Sacramento Real Estate Blog

Monthly cost to rent a home vs monthly cost to buy a home in Sacramento...

2012-01-03T19:59:00.000-08:00

Last year around this time I wrote a post detailing the monthly mortgage payments vs. average rent payments in certain neighborhoods in Sacramento, and I thought I would start 2012 with a similar post, updated with today's interest rates, average Sacramento home prices, and average rents.

Today was the first business day of 2012, and my phone rang off the hook. Who was calling me? Prospective home buyers who finally have decided that now is the time to buy a home in Sacramento. It seems that the overall sentiment among them is that it has become more affordable to buy a home in Sacramento than rent a home. In many areas and under many circumstances, I believe this to be true. Prices are slightly down from last year, while rents seem to have increased. If you don't believe me -- just compare this data to a similar post from around this time last year.

When you take into consideration the average home price and probable monthly mortgage payment in particular Sacramento neighborhoods vs. the average rent, often times the mortgage payment is less. Let's take a look at a few different areas...just for the sake of citing my information sources, for average home price (used to calculate mortgage payment scenarios) I am using most recent November 2011 Trendgraphix data (December's data is not available yet, and I don't expect a huge variance) which is taken directly from MLS, and for average rent I am using the most recent Q4 2011 Homepointe Quarterly Residential Rental Survey. For my mortgage payment calculations, I am basing it on a 4.25% interest rate (which is actually slightly above today's average market interest rates), and including the full PITI - loan principle, interest, monthly property taxes, and monthly homeowner's insurance (and mortgage insurance where applicable).

Natomas - 95833, 95834, 95835
Average single family home sale price: $194,000
Average rent for a 3 bedroom home: $1,422
30-Year Fixed VA Loan (Zero downpayment): $1,226
30-Year Fixed FHA Loan (3.5% downpayment): $1,368
30-Year Fixed Conventional Loan (10% downpayment): $1,208
30-Year Fixed Conventional Loan (20% downpayment): $1,022

Elk Grove / Laguna - 95757, 95758
Average single family home sale price: $213,000
Average rent for a 3 bedroom home: $1,384
30-Year Fixed VA Loan (Zero downpayment): $1,346
30-Year Fixed FHA Loan (3.5% downpayment): $1,502
30-Year Fixed Conventional Loan (10% downpayment): $1,326
30-Year Fixed Conventional Loan (20% downpayment): $1,122

Rosemont / College Greens - 95826, 95827
Average single family home sale price: $154,000
Average rent for a 3 bedroom home: $1,194
30-Year Fixed VA Loan (Zero downpayment): $974
30-Year Fixed FHA Loan (3.5% downpayment): $1,086
30-Year Fixed Conventional Loan (10% downpayment): $959
30-Year Fixed Conventional Loan (20% downpayment): $811

Arden - 95821, 95825, 95864
Average single family home sale price: $250,000
Average rent for a 3 bedroom home: $1,466
30-Year Fixed VA Loan (Zero downpayment): $1,580
30-Year Fixed FHA Loan (3.5% downpayment): $1,763
30-Year Fixed Conventional Loan (10% downpayment): $1,556
30-Year Fixed Conventional Loan (20% downpayment): $1,317

Carmichael, Fair Oaks - 95608, 95628
Average single family home sale price: $236,000
Average rent for a 3 bedroom home: $1,370
30-Year Fixed VA Loan (Zero downpayment): $1,492
30-Year Fixed FHA Loan (3.5% downpayment): $1,664
30-Year Fixed Conventional Loan (10% downpayment): $1,469
30-Year Fixed Conventional Loan (20% downpayment): $1,243

Citrus Heights, Orangevale - 95610, 95621, 95662
Average single family home sale price: $164,000
Average rent for a 3 bedroom home: $1,300
30-Year Fixed VA Loan (Zero downpayment): $1,036
30-Year Fixed FHA Loan (3.5% downpayment): $1,157
30-Year Fixed Conventional Loan (10% downpayment): $1,021
30-Year Fixed Conventional Loan (20% downpayment): $864

South Land Park, Pocket / Greenhaven - 95822, 95831
Average single family home sale price: $177,000
Average rent for a 3 bedroom home: $1,244
30-Year Fixed VA Loan (Zero downpayment): $1,119
30-Year Fixed FHA Loan (3.5% downpayment): $1,248
30-Year Fixed Conventional Loan (10% downpayment): $1,102
30-Year Fixed Conventional Loan (20% downpayment): $933

Obviously there are other tangible and intangible benefits to home ownership as well...for example, a tangible benefit is the fact you can write-off your mortgage interest on your income taxes, and also deduct some other related expenses each year. An intangible benefit might be that as a homeowner, you have the freedom to paint the walls, decorate, plant a garden, remodel, etc.

So clearly these numbers are just a baseline to give you an idea of housing affordability in certain areas. You definitely need to consult a loan officer to see what type of financing is the best fit for you, and ultimately just how much you can afford - and there are several variables that will affect your interest rate and terms. You should also speak with a CPA or qualified tax professional regarding the mortgage interest and other tax deductions to see how it will affect your particular situation. If you need a good referral to either one, feel free to contact me and I can put you in touch.

I was featured on the KCRA 3 News -- Is the Sacramento Housing Market Making a Turnaround?

2011-12-20T20:49:00.000-08:00

So if you follow me on Twitter or Facebook, you will already know that yesterday one of my clients and I were interviewed by KCRA 3 reporter Danielle Leigh. DataQuick reported that the median home price in Sacramento County increased 4% from October - November. Did Sacramento's real estate market hit the bottom? Is now the right time to buy or sell your Sacramento home? Here is a link to the video of the story on KCRA.com.

Holiday Gift Ideas -- for your most beloved Sacramento resident...

2011-12-13T20:26:00.000-08:00

For the last few years in December, I have written a blog post about gift ideas from local business to give to your favorite Sacramento resident for Christmas, Channukah, or whatever else this holiday season. If your holiday festivities involve gift giving, there are many local Sacramento gifts you can give! Here are my top 12 gifts that will make any Sacramentan's holiday, at any age or budget:

A cruiser bicycle from East Sac Bike; this super cool bike shop in East Sacramento specializes in cruisers but sells all kinds of cycling gear, parts, cruisers, tandem bikes, unicycles, etc. Estimated cost: $300+
A membership to the Crocker Art Museum; If you weren't aware, it was recently renovated and greatly expanded, and is the premier art museum in the Sacramento Valley. As a member, you will receive a monthly magazine, and receive discounts at the store and cafe. Estimated cost: $65/individual annual membership.
A Hornblower Cruise of the Sacramento and American Rivers; the cruise leaves out of Old Sacramento. Check out the confluence of the American and Sacramento rivers, and experience the wildlife and breathtaking natural beauty that this historic and important waterway has to offer. Estimated cost: $69-99.
A subscription to Comstocks Magazine; Read up on local goings on, the Sacramento economy, real estate, business, and more! Estimated cost for 12 month subscription: $12 (online special).
A California State University, Sacramento sweatshirt; My alma mater! Stay warm this winter while supporting our local CSUS Hornets! My CSUS sweatshirt was a Christmas gift from my mother during my freshman year...I still wear that thing even though it is totally faded and worn out...Estimated cost: $36 - $75.
Car washing at Quick Quack Car Wash; This express car wash will get you in-and-out in just minutes and there are 6 locations in the Sacramento area! Estimated cost: $14.95/month of unlimited car washes.
Tickets to go visit the Sacramento Zoo and Fairytale Town; Heck if you are going to visit one, why not visit both! Located at William Land Park, this is a great diversion for adults and children alike! Estimated cost per person/ticket: $13.
Bottle of wine from Revolution Wines; Revolution Wines is Sacramento's only urban winery. Tucked away at 21st & P Streets in midtown, they make their wine...their facilities also host tastings. Estimated cost per bottle: $10 - $25.
Massage from Elite Massage Therapy; Katie at Elite Massage Therapy in East Sacramento whips me back into shape after a long run, and she gives one heck of a theraputic massage too. Estimated cost/treatment: $75/ one hour.
Dance lessons at The Sacramento Ballroom; Want to learn the Texas Two-Step, the Tango, or how to Swing Dance? They have classes for both singles and couples, from beginning to advanced levels! Estimated cost/lesson: $5 - $10.
Tickets to a Sacramento Rivercats game; See the Oakland A's affiliate play at Raley Field. I'm a SF Giants fan, but I do really enjoy these games (especially when they play the SF Giant's affiliate team, the Fresno Grizzlies)...many of these players are a phone call away from the major leagues! Estimated cost/ticket: $6 - $30.
A new home; Sure, I saved the best for last. Nothing says happy holidays like closing escrow on a Sacramento home...sorry if that was a little cheesy! Estimated cost: Priceless. =)

New Listing - 4760 Haase Drive, Fair Oaks, CA 95628

2011-12-06T19:13:00.001-08:00

Adorable 4 bedroom, 2.5 bathroom, 1,847sf home on nearly a half acre in Fair Oaks! You will love the country feel close to everything -- secluded private lane near St. Mel's. Great layout with three downstairs bedrooms, and 1 upstairs, large covered porch. Large outbuilding has great potential for a hobbyist or extra storage. Don't wait! Offered at $239,000 subject to lender approval of short sale. For more photos and info, visit 4760 Haase Drive, Fair Oaks, CA 95628.

Finished the California International Marathon...and I can barely walk today!

2011-12-05T08:02:00.000-08:00

Welp, I can barely move today, and I may need someone to help me when I try to go down the stairs...but yesterday I was able to cross another goal off my 'Bucket List.' I finished the California International Marathon in 5 hours, 46 minutes. Nope, I did not qualify for the Olympic Trials (that's a joke, in case you are not a runner), but I finished all 26.2 miles. It was pretty much torture after about mile 21. I am not too proud to admit that I may have shed tears of absolute agony and joy crossing the finish line. I was immediately greeted by my family, my sweet significant other, and my friends -- who all cheered me on at various locations along the way. Here I am standing at the finish line with my pretty medal.
I have been running for a little over a year, and completed my first half marathon in March. Once my body stops hurting, I may consider signing up for the River City Marathon at the end of March.

Girls just wanna have fun?

2011-11-23T17:11:00.000-08:00

Hmm. Someone likes to par-tay!! I couldn't help but notice this fine assortment of platform 6-inch heels in the closet of a condo I showed today in Citrus Heights. These aren't exactly my style. Not only are they not my style, but darn they look like they would be so uncomfortable. Since I am a runner, I really value comfy shoes.

Real Estate Statistics -- Sacramento Median Price October 2011

2011-11-17T19:26:00.000-08:00

The median price in Sacramento County looks pretty darn flat over the majority of 2011...this year has been insane. I have closed some of my smallest transactions EVER. In fact I recently closed a transaction for a house in Oak Park for $30,000. No I am not missing a zero. I have another listing for $55,000 in South Sacramento that is closing next week. There are some great opportunities out there for investors. And first time buyers...and move-up buyers.

What I can tell you is that most of the transactions I have been representing for both buyers and sellers, (in all the price ranges, short sales, foreclosures, and "regular transactions with a traditional sellers") are still often times met with multiple offers if the home is priced correctly. Buyer demand is extremely high, and the market is pretty competitive. To top it all off, interest rates are insanely low right now - like in the low 4% range in you have a stellar credit score and documentable income.

If you would like me to email you the Facts and Trends graphs for specific zip codes in Sacramento County, just shoot me an email and I am happy to provide them.

Bank of America is conducting a "Borrower Outreach" event in Sacramento -- you MUST register in advance!

2011-11-15T11:56:00.000-08:00

Bank of America will be holding a "borrower outreach" event this week at the Sacramento Convention Center starting Thursday, November 17th - and going through Saturday, November 19th. Hours of the event each day are from 8am - 8pm. They are encouraging their borrowers to register online and schedule an "appointment" time rather than just dropping in.

Their goal is to help Sacramento Bank of America mortgage customers who are experiencing hardships to find alternatives to foreclosure -- such as loan modification, short sales, etc.

There is a list of documents you must print from their website and bring with you:

A "Request for Modification & Affidavit" --
A Hardship Letter -- explains your hardship and why you are seeking assistance
An IRS Form 4506-T -- this allows Bank of American to request your income tax information from the IRS.
A Dodd-Frank Certification form -- this certifies that you have not been convicted of a financial crime in the last 10 years (among other things, be sure to read it before signing)

There are also other financial documents they want you to bring:

Recent Utility Bill
Copies of your 2009 and 2010 tax returns
Copies of your most two recent bank statements for all accounts
A summary of your monthly expenses
Recent HOA bill (if applicable)
Copies of your most recent two months of paystubs (or profit and loss if self-employed)
Copies of your rental lease (if property is tenant occupied)

In order to register for your appointment time for the Sacramento Bank of America Outreach Event, visit the Bank of America Events Registration page on their website by clicking here. If they advise you to consider a short sale as an alternative to foreclosure, I am happy to provide you more information regarding the process and assist you as well.

Yep...I ran 20 miles, and I can still walk today!

2011-11-14T16:04:00.000-08:00

If you follow me on Facebook or Twitter, you will already know that I am training for the California International Marathon (yep, that 26.2 miles) that takes place next month in December.

This weekend, as a part of my training, I participated in the Clarksburg Country Run -- a 20 mile run. I am elated to report that I finished in roughly 4 hours and 5 minutes. If you are a hard core runner, that time probably sounds pretty slow (I have a runner friend who finished in 2 hours and 49 minutes), but for me just finishing that distance is amazing. My finishing time equates to just over a 12-minute mile on average (or, about 5mph). Let's just say I was also elated when my sweet significant other met me at the finish line and brought me a pizza and beer. I'm a little sore today, but otherwise holding up ok.

I just started running about this time last year when I challenged myself to complete a half marathon (13.1 miles) before my 33rd birthday...I completed three of them before my birthday in August, and decided to further challenge (or torture, I haven't decided which is more appropriate yet) myself with the full marathon.

Just under three weeks and counting until CIM!

Quoted in a Comstock's Magazine article about the use of technology and the internet to sell Sacramento real estate...

2011-11-11T11:11:00.000-08:00

A couple months ago, I was interviewed by a journalist for Comstock's Magazine regarding the use of the internet for marketing in Sacramento real estate. The article, entitled "From Reel to Real Estate" was published in the November 2011 edition of Comstock's and can be found starting on page 92...my quotes are used on page 94.

Gone are the days where an agent can just put a sign in the ground and expect the house will be sold. In order to set listings apart from others, many agents (myself included) are turning to social media sites like Facebook, LinkedIn and Twitter, video, blogs, individual property websites, and more...I tend to think my clients appreciate the extra internet kick I offer their listings in addition to some more "traditional" types of marketing. I have been recognized locally and nationally for my blog and use of the internet to sell homes in Sacramento...

I think it is safe to say that the internet and technology are here to stay, and Sacramento real estate agents who do not embrace its use for selling real estate are missing the opportunity to sell homes in fewer days on the market.

