In the wake of the housing debacle of 2008, real estate markets all across America struggled to recover from the fall out of so many foreclosures happening all at once. Meanwhile, those that were foreclosed upon lost faith in the lending process and found themselves content to rent. Now, nearly 10 years later, with property values on the rise, some are concerned that we’re headed for another housing bubble, while others cite the fact that mortgages are much more difficult to get as evidence to the contrary.
“It’s true that homes for sale in the San Diego and Bay area are much more expensive than the rest of the country, and rising on an almost daily basis,” says one California real estate analyst, “but the housing market collapse of 2008 was mostly caused by bad lending practices and not escalating property values. Yes, property values escalated to unprecedented numbers during that period, but to assume that high property values automatically translate to a housing bubble is largely to confuse correlation with causation.”
Nonetheless, it’s a tough market for buyers to find a house in. Conversely, however, it’s a great market for sellers looking to turn a substantial profit on their property. With a number of interested buyers, and low inventory in the housing market, the supply to demand ratio heavily favors the suppliers.
For those that now want to sell properties but are afraid that the home itself isn’t market ready, there are a number of options at their disposal. Real estate agents know that for San Diego and the Bay Area, it’s almost always a seller’s market. That doesn’t mean that buyers are interested in inheriting someone else’s problems. Even in a seller’s market it can be difficult to unload a property that needs major renovations or is lacking curb appeal.
There are, however, companies that are willing to renovations on consignment; a phenomenon that is completely and utterly beholden to the most lucrative real estate market in the country. Homes for sale in San Diego and the Bay Area represent such a lush market for potential sellers, that renovation companies offer to do the upgrades and don’t ask for a dime in return until the house is sold.
For many sellers, this represents an opportunity to escape two bad choices and one hard decision. Most sellers looking to unload a home that needed work would be in the position of either selling it to a developer that is going to do the renovations themselves and flip the property for a substantial profit, or leaving it on the market for years until someone came along and decided to pay for all the necessary repairs themselves. With a third option now available in a great market, home sellers with dilapidated properties can keep that profit for themselves.