reward preparation over timing. For the region-wide data we lean on every month, read the Sacramento Appraisal Blog; for what it means on your street, that's our job.

Want the specifics for your neighborhood or price range? Search Sacramento homes for sale, get a free home valuation, or ask us for a personalized market report.

Or call us directly: (916) 739-2424

The Peter Parker Team | DRE# 01257844 | eXp Realty DRE# 01878277
Market data is approximate as of mid-July 2026, drawn from the Sacramento Appraisal Blog, Freddie Mac, and Redfin. Conditions and rates change frequently; verify current figures before making a decision. This is general information, not financial or legal advice.

Short sales in the Sacramento region are up 31% this year. Here's the same fact stated another way: there were twelve more of them than last year. Both versions are true. Only one of them makes a scary headline.

That pairing comes from Ryan Lundquist at the Sacramento Appraisal Blog, in his July post on underwater mortgages, delinquencies, and short sales — titled, with a dad joke he immediately apologizes for, "You can't do a short sale if you're tall." Behind the pun is some of the most careful distress data anyone publishes on this region, and his one-line summary is the right frame: we don't have "a distressed market," but "we're seeing more distress." From the agent's side of the table, we'd co-sign that — and add some street-level context the regional numbers can't show.

What the Distress Data Actually Shows

Three findings from Lundquist's distress breakdown stand out:

• About 0.8% of Sacramento-area mortgages are underwater — meaning the home is worth less than what's owed — per the ICE Mortgage Technology data he cites. That's below the national figure of roughly 1.5%, though it has grown from 0.5% in April 2025. Most of the growth traces to homes bought after 2022, which makes sense: buy near the price peak with a small down payment, watch prices go flat, and there's not much cushion left.
• Delinquencies, foreclosures, and short sales are all rising — from pandemic-era lows. Those lows were never going to hold. Forbearance programs and 20%-a-year appreciation made distress nearly impossible for a stretch, so some normalization was always coming.
• There still aren't many distressed sales to actually buy. Anyone waiting for a flood of cheap foreclosures is getting a trickle, and the low-priced fixers that do hit the market draw a crowd.

The Percentage Trap

The most useful part of the post has nothing to do with real estate mechanics — it's a lesson in reading statistics. Lundquist points out you could honestly report that Sacramento short sales grew "over 1,500%" since 2022. You could also honestly report the 31% year-over-year jump. Both figures describe a change of a few dozen transactions in a region where Roseville alone has closed more than 8,300 single-family homes since 2022.

His advice to people in the industry is to report the percentage and the raw count together, and to be wary of anyone who inflames "sensational percentages based on tiny numbers" — those people, as he puts it, are likely spinning a narrative. Our version of that advice for buyers and sellers: whenever a housing statistic scares you, ask what the raw number is. If a video says short sales exploded and the raw number is twelve, you've learned more about the video than the market.

Where FHA Concentration Matters — and Where It Doesn't

The section we found most useful as agents covers FHA loans. Nationally, FHA borrowers are more delinquent than other loan types. Locally, FHA has been about 10% of the market — but it isn't spread evenly. Sacramento County accounts for roughly 72% of the region's FHA purchase volume since 2022, and in some Sacramento County neighborhoods FHA is over 30% of transactions.

Lundquist adds a sharp caveat about raw counts here too: Roseville ranks near the top for FHA purchases by volume, but only because Roseville closes a lot of everything — FHA is just 6.2% of its sales, versus 17.9% in Citrus Heights.

Here's what we'd add from working these streets. The FHA-heavy, entry-level areas — think Citrus Heights, Rancho Cordova, Rosemont — hold two truths at once. Yes, they have the deepest pool of recent low-down-payment buyers, so if the economy softens, payment stress will concentrate there first. But they also have the strongest first-time-buyer demand in the region: a well-priced, move-in-ready home under $500,000 can still draw multiple offers. Distress and demand are concentrated on the same blocks. If more short sales do materialize, they'll likely show up in these areas — and get met by waiting buyers. That's a shock absorber, and it's one of several reasons this doesn't rhyme with 2008.

If You're Hoping to Score a Cheap Foreclosure

Reset your expectations. The foreclosure wave has been predicted every year since rates jumped, and the actual distressed inventory remains thin. Meanwhile, the low-priced fixer you're picturing is the most-watched listing type in the region.