Sacramento Residents - Check Before You Burn!

2011-11-07T10:58:00.000-08:00

Brr! It seems that we went straight from summer to winter this year! Where are our mild autumn days? With our overnight low temperatures in Sacramento heading south, you may be tempted to light a cozy fire in your fireplace tonight. BUT, be sure to "Check Before You Burn." For the last few years around the beginning of November, I have posted information regarding the Sacramento Metropolitan Air Quality Management District's designated "Spare the Air" days where you can not burn wood in your fireplace...this program has been in effect for a few years now and has been very successful!

Their "Check Before You Burn" days are in effect this cold season from November 1, 2011 through February 29, 2012. Burning will be restricted or prohibited in Sacramento County when fine particle pollution is elevated.

You can actually sign up for email alerts from the Sacramento Metropolitan Air Quality Management District. If you do not want to sign up for their daily emails, you can "Check Before You Burn" each day by calling 1-877-NOBURN-5, or by just visiting their website.

Check Before You Burn is in effect in Sacramento County and all its cities including Citrus Heights, Elk Grove, Folsom, Galt, Isleton, Rancho Cordova, and Sacramento. Area residents AND businesses are prohibited from using indoor or outdoor fireplaces, wood stoves, firepits and chimineas that burn wood, pellets, manufactured logs or any other solid fuel, when fine particle pollution is forecast to be elevated. It is your responsibility to "Check Before You Burn." First time violations will result in a $50 fine, or a requirement to complete and pass a wood smoke awareness course. Fines for subsequent violations will result in more expensive fines.

Did you know that the Sacramento Metropolitan Air Quality Management District offers an incentive of up to a $1,500 voucher to replace or upgrade your older wood-burning / polluting units with cleaner-burning, USEPA certified or equivalent units? In order to be eligible, you must be a Sacramento County resident, and you must be replacing an existing uncertified wood stove, insert, or open hearth fireplace. Funds for are still available via this program, but are running out. If you are interested I suggest you contact a participating retailer of the replacement units asap.

I love having a cozy fire on cold nights, but I definitely pay attention to the daily alert emails I receive. It is extremely important that we all pay attention to this before lighting a fire...we all have to breathe the same Sacramento air!

Quoted in a Sacramento Business Journal article about folks purchasing homes after doing a short sale...

2011-11-02T17:11:00.000-07:00

Over the last couple months I have written a couple posts about the general qualifications to and waiting periods to make a home purchase after a short sale, foreclosure, or bankruptcy. Different types of loan have different requirements. For example, the requirements are different for FHA loans vs Conventional loans.

Well last week I was contacted by journalist Michael Shaw with the Sacramento Business Journal for an article he was writing about folks who have returned to the Sacramento real estate market to make a home purchase after completing a short sale. You can read the article from October 28th's edition of the Sacramento Business Journal "Owners who lost homes try buying again" here.

Yes - if you completed a short sale on your home, in many cases you can be eligible to qualify for a new mortgage loan within a couple years. OR if you did not miss any payments leading up to your short sale (yes I have completed short sales where the seller hasn't missed a single payment!) under certain circumstances you regain your purchasing ability almost immediately. As mentioned in the article, if you sold via a short sale and are thinking about purchasing in the next year or so -- start the planning process now. Meet with a trusted loan officer who can run your credit. Aside from the short sale, the rest of your credit must be pretty clean. By clean, I mean no late payments for the last year, few or no open collections, no liens, judgments, etc. Be proactive and make sure you can present the best financial scenario possible when the time is right to buy.

I have worked with clients who purchased again after a short sale...and I am helping others get ready to purchase next year. Also while the article specifically addresses buying after a short sale, you also have purchase options after bankruptcy and foreclosure. If you need a referral to a great loan officer as you prepare to give home ownership another try, just email me.

Got an FHA Loan? Want to do a short sale on your Sacramento home? Here are the steps...

2011-10-31T11:02:00.000-07:00

I have been doing a bunch of FHA short sales lately, and I have to say I enjoy doing them. No, I'm not crazy! It just so happens that the US Department of Housing and Urban Development (HUD), the federal agency that handles the FHA programs, has created a short sale process that loan servicers are required to follow...

Loan servicers (think Bank of America, Wells Fargo, Chase, GMAC, etc) must follow the steps of the HUD "Pre-Foreclosure Sale" process. That's right -- they MUST. Which is really nice for me...as a real estate agent that does A LOT of short sales, predictability in what is generally a pretty unpredictable process is a luxury.

A few general criteria if you have an FHA loan on your Sacramento area home and are contemplating selling via a short sale;

FHA usually requires that the home be owner-occupied. If you must move out of your home because of a hardship that requires you to relocate, such as a job transfer, divorce, to care for a sick relative, etc, there are some exceptions.
Theoretically, the seller must be at least 31 days delinquent on the loan. Let me clarify that in order to negotiate the short sale, the borrower can be totally current with the monthly mortgage payments. It is when escrow closes on the sale that you must have missed one payment...and (shh!), I have gotten an FHA short sale completed where the seller wasn't technically 31 days late.
There is a FHA Pre-Foreclosure Sale application that must be completed and filled out. The borrower will need to know the FHA "case number" for the property. This can be found on the original loan documents. If those aren't handy, you can call FHA's help line at 800-225-5342 and find out.
You will also need to collect your bank statements, paystubs, write a hardship letter, write an explanation regarding the occupancy status, and if utilities are on and being paid, etc.
FHA conducts a full-blown appraisal of the house to determine value.
Once all of the document and appraisal conditions have been satisfied and hardship determined, FHA issues a form 90045 -- Approval to Participate in the Pre-Foreclosure Sale.
FHA Form 90045 will disclose the appraised value. The NET proceeds to the loan servicer generally must be greater than 88% of this value, taking into account paying all of the costs associated with the sale, including real estate agent commissions, title insurance, escrow fees, transfer taxes, etc.
Often times, with a timely close of escrow, the seller can receive a "relocation incentive" of up to $1,000 at the close of escrow, paid from the sales proceeds of the house.

The seller MUST be approved by FHA for the pre-foreclosure sale program before the loan servicer can review or approve any offers...so keep that in mind. Approval timeframes after receipt of the 90045 vary per the loan servicer, but I'd estimate 1-3 weeks.

Also if you are a buyer of an FHA short sale property, FHA does not approve any seller credits to the buyer of an FHA short sale UNLESS the buyer is obtaining a new FHA loan -- and in those cases the credit for closing costs is limited to 1% of the purchase price. Also, the property is sold as-is, and the FHA will not cover the cost of any buyer home warranty. So buyers, prepare yourselves for that reality.

So...if you are contemplating doing a short sale on your Sacramento area home and have an FHA loan, be sure to select a real estate agent that is intimately familiar with all of the steps of the process. I would be happy to explain the process in more detail for you and assist you with your transaction. Of course I am happy to do the same for any non-FHA short sale you want to do as well.

Am I getting new neighbors in Land Park?

2011-10-25T12:09:00.000-07:00

I saw this in Land Park while on my way to the office today. It kinda made me smirk, like these guys want to rent this place!? This isn't my first odd encounter with turkeys. A couple years ago a buyer client and I encountered about 40 turkeys in Citrus Heights while looking at homes. They wouldn't move when I tried to drive down a street, so we got out and filmed them. Ahh, good times!

New Listing - 2929 42nd Street, Sacramento, CA 95817

2011-10-21T10:31:00.001-07:00

Great opportunity awaits you! This 2 bed, 1 bath, 685sf house near UC Davis Med Center in Sacramento is a blank canvas awaiting your personal touches. You will appreciate the new siding, dual pane windows, new electrical panel, new doors, and rebuilt front porch area. Interior has been taken down to the studs and is ready to be finished. Offered at $30,000 -- NOT a short sale. For more photos and info please visit 2929 42nd Street, Sacramento, CA 95817.

Fun at the Furnace Creek 508 Bike Race!

2011-10-12T15:41:00.000-07:00

If you follow me on Facebook or Twitter, you will already know that I had quite the adventure this last weekend! I was a crew member supporting a solo cyclist for a 508 mile bike race in southern California!

My boyfriend Greg and I supported Dan Westergaard, who has successfully completed the Furnace Creek 508 ride for the last 4 years -- this was his 5th attempt. He finished in roughly 36 hours and 37 minutes (based on our stopwatch...and there is a 48-hour time limit). He didn't stop to sleep at all. The ride went through Death Valley, the Mojave Desert, and some really remote towns that looked like something out of a movie and did not at all resemble Sacramento in any way.

So as crew members, we followed him in a fully-stocked minivan for the entire 508 miles...Dan only stopped for supplies or to change clothes a few times. Generally we would leap-frog a couple miles ahead of him, get supplies ready, and hand them off as he rode his bike by us. At night race rules required us to follow directly behind him. Greg and I slept for maybe 90 minutes total from Saturday morning - Sunday night.

It was a great experience. Greg is an avid ultra-distance cyclist and wants to enter the Furnace Creek 508 as a rider next year, so I am excited to be his crew!

Quoted in USA Today article -- about buyers who receive downpayment "gift" funds from family members...

2011-10-05T22:36:00.000-07:00

If you follow me on Twitter or Facebook, you will already know that a couple weeks ago I was interviewed by a USA Today reporter about my experiences with buyers who receive monetary "gifts" from family members toward a home purchase -- usually for a mortgage downpayment or closing costs.

Well the article was on the front page of today's edition of USA Today! Kinda neat...the couple that I refer to in the article bought a nicely remodeled 4 bedroom house in Sacramento in a revitalized area. They were married a few years ago, the husband had just graduated from law school, they just had their first child, and relocated here from San Diego for employment. They were paying $1200 per month in rent for a 2 bedroom house just a few miles away from the home they purchased. Their total mortgage payment is about $250 less than the rent they were paying.

I would estimate that 1 out of 4 of the buyers I work with receives gift funds, usually from a parent. These financial gifts generally do not constitute the entire downpayment, or all of the cash needed to make the home purchase. What I typically see is mom and dad (or a sister, uncle, grandparent, etc.) will gift a few thousand dollars to augment the downpayment from the buyer.

If you are giving or receiving a financial gift to make a purchase, there are a few things you should do BEFORE any money changes hands. I would highly suggest NOT just writing your kids a check...the funds must be "sourced and seasoned." This essentially means that the lender must be able to verify who the funds came from, what their relationship with the buyer is, from what account the money came from, how long the money had been in the account, and how the funds were earned. There are some easy ways to do this, but speak with a loan officer first...you might make a well-intentioned gift but delay or adversely affect the buyer's loan underwriting. If you have any questions about this, or need to speak with a good loan officer, just contact me and I can assist.

Ask Erin: How does an IRS Tax lien affect a short sale?

2011-10-03T13:01:00.000-07:00

If you follow me on Twitter, you will know that today I discovered that the seller of one of my Sacramento short sale listings has IRS Tax liens from 4 separate tax years. What exactly does this have to do with my short sale, you ask?

Liens of this nature attach to real estate owned by the seller. When that property is sold, the liens are then paid in full out of the net proceeds of the sale. In short sales, where there are ZERO dollars in net proceeds from the sale -- this creates a potential problem! The liens have to be paid off in order to transfer the title of the property to the new owner, but there is a lack of money to pay the liens...so what happens?

Well, luckily, both the Internal Revenue Service (IRS) and the California Franchise Tax Board have processes to request that the liens be "partially released" so that the properties in question can be sold and the liens go unpaid. The liens still exist and stay with the seller, and could attach to other property he or she owns or comes to own at a later time, but they are released from the subject property being sold.

If you are selling a property and have unpaid state or federal income tax, it is critical that you let your Realtor know about it, even if you have not received notice that any actual lien has been filed. Liens can pop up at any time, so even if a lien doesn't officially exist today, it might be officially recorded between now and the time you get your short sale approved and try to close the escrow.

The process with the IRS can take several weeks to complete from application to approval, and subsequent close of escrow. The approval of your application is only valid for 30 days. Timing of your request is tricky, especially if you are trying to do a short sale, since you do not always know exactly when the short sale lenders will approve the transaction, nor do you necessarily know the final selling price!

To apply, you must fill out IRS Form 14135 "Application for Certificate of Discharge of Property from Federal Tax Lien." The form requires A LOT of information and supporting documentation that your Realtor and escrow officer can assist you with -- including things like a title report, a copy of the estimated HUD-1 settlement statement, a copy of the recorded tax lien itself, a property appraisal, etc.

Then, depending on the location of the property within the state, you will mail the application and supporting documentation. You can follow up via telephone at 800-829-3903. The IRS has actually prepared videos to assist sellers with this process -- view them by clicking here.

Next week I will post about the process for making the same request of the California Franchise Tax Board...

Think your Sacramento County Property Tax Assessment is too high? File a review application with the Sacramento County Assessor's Office...

2011-09-30T13:50:00.000-07:00

It's property tax appeal season, and it seems that every day I get at least one call or email from folks looking for assistance to file the necessary paperwork with Sacramento County to have their property tax assessment reviewed -- and ideally lowered under the "Decline in Market Value" provisions of California Proposition 8. That's right! You can request that the Sacramento County Tax Assessor lower the property tax assessment for your home -- which ultimately lowers the amount that you pay in property tax.

The period to file a review request with the Sacramento County Tax Assessor's office started July 2nd, 2011 and goes until November 30, 2011. To find out what your property tax assessment is for tax year 2011-2012, click here.

Residential property owners (single family home, and properties up to 4-units) can file review requests themselves by filling out an application ("Decline-in-Market Value Residential/Agricultural Request for Assessor Review 2011-2012 Assessment Year") and mailing it into the Sacramento County Assessor, Attn: Prop 8 Review, 3701 Power Inn Road, Suite 3000, Sacramento, CA 95826-4329. It can also be faxed to (916) 854-9295.

In your application, you will have to provide sales information for at least 2 properties of similar type and location that sold as close to January 1, 2011 as possible, but no later than March 31, 2011. If you would like this data, feel free to email me at erin@erinattardi.com a request and I will send you comparable sales for your application.

The Sacramento County Assessor will not accept request for review applications for commercial and apartment properties during the 2011-12 filing period. For commercial and 5+ unit apartment properties; if you disagree with your assessed value, you must file an “Application for Changed Assessment” with the Assessment Appeals Board.

Sacramento County Assessor Review Application
Placer County Assessor Review Application
Yolo County Assessor Review Application
El Dorado County Assessor Review Application

Sacramento Oktoberfest Events - 2011

2011-09-26T20:19:00.000-07:00

Sacramento Active 20-30 Oktoberfest
Saturday, October 1st at 5pm
Fairtale Town, 3901 Land Park Drive, Sacramento, CA 95818
$30 -- DJ music, german food, beer, and more!
http://oktoberfestsac2030.eventbrite.com/

Davis Sunrise Rotary Oktoberfest
Saturday, October 1st at 6:30pm
Central Park Pavilion in Davis, CA
$20 at the door -- polka music, german food, Sudwerk beer, root beer, and more!
http://www.clubrunner.ca/Portal/Home.aspx?cid=3544

Sacramento Turn Verein's 44th Annual Oktoberfest
Friday, October 7th at 6pm & Saturday, October 8th at 3pm
3349 J Street, Sacramento, CA
$15 at the door -- live music, german food, beer, wine, dancing and more!
http://www.sacramentoturnverein.com/

How long after a short sale, foreclosure, or bankruptcy do you have to wait before getting approved for a new Conventional mortgage loan??

