Zestimates Can't Keep Up With Wild Housing Market, Agents Say
Tim Collom, who leads the Tim Collom Real Estate Group who founded House Real Estate in Sacramento, and three other agents told Inman that it seems like the portal giant is having a difficult time properly reflecting the astronomical boom in home prices due to historically low inventory and intense bidding wars.
Collom said that estimated home values provided by companies like Zillow and Redfin “never line up” with reality, but they’ve only gotten worse in recent months: “They’re not off by $10,000. They’re off by like $100,000 to $200,000.”
“In Sacramento and some other areas, Zillow estimates can be high by 10 percent and they also can be low by 10 percent, but very rarely do they hit the mark right now,” he added. “I think it’s because of the market volatility and how fast it’s going — even seasoned real estate agents are struggling to keep up with price trends right now.”
Local art gallery sets the scene at Sacramento International Airport
“SACRAMENTO COUNTY, Calif — An airport is not typically a place people seek for a calm environment, but with help from local artist Tim Collom, Sacramento International Airport has managed to bring an unexpected pop of color to terminal B with The Gallery at SMF.
The Gallery at SMF is literally just that — an art gallery at Sacramento’s airport. The gallery is currently filled with Collom’s own work, ones that bring a piece of serenity to a place at which it is not often expected.
“Airports have this reputation for being always so busy and chaotic and really stressful,” Collom said. “The SMF Gallery is something that the airport wanted to say, hey, let’s create something that while you wait for people or you’re going to the airport, we can kind of get your mind off of the travel experience.”
Interview: Explaining the region’s competitive housing market with real estate experts
“FOX40’s Nikki Laurenzo talked to two local real estate experts, Tim Collom and Ryan Lundquist, about Sacramento’s competitive housing market.
“It’s been ballistic. It’s been one of those markets that they ranked us as the #1 city poised for growth in the nation,” said realtor Tim Collom. “And we didn’t think anything was gonna happen … then all of a sudden the market really tightened up with inventory.”
“Buyers are just starving for property,” Lundquist added.”
Sacramento region's housing market is competitive despite the pandemic
Tim Collom, of the Tim Collom Realtor Group, echoed those words.
“There’s gonna be five to ten other buyers just like you looking to get that property that’s priced really well and you have to make sure you stand out,” Collom said.
If you want to buy a home, make sure you’re pre-qualified first and then find the right agent. Also be prepared to be flexible with the seller.
Tina Suter, a real estate agent with the Tim Collom Realtor Group, said if a person is selling right now, then it’s likely for a good reason.
“Things are different. If that seller needs something special, or they need a rent back or if they need a quick close or if they need all inspections to be done in one day — those are important things to know before you make an offer,” Suter said.
If you’re interested in selling, especially during pandemic, be prepared for price changes, Collom said.
“We’ve seen anywhere from a 5 to 10% dip in values of what things are actually selling for compared to the comps three to four months ago,” Collom said.”
inman: How agent Tim Collom merged his love of art and real estate
“As a child, Tim Collom couldn’t sit still, except to doodle and draw in his notebook. Although his active spirit and creative mind sometimes caused problems in the classroom, Collom said it’s become the foundation for a 20-year career as a respected Realtor and celebrated artist.
“Naturally, as a kid, I couldn’t sit still. I think that’s a tendency you find with a lot of salespeople,” he said with a chuckle.
Twenty years ago, Collom’s effervescent personality caught the attention of an agent who thought the then-21-year-old had the personality to make a splash in Sacramento’s real estate market. As a new student at Sacramento State, Collom took the agent up on his offer, promising to give it at least one year.
“I fell in love with the industry and the job and everything about real estate,” he said.
Although Collom loved serving his clients, he began to look for an escape from the stresses of staying successful in an unpredictable career, which included winding down every evening with a glass of wine. However, what began as one drink, turned into a habit Collom knew he needed to break.
“It became excessive and I knew I had to stop that,” he said.
So, Collom turned back to his first love — art. He transformed his garage into an art oasis, complete with a drawing table, multiple easels, studio lighting, paintbrushes, palettes, and tubes of brightly-hued oil paint. Collom painted landscapes, animals, and scenes from everyday life, such as people driving boats on Lake Tahoe.”
Comstock Magazine 11/20: 10 Tips for The Times
“1. Don’t talk in front of the house. In our technologically driven world, many homeowners have home-security systems that record audio and visual activity in front of the property, so they can hear what you’re saying.