What works better in this market: hunting listings that have sat a few weeks and gone stale, negotiating repairs and credits during inspection, and shopping the pockets where sellers have lost leverage. If a genuine short sale or REO does fit your search, fine — just know it comes with longer timelines and lender approval, and it's rarely the bargain the listing price implies. Search Sacramento homes for sale and we'll flag the realistic opportunities, whatever their label.

If You're the One Carrying the Weight

Lundquist closes with a reminder we want to echo: these statistics represent people, and his ask of the industry is to know what people are going through and be available to help. So here's the practical version, if your payment has started slipping:

• Call your servicer early. Forbearance and loan modification options exist, and they work better before you're months behind.
• Use the free help. A HUD-approved housing counselor costs nothing, and the CFPB's help-for-homeowners hub lays out your options in plain language.
• Find out what your home is actually worth. With only about 0.8% of local mortgages underwater, most owners who feel stuck still have equity — which means a normal sale, at a decent price, may be on the table. Get a real valuation of your home before assuming the worst.
• If you truly owe more than the home is worth, a short sale is a real option, and Peter has guided clients through them. The single biggest factor in how these turn out is how early the conversation starts — so talk to us early, even if you're not sure yet what you want to do.

This is general information, not legal or financial advice; for a distressed situation, loop in a qualified professional.

The Bottom Line

More distress, but a long way from a distressed market: underwater mortgages under 1% locally, short sales measured in dozens, and entry-level demand still strong enough to absorb what does surface. That's a trend worth watching — Lundquist says he expects more short sales ahead given flat prices, and we agree — without being a reason to panic-sell or to camp out waiting for foreclosure bargains. Read the Sacramento Appraisal Blog yourself; it's the most honest data work in this region, and this post is a model for how to talk about uncomfortable numbers without spin.

Want a straight answer about your block, your equity, or your options? Search Sacramento homes for sale, get a real valuation of your home, or contact us.

Or call us directly: (916) 739-2424

The Peter Parker Team | DRE# 01257844 | eXp Realty DRE# 01878277
Market data referenced from the Sacramento Appraisal Blog (July 2, 2026) and is approximate as of mid-2026. Market conditions change frequently; verify current figures before making a decision. This is general information, not financial or legal advice.

Picture two houses on the same street. Same floor plan, same lot, same year built. One was remodeled three years ago; the other still has its original kitchen and the carpet to match. Not long ago, those two homes sold within a few thousand dollars of each other — buyers were competing for anything with a roof, and condition got lost in the scramble. In 2026, that spread has stretched into real money. The distance between the updated home and the dated one is the thing a lot of Sacramento buyers and sellers still aren't pricing in.

Ryan Lundquist, the appraiser behind the Sacramento Appraisal Blog, put numbers behind that gut feeling in a late-June post asking whether appraisers are giving bigger condition adjustments in 2026. His answer, from the appraisal side of the desk, was yes. We read his work every month, and this one lines up cleanly with what we're seeing in offers and counteroffers across the region.

What an Appraiser Is Actually Seeing

Lundquist says he finds himself "making bigger adjustments for condition right now." The important nuance — and he's careful about it — is that this isn't an appraiser deciding to change the rules. It's the appraisal following the market. In his words, the "price disparity between a pristine home and a dated one could be larger today than it was in the past."

The reason is affordability. His line is worth sitting with: "lack of affordability has bred hypersensitivity among buyers about condition, location, and price." Back in 2021, he notes, buyers were "much more forgiving about defects" because they were desperate and outbidding each other on everything. Today they're "patient instead of desperate." When someone is already stretching to make the monthly payment work, they have zero appetite to also pour $60,000 into a kitchen the month after they get the keys.

You can see both ends of it in the Land Park data he cites. Pristine homes are commanding premiums — he points to a home listed around $1.35 million that reportedly drew six offers and sold near $1.5 million — while well-priced fixers under $400,000 still pull multiple offers, because buyers will happily compete for a project if the price honestly reflects the work. The homes that sit are the dated ones priced as though they've already been updated.