2011-09-01T15:40:00.000-07:00

I am frequently asked how long someone must wait to be able to buy a house and qualify for a mortgage loan after a short sale, foreclosure, deed in lieu of foreclosure, or bankruptcy? Over the next couple weeks I will post the current underwriting guidelines for different types of mortgage loans. Of course underwriting guidelines change from time to time, but these standards are current as of now. A couple weeks ago, I posted about the FHA loan waiting period requirements. Today, I am posting Conventional loan waiting period requirements.

Conventional loans are commonly used in Sacramento. They generally require a minimum of 5-10% downpayment for loans in Sacramento, Placer, El Dorado, and Yolo Counties. Of course there are some special loan programs as well that may require a smaller downpayment. It is not just a loan for first time buyers, but also investors, and move-up buyers...

After Foreclosure, or Deed in Lieu of Foreclosure:
-7 years from date the foreclosure was completed and transferred back to the bank.
-3 years from the date foreclosure was completed and transferred back to the bank may be acceptable if the foreclosure was the result of "extenuating circumstances." You must have at least 10% down and it must be a primary residence under these conditions. Examples of extenuating circumstances for obtaining a new Conventional loan are defined as "non-recurring events that are beyond the borrower's control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.

After Short Sale:
-7 years from the date the short sale closed and transferred to the new owner if you have less than 10% downpayment.
-4 years from the date the short sale closed and transferred to the new owner with 10% downpayment.
-2 years from the date the short sale closed and transferred to the new owner with 20% downpayment.
-2 years from the date the short sale closed and transferred to the new owner with 10% downpayment with acceptable extenuating circumstances.

After Chapter 7 Bankruptcy:
-4 years from the date of discharge with re-established credit paid as agreed.
-2 years from the date of discharge may be acceptable if the bankruptcy was caused by acceptable extenuating circumstances.

After Chapter 13 Bankruptcy:
-2 years from the date of discharge with re-established credit paid as agreed.
-4 years from the date of dismissal date.

Of course, you must speak to a loan officer in order to qualify for a new conventional mortgage...I am happy to point you in the right direction to a great loan officer if you want to explore if you qualify after experiencing a short sale, foreclosure, deed in lieu, or bankruptcy.

New Listing - 6241 Bobbiwood Way, Sacramento, CA 95828

2011-08-31T15:21:00.000-07:00

Great 2 bedroom, 2 bathroom, 1,133sf half-plex in convenient Sacramento location. You will enjoy the newer composition roof, water heater, central heating and air conditioning, spacious layout with two full bathrooms, attached 2-car garage, low maintenance yard. Don't wait! Offered at $65,000 subject to lender approval of short sale. For more information please visit 6241 Bobbiwood Way, Sacramento, CA 95828.

New Listing - 3741 Red Eagle Court, Antelope, CA 95843

2011-08-30T15:13:00.000-07:00

Wonderful 3 bedroom, 2 bathroom, 1,428sf Antelope home! You will love its cul-de-sac location, great room concept with vaulted ceilings, large brick fireplace, kitchen with dining nook area, large master suite, and serene backyard. Don't wait! Subject to lender approval of short sale. For more information visit http://www.3741RedEagleCourt.com.

My softball socks...

2011-08-26T23:44:00.000-07:00

I'd like to give credit where credit is due. If you follow me on Facebook or Twitter, you will already know that my softball team won the league championship game tonight, and I think my lucky softball socks had something to do with it.

Go Team OFFBASE!...now if only my team's luck could rub off on the San Francisco Giants! ARGH

New Listing - 6425 Harmon Drive, Sacramento, CA 95831

2011-08-23T14:16:00.000-07:00

Wonderful Greenhaven / Pocket 3 bedroom, 2 bathroom, 1,579sf halfplex just blocks from Didion Elementary School and the river -- you will love the updated kitchen, formal dining room, spacious living room with cozy fireplace, laminate flooring, custom paint selections, nice backyard with covered patio. Don't wait! Subject to lender approval of short sale. For more information please visit http://www.6425HarmonDrive.com.

How long after a short sale, foreclosure, or bankruptcy do you have to wait before getting approved for a new FHA mortgage loan??

2011-08-16T20:36:00.000-07:00

I am frequently asked how long someone must wait to be able to buy a house and qualify for a mortgage loan after a short sale, foreclosure, deed in lieu of foreclosure, or bankruptcy? Over the next couple weeks I will post the current underwriting guidelines for different types of mortgage loans. Of course underwriting guidelines change from time to time, but these standards are current as of now.

I will start with FHA loan purchase requirements, since most of the buyers in Sacramento seem to be using FHA loans. FHA loans generally require a 3.5% downpayment, the property purchased must be used as a primary residence, and as of right now a buyer can make a purchase of up to $580,000 in Sacramento, Placer, El Dorado, and Yolo Counties. It is not just a loan for first time buyers...

After Foreclosure, or Deed in Lieu of Foreclosure:
-3 years from date the foreclosure was completed and transferred back to the bank.
-Less than 2 years, but not less than 12 months from the date foreclosure was completed and transferred back to the bank may be acceptable if the foreclosure was the result of "extenuating circumstances." Examples of extenuating circumstances for obtaining a new FHA loan are limited to serious documentable illness or death of a wage earner on the loan that was foreclosed. Unfortunately for the purpose of obtaining a new FHA loan to buy a home after foreclosure, circumstances like divorce or job transfer do not qualify as extenuating circumstances.

After Short Sale:
-3 years from the date the short sale closed and transferred to the new owner.
-No waiting period if the borrower had no late payments on any mortgages and consumer debts within the 12 month period preceding the short sale.

After Chapter 7 Bankruptcy:
-2 years from the date of discharge with re-established credit paid as agreed, or no new credit obligations incurred.
-Less than 2 years, but not less than 12 months from the date of discharge may be acceptable if the bankruptcy was caused by acceptable extenuating circumstances and the borrower has since exhibited a documented ability to manage financial affairs in a responsible manner.

After Chapter 13 Bankruptcy:
-1 year payout period under bankruptcy has elapsed and the borrower's payment performance has been satisfactory and all required payments are made on time.

Of course, you must speak to a loan officer in order to qualify for a new mortgage...I am happy to point you in the right direction to a great loan officer if you want to explore if you qualify after experiencing a short sale, foreclosure, deed in lieu, or bankruptcy.

If you are curious about the Conventional Loan waiting periods, click here.

One of my buyers fell victim to this SCAM! Do not let this happen to you!

2011-08-01T13:06:00.000-07:00

Ugh. One of my buyer clients was SCAMMED for nearly a thousand dollars. Please read on, and do not let this happen to you...

About a month ago, a very nice lady called me about one of my listings in Rancho Cordova. My listing was available, and I happily arranged to show it to her. When I met her at the house, we hit it off immediately, and she was not already working with another Realtor...so she decided to work with me to find her a house. She did not think my listing was a good fit for her needs, so we made arrangements to see other properties. She had already been pre-approved for a mortgage by a loan officer with a company called MortgageClose in southern California, and she provided me with a copy of her pre-approval letter. I made contact with her loan officer to make sure I understood the terms of the loan she was approved for, and had a nice conversation with him. Things seemed to be moving foward in a typical way...

So after looking at a dozen or so homes over a couple weekends, we found the home of her dreams; a Fannie Mae Homepath bank repo in Sacramento. We made an offer immediately, and after a few days it was accepted by the bank! I called the loan officer and let him know that we made an offer that was verbally accepted and I would forward him the fully executed purchase contract with the bank asset manager signatures as soon as I received it. He said great, he was ready to go...so on a Friday afternoon I received the signed purchase contract, and I forwarded it to him immediately.

I didn't necessarily expect a reply from the loan officer that afternoon, or even over the weekend...but come Monday morning I did expect a response. Part of our purchase contract with Fannie Mae stated that the buyer's appraisal must be ordered within 7 days, and the clock was ticking on that timeframe.

So Monday around noon, I had not yet gotten a response from the loan officer. I called and left him a voicemail, and sent him another email. I called my buyer client and asked her if she heard from the loan officer directly, and she said no. Hmm...that's no good! But, perhaps he was out of the office? Most loan officers I know have a smart phone and at least check their email if they plan to be out of the office, but okie dokie.

Tuesday morning rolled around, and by about 10am I still had not heard anything from the loan officer. Again I called and left him a voicemail. I also emailed him, this time cc'ing my buyer client on the email. At the end of the business day around 5pm I had not heard from him, and I called my client and asked if she had heard anything from him -- and no she had not. I explained to her that we had timeframes in the contract we needed to meet, and if we did not get in touch with him by the next morning we needed to figure out 'Plan B' for her loan. She said she really wanted to work with this loan officer, but she understood that his unresponsiveness was a bit alarming.

On Wednesday morning, I had a home inspection for another buyer client in Natomas at 8:30am. From the home inspection I checked email on my iPhone, and there was still no response. From my phone I looked up the company website, found the company main telephone number and called it. The number was disconnected. Something was seriously wrong...if the unresponsive loan officer wasn't alarming enough, this was a HUGE red flag. I called my client immediately and told her, and she agreed it was time to find another loan officer. I went through my contacts, made a few phone calls, and referred her to a great local loan officer -- Kris Karge with Comstock Mortgage, who happened to be the first loan officer I called who answered his phone that morning. Within a couple hours, she filled out a new loan application, forwarded him all of her bank statements, and paystubs. Kris ran her credit, locked her interest rate, and ordered her appraisal right away. Wow, that was so easy!

I checked in with Kris around noon to make sure he had everything he needed...he did and her loan was now on track, but then told me something very troubling. My client had paid $995 in advance to MortgageClose to get pre-approved. My heart sank. This practice is NOT legal, even if the company claims the funds will be applied to your downpayment or closing costs. She was scammed. The ONLY fee a loan officer can collect in advance is a credit check fee (usually $20-$30). An appraisal fee (usually $350-$450) can be collected by a loan officer only after the "Truth In Lending" Disclosure has been signed and dated by the buyer, which generally happens only once a home is in contract.

I called my managing broker, and he googled "MortgageClose Reviews." They have an F with the Los Angeles Better Business Bureau. There are numerous complaints on numerous websites.
PLEASE buyers...I can not encourage you enough to work with a local, reputable loan officer. Ask your friends, family, co-workers, or your Realtor for a referral. Meet with the loan officer in person, and make sure they give you a written itemization of the costs and fees associated with the loan you are applying for. NEVER give a loan officer money in advance unless it is associated with a credit check fee. The appraisal fee should only be paid once you have a property in contract.

Most people only do a handful of real estate transactions in a lifetime and have no idea what lending practices are common, ethical, or legal. If you need a referral to a great Sacramento loan officer, feel free to contact me directly. Luckily, this little glitch did not completely derail my client's home purchase, and she is in great hands with her new loan officer. She is also taking steps report this fraud to the proper authorities, and she will hopefully get her money back...someday.

SB 458 Passes: NO Short Sale Deficiency Judgements on Second Trust Deeds (aka, Junior Liens) in California!

2011-07-18T17:37:00.001-07:00

I have not noticed much media coverage for this, but on Friday, California Governor Jerry Brown on signed SB 458 (Corbett) into law. SB 458 extends the protections of SB 931 (passed and signed into law last year by Governor Schwarzenegger) to also include junior liens, aka 2nd mortgages. Both pieces of legislation state that a lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans.

Prior to SB 931 and SB 458, only financing obtained at the time a home was purchased contained "anti-deficiency" protection -- meaning the mortgage lender could not pursue any action or have recourse to recoup their loss or "deficient" balance. Now these protections are extended to refinanced loans, and "junior" liens.

A short sale is a transaction in which the homeowner owes more on the loan than the property is worth. In order to sell the home, the mortgage holder(s) must approve the sale because the amount owed is "short" of what is currently owed by the seller.

SB 458 contains an urgency clause making it effective upon signing (July 15, 2011)...so it now it would seem that any California short sale seller who closes their transaction successfully would have protection from recourse afterwards...good news for distressed property sellers!

I do many short sales in Sacramento, often times for sellers with multiple loans on their homes. This, combined with the state and federal "phantom income" tax relief, will certainly create a much more favorable environment for short sale sellers who already have financial hardships to get their properties sold -- one less thing to worry about.

This legislation was championed by the California Association of Realtors -- of which I sit on its Board of Directors. I have blogged before that we advocate on behalf of property owners since there is no "California Association of Home Owners." I am very pleased to see that we were successful in our efforts to help California (and specifically Sacramento-area) sellers who need to sell but are upside-down in the value of their homes.

New Listing - 3145 Half Moon Bay Circle, West Sacramento, CA 95691

2011-07-07T14:41:00.001-07:00

Former model home -- 3 bed, 2 bath, 1,757sf home in West Sacramento with lots of upgrades--one owner! You will love the separate living and family rooms, open layout, upgraded tile flooring, upgraded lighting fixtures, large master suite, oversized 2-car garage, spacious outdoor patio and nice landscaping. Don't wait! Subject to lender approval of short sale. For more photos and information please visit http://www.3145halfmoonbaycircle.com/.

New Listing - 2141 Ellison Drive, Rancho Cordova 95670

2011-06-23T10:34:00.000-07:00

Super cute 3 bed, 2 bath, 1,344sf Rancho Cordova home--close to the Roosmoor American River access! Fall in love with the custom paint selections, crown moulding, wood flooring, remodeled bathrooms, wet bar, oversized 2-car garage, built-in swimming pool, large corner lot, 2-year old roof, 2-year old central heat & air, dual pane windows, and more! Don't wait! Offered at $135,000 subject to lender approval of short sale. For more photos and information, please visit http://www.2141ellisondrive.com/.

New Listing - 2110 18th Street, Sacramento, CA 95818

2011-06-22T15:36:00.000-07:00

Convenient Midtown Sacramento location! 2 bedrooms, 1 bathroom, close to Downtown, public transportation, freeways, restaurants & shopping! Fixer with numerous City of Sacramento code violations. Cash buyers only. Offered at $150,000 subject to lender approval of short sale. Don't wait! For more information, please visit 2110 18th Street, Sacramento, CA 95818.

New Listing - 210 Forastera Circle, Sacramento / Natomas 95834

2011-06-20T11:53:00.000-07:00

Classy and well kept 3 bed + den (possible 4th bedroom), 2 bath, 1,804sf, Natomas home! You will love the bamboo floors, custom paint selections, spacious layout, large den/possible 4th bedroom, big bedrooms, and more! Offered at $189,000 subect to lender approval of short sale. For more information please visit http://210forasteracircle.com/.