2. Be educated. It’s important to know the current market and choose a trusted agent who knows the market too.
3. Be informed. An agent’s role is to make your offer the most appealing to the seller. Many times, price isn’t the only incentive. Let your agent find out if a rent-back agreement or a furnished home, for example, are important elements for the seller, and adjust your offer as needed.
4. Write that letter. As a buyer, write a letter to associate yourself with the offer. Homes are personal, so it communicates sincerity and also gives the opportunity to provide reasons if the offer is not at list price.
5. Don’t offend the seller. Make an offer that is respectful of what the market is and what the home deserves.
6. Don’t ask too many questions. Asking a lot of questions of the listing agent before writing the offer can oftentimes give the impression that you’ll be a difficult client during the escrow process, and that might play a role in the seller’s decision of which offer to accept.
7. Have proper financing lined up. Find a trusted loan officer who can provide your preapproval letter and who has already indicated how much you can afford to pay.
8. Don’t hire a relative or casual or part-time agent. Many people want to save cost on the commissions paid for selling their homes, but agents who are the best in the business are that for a reason. Hire an expert, someone who deals with transactions daily, markets accordingly, and instinctively knows when to push and negotiate the best deal possible. The $5,000-$10,000 a seller may try to save could be lost without these skills.
9. Know the competition. Lack of knowledge about where other buyers are coming from and what they can offer can affect your offer. Know who you’re competing with so your offer is the most desirable one.
10. Give it your best shot. By the time you walk away from an offer, you should feel confident that you did everything you could to make it your best.
Tim Collom, a residential real estate agent, has been helping people in the Sacramento area buy and sell homes for more than 20 years. He specializes in older, established neighborhoods.”
Naked Coffee | House Real Estate | Coffee Collaboration
“Two local entrepreneurs, in the middle of a pandemic, have collaborated to develop a special treat for Sacramento– coffee with an artist signature! This has never been done before, and Good Day is the first to announce it.”
inman: Outdoor kitchens, dining spaces take center stage during holidays
In Sacramento, House Real Estate broker and leader Tim Collom said the pandemic has pushed homebuyers to create every extra bit of space they can get, including blended spaces that merge indoor and outdoor features and accessory dwelling units (ADU) with extra kitchen, dining, and bedroom spaces.
“People want extra space no matter where it is,” he said. “I’m doing it myself. I’m creating another dwelling on our property just to have extra space, and I think that’s critical.”
“Buyers are focusing on functionality and being able to use a space in a lot of different ways,” he added. “We’ve sold well over 100 homes [this year], and a lot of them are looking for more space.”
Collom said California’s climate offers homeowners the ability to stay outside well into the winter months, and they’ve been taking advantage by embarking on expansive outdoor renovations that include pools, high-tech cabanas and chef-worthy kitchens to whip up a meal for a small group of guests.”
inman: Are incentives the key to navigating a softening seller's market?
“Risking a conflict of interest is what’s keeping Sacramento-based Tim Collom Realtor Group leader Tim Collom from ever offering a buyer’s incentive, even if the market experienced another sudden slowdown.
“Right now, there’s really there’s nothing that we need to incentivize,” he said. “There are multiple offer [situations] everywhere.”
“Even if the market slowed down, I wouldn’t give an incentive,” he added. “I think that’s important [to] the integrity of our business not to do that. Even when it comes to listing agents offering bigger commissions, we’ve stayed away from that, too.”
“We’ve always maintained the commission that’s offered is usually enough, and people should really do what they’re supposed to be doing as far as their job is concerned,” he continued. “Agents really shouldn’t be incentivized by the commission anyway, they should be doing the right thing for their clients. I know that’s against your article, but I feel like that’s the truth.”
Collom specifically pointed to the Real Estate Settlement Procedures Act (RESPA), which prohibits kickbacks, referral fees and unearned fees among other things. Although it seems buyer’s incentives, such as gift cards or including the seller’s car with the sale, doesn’t violate RESPA, Collom said it’s too great of a risk.
“I think there’s a lot of dangers involved with incentives just because it’s not an even playing field,” he said. “What happens is that people start buying homes because of the incentives and not necessarily an upgrade to the house, like new countertops or flooring.”
“My group has the top agents in Sacramento and we could probably offer all sorts of incentives,” he added. “But when does it stop? Ultimately, it always should be about the houses and real estate.”