Why the Gap Got Wider

The frenzy hid condition. When every listing sells in a weekend, the tired house and the turnkey house both close, and the price difference between them compresses. A slower, payment-sensitive market does the opposite. It rewards move-in-ready and punishes deferred maintenance, because the buyer paying today's rate wants to spend their cash on the down payment, not on a contractor.

That's why condition adjustments grow and shrink with the market, as Lundquist puts it. Right now they're growing. This is the same market we described when we wrote that shrinking supply, not rates, is the 2026 story — fewer homes, choosier buyers, and a premium on the ones that don't need work.

If You're Selling: Condition Pays Again — But Don't Over-Improve

Here's the part an appraiser's post doesn't get into: what to actually do about it. A widening condition gap means targeted prep work pays off again the way it didn't have to during the frenzy. The trick is spending on the right things.

• Hit the visible, broad-appeal updates first. Fresh interior paint in current neutrals, updated flooring, and a light kitchen and bath refresh — counters, hardware, lighting, not a gut remodel — do the most per dollar. National Cost vs. Value report data has long shown exterior and curb-appeal projects recouping the most; treat that as a pattern to verify for your home, not a guarantee.
• Fix what scares buyers and appraisers. A failing roof, an old HVAC system, dry rot, a leaking water heater. Deferred maintenance reads as risk, and risk shows up as a condition adjustment that comes straight out of your price.
• Don't out-build the block. The most expensive home on the street rarely earns its money back. Match the neighborhood's standard; don't lap it.
• Document everything you've done. Hand your agent — and the appraiser — a dated list of improvements. Appraisers credit what they can see and verify, so make your home's condition easy to give you credit for.
• Then price to condition. An updated home can ask the premium. A dated home priced like an updated one is the listing that sits and goes stale.

If You're Buying: The Home That's Been Sitting Is Your Leverage

The flip side of a wider condition gap is opportunity, and most buyers walk right past it.

• Above the entry tier, the lingering dated home is where you negotiate. Most buyers self-select out of anything that needs work, which thins your competition exactly where you want it thin.
• Know the exception Lundquist flags. Under $400,000, fixers still draw crowds. In value areas like Rancho Cordova or Citrus Heights, a livable project priced right can still see multiple offers. The real leverage on condition shows up in the move-up brackets, not the entry tier.
• Buy condition, not location. You can paint, re-floor, and remodel a house. You can't move it into a better school zone or off a busy street. A cosmetically dated home in a strong, supply-tight area like Folsom or Fair Oaks is often the smartest dollar on the market.
• Get real bids before you waive anything. "Needs updating" can mean $15,000 or $90,000, and the difference decides whether the deal is a steal or a trap.

The Appraisal Angle Most People Miss

This is where our side of the table and the appraiser's quietly connect: condition adjustments cut both ways at appraisal time, and that affects your strategy before you ever write an offer.

If you're buying the one pristine home in a neighborhood full of dated comps, the appraisal can come in below your offer — there may simply not be enough updated sales to support the premium you paid. Build that conversation into your offer strategy up front, not after the appraisal lands. If you're selling an updated home surrounded by dated sales, those comps can drag your appraisal down, which is exactly why that improvement list isn't just marketing — it's ammunition for the appraiser.

A home valuation grounded in your block and your home's real condition catches this. A generic online estimate that's never seen your kitchen does not.

The Bottom Line

Lundquist's message to his fellow appraisers was that the numbers follow real buyer behavior, and right now buyers are voting hard for condition. The translation for the rest of us is simple: condition is worth money in Sacramento again — worth spending on before you list, and worth hunting for when you buy. How wide the gap runs depends on your price range and your neighborhood, and that's the conversation we like to have.

For the regional data behind all of this, Lundquist's read on condition is worth your time — it's some of the most honest market analysis in the region, and we're glad to build the buyer-and-seller playbook on top of it.

Trying to decide whether to update before you sell, or whether that dated listing is the deal it looks like? Search Sacramento homes for sale, get a home valuation, or contact us.

Or call us directly: (916) 739-2424

The Peter Parker Team | DRE# 01257844 | eXp Realty DRE# 01878277
Market analysis referenced from the Sacramento Appraisal Blog (June 23, 2026) and is approximate as of mid-2026. Remodel-return figures cited are national and vary by home and market. Conditions and appraisal outcomes vary by property — verify your specifics before deciding. This is general information, not financial, appraisal, or legal advice.