Make sure that 2-year Roof Certification is actually valid for 24 months!

2011-06-15T13:06:00.001-07:00

I have blogged about roof certifications in the past...a "roof cert" is generally something that is agreed to by buyer and seller at during the initial contract negotiations. It is very common for the seller to agree to provide a 2 or 3 year "Roof Certification." Many agents will include this in the residential purchase agreement (aka, the offer). A certification generally involves a licensed roofing contractor inspecting the roof, recommending/performing repairs, and giving a written guarantee that the roof will not leak for 2 or 3 years. Common repairs include sealing around roof vents, installing flashing, replacing shingles, etc. The certification itself usually costs $250 - $400 (repairs are extra), depending on the age and pre-existing condition of the roof. If the buyer and seller negotiate a 2-year roof certification into a purchase agreement -- the 2-year roof certification should be valid for 24 months, starting at the close of escrow. Not rocket science, right?

I recently had the experience where a listing agent and seller tried to make my buyer client accept a 2-year roof certification that was valid for 21-months. Huh?

So my buyer clients got into contract on a really cute Woodlake house during the first week of May...among other things, we negotiated that the seller was to provide a 2-year roof certification at the close of escrow. Our expected close date was June 9th. A few days prior to closing, the listing agent emailed me a copy of the roof certification document from the roofing contractor. The roof certification was dated 3/17/11, and was valid for 2 years from the date of issuance. Yes, it was indeed a 2-year roof certification, but it was already nearly 3 months old. So basically they were trying to pass off a 21-month guarantee to my clients.

I contacted the listing agent and let him know this was not acceptable. He claimed that they did provide a 2-year roof certification as promised. I pushed back that they were providing a 21-month roof certification that did not meet the terms of the purchase contract, and that if the seller wanted to provide that particular roof certification, in one of the counter offers should have been the following phrase: "Buyer shall accept roof certification dated 3/17/11 provided by Marin Roofing." That resonated with the listing agent. He got it.

Fortunately, the solution turned out to be an easy one: the roofing contractor issued a revised 2-year roof certification for free, dated in June, because the roof was in decent shape. The seller was happy that he did not have to pay an additional fee, and the buyer was happy to have the full 24-months of coverage.

The moral of the story -- if you are a seller who has a previously issued roof certification that you wish to provide a buyer, you MUST indicate that during your contract negotiations. If presented at that point in time in a counter offer, that will be acceptable to many buyers and will not cause a stir at the end of the transaction. If you are a buyer, and the seller has agreed to provide a 2-year roof certification, be sure that you are indeed getting that 2-year roof certification for the full 24-months the seller has contractually agreed to...

Amazing Luxury Home in Carmichael -- Stunning American River Frontage and Views!

2011-06-01T16:16:00.001-07:00

Got an extra $2.2M laying around? Well if you do, and are in the market for a magnificent Carmichael property with stunning views of the American River, I know of the house for you. Today I previewed an absolutely amazing home of approximately 4,400sf including a fully appointed guest quarters, a huge multi-level deck, swimming pool, on almost an acre of river front property. Here is a photo of the view of the river from the kitchen and living/dining area. This is truly a unique luxury home -- not many homes like this come on the market in the Sacramento area. Let me know if you are interested in more details...this one will be coming on to the market soon.

18th Annual Sacramento SPCA "Doggy Dash" & "Bark at the Park Festival" -- June 4, 2011

2011-05-27T00:23:00.000-07:00

The 18th Annual Sacramento SPCA "Doggy Dash" and "Bark at the Park Festival" is coming up on Saturday, June 4th, 2011 in William Land Park. About 5,000 pet-lovers will gather with (and without) their doggy partners to raise money to benefit the Sacramento SPCA. This is so much fun! I was lucky enough to attend for the first time last year, and it is so much fun! You can choose to participate in a 5k or 2k walk with your pooch. Registration opens at 7:30am and the walks begin at 9am.

The "Bark at the Park Festival" takes place in the park after the "Doggy Dash." Register your hound to compete in the Pup Show, high-flying Disc Contest, or the Pug Races! Visit with pet-friendly businesses, see a Sacramento PD K-9 Unit demonstration, learn about Sacramento-area animal rescue organizations, or just have lunch while watching all the action.

Register here! Whether you choose to bring a canine companion or invite a two-legged friend, mark your calendar and join us for the "Doggy Dash" and "Bark at the Park Festival" and help make a difference in the lives of homeless animals sheltered at the Sacramento SPCA. Register as a solo participant, start a team or join an existing team.

Sacramento Real Estate Statistics for April 2011

2011-05-24T17:45:00.000-07:00

Well...once again statistics for the median home prices in Sacramento County sure seem to have remained relatively level for the last 14 months. I think the slight dip you see in the median price has more to do with the volume of homes selling at the lower end than an actual decline in value. I have 3 transactions in contract right now, and all are in the low-$100k range ($92,500, $131,250, and $101,222). What I can tell you is that most of the transactions I have been representing for both buyers and sellers, (in all the price ranges, short sales, foreclosures, and "regular transactions with a traditional sellers") are still often times met with multiple offers if the home is priced correctly. To top it all off, interest rates are insanely low right now - like in the low 4% range in you have a stellar credit score and documentable income.

If you would like me to email you the Facts and Trends graphs for specific zip codes in Sacramento County, just shoot me an email and I am happy to provide them.

Is your Sacramento Sewer Line made of Orangeberg?

2011-05-17T10:40:00.000-07:00

I have said it before, and I will say it again. If you are purchasing an older home in Sacramento, it is extremely important to inspect the sewer line. This photo is from a sewer inspection performed one of my buyer clients had performed on a house in the Woodlake neighborhood that was built in 1946. The sewer line is made of Orangeberg pipe which over time breaks down and is susceptible to root penetration.

How much sewage do you think can pass by this obstruction before the line backs up during your housewarming party after 19 of your closest friends flush the toilet and you run the dishwasher? Ewwww....

It's best to inspect for this condition during your "buyer investigation" period that is set forth in your purchase agreement. Often times the buyer can negotiate with the seller to have this condition corrected prior to the close of escrow.

New Listing - 10730 Basie Way, Rancho Cordova, CA 95670

2011-05-16T12:43:00.001-07:00

Classy 3-4 bed, 2 bath, 1,524sf Rancho Cordova home - you will love the open floorplan, separate living and family rooms, formal dining area, kitchen island, pantry, huge master suite with sitting area and remodeled master bathroom with dual sinks. Backyard is an outdoor oasis with koi pond, covered patio and more! Don't wait! Subject to lender approval of short sale. For more photos and information, visit http://www.10730BasieWay.com

Erin's Sacramento Short Sale Experiment, Part VIII

2011-05-11T19:08:00.000-07:00

Well it is time for my eighth installment of Erin's Sacramento Short Sale Experiment! Curious what has happened in the world of short sales in our Sacramento metro area since the last time? I am anxious to see if 2011 continues the way it seemed to begin -- to bring a high volume of active short sale listings, and more importantly, more closed short sales. For those of you not following along at home, or perhaps if you are reading this for the first time, my short sale experiment is tracking a few different Sacramento zip codes to see what how the short sale activity increases or decreases over time as compared with traditional resale listings (where there is a seller with equity in a "normal transaction") and to bank-owned resale transactions. My hypothesis at the start of this experiment: the number of short sales will grow over time, as will their dominance in our greater Sacramento marketplace (overall percentage of listings). I have continued to list more short sale properties, and over the nearly two years I have been tracking this information, it seems my hypothesis has been proven to be true. Let's see how this new data compares to the "control data" for the experiment and also to last installment...

95624 is the section of Elk Grove closest to Hwy 99. As of right this second according to MLS, there are a total of 354 active listings there. 244/390 listings are short sales. The median price in that zip code in April 2011 was $212,000 according to Trendgraphix. The result vs. the control data? Control data was 68.6% of all active listings in 95624 were short sales, vs. 65.3% last installment, vs. 62.6% this month. DECREASE over the control data, and a decrease over last installment. Number of 2010 closed short sales - 312. YTD closed in 2011 - 105....Active Foreclosure / REO listings - 59.

95610 is a section of Citrus Heights. As of right this second according to MLS, there are a total of 199 active listings there. 117/199 listings are short sales. The median price in that zip code in April 2011 was $165,000 according to Trendgraphix. The result vs. the control data? Control data was 60.3% of all active listings in 95610 were short sales, vs. 53.4% last installment, vs. 58.8% this month. DECREASE over the control data, and an increase over last installment. Number of 2010 closed short sales - 109. YTD closed in 2011 - 49....Active Foreclosure / REO listings - 36.

95826 is a section of Rosemont and College Greens. As of right this second according to MLS, there are a total of 180 active listings there. 105/180 listings are short sales. The median price in that zip code in April 2011 was also $160,000 according to Trendgraphix. The result vs. the control data? Control data was 62.2% of all active listings in 95826 were short sales, vs. 51.0% last installment, vs. 58.3% this month = DECREASE over the control data, and an increase over last installment. Number of 2010 closed short sales - 57. YTD closed in 2011 - 27....Active Foreclosure / REO listings - 48.

95864 is a section of Sierra Oaks, Arden Park, and Arden Manor. As of right this second according to MLS, there are a total of 132 active listings there. 43/132 listings are short sales. The median price in that zip code in April 2011 was $265,000 according to Trendgraphix. The result vs. the control data? Control data was 17.0% of all active listings in 95864 were short sales, vs. 42.5% last installment, vs. 32.6% this month. INCREASE over the control data and decrease over last month. Number of 2010 closed short sales - 16. YTD closed in 2011 - 5....Active Foreclosure / REO listings - 12.

95818 is a section of Midtown, Land Park, and Curtis Park. As of right this second according to MLS, there are a total of 102 active listings there. 21/102 listings are short sales. The median price in that zip code in April 2011 was $348,000 according to Trendgraphix. The result vs. the control data? Control data was 16.0% of all active listings in 95818 were short sales, vs. 27.6% last installment, vs. 20.6% this month. INCREASE over the control data, and decrease over the last installment. Number of 2010 closed short sales - 23. YTD closed in 2011 - 8....Active Foreclosure / REO listings - 8.

95819 is a section of East Sacramento. As of right this second according to MLS, there are a total of 85 active listings there. 17/85 listings are short sales. The median price in that zip code in April 2011 was $369,000 according to Trendgraphix. The result vs. the control data? Control data was 19.7% of all active listings in 95819 were short sales, vs. 23.1% last month, vs. 20.0 this month. INCREASE over the control data, and decrease over the last installment. Number of 2010 closed short sales - 15. YTD closed in 2011 - 13....Active Foreclosure / REO listings - 3.

So in summary - of the six Sacramento area zip codes I am tracking for my experiment, 3 of them experienced a decrease in the number of active short sale listings from last installment, while 3 experienced an increase over the control data...interesting. It appears that areas with higher median sales prices are showing an increase in short sale activity, while the areas with the lower median prices are showing a decrease in short sale activity. AND while I have not specifically been tracking this data, it appears that there are an increasing number of Foreclosure / REO listings on the market...you will note in a few of the areas I am tracking, if you combine the number of short sale listings and foreclosures, that accounts for nearly 75% or more of the total listings in that area! That's a HUGE percentage of the overall micro-market. Since I just started tracking that statistic for this little project, we will have to see how those numbers compare in the future. My phone definitely keeps ringing and I continue to receive emails - I am fielding lots of inquiries from homeowners looking for more information and insight from my short sale experience...buyers too are really curious about the short sale process since they are encountering so many short sale listings in our marketplace. Also (you will be aware of this if you follow me on Twitter or Facebook), I closed many of my own short sale listings since the last installment of Erin's Sacramento Short Sale Experiment...until next time!

Erin's Sacramento Short Sale Experiment, Part I
Erin's Sacramento Short Sale Experiment, Part II
Erin's Sacramento Short Sale Experiment, Part III
Erin's Sacramento Short Sale Experiment, Part IV
Erin's Sacramento Short Sale Experiment, Part V
Erin's Sacramento Short Sale Experiment, Part VI
Erin's Sacramento Short Sale Experiment, Part VII

California Association of Realtors...another conference in paradise (that's Sacramento, btw)!

2011-05-09T13:55:00.000-07:00

If you follow me on Facebook or Twitter, you will already know that this past week was a busy one! In addition to my day-to-day duties as a Realtor, I am member of the Board of Directors for the California Association of Realtors -- and this last week we had our annual mid-year conference and legislative meetings. Thankfully these mid-year meetings are always in Sacramento, which is great so I can still get a lot of work done in addition to attend the numerous committee meetings, forums, and Board of Directors sessions.

I am often asked by my clients, and even other Realtors, why my volunteer service to the Sacramento Association of Realtors and and California Association of Realtors is so important? Well, in short, there is no "California Association of Homeowners." Did you know that the local, state and national associations of Realtors work to defend consumer private property rights? Most people (heck, many Realtors for that matter) are not aware that we do this.

Did you know that in any given legislative cycle, there are well over 1,000 bills introduced that affect real estate ownership or property transfer. We are constantly working hard convince lawmakers that proposing pieces of legislation that do things like add more taxes to real estate transactions, require certain home retrofits at the point of sale, eliminate the mortgage interest tax deduction, and things of that nature are potentially harmful to property ownership and place undue burdens on homeowners, buyers and sellers...while at the same time trying to convince lawmakers that proposing pieces of legislation that do things like prohibit advanced fee loan modification contracts (aka, scams), extend forgiveness of paying income tax on "phantom income" created by short sales, give additional rights to tenants of foreclosed homes, and things of that nature are GOOD ideas. We are a "party neutral" organization...in fact we like to refer to ourselves as "the Realtor Party of California."

So, in short...through lots of meetings and much debate, we strategized the most effective ways to make that happen. I feel we accomplished a lot and have a good road map moving forward....the next round of C.A.R. meetings are in September. So, until then, happy home buying and selling!

4th Annual Young Professionals Council Vendor Fair & BBQ Fundraiser

2011-05-03T22:51:00.000-07:00

Today, the Sacramento Association of Realtors “Young Professionals Council” put on its 4th annual YPC Vendor Fair & BBQ. We had over 50 exhibiting vendors, numerous attendees, DJ music, lots of food, raffle prizes, and more. It was a lot of fun, and best of all raised a total of $5,100 for the SAR Scholarship Trust!

Electric blue and turquoise...not my first choices for paint colors!

2011-05-02T11:54:00.000-07:00

Hmm...call me crazy, but I am not sure if these colors even look good on the 1-inch by 1-inch swatches available in paint stores. Drove by this house in Sacramento near Executive Airport today while touring properties.

Another Half Marathon in the books! Finished the American River Parkway Half Marathon...