This week the Sacramento real estate corner of the internet got briefly distracted by a private island. A 5.6-acre spot out in the Delta listed for $39,000 — less than a used car — and the appraiser Ryan Lundquist used it to open a post this week — yes, partly about buying a private island. It's a fun hook. But buried under the helicopter-pad jokes were the two most useful things anyone has said about the Sacramento market this month, and we want to pull both into the open.

The first: yes, home prices are higher than they were a year ago — and no, that doesn't mean what it sounds like. The second, from the island itself: a property's value hinges almost entirely on what you're allowed to do with it. Both matter if you're buying or selling here right now.

Yes, Prices Are Up Year-Over-Year. No, It's Not a Comeback.

If you only read the headline number, 2026 looks like a rebound: most year-over-year price readings in the region are now running higher than mid-2025. Easy story to tell. It's also mostly an illusion, and it's worth understanding why before you make a six-figure decision around it.

Here's Lundquist's point about the year-over-year comparison: the 2025 market peaked early and then slid for much of the year. So when you compare this spring to that one, you're measuring against a weak stretch — the "up from last year" gain is partly just last year being soft, not this year being strong. As he put it, "I wouldn't get too hyped over this." Expect the next few months to show even bigger year-over-year gains for the same reason: summer 2025 was dull, so almost anything clears that bar.

That lines up with what we see at the offer table and with the broader regional data. The Sacramento-area median has been running in the mid-$500,000s and is best described as roughly flat to slightly up — stable, not surging. (Those figures are approximate and move; we cite ranges, not a single stale number.) This is the same theme we wrote about recently in why shrinking supply, not mortgage rates, is the real 2026 story: the market is steadier than the doom takes and cooler than the boom takes. Both at once.

What's Actually Happening Underneath

Strip out the year-over-year noise and the current picture is pretty consistent:

• Sales volume is roughly flat versus a year ago — buyers are active, not frenzied.
• Inventory has tightened a little across most of the region — fewer homes to choose from.
• More homes are selling above their original list price than a few months ago — competition has ticked up, especially on well-priced, move-in-ready homes.

Put those together and you get a market that's modestly competitive, not a free-for-all. The well-priced house in good condition still draws attention; the overpriced one still sits. That gap is the whole story right now.

One more honest caveat, and it's a big one: the regional number hides enormous block-by-block variation. "The region is up a bit" tells you nothing about your street. A prewar home in Land Park behaves nothing like a 1970s ranch in Rosemont, and they're both "Sacramento." Lundquist himself is moving to quarterly reporting for the smaller counties precisely because the monthly numbers there bounce around too much to trust. The lesson for a buyer or seller: a metro-wide median is a starting point, never the answer for your specific home.

The Island's Real Lesson: Value Hinges on What Zoning Allows

Now the part that has nothing to do with islands and everything to do with your next purchase. The reason a 5.6-acre island can list for $39,000 is that you can't really do much with it — the value, as Lundquist put it, "hinges on what zoning allows (or will allow maybe)." That's not a Delta quirk. It's the single most underrated factor in real estate value, and it shows up constantly in Sacramento deals:

• ADUs. A lot that can legally fit an accessory dwelling unit — a granny flat, a rentable casita — is worth more than an identical lot that can't, sometimes by a lot. California and Sacramento have made ADUs far easier in recent years, but the specifics still come down to your parcel.
• Lot splits (SB 9). Some single-family lots can now be split or add a second unit; many can't, depending on size, location, and overlays. That possibility is real money — or a dead end.
• Fixers and "potential." A listing that whispers "bring your vision" is only worth it if the vision is permittable. The addition, the second story, the converted garage — value only exists if the city or county will sign off.
• Rural and agricultural parcels out toward Wilton, Sloughhouse, or the county fringe, where zoning (and well/septic and Williamson Act status) determines almost everything.

Here's the practical rule we give every client chasing "potential": verify the allowed use with the actual authority, not the tax record or a listing remark. Tax records are frequently wrong or out of date; a hopeful agent's "you could totally build an ADU here" is not an entitlement. Call the Sacramento County planning department or the City of Sacramento's planning staff and ask about your specific address and your specific intended use before you pay for the upside. As the island's listing agent told Lundquist, "act fast and do your due diligence." The due-diligence half is the part that protects your money.