2011-04-30T14:11:00.000-07:00

If you have been following me on Facebook or Twitter you will already know that on today I ran in the American River Parkway Half Marathon! This was my second half marathon (13.1 miles)...I just ran my first about 6 weeks ago (the Shamrock'n Half Marathon). I really liked the course for this run - we started at William B Pond (at the end of Arden Way), ran to about the Campus Commons Golf Course, and back. Pretty scenery, and lots of runners. All the funds raised benefit the American River Parkway Foundation. Here I am with my good friend Katie Vona, who also happens to be the world's greatest massage therapist -- she specializes in working on athletes. She operates Elite Massage Therapy in East Sacramento. I highly recommend her!

13th Annual East Sacramento Garden Tour 2011! Fundraiser for David Lubin Elementary School...

2011-04-29T09:06:00.000-07:00

I love, love, LOVE the annual East Sacramento Garden Tour, and this year's event is coming up soon -- Mother's day weekend!

This year's 13th annual tour will feature 7 beautiful and awe-inspiring gardens in Sacramento's "Fabulous 40s" neighborhood...So enjoy a leisurely walk and enjoy the vast variety of lush and serene gardens. After you tour the gardens, you may also opt to have a buffet lunch at the Tea Garden at Sutter Lawn Tennis Club.

All tickets may be used for either day, and according to the event website, you may even choose to split viewing the gardens between Saturday and Sunday. All funds raised from the tour support enrichment and academic programs at David Lubin Elementary School.

Tickets can be purchased online by clicking here, or at a number of East Sacramento area stores such as East Sac Hardware, Capital Nursery, The Pink House, The Gifted Gardner, Talini’s Nursery & Garden Center, Summer Porch, or at David Lubin Elementary School.

Garden Tour tickets ($20/person) are required for all persons ages 12 and older
Tea Garden Luncheon tickets ($15/person) are required for children and adults

Financing Sacramento Condos...it's the WILD WEST!

2011-04-27T14:29:00.000-07:00

I have resisted the urges to write about my most recent adventure representing the buyer in the purchase of a condo until after the close of escrow...thankfully escrow finally closed on Tuesday. Tuesday was exactly 27 days after our originally scheduled 30-day close of escrow. Why? Financing issues. The good news is now the loan officer and I are basically specialists in this particular condo community -- Serenade at Regency Park at 50 Regency Park Circle in Sacramento / Natomas.

In previous posts, I have warned Sacramento condo buyers (and sellers, for that matter) that in many cases, it is EXTREMELY difficult to finance condos. In the instances of buyers seeking to use FHA or VA financing, the condo communities must be on a pre-approved list. The condos and their Homeowners Association (HOA) must meet certain criteria that is screened in advance. For conventional lending, Fannie Mae and Freddie Mac have approved lists too.

So just how do you finance a condo that is not on the FHA, VA, Fannie Mae, or Freddie Mac approved list??? That is the million dollar question!! The answer is that you must undergo the 'Exception Review' process...ARGH. This process allows the lender to ensure that the condo community meets their condo lending requirements -- for example, the HOA must have adequate insurance, there can not be a high percentage of non-owner occupied units (rental units), there can not be litigation involving the property, the HOA must have adequate cash in the bank, there can not be a high number of owners who are delinquent in payment of their HOA dues, and MANY other things.

In short, there are many condo communities that will not qualify for lending under the 'Review' process. Having said that, there are also many communities that will...but the process is so lengthy and labor intensive most loan officers are not willing to do it. Additionally, while Fannie Mae and Freddie Mac have certain requirements, individual lenders (GMAC, Wells Fargo, Chase, BofA, etc) also add their own requirements. Needless to say, the buyer and loan officer were willing to suffer through the process...the loan officer went through the process with multiple lenders, and finally found one willing to finance the condo. It literally took two months for this process. Thankfully we had a seller willing to wait out the process as well...if she had not been willing to wait for this financing, she would have had to find a cash buyer for the condo.

In the end it all worked out, but not without cooperation from all parties -- listing agent, buyer's agent (me), loan officer, buyer, seller, etc. The moral of the story, make sure everyone know what they are getting into...and if you are looking to purchase or sell a condo in Serenade at Regency Park in Natomas -- we do not have to reinvent the process if you work with me and/or the loan officer who handled this...contact me for details and I am happy to provide them.

10th Annual Land Park Garden Tour & Tea is May 7, 2011 - benefits Holy Spirit School

2011-04-25T11:35:00.000-07:00

The 10th annual Land Park Garden Tour and Tea will be held Saturday, May 7, 2011 from 10am - 4pm. Private Land Park residences will open their gardens to the public for a single day. Tour and tea tickets may be purchased in advance by calling (916) 446-5700 or online. Tour tickets are also available at Capitol Nursery, Parkside Pharmacy, Collected Works, Lofings Lighting and at the Holy Spirit Parish School office. Tour tickets are $20 in advance, $25 the day of the event. Tour and tea tickets are $40 in advance. All funds raised benefit Holy Spirit School.

2nd Annual Sierra Oaks Garden Tour - benefits Sierra Oaks Elementary School

2011-04-17T21:27:00.000-07:00

It's time for the 2nd annual Sierra Oaks Garden Tour! I was unable to attend last year's event, but I understand it was a great success. All funds raised benefit Sierra Oaks Elementary School programs.

The tour will take place on Sautrday, April 30 and Sunday, May 1 and feature six beautiful gardens, five on prestigious Crocker Road and one on Sierra Oaks Drive. Tickets are $20 in advance, or $25 the day of the event, and are available online or at a few local area businesses - Fair Oaks Blvd Nursery, Fringe, Gatherings, Gifted Gardener, Haus Home & Gift, Posh Shoppe, Twiggs, and at Sierra Oaks Elementary School.

New Listing - 6354 Cheltenham Way, Citrus Heights, CA 95621

2011-04-15T12:02:00.000-07:00

Cute 3 bed, 2 bath, 1,286sf, .14ac lot, Citrus Heights home! You will love the spacious renovated kitchen, wood flooring, covered patio, separate living and family rooms, large 2-car garage! Don't wait! Subject to lender approval of short sale. For more information please visit http://www.6354cheltenhamway.com.

New Listing - 6012 Birchglade Way, Citrus Heights, CA 95621

2011-04-13T15:42:00.000-07:00

Super cute 3 bed, 2 bath, 1,216sf Citrus Heights home! You will love the updated kitchen with granite counters, remodeled bathrooms, laminate and tile flooring. Don't wait! Subject to approval from US Army Corps Engineers Homeowners Assistance Program - assists owners who face financial loss when selling their primary home where values declined & military personnel are required to permanently relocate. For more information, please visit http://www.6012birchgladeway.com.

Sacramento Energy Upgrades - reduce your energy consumption and locate incentives, rebates, contractors!

2011-04-05T14:33:00.000-07:00

Looking for ways to reduce your energy consumption, conserve water, or utilize renewable forms of energy?...and lower your utility bills?...and maybe even finance the improvements? Wouldn't it also be nice to be able to research different rebates and incentives for making such improvements to you home?

Well thanks to an alliance among California counties, cities, non-profit organizations, the state's investor-owned utilities (Pacific Gas and Electric, Southern California Edison, Southern California Gas Company, and San Diego Gas & Electric Company), and publicly owned utilities -- now you can find programs, financing, rebates, and incentives available in your area (Sacramento and surrounding areas included)! The alliance is known as "Energy Upgrade California."

You can check out the website http://www.energyupgradeca.org and search by county and zip code to find different programs your home may be eligible for, and find contractors, financing, rebates and incentives for your energy upgrade projects. The goal of Energy Upgrade California is for this to be a comprehensive list, however it may not include all rebates and incentives in a given area. Energy upgrade rebates are administered by participating utilities.

Randomly selecting a few zip codes looking for available programs -- in my zip code 95818 (Land Park), there are 60 different programs available. In 95864 (Arden), there are 44 programs available. In 95628 (Fair Oaks), there are 52 programs available...you get the idea!

There are a variety of programs on the list -- installing sun-reflecting "cool roofs", replacing old appliances with new high efficiency appliances, adding wall and attic insulation, replacing incandescent lighting with fluorescent lighting, replacing pool filtration motors or pumps, replacing old central heating and air conditioning units, replacing old water heaters, installing Photovoltaic Systems (solar), installing residential small wind turbines, planting shade trees, installing low-flow water fixtures, and more!

California Department of Real Estate issues a new Consumer Alert - Don't fall victim to a loan modification scam!

2011-03-22T16:31:00.000-07:00

Yesterday the California Department of Real Estate issued a new Consumer Alert to give homeowners tips to avoid Loan Modification and "Mortgage Relief" scams. I receive several calls per month from homeowners who feel that they are victims of these scams, and I can not offer much help except to direct them to report the scam to the Better Business Bureau, the California Department of Real Estate or their local law enforcement.

A few tips to make sure you do not fall victim to loan modification scam;

Check the California Department of Real Estate website to see if a "Desist and Refrain Order" has been filed against a company you are considering working with.

Don't believe promises that are too good to be true. No one can guarantee that a "mortgage relief" plan will be be successful.

NEVER pay an upfront fee for loan modification services. Such fees are illegal in California. Advance fees for short sale services, deed-in-lieu of foreclosure and other residential mortgage foreclosure rescue services are also illegal under a new federal rule, with a very limited exception for fees paid to lawyers.

Check with the Better Business Bureau, and verify the existence of appropriate licensing for anyone offering those services.

Google the company name to see if you can find any red flags.

A HUD approved counseling agency can provide loan modification or other mortgage negotiation services for free. There are many of them in Sacramento.

Sacramento HUD Approved Counseling Agencies

2011-03-18T06:22:00.000-07:00

Sacramento-Area HUD Approved Counseling Agencies

Clearpoint Financial Solutions

4636 Watt Avenue, 2nd Floor

North Highlands, CA 95660

800-750-2227

Affordable Housing Centers of America / Sacramento

4433 Florin Road #830

Sacramento, CA 95823

916-451-9659

Human Rights / Fair Housing Commission

1112 I Street #250

Sacramento, CA 95814

916-444-6903

Sacramento Home Loan Counseling Center

1800 Tribute Road #150

Sacramento, CA 95815

916-646-2005

Information is deemed reliable as of 3/22/11. A complete list of HUD Approved Counseling Agencies in California can be found at

http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA

I did it! I finished the Shamrock'n Half Marathon!

2011-03-14T16:25:00.000-07:00

If you have been following me on Facebook or Twitter you will already know that on Sunday I ran in the Shamrock'n Half Marathon! This was my very first half marathon (13.1 miles), and my goal was just to finish without walking or stopping -- and I did it!!

I started running with my friend Kellie over the summer. We had been working out at the gym together pretty frequently but since the weather was so nice and we wanted to be outside, we started running a couple miles around Land Park. When we first started running, I could only go a mile or so before having to stop...eventually we built up a little stamina and could run about 3 miles. We did this once or twice per week between my softball games and regular gym workouts.

Then I signed up to run a 10k (about 6.2 miles) with the Sacramento Association of Realtors team for the annual "Run to Feed the Hungry" on Thanksgiving day, and was able to finish that...so I figured I would challenge myself and attempt a half marathon. I created a training program for myself and started running 4-5 days per week. It was sometimes exhausting and really physically challenging - and not necessarily convenient. Some mornings it was freezing cold or raining, or I had to schedule runs around events or appointments, or I had to run while out of town...

So now I have the running bug! The registration for the California International Marathon (26.2 miles) on December 4, 2011 is opening up next week...hmm.

Yep, I'm the 2011 Sacramento Association of Realtors Masters Club President-Elect...

2011-03-12T16:07:00.000-08:00

So yesterday the Sacramento Association of Realtors had its annual Masters Club awards luncheon, and all of the new officers and steering committee members were installed. I was honored as a Continuing Member of the Masters Club based on my production volume in 2010. I was also installed as the 2011 Masters Club President-Elect. Pretty neat. We do some great things as a group, including raising money for local charity. 2011 is off to a great start so far...

Download my Smartphone APP!

2011-03-03T16:22:00.000-08:00

Yep, it's true - I have create a smartphone app for use by my clients (and, soon-to-be clients)! Click here to get my smartphone app. Not only can you search Sacramento home listings in real time, I've got tips for buyers, sellers, mortgage tools, daily mortgage rates, real estate news and videos. It also connects you directly to me if you request, so I can give you the level of service you are looking for in your Realtor. After you download it, input my cell phone number (916-342-1372) when it asks for the Agent Id. My app is currently available for the Droid™, Android, iPhone, iPod touch and iPad. The BlackBerry® app is coming soon!

iTunes App Store Instructions

1) On your iPhone, iPod touch or iPad, go to the App Store and search for AgentNTouch.

2) Click on the app, and you'll see information about it.

3) Click on the "Free" button, then on "Install". The App Store asks for your password, then downloads the app automatically.

4) When you open the app for the first time, it asks for an Agent Id. Input my cell phone number: 916-342-1372.

Droid™ / Android Market Instructions

1) On your Droid™ or Android, go to the Android Market and search for AgentNTouch.

2) Click on the app, and you'll see information about it.

3) Click on the "Install" button. Market tells you what sections of the phone the app has access to. Click OK. The app downloads automatically, and a message displays when it's finished downloading.

4) When you open the app for the first time, it asks for the Agent Id. Input my phone number: 916-342-1372

Sacramento Short Sale Resources & Tools

2011-03-01T14:17:00.001-08:00

Over the last couple weeks I have been compiling a Sacramento Short Sale Directory of sorts from my experiences dealing with the different loan servicers, loan investors, and short sale programs...so, if you are looking for information dealing with Sacramento Short Sales, there is now a section on my website aptly named "Short Sale Tools." Check it out! I have tried to make sure all the short sale information is relevant and up-to-date...hopefully you find it to be of value. I have negotiated short sales with MANY entities, and I will continue to modify and add to this directory over time. Cheers!

How a property tax bill can affect your ability to qualify for a home purchase...

2011-02-15T19:16:00.000-08:00

I am working with several buyers right now...all of them are pre-approved for their mortgage financing with their various lenders of choice. And of course, the loan officers they are working with qualify them for a loan amount and monthly payment based on the buyers' income, assets, and credit score.

There are four elements that make up the monthly mortgage payment - loan principle, loan interest, property taxes, and homeowners insurance. Many buyers do not realize that their loan officer's estimate for annual property taxes is usually based on 1.25% of the purchase price, then divided by 12 months in the year to estimate what amount gets factored into the total estimated monthly payment. Well, let me tell you - depending on where the home you are purchasing is located, the annual property taxes may be much higher than that estimated number. AND depending on the buyer's circumstances and debt-to-income ratio, a higher tax bill could mean you don't qualify for enough to purchase that particular house after all.

What do you mean Erin?? Well, there are several VARIABLE elements that make up the property taxes for a home...not just the standard property tax based on the value of the house - but also things like school bonds, mello roos, local assessments, flood control, etc. These are called "Direct Levies" on a property tax bill.

Let me illustrate this with an example. I am working with a buyer client who wants to purchase a home in a neighborhood that has LOTS of these little variable elements. The house my client wants to purchase is $315,000. So when my client was pre-approved, the loan officer calculated his approval based on annual property taxes estimated at $3,937.50, or $328.13 per month ($315,000 x 1.25%, divided by 12 months) layered into the monthly mortgage payment. OK, that's great. BUT, the reality of this particular property is that in addition to the standard property tax amount, there are several local assessments and Mello Roos. Here is how the tax bill for the house breaks down:

BASE PROPERTY TAX $3,150.00
COSUMNES CSD - DIST. WIDE L & L $318.48
ELK GROVE SCHOOL DIST MR - CFD #1 $200.00
WATER & DRAINAGE STUDIES - SCWA 13 $6.92
POPPY RIDGE CFD NO. 2003-01 $939.64
STREET MAINTENANCE DISTRICT NO. 1 $155.58
STREET LIGHTING MAINT DISTRICT #1 $17.88
POPPY RIDGE SERVICES DISTRICT $173.10

Total - $4,961.60 per year, or $413.47 per month. That is a substantially higher amount than the loan officer's estimate of $328.13 per month used to qualify my buyer client for his loan...in fact, that extra amount of the property taxes decreases my client's spending power by $16,000 in purchase price...so now that $315,000 house is out of reach for them.

SO - when out home shopping, make sure you or your agent looks into the property tax situation, specifically for those "Direct Levies" that increase the property tax bill! For Sacramento County, you can find this information online at http://www.eproptax.saccounty.net/.

Hmm...the Million Dollar Question - should your rent or buy your home in Sacramento?

2011-02-09T21:39:00.000-08:00

I have been speaking with a lot of prospective first time buyers lately, and it seems that the overall sentiment among them is that it has become more affordable to buy a home than rent a home. In many areas and under many circumstances, I believe this to be true. When you take into consideration the average home price and probable monthly mortgage payment in particular Sacramento neighborhoods vs. the average rent, often times the mortgage payment is less. Let's take a look at a few different areas...just for the sake of citing my information sources, for average home price (used to calculate mortgage payment scenarios) I am using most recent January 2011 Trendgraphix data which is taken directly from MLS, and for average rent I am using the most recent Q1 2011 Homepointe Quarterly Residential Rental Survey. For my mortgage payment calculations, I am basing it on a 5% interest rate (which is actually above today's average market interest rates), and including the full PITI - loan principle, interest, monthly property taxes, and monthly homeowner's insurance (and mortgage insurance where applicable).

Natomas - 95833, 95834, 95835
Average single family home sale price: $199,000
Average rent for a 3 bedroom home: $1,361
30-Year Fixed VA Loan (Zero downpayment): $1,357
30-Year Fixed FHA Loan (3.5% downpayment): $1,451
30-Year Fixed Conventional Loan (10% downpayment): $1,319
30-Year Fixed Conventional Loan (20% downpayment): $1,120

Elk Grove / Laguna - 95757, 95758
Average single family home sale price: $223,000
Average rent for a 3 bedroom home: $1,392
30-Year Fixed VA Loan (Zero downpayment): $1,627
30-Year Fixed FHA Loan (3.5% downpayment): $1,400
30-Year Fixed Conventional Loan (10% downpayment): $1,478
30-Year Fixed Conventional Loan (20% downpayment): $1,255

Rosemont / College Greens - 95826, 95827
Average single family home sale price: $147,000
Average rent for a 3 bedroom home: $1,230
30-Year Fixed VA Loan (Zero downpayment): $1,002
30-Year Fixed FHA Loan (3.5% downpayment): $1,072
30-Year Fixed Conventional Loan (10% downpayment): $975
30-Year Fixed Conventional Loan (20% downpayment): $827

Arden - 95821, 95825, 95864
Average single family home sale price: $207,000
Average rent for a 3 bedroom home: $1,226
30-Year Fixed VA Loan (Zero downpayment): $1,411
30-Year Fixed FHA Loan (3.5% downpayment): $1,510
30-Year Fixed Conventional Loan (10% downpayment): $1,372
30-Year Fixed Conventional Loan (20% downpayment): $1,165

Carmichael, Fair Oaks - 95608, 95628
Average single family home sale price: $246,000
Average rent for a 3 bedroom home: $1,360
30-Year Fixed VA Loan (Zero downpayment): $1,677
30-Year Fixed FHA Loan (3.5% downpayment): $1,795
30-Year Fixed Conventional Loan (10% downpayment): $1,631
30-Year Fixed Conventional Loan (20% downpayment): $1,384

Citrus Heights, Orangevale - 95610, 95621, 95662
Average single family home sale price: $179,000
Average rent for a 3 bedroom home: $1,293
30-Year Fixed VA Loan (Zero downpayment): $1,220
30-Year Fixed FHA Loan (3.5% downpayment): $1,306
30-Year Fixed Conventional Loan (10% downpayment): $1,187
30-Year Fixed Conventional Loan (20% downpayment): $1,007

South Land Park, Pocket / Greenhaven - 95822, 95831
Average single family home sale price: $189,000
Average rent for a 3 bedroom home: $1,240
30-Year Fixed VA Loan (Zero downpayment): $1,288
30-Year Fixed FHA Loan (3.5% downpayment): $1,379
30-Year Fixed Conventional Loan (10% downpayment): $1,253
30-Year Fixed Conventional Loan (20% downpayment): $1,064

Obviously there are other tangible and intangible benefits to home ownership as well...for example, a tangible benefit is the fact you can write-off your mortgage interest on your income taxes, and also deduct some other related expenses each year. An intangible benefit might be that as a homeowner, you have the freedom to paint the walls, decorate, plant a garden, remodel, etc.

So clearly these numbers are just a baseline to give you an idea of housing affordability in certain areas. You definitely need to consult a loan officer to see what type of financing is the best fit for you, and ultimately just how much you can afford - and there are several variables that will affect your interest rate and terms. You should also speak with a CPA or qualified tax professional regarding the mortgage interest and other tax deductions to see how it will affect your particular situation. If you need a good referral to either one, feel free to contact me and I can put you in touch.

New Listing - 5700 Hemlock Street, Sacramento / Foothill Farms, CA 95841

2011-02-07T21:23:00.000-08:00

Cute Foothill Farms home! You will love this 3 bedroom, 2 bathroom, 1,400sf home with separate living and family rooms, updated kitchen, central heating and air, attached 2-car garage, and large backyard! Close proximity to schools, shopping and public transportation. Don't wait! Offered at $109,000 subject to lender approval of short sale. For more information please visit http://www.5700hemlockstreet.com.

Maydestone Apartments - restoration is in full swing!

2011-02-03T09:07:00.000-08:00

A few months ago, my sweetie and I were eating breakfast on a Sunday morning and picked up a copy of Midtown Monthly...we were looking through it for some ideas as far as what to do for the rest of the day when we stumbled across an article about the renovation of The Maydestone Apartment Building.

Now I have lived in Sacramento my entire life, and had driven past the old, boarded up Maydestone building on 15th and J Streets a million times, but had never known anything about it. We were so intrigued by the article, we decided to take a little field trip downtown to check it out.

So a little history...The Maydestone was originally built in 1912 as a 32-unit apartment building, each unit complete with its own kitchen, bathroom, and a pull-out beds - a luxury in that era. As Sacramento was rapidly expanding, the demand was high for affordable housing that was located within a short distance to the center of the city.

Fast forward to the 21st century...The Maydestone was boarded up in 2003 after a fire on Halloween night. It has been sitting as a vacant eyesore for the past 7+ years.

Fast forward to today...The Maydestone is being restored to the Mission-Revival style beauty it once was with the help of grants and loans from the Sacramento Housing and Redevelopment Agency. The existing four levels of apartments are being restored and the basement is to being converted into a community center for the residents. They are also making the building highly energy efficient, and it will be LEED certified. There will be 32 units total ranging from small studios to 1-bedroom units. The project architect and the developer are working hard to ensure that the building maintains its original character.

So - the next time you are downtown, swing by The Maydestone! You can peak inside and see for yourself...

Short Sales 101; a refresher course

2011-02-01T20:30:00.000-08:00

It isn't a secret that there is no shortage of short sale listings for sale at the moment in Sacramento....in fact many of my listings are short sales.

I fielded a call today from a very nice woman who was just starting her home search, and she was looking for detail about one of my listings. She was unfamiliar with short sales...I found myself explaining exactly what a short sale is, the difference between different MLS listing statuses, listing price vs. offered price vs lender approved price, timeframes, etc. Since we are being teased with this nice weather, and new buyers are starting their home searches, I thought I'd post a little short sale refresher...

If you are not familiar with what a short sale listing is, basically the seller owes more on the house than it is currently worth, so they list the house and attempt to negotiate a lower payoff with their mortgage company so they can sell the house. Keep in mind that purchasing a short sale is A LOT different than a traditional re-sale real estate transaction with an traditional seller who has equity. I tell my buyer clients to take everything they think they know about buying real estate and throw it out the window. A few things to note:

-There are different statuses in MLS that will reveal a bit about the listing. An "Active Short Sale" status indicates that the home is offered as a short sale, and no offers have been submitted to the seller's mortgage company for review yet. An "Active Short Contingent" status indicates that one or more offers have been submitted to the seller's mortgage company for review (meaning, your offer would likely wait in line behind others). These statuses must be updated by the listing agent, and they are not always 100% up to date.

-The price listed in MLS may not be the price the seller's mortgage company is willing to accept. If the listing agent is competent, he / she will have listed it at its current market value, however sometimes you will see a price that is "too good to be true." The seller's mortgage company will do its own valuation or appraisal (often referred to as a BPO - or Broker Price Opinion) to validate the offered price. The bank may counter your offer. Heck, they may counter a perfectly reasonable market value offer too...

-In addition to the possibility of countering the price you offer, the lender may counter certain terms...meaning for example that they may not be willing to cover the costs of that $400 home warranty you ask for. So prepare yourself for the worst case scenario of paying for things like that yourself.

-The term "short sale" is often confused with a quick time period and close of escrow. Short sales are not necessarily quick. The average waiting period for the seller's mortgage company to approve the short sale is around 60-90 days. Some take less time...some take A LOT more time. The fastest approval I have received on one of my short sale listings was 11 days. The longest was almost 2 years. There are SO many variables that will dictate the length of time it takes to get approval...like which lender services the mortgage, which entity owns the mortgage, how many loans there are on the house, how knowledgeable the listing agent is, how cooperative the seller is with the process, if the seller is trying to use a government short sale program, etc.

So.......fasten your seatbelt. My advice to you is to find a competent Sacramento short sale agent to help you navigate the process.

Erin Attardi breaks through the Sacramento bubble...and visits San Diego. Ok so it was a working trip...

2011-01-31T19:33:00.000-08:00

Well, as much as I love Sacramento, I was not bummed about leaving our foggy and cold weather last week in order to attend the California Association of Realtors winter conference and attend the C.A.R. Board of Directors meetings -- in sunny San Diego. In fact, it was about 80 degrees and sunny there all week.

Ironically, as beautiful as San Diego is, I had very little time to enjoy it. Most of our committee and board meetings were held in these stuffy, windowless rooms at the San Diego Manchester Hyatt, and they started early and went late. I did walk through the Gaslamp Quarter for a couple hours one afternoon...but that was about all the fresh air I got. Even my daily running regimen and half-marathon training was spent on the treadmill (mainly because it was dark by the time we were done for the day, and I didn't want to run in unfamiliar territory in the dark by myself).

So what did I do down there, you may ask? Well, in short -- as a current member of the C.A.R. Board of Directors, I attended meetings, meetings, and more meetings.

Did you know that the local, state and national associations of Realtors work to defend consumer private property rights? Lemme guess - your answer was no. Most people (heck, many Realtors for that matter) are not aware that we do this. We are constantly out trying to convince lawmakers that proposing pieces of legislation that do things like add more taxes to real estate transactions, require certain home retrofits at the point of sale, eliminate the mortgage interest tax deduction, and things of that nature are BAD ideas....while at the same time trying to convince lawmakers that proposing pieces of legislation that do things like prohibit advanced fee loan modification contracts, extend forgiveness of paying income tax on "phantom income" created by short sales, give additional rights to tenants of foreclosed homes, and things of that nature are GOOD ideas.

So without going into all of the boring details, we worked all week strategizing things like that. There were some interesting forums and roundtable discussions regarding issues involving short sales, foreclosure, appraisal fraud, etc. Very productive...

FHA 90-day Anti-Flipping Rule - the suspension has been extended!!!

2011-01-28T22:09:00.000-08:00

Early this month I posted about the impending expiration of the 1-year suspension that was imposed on the "FHA 90-day Anti-Flipping Rule" and the potentially negative impact this would have on our local Sacramento real estate market.

Well, great news! The Federal Housing Administration has extended the suspension! It means that buyers seeking to finance a home with an FHA loan will still be able to finance a "flipped" property that has been owned by the current seller for less than 90 days. Before the initial suspension a year ago, the “Anti-Flipping”rule meant that a buyer using an FHA loan to finance the purchase can not finance a flipped home until the title to the home has been held by the current seller for 90 days or more.

As you can probably guess, a “Flipped” home is one that someone purchases with the intent to resell it within a short time period for a profit. Also, one thing that many people do not realize, is that the flipping rules for lending can also apply to transfers of title from placing the property in a living trust, adding a family member to title before listing it for sale, etc….not just investors looking to profit from flipping.

So...yay!

Do you have a Carbon Monoxide Detector in your home?

2011-01-24T20:47:00.000-08:00

Do you have a Carbon Monoxide Detector in your home? Well, soon you will need at least one of them...

SB 183, passed last year, requires that carbon monoxide detectors be installed in existing single-family homes that currently use "fossil-fuel burning appliances, fireplace or have attached garage" by July 2011. ALL other homes will have to have carbon monoxide detectors installed by January 1st, 2013.

This new law requires the property owners “to install the devices in a manner consistent with building standards applicable to new construction for the relevant type of occupancy or with the manufacturer’s instructions, if it is technically feasible to do so” (California Health & Safety Code § 17926(b)).

The following language comes packaged with carbon monoxide detectors: For minimum security, an alarm should be centrally located outside of each separate sleeping area in the immediate vicinity of the bedrooms. The Alarm should be located at least 6 inches (152mm) from all exterior walls and at least 3 feet (0.9 meters) from supply or return vents.

Ask Erin: How does MLS define "Days on the Market" for Sacramento homes?

2011-01-23T18:10:00.000-08:00

So I was asked twice this week by two different buyer clients about "days on the market." They were both a little confused about how our local MLS tracks length of time on the market, and what exactly it means.

The primary MLS for Sacramento county (called Metrolist) uses two different abbreviations to define with how long a property has been on the market; DOM (Days on Market) and CDOM (Cumulative Days on Market). Up until a few years ago, Metrolist just used DOM...but that method just counted the days of that current listing, meaning that the agent could cancel or withdraw the listing, and the re-enter it as a new listing...this would reset the DOM to zero.