What This Means If You're Buying or Selling

If you're selling: don't let "prices are up from last year" talk you into pricing for a boom that isn't here. Above-list sales are happening on the sharp, well-prepared homes — not across the board. Price to your real, recent comparable sales and your home's actual condition, and the tight inventory works for you. Start with a grounded number, not a Zillow guess — we'll tell you what your home is actually worth today.

If you're buying: the flip side is reassuring. You did not miss a rocket ship. The market is stable and only modestly competitive, so you have room to be disciplined — get pre-approved, move decisively on the right home, and don't overpay just because a headline said prices are "up." And if a property's appeal rests on what you could add or build, make the zoning verification a condition of your enthusiasm, not an afterthought.

For everyone: the regional median is a vibe, not a valuation. Your block, your home's condition, and what your parcel legally allows determine the number that matters.

The Bottom Line

Lundquist's island post is a good reminder that the most important real estate facts are often the least flashy: a year-over-year "gain" can be a mirage, and a property's value lives in what you're allowed to do with it. The Sacramento market in mid-2026 is stable, supply-tight, and selectively competitive — a market that rewards sharp pricing and real homework over hype in either direction.

If you want a straight read on your specific home or neighborhood — or a reality check on whether that "tons of potential" listing actually has any — that's exactly the conversation we like to have. And for the genuinely good local market analysis behind a lot of this, we'll point you straight to the Sacramento Appraisal Blog; we're glad to build on it.

Search Sacramento homes for sale | Get a real home valuation | Talk to us

Or call us directly: (916) 739-2424

The Peter Parker Team | DRE# 01257844 | eXp Realty DRE# 01878277
Market data referenced from the Sacramento Appraisal Blog (June 9, 2026) and is approximate as of early-to-mid 2026. Market conditions change frequently; verify current figures before deciding. Zoning, ADU, and lot-split rules vary by parcel and jurisdiction — confirm with the relevant planning department. This is general information, not financial, legal, or land-use advice.

Here's a conversation we have almost every week. A buyer who has been ready for a year tells us they're going to wait for rates to come down before they start looking. The trouble is, they've been waiting since rates were supposed to drop in 2024. Then in 2025. They're still on the sidelines, and the homes they liked along the way have sold to someone else.

Ryan Lundquist, the appraiser behind the Sacramento Appraisal Blog, put the frustration plainly this month in a recent post with a blunt title: stop obsessing over rates. We read his analysis every month — he's about as close as this region has to a neutral referee on the numbers — and his June read matches what we're seeing from the agent's side of the table. The thing actually shaping the 2026 Sacramento market isn't the interest rate. It's the shortage of homes for sale.

What the Numbers Actually Show

Lundquist's latest supply analysis describes a market that is quietly tightening:

• Active listings are down about 6% year over year. That's a genuine turn. Earlier this year inventory was running above 2024 levels — by May, new listings had slipped below 2024 after five straight months above it.
• Closed sales are up roughly 2% year-to-date across the four-county region, with Sacramento County doing most of the lifting.
• Mortgage rates rose from around 6% in January to north of 6.5% — and buyers kept buying anyway. (Rates move weekly; you can check the current number against Freddie Mac's weekly rate survey.)
• The biggest growth in buyers showed up in the $400,000–$500,000 range.

Put those together and the headline writes itself: rates went up, demand held, and the supply of homes kept shrinking. Lundquist makes a sharp point about why agents don't feel that 2% bump in sales — a 2% change is almost imperceptible day to day, the way you wouldn't notice a friend losing 2% of their body weight. It's real; it's just quiet. The supply drop, on the other hand, is the part everyone feels.

The Rate Trap

Waiting for the perfect rate sounds prudent. In a market with fewer homes for sale, it's usually the most expensive thing a buyer can do.

Two things tend to happen. First, while you wait, you're passing on houses that won't come back — inventory is tight, and the good ones move. Second, on the day rates finally dip, every other buyer who was also waiting comes off the sidelines at once. That surge of competition bids prices up and erases the payment savings the lower rate was supposed to deliver. You can refinance a rate later. You can't go back and buy the home that already sold.