Generally speaking, home listings get more attention then they have a lower DOM - for example 2 days vs. 180 days. Also, potential buyers will think twice about making an offer close to the listing price the higher the DOM.

So a few years ago Metrolist added the CDOM. CDOM counts the total days on the market - so if the property is re-listed by the same agent, another agent, etc. within 30 days of the cancellation or withdrawal of a previous listing, the CDOM continues counting days. CDOM tracks the property's parcel number, so even if the seller of a house lists the property with another Sacramento real estate firm, the CDOM still tracks the cumulative days. So, you may see a listing that has a current DOM of 2, but a CDOM of 182. Does that make sense?

In order for the CDOM to go back to zero, a property has to be off the market for 30 consecutive days.

Does this make you dizzy?

2011-01-21T09:50:00.000-08:00

I just downloaded a QR Code Reader App to my iPhone, and needless to say I have been geeking out on these.

Attended the Annual City of Sacramento "State of the City" Address

2011-01-20T22:42:00.000-08:00

If you follow me on Facebook, you will already know that earlier today I was lucky enough to attend Sacramento's "State of the City Address" with some of the leadership of the Sacramento Association of Realtors. The Sacramento Convention Center was packed, and in addition to the Realtors at my table, we were joined by City Council members Kevin McCarty and Darrel Fong.

Mayor Kevin Johnson outlined his goals for the City of Sacramento - they center around improving education, creating a "greener" and more energy efficient Sacramento, and continuing the revitalization of the Downtown Sacramento area. I do love his enthusiasm! I was hoping he'd talk about the local economy and the Sacramento real estate market a little, but he didn't really touch on it. Here's to a great 2011...

How much air do you think can flow through this HVAC filter?

2011-01-19T20:39:00.000-08:00

I spent this afternoon at a home inspection at a Natomas property I have in contract. As a part of the home inspector's test the central heat and air conditioning system, he popped open the air return grill...and discovered this. Kinda gross!! It would seem to me that this air filter has not been changed in at least a few years? It's a really good idea to change these every couple of months. A dirty filter will slow down the flow of air and ultimately make your HVAC unit work harder (and use more energy) to heat or cool the house. AND they are inexpensive. You can pick up a filter for a few dollars at your local Sacramento hardware store.

Upcoming Greater Sacramento Races - 5k, 10k, Half Marathons, Marathons, and more!

2011-01-18T15:04:00.000-08:00

While most of my life seems to revolve purely around Sacramento real estate, short sale negotiation, home inspections, touring property, participating in Sacramento Association of Realtors activities, etc., I do have some hobbies outside of work.

If you follow me on Facebook or Twitter, you will already know that for the last month or so I have been training for a half marathon (approximately 13.1 miles). In fact, this last Saturday, after working a little, I ran 8 miles in 1:34:08...which is exactly 25 seconds faster than my 8 mile run the Saturday before. YAY for improvement! This coming weekend I will run 9 miles for the first time...we'll see just if I can move on Sunday.

I am planning to run the Shamrock'n Half Marathon on March 13th. My goal at this point is really just to finish it without stopping. I ran the Run to Feed the Hungry on Thanksgiving Day, which was a 10k...my first race.

So as I am getting more and more in to my newly found love of running, I have been researching other organized races to participate in. There are A LOT of them! Here are the upcoming races in the greater Sacramento area through the end of April that look like fun;

Davis Stampede - February 6th, 2011; 5k, 10k, and Half Marathon in Davis, CA
Super Bowl Sunday Run II - February 6th, 2011; 10k, which can also be run as a 2-person relay in Sacramento
8th Annual Valentine Run - February 12th, 2011; 1.8mi or 4mi walk/run in the Arden area of Sacramento
Lucky 7 Run - March 5th, 2011; 7mi or 7k in Davis
Shamrock'n Half Marathon - March 13th, 2011; Half Marathon that starts and ends at Raley Field in West Sacramento
Nutrition Fuels Fitness - March 27th, 2011; 5k and 10k in Elk Grove
River City Marathon - March 27th, 2011; Marathon and Half Marathon along the American River Parkway
8th Annual Run Rocklin - April 3rd, 2011; 5k and 12k run in Rocklin
SacTown 10 Miler - April 3rd, 2011; 10mi that starts and ends at the California State Capitol
Sacramento Zoo Zoom - April 10th, 2011; 5k and 10k runs in Land Park around the Sacramento Zoo
Capitol City Classic - April 17th, 2011; 5k and 10k runs in Downtown Sacramento
American River Parkway Run - April 30th, 2011; Half Marathon and 5k along the American River Parkway

Unique Decor in this Natomas home for sale...

2011-01-14T11:06:00.000-08:00

Well sure enough, a few days ago while I was out showing property to some Natomas buyer clients, I came across this 'unique' home decor. I can appreciate the whole DIY (do-it-yourself) paint job, but this was pretty horrendous. The entire bathroom was painted in camouflage - the vanity, the drawers, the light switch cover, all of the trim mouldings, the door, etc. In fact, the entire house had unique decor...there was a full wall mural of a 'Monopoly' game board in the loft area, a hot-air balloon themed room, a jungle-themed bathroom with textured bamboo wallpaper, etc.

This particular property was a bank repo...it's been on the market for about 2 months. I encourage any bank foreclosure asset manager to slap a fresh coat of white paint over this stuff. Neutral is good when selling a home...overall the layout of the house wasn't too bad, location was good, curb appeal was good, but UGH - it is so hard to see past this sort of stuff when looking for a home!

Erin's Sacramento Short Sale Experiment, Part VII

2011-01-12T12:40:00.000-08:00

Yes, it is time for my seventh installment of Erin's Sacramento Short Sale Experiment! I am sure ya'll are just on the edge of your seats to find out just what has transpired in the world of short sales in our Sacramento metro area since the last time? I am anxious to see if 2011 continues to bring a high volume of active short sale listings, and more importantly, more closed short sales. For those of you not following along at home, or perhaps if you are reading this for the first time, my short sale experiment is tracking a few different Sacramento zip codes to see what how the short sale activity increases or decreases over time as compared with traditional resale listings (where there is a seller with equity in a "normal transaction") and to bank-owned resale transactions. My hypothesis at the start of this experiment: the number of short sales will grow over time, as will their dominance in our greater Sacramento marketplace (overall percentage of listings). I have continued to list more short sale properties, and thus far I think my hypothesis has been proven to be true. Starting in this installment, just for kicks and for the sake of comparison, I am going to track the numbers of active Foreclosure / REO listings. Let's see how this new data compares to the "control data" for the experiment and also to last installment...

95624 is the section of Elk Grove closest to Hwy 99. As of right this second according to MLS, there are a total of 354 active listings there. 231/354 listings are short sales. The median price in that zip code in December 2010 was $244,000 according to Trendgraphix. The result vs. the control data? Control data was 68.6% of all active listings in 95624 were short sales, vs. 71.9% last installment, vs. 65.3% this month. DECREASE over the control data, and a decrease over last installment. Number of 2010 closed short sales - 312. YTD closed in 2011 - 9....Active Foreclosure / REO listings - 60.

95610 is a section of Citrus Heights. As of right this second according to MLS, there are a total of 232 active listings there. 126/232 listings are short sales. The median price in that zip code in December 2010 was $164,000 according to Trendgraphix. The result vs. the control data? Control data was 60.3% of all active listings in 95610 were short sales, vs. 64.0% last installment, vs. 54.3% this month. DECREASE over the control data, and a decrease over last installment. Number of 2010 closed short sales - 109. YTD closed in 2011 - 1....Active Foreclosure / REO listings - 57.

95826 is a section of Rosemont and College Greens. As of right this second according to MLS, there are a total of 143 active listings there. 73/143 listings are short sales. The median price in that zip code in December 2010 was also $161,000 according to Trendgraphix. The result vs. the control data? Control data was 62.2% of all active listings in 95826 were short sales, vs. 51.5% last installment, vs. 51.0% this month = DECREASE over the control data. Number of 2010 closed short sales - 57. YTD closed in 2011 - 1....Active Foreclosure / REO listings - 36.

95864 is a section of Sierra Oaks, Arden Park, and Arden Manor. As of right this second according to MLS, there are a total of 134 active listings there. 57/134 listings are short sales. The median price in that zip code in December 2010 was $248,000 according to Trendgraphix. The result vs. the control data? Control data was 17.0% of all active listings in 95864 were short sales, vs. 29.7% last installment, vs. 42.5% this month. BIG INCREASE over the control data and last month. Number of 2010 closed short sales - 37. YTD closed in 2011 - 0....Active Foreclosure / REO listings - 12.

95818 is a section of Midtown, Land Park, and Curtis Park. As of right this second according to MLS, there are a total of 87 active listings there. 24/87 listings are short sales. The median price in that zip code in December 2010 was $307,000 according to Trendgraphix. The result vs. the control data? Control data was 16.0% of all active listings in 95818 were short sales, vs. 16.9% last installment, vs. 27.6% this month. INCREASE over the control data, and increase over the last installment. Number of 2010 closed short sales - 23. YTD closed in 2011 - 0....Active Foreclosure / REO listings - 6.

95819 is a section of East Sacramento. As of right this second according to MLS, there are a total of 78 active listings there. 18/78 listings are short sales. The median price in that zip code in December 2010 was $391,000 according to Trendgraphix. The result vs. the control data? Control data was 19.7% of all active listings in 95819 were short sales, vs. 21.1% last month, vs. 23.1 this month. INCREASE over the control data, and over the last installment. Number of 2010 closed short sales - 15. YTD closed in 2011 - 0....Active Foreclosure / REO listings - 6.

So in summary - of the six Sacramento area zip codes I am tracking for my experiment, 3 of them experienced a decrease in the number of active short sale listings from last installment, while 3 experienced an increase over the control data...interesting. It appears that areas with higher median sales prices are starting to show an increase in short sale activity, while the areas with the lower median prices are showing a decrease in short sale activity. AND while I have not specifically been tracking this data, it appears that there are an increasing number of Foreclosure / REO listings on the market. Since I just started tracking that statistic for this little project, we will have to see how those numbers compare in the future. My phone definitely keeps ringing and I continue to receive emails - I am fielding lots of inquiries from homeowners looking for more information and insight from my short sale experience...buyers too are really curious about the short sale process since they are encountering so many short sale listings in our marketplace. Also (you will be aware of this if you follow me on Twitter or Facebook), I closed many of my own short sale listings since the last installment of Erin's Sacramento Short Sale Experiment...until next time!

Erin's Sacramento Short Sale Experiment, Part I
Erin's Sacramento Short Sale Experiment, Part II
Erin's Sacramento Short Sale Experiment, Part III
Erin's Sacramento Short Sale Experiment, Part IV
Erin's Sacramento Short Sale Experiment, Part V
Erin's Sacramento Short Sale Experiment, Part VI

A GREAT way to start 2011!

2011-01-11T17:35:00.000-08:00

If you follow me on Facebook or Twitter, you will know that today I attended the Officers & Directors Installation Luncheon at the Sacramento Association of Realtors. Our new President for 2011, Doug Covill (a Realtor with Coldwell Banker) was sworn in, along with the President-Elect, the Secretary-Treasurer, and the members of the Board of Directors...I was actually elected to serve on the SAR Board of Directors for a 2-year term starting this year (2011-2012). Pretty neat. I am very excited to serve the members of the association at this level.

Along with the installation, there was an awards ceremony to recognize outstanding association members for their contributions in 2010. I was honored to be one of about a dozen association members to be recognized! I received an award for "Oustanding Service in Association Activities." As I mentioned in my final blog post of 2010, last year I helped raise over $26,000 for charitable causes through different "Masters Club" and "Young Professionals Council" Sacramento Association of Realtors fundraisers.

This was a nice way to start 2011!

Changes coming to HAFA short sale guidelines as of February 1, 2011...

2011-01-10T10:33:00.000-08:00

Welp, looks like the folks that run the HAFA short sale program (Home Affordable Foreclosure Alternatives) have issued some new and revised guidelines that going into effect as of February 1, 2011. Some highlights to these changes are;

The subject property must either be owner occupied, OR it can be vacant for up to 12 months preceding the date of the HAFA Short Sale Agreement if the sellers can provide documentation that the property was their primary residence prior to moving out. Uhh, this is fantastic! There was a lot of confusion before about sellers occupying the home, vs. not occupying the home. Many loan servicers (aka, short sale lenders) argued that the home absolutely had to be currently occupied by the seller. Often times, homeowners in default will move out of the home prior to listing it as a short sale...mainly so that they can move on their own terms (keep the kids in the same school district, remain near public transportation) are not evicted or asked to leave at a later time...or sometimes they are relocating due to a job transfer, to be near a sick relative, or whatever. Under these new rules, as long as a seller can prove they did live in the house during the previous 12 months, they will still qualify for a HAFA short sale (where they may have been rejected before). Proof could be a copy of a utility bill, for example. Unfortunately, investment property still does not qualify for a HAFA short sale - though it will potentially qualify for a non-HAFA short sale.
Loan servicers will no longer be restricted as much when paying off second mortgage holders. Loan servicers used to be restricted through the HAFA short sale program to paying second-lien holders no more than 3 percent of outstanding loan balance. It has been increased to 6 percent (with an overall limit of $6,000) in exchange for releasing those "subordinate" liens. When there is a second mortgage, the second generally gets a small payoff to release their lien to allow a transferable title to the new buyer. With any luck this will help to satisfy the second mortgage holders - especially where larger loan amounts are concerned.
Loan servicers will have 30 days to send a borrower a HAFA short sale agreement that includes the list price or the acceptable net proceeds amount from a sale. Futhermore, once a purchase contract has been accepted by the seller and submitted to the loan servicer for final approval, the loan servicers then have 30 days to approve or reject the transaction. There were no timeframes imposed on the loan servicers before, so this is a good (ok, great!) thing.
Loan servicers may not deduct third party vendor expenses from commissions paid to real estate brokers, nor may they charge sellers. In addition, agents negotiating HAFA short sales may not charge the seller or other parties to the transaction a third party negotiating fee. This is great! Occasionally loan servicers will retain third parties to process paperwork in connection with short sales, and charge an additional fee that is either deducted from the agent commissions or paid by the seller - so now that is not allowed. Also, some short sale listing agents (NOT ME, by the way) hire separate negotiators and pass that cost along to the seller...they are no longer allowed to do that in connection with a HAFA short sale. Good stuff.

So, these changes seem to have good intentions...we shall see how efficiently the loan servicers implement them. Keep in mind that these rules are effective February 1, 2011. The HAFA short sale program does not apply to mortgages owned or guaranteed by Fannie Mae or Freddie Mac, or insured or guaranteed by a federal agency such as the Federal Housing Administration (FHA).

Previously approved short sale in Garden of the Gods - back on the market...

2011-01-06T11:09:00.000-08:00

So, although I have had this short sale approved two separate times, for reasons outside of my control this adorable Garden of the Gods home has not closed escrow...so it's back on the market. Lovingly maintained 3 bedroom, 1 bath Garden of the Gods home on Morpheus Lane! You will love the wood flooring, dual pane windows, remodeled bathroom with dual sinks, spacious kitchen, ample storage space, 2-car attached garage, composition roof. Central heating & air unit was new in 2008! Offered at $229,000 (contact me for details regarding the previous short sale approvals), subject to lender approval of short sale. For more photos and detail, visit http://www.4320morpheuslane.com/.

Unique Stuff in Other People's Homes...

2011-01-05T21:12:00.000-08:00

So, if you follow me on Twitter or Facebook, you will know that several days per week, I tour the newest home listings that come on the market in different Sacramento neighborhoods.

Why do I do this? Well, it makes me a more effective Realtor. I find that I am better able to service the needs of my buyer and seller clients if I am familiar with the listing inventory in the areas that I work in. If I see something that one of my buyer clients may like, I immediately make arrangements to show the home to them. Or if I am listing a property, actually having first hand knowledge of the recent comparable home sales in the neighborhood helps me to guide sellers with regard to proper pricing. Of course, when I list a home, I open it up to other agents to tour it as well....it's good exposure.

In addition to making me a more effective Realtor, there are a couple other reasons I enjoy touring.

The first reason is - touring is a good opportunity to network and briefly socialize with other agents. The listing agent is usually present during these "broker open houses" and often times other (good, productive) agents are touring the homes at the same time. The Sacramento real estate community is really a small world...so, when I know an agent on the other end of one of my transactions, it makes for a much smoother process as there is a spirit of cooperation, and that ultimately makes for a less stressful process for my buyer or seller client.

The second reason is - sometimes the homes on tour are a little...unique. Or they have unique features. Or unique furnishings. Or unique decor. At least once every week I am pleasantly entertained (or completely disgusted?) by something found in homes on tour. What were these people thinking when they did that!? I occasionally tweet these photos, but until now have not put them on my blog...well since it seems that I run across these things so frequently, I thought I would start a regular blog feature to "showcase" the oddities that people do to or with their homes...Of course the property itself will remain unidentified. Let's start with a favorite of mine. Yes, this is a rug in a really gorgeous Sierra Oaks home, and yes it's real.

Sacramento Dine Downtown Restaurant Week is January 7 - 16, 2011!

2011-01-04T15:07:00.000-08:00

I am SO excited!...The Downtown Sacramento Partnership is doing its annual Dine Downtown "Restaurant Week." From January 7 - 16, 2011, local chefs at the participating restaurants will create special three-course dinner menus for only $30 per person. It's a great opportunity to check out restaurants that you though perhaps you couldn't afford, or just get out of the box a little and try something new. Just ask for the "Dine Downtown Menu" at the participating restaurants.

Participating Restaurants include;
3 Fires Lounge at the Residence Inn at Capitol Park
4th Street Grille
58 Degrees and Holding
Biba Restaurant
Brew It Up!
The Broiler Steakhouse
Cafeteria 15L
Capitol Garage
Chops Steak, Seafood & Bar
Dawson’s at the Hyatt
deVere’s Irish Pub
Esquire Grill
Fat City Bar & Café
The Firehouse Restaurant
Frank Fat’s
Grange Restaurant at The Citizen
Il Fornaio
Kupros Bistro
Mikuni
The Melting Pot
Morgan’s at the Sheraton
Mulvaneys B&L
Paragary’s Bar and Oven
Pilothouse
Spataro
Rio City Café
River City Brewing Company
Ten 22
Tower Bridge Bistro at the Embassy Suites

The FHA Anti-Flipping Rule Suspension is about to be lifted...what does this mean to buyers and sellers?

2011-01-03T10:16:00.000-08:00

Early last year I wrote a blog post about HUD's one-year suspension of the FHA "Anti-Flipping" Rule that began on February 1, 2010. Well, in just a little under a month from now, that suspension is supposed to be lifted...what does this mean? It means that buyers seeking to finance a home with an FHA loan may have issues purchasing property that has been owned by the current seller for less than 90 days.

As you can probably guess, a "Flipped" home is one that someone purchases with the intent to resell it within a short time period for a profit. Also, one thing that many people do not realize, is that the flipping rules for lending can also apply to transfers of title from placing the property in a living trust, adding a family member to title before listing it for sale, etc....not just investors looking to profit from flipping.

The "Anti-Flipping"rule had been that a buyer using an FHA loan can not purchase a flipped home until the title to the home has been held by the current seller for 90 days or more. A couple years ago, HUD excluded bank owned properties from this rule, as there is a change of title from the foreclosed owner to the bank. Often times however, investors who are flipping property do some improvements to the property and list it within days or weeks of taking title to the property....before the Anti-Flipping rule was suspended, it was not uncommon when searching MLS for properties to show a buyer to see an agent-only remark stating something like, "Sorry, no FHA loans until 2/15/2010 due to anti-flipping rule." In fact, in 2008 I wrote a blog post about the anti-flipping rule when one of my buyer clients expressed interest in purchasing a flipped home.

So for nearly the last 11 months, buyers (and sellers of properties meeting the "Flipped" definition) have enjoyed the ability to use FHA financing on properties that meet the definition of a flip...I have not heard anything to support the continuation of this suspension of the "Anti-Flipping" rule. We shall see what happens when this suspension ends on January 31, 2011. If you are an FHA buyer looking for a Sacramento property and are looking at flipped homes, you may want to accelerate your home search.

Sacramento Remodeling Costs vs Actual Home Value - What is your ROI?

2011-01-02T08:40:00.000-08:00

When I speak with prospective sellers about the value of their home as we get ready to list it, I always review the recent comparable sales from the neighborhood to assist to determine the listing price. Often, sellers will tell me things like, "Well I saw that house when it was for sale, and even though it's the same floorplan, we have new wood floors. We spent $9,000 on the floors so our house is worth $9,000 more than the house that sold." Or " We put in a $65,000 swimming pool, so our house is worth $65,000 more than the house across the street." Nope, sorry, that is just not how it works. You can not just simply add the cost of the improvement project to the perceived value of the house...generally, and depending on the project, you will only recoup a percentage of the cost of the improvements to the actual "appraisable" value of the house. An appraisal is what a mortgage lender will use to determine the value of the house in order to lend money to a buyer who will purchase your home.

Certain home improvements will yield a stronger "return on investment" than others. The actual cost of the remodeling versus the actual increase in value of the home are two different figures. Obviously if you are a homeowner, your enjoyment of the upgrades you make to your home is really important, but you will never get dollar-for-dollar increase in your home's value.

Remodeling Magazine does a study every year regarding the home improvements that will give you the best return on the money you spend for the upgrades. Because trends are different regionally, they have separated different geographic areas in their report -- so here is the data for Sacramento specifically.

So what are the top 5 Sacramento home upgrade projects that give you the best return on investment (ROI)?

Replacing your front Steel Entry Door; the average cost to do this is $1,464, and the average actual value of this upgrade is $1,641 (112.1% ROI).
Replacing your Garage Door; the average cost to do this is $1,514, and the average actual value of this upgrade is $1,461 (96.4% ROI).
Wood Deck addition; the average cost to do this is $13,827, and the average actual value of this upgrade is $11,956 (86.5% ROI).
Minor kitchen remodel; the average cost to do this is $23,603, and the average actual value of this upgrade is $19,854 (84.1% ROI).
Window replacement; the average cost to do this is $14,431, and the average actual value of this upgrade is $12,016 (83.3% ROI).

You can read the full report here.

Final blog post of 2010...

2010-12-31T11:11:00.000-08:00

I can not believe 2010 is coming to an end in just a matter of hours! It just does not seem that long ago that I wrote my final blog post of 2009, and I remember writing my final blog post of 2008 while waiting for a flight to Phoenix...I have been doing a lot of reflection on 2010 lately - from both a personal perspective and a professional perspective.

In 2010, professionally in real estate I feel like I accomplished a lot in terms of my transaction productivity, education, media exposure, awards and honors, fundraising, and more. So, professionally, I:

qualified for the Sacramento Association of Realtors "Masters Club" again - and met the requirement for all of 2010 by the middle of the year
was the #1 Listing Agent of the Month in the Lyon Real Estate Sierra Oaks office of +/- 130 agents 4 of the first 7 months of 2010 (for the months of January, February, April, July)... then I departed Lyon Real Estate and went to Dunnigan Realtors (they do not rank their agents as Lyon does).
successfully closed 8 short sale transactions, and have lender approval for others that will close in 2011. I was pleased that I closed more "regular" transactions with traditional sellers than I did last year...perhaps the market is starting to turn around?
was certified as a HAFA (Home Affordable Foreclosure Alternatives) Short Sale Specialist
62.5% of my transactions resulted from my internet presence (someone finding me online via google, one of my websites, my blog, etc.), while 31.25% of my transactions resulted from referrals...the remainder of my transactions and income were generated from other sources (sign calls, open houses, etc)
was quoted for different media articles regarding real estate
was named by Realtor.com as one of the Top 100 Real Estate Influencers in the country
was profiled on Hewlett Packard's blog about my use of technology in real estate
was an instructor for the Sacramento Association of Realtors "Masters Club" Educational Roundtables
was honored for my "Outstanding Service in Education" by the Sacramento Association of Realtors
was elected to serve a term as Secretary / Treasurer of the Sacramento Association of Realtors "Masters Club"
Was appointed to serve a on the Board of Directors for the California Association of Realtors
Was elected to serve on the Board of Directors for the Sacramento Association of Realtors
served as the Chair of the Sacramento Association of Realtors "Young Professionals Council" for 2010, and as one of seven "Advisors" to the California Association of Realtors "Young Professionals Network."
helped raise over $26,000 for charitable causes through different "Masters Club" and "Young Professionals Council" Sacramento Association of Realtors fundraisers
was appointed to serve as Chair of the Sacramento Association of Realtors "Technology Advisory Group"

I have set many new professional goals for myself for this year, including increasing my production, possibly hiring another assistant agent to work with me, and much more...look out 2011!!

Short Sales: Who pays for what...

2010-12-27T15:29:00.000-08:00

I receive several calls per week from homeowners that are looking for information regarding Sacramento short sales, and aside from wanting to know about the process itself, one most common questions I get from them pertain to if the sale will cost them anything out of pocket, if so, then how much, and generally, who pays for what fees. Having successfully closed several short sales, I will tell ya'll what I know to be true based on my experiences.

-Who pays the real estate agent commissions? In a short sale scenario, the lender(s) who agree to forgive debt and allow a short payoff of the loan(s) pay for the real estate agent (or Realtor) commissions - generally by absorbing the costs of the commissions out of the proceeds of the sale. As a side note, often times these commissions are re-negotiated by the lender(s) during the process. For example, if the seller and listing agent agree to a 6% total commission initially when the property is listed (usually then split in half to 3% to the listing agent, 3% to the selling agent), the lender may re-negotiate that fee later to perhaps 5% total (2.5% / 2.5%) or less. Note: Real estate commissions are always negotiable and NOT set by law or local custom.

-Who pays title insurance, escrow fees, and transfer tax fees? These are negotiable between buyer and seller when the offer is initially negotiated (before it is submitted to the lenders for approval). For example, perhaps the buyer and seller agree initially that the seller will pay for 100% of title insurance and escrow fees, 100% of county transfer tax, 50% the city transfer tax. The lender(s) may negotiate that the buyer pay a different split of these fees...however the portion that is paid by "the seller" is absorbed in to the overall debt forgiveness and short payoff. Occasionally you will see a lender agree to pay one of these fees, up to and not to exceed a certain amount (for example, they may agree to cover up to $750 of the escrow fee that costs $1200). Generally then, the buyer would cover the unpaid portion of that fee. So basically, again, the lender(s) will absorb many of those types of fees.

-Who pays for a home warranty? This is negotiable between buyer and seller when the offer is initially negotiated (before it is submitted to the lenders for approval). Generally though, I would prepare any buyer of a Sacramento short sale property to expect to pay for this cost, even if you ask the seller or short sale lender to cover it. In my experience, this is paid by the short sale lender in less than 20% of my approved short sales.

-Who pays for inspections or certifications? These are negotiable between buyer and seller when the offer is initially negotiated (before it is submitted to the lenders for approval). Again, most short sale lenders will not agree to cover things like pest or termite inspections, roof inspections, sewer line inspections, or any corresponding certifications. A lot will depend on the circumstances with the condition of the property, how many loans are involved, the buyers' loan program, if the property is in default, the length of time of negotiation, etc. As a safety net - buyers, do not expect that lenders will grant these requests. Generally short sale properties are sold "as-is" and sellers can not afford to make repairs anyway.

-Will the lender(s) give the buyer credits for closing costs? These are negotiable between buyer and seller when the offer is initially negotiated (before it is submitted to the lenders for approval). I have seen this vary widely from the short sale lender(s) agreeing to pay up to 6% closing costs for the buyer (including an instance of seller-funded downpayment assistance...which is no longer possible thanks to past legislation), to the short sale lender(s) rejecting those requests. Again, much will depend on the circumstances surrounding the sale of the property.

-Who pays delinquent property taxes or liens? Sellers - if you have not been paying your property taxes or county utilities, you really need to let your agent know this ASAP! I work closely with the title company on this to make sure that we know of any lien issues in advance, but because it can take several weeks or months to get approval, new liens may pop up during the lender negotiation process. When I negotiate short sales, one of my worst fears is that after the short sale is approved an unexpected lien will pop up. This has happened to me before, and for lack of a better way of describing it - this sucks! If you can let your agent know in advance that these items are unpaid, it will save lots of headaches all the way around. IF WE KNOW in advance that these liens exist, there is a great chance that the short sale lender will absorb these costs into their overall debt forgiveness and short payoff. IF WE DO NOT KNOW in advance that liens exist, once the short sale is approved - this will halt the transaction until we can find a way to pay these liens. The seller is often financially unable to pay them, the buyer does not want to pay, the agents commission has already been reduced, and the short sale lender has already taken a loss on the loan. Sellers - please save everyone a headache and communicate with your agent.

To make a bit of a sweeping generalization, the seller usually pays nothing out of pocket to close the transaction unless specifically asked to by the lender(s).

In perhaps one instance out of every six short sale transactions I close, the lender will request that the seller make a cash contribution to close the short sale. In these instances that I have negotiated, the sellers have had cash in the bank and were financially able to make that contribution...in those instances, the lowest cash contribution one of my short sale sellers has contributed was $1,000, and the highest was $5,000.

Also, you should note that in some short sale scenarios, the short sale lender will actually pay the seller "relocation assistance" to close the short sale. I have seen this in the range of $1,000 - $5,000. Not every Sacramento short sale transaction will qualify though.

Hope that answers some frequently asked short sale questions...cheers!

Happy Holidays, love me!

2010-12-24T17:57:00.000-08:00