Nobody can reliably call where rates head next — Lundquist has spent four years watching "rates will drop soon" predictions that didn't pan out. So we don't build a buyer's plan around a forecast. We build it around being ready: a full pre-approval, a clear monthly payment you're comfortable with, and a sharp sense of which homes are worth moving on.

Why Supply Is the Real Constraint

There's a structural reason inventory is thin, and it shows up in Lundquist's data: about 15% of the homes for sale right now previously sold on the MLS between 2020 and 2025. A lot of owners who might list bought or refinanced at rates near 3%, and they're not eager to trade that for a 6.5% loan on the next house. That "lock-in" keeps homes off the market. As Lundquist puts it, the longer those listing lines stay subdued, the longer the market feels stuck — and he points to broader unease, from inflation to geopolitical headlines, keeping cautious sellers cautious.

Here's where our job and his diverge in a useful way. Lundquist's data is regional, and it's excellent at that scale. But "the region is down 6%" hides enormous block-by-block variation, and that's where buyers and sellers actually live. Some pockets are genuinely buyer-leaning right now — we've written about softening, more negotiable conditions in places like Elk Grove and West Sacramento. Meanwhile, a well-priced home in a supply-starved, school-driven area like Folsom or Fair Oaks can still draw multiple offers in a weekend. And that $400,000–$500,000 band where buyers are growing fastest? That's exactly where competition is stiffest — value areas like Citrus Heights are doing real work in this market. The regional median can't tell you any of that. A local agent can.

If You're Buying

• Don't anchor to a rate forecast no one can make. Plan around your payment and your timeline instead.
• Get fully pre-approved, not just pre-qualified. In a low-supply market, the ready buyer wins the house.
• Hunt where the leverage is. Buyer-leaning pockets and listings that have sat a few weeks (price reductions cluster on overpriced and higher-end homes) are where you negotiate.
• If the payment is the obstacle, ask us about programs like CalHFA down payment assistance — and remember you can refinance the rate down the road. You can't re-buy the house.
• Work with someone tracking supply street by street, not just quoting the regional median.

If You're Selling

• The supply shortage is your tailwind. You're facing less competition than a typical spring, and serious buyers are still out there.
• But price to today, not to last year's peak. Buyers are payment-sensitive, and overpriced homes are the ones sitting — stale active listings have been averaging well over a month on market.
• If you've been holding because of your low rate, that's fair — but if life calls for a move, thin inventory is genuinely working in your favor right now.
• Start with a real number. Get a real home valuation based on your block and your home's actual condition, not a Zillow estimate.

An Honest Word on Distress

Lundquist also flags a slight uptick in short sales, and his read is the right one: notice it, keep it in context, don't sensationalize it. The buyers most exposed are the folks who purchased in the last few years with low down payments — FHA and VA loans — because prices have been roughly flat, leaving little equity cushion. This is not a 2008 repeat.

That said, if you bought recently with little down and now need to sell, talk to us early. Peter has guided clients through short sales and other distressed transactions before, and there are almost always more options on the table when you start the conversation early rather than late.

The Bottom Line

Lundquist's advice to his fellow professionals was to stop obsessing over rates and focus on people. The buyer-and-seller version is the same: stop timing the rate, and start reading the actual market in front of you — which, in Sacramento right now, is defined by how few homes are for sale. If you want a clear-eyed read on what that means for your specific price range and neighborhood, that's exactly the conversation we like to have.

We'd also just point you to Lundquist's work directly — it's some of the most honest local market analysis out there, and we're glad to build on it.

Ready to make a move, or just want a straight answer about your options? Search Sacramento homes for sale, get a real home valuation, or contact us.

Or call us directly: (916) 739-2424

The Peter Parker Team | DRE# 01257844 | eXp Realty DRE# 01878277
Market data referenced from the Sacramento Appraisal Blog (June 3, 2026) and is approximate as of early-to-mid 2026. Market conditions and mortgage rates change frequently; verify current figures before making a decision. This is general information, not financial or legal advice.

We just want to quickly go over what to expect during the second week of your purchase if you’re using a mortgage. After the first week, we’ve already had you meet with the lender, make your deposit with the title company, order the appraisal, and order the inspections.

So in Week 2, we’re going to see the results of those things. Your appraisal is either going to get done and we’ll get the report back for review by the lender and review by us, or it will be very soon; we’re going to get the inspection reports back in hand if we don’t have them already; and we should be getting the disclosures and reports from the title company and the seller, if we don’t have them already.

We’ll take a good look at all those and make sure if we have the appraisal done, that there are no issues with the value. We may have to go back and renegotiate the price, or there may be some appraiser-required repairs. Sometimes they’ll point out something that, from a lender’s point of view, they want to have taken care of – and usually, honestly, it’s just something as simple as there’s a smoke detector that needs new batteries or it’s missing, or a carbon monoxide detector that needs to be put in place somewhere in the house. Occasionally, there are more expensive or difficult things, but that’s pretty rare; usually, we’ll have noticed those when we first looked at the home.

As far as the inspections go, we’ll take a good look at those, determine if there are any real serious problems that make us want to cancel the purchase or renegotiate either getting a reduction in price or a credit from the seller – basically money to help you cover your closing costs in lieu of repairs to the property.

And the third thing that we’re going to be doing is taking a look at the disclosures and reports we got from the title company and the sellers. And usually, there’s no big surprises there; just routine, straightforward information.

Last but not least, your lender may be asking you for a few last bits of paperwork to complete your loan file, because once they have the appraisal back, they want to have a complete package they can submit to the underwriter for approval.

And that really should be wrapping up what you’re going to be doing during Week 2. One minor thing: if you haven’t already, you should get a quote from your insurance company to get coverage in place on the home, because your lender’s going to require you to have that. So rather than have that be a last-minute thing, you can get some quotes and decide what the right coverage is for you.

If you have any other questions or want to go into more detail, please call, text, or email. We’ll be happy to answer them.

We wanted to talk about what you’re going to do in more detail with your lender, especially in the first week after you get acceptance of your offer.

Basically, you’re going to get with your lender so they can disclose to you the terms of your loan. They’re required by law to do this, and they’re actually required by law to have the numbers they disclose to you at the beginning match very closely with what the numbers are at the end. There can’t be any big increase in fees that catches you by surprise; if so, they’ve got to go back and readjust. Lenders don’t want that to happen, and neither do you, so it almost never does.

Once you meet with the lender, they’re going to run your credit if they haven’t already. They’re going to complete the loan application interview if they haven’t already – just some basic information about your employment, date of birth, Social Security number, where you’ve lived and so forth, income, expenses. They’re going to ask you to provide the last two years of tax returns and generally the last two months of bank statements. If you have investment accounts, other kinds of financial records that affect your application, they may ask for those as well. And basically, you can expect to get a checklist from them of what you need to bring to your appointment.? While you’re there, they’ll also get a check from you, typically for about $450, to order the appraisal of the property. Once that’s done, they’re going to wait till the appraisal comes back; they’re going to take all the information you gave them, and assuming it’s complete, they’re going to submit it to underwriting.

Once your file’s in underwriting, you should have loan approval in two, maybe at the most three days. Either you’ll get full approval with no conditions, or you’ll get what’s called conditional approval, where they’ll say “Well, you’re approved, but we need to see your most recent pay stub, your most recent bank statement,” or some other factor like that – which is usually pretty simple and easy to provide.

Once you’ve got that taken care of and have full approval, they’ll order your loan docs. They’re going to want to get verification that you have insurance in place, so just in case something happens to the home, that insurance will take care of it and that doesn’t turn into a problem for your lender. And they’ll generate the loan docs, which is basically the promissory note and other papers you’re going to sign just to take responsibility for the mortgage.

Your lender’s going to be keeping in touch with you week by week and as they need to about getting information, and we’ll certainly be there by your side in that process as well. And I think you’ll be actually happy and surprised how quickly they can move things along. We’ve actually had people close a purchase transaction in as little as 11 or 12 days after we got their offer accepted. Generally, it’s more like 17 to 21 days.

Some of the stories you may have heard from people are like 35 or 40 days or longer; that typically doesn’t happen with the lenders we recommend that you use, and the only thing that would really push the process out that far would be if you were taking advantage of down payment assistance. We’ll do another video on that, to go into that subject in more detail; it’s a bit of a specialized topic. So I hope this helps answer your questions about the loan process. If you have any others, please call, text, or email us. We’ll be happy to answer them.