Taxes When Selling an Inherited House in Greater Sacramento, California...

Inheriting a home can come with a lot of emotions and a lot of questions, especially as you try to piece together the puzzle of someone's financial affairs. One of the most common questions I tend to get asked when people inherit property in greater Sacramento is: “What are the tax implications if we sell the house?” or "Will we owe capital gains tax on the sale of this home?" The good news is that, in many cases, selling an inherited home in California may result in less tax than people expect because of something called a stepped-up basis. 

When someone inherits a home or become the administrator of an estate, the tax basis of the property typically adjusts to the fair market value at the date of the original owner’s death. This means that if the home was purchased decades ago for a much lower price, the heir does not inherit that original purchase price for tax purposes. Instead, the basis is “stepped up” to the value at the time of inheritance. (Side note: you may need a "date of death appraisal") 

For example, suppose a Carmichael home that was originally purchased in the 1970s for $80,000 but was worth $650,000 when the owner passed away. If the heirs later sell the home for around $650,000, there may be little to no capital gains tax owed, because the sale price is close to the stepped-up value. 

Of course, every situation is different. If significant time passes between inheriting the property and selling it and the home increases in value during that time, then capital gains could apply to the increase that occurs after inheritance. In addition, heirs should also consider property tax issues, especially if the property is kept as a rental or transferred between family members under California’s property tax rules.

Another important factor is how the property was held. Many Sacramento homes pass through living trusts, which often allows families to sell the property without going through probate. Others may require a probate process before the home can be sold. The tax implications can vary slightly depending on the structure of the estate and how the sale is handled. 

Because tax rules can be complex, I always advise you speak with a CPA or other qualified tax professional before selling an inherited home. They can review the estate details, establish the correct stepped-up basis, and help ensure everything is reported properly. 

If you’ve inherited a home and and are trying to decide what to do next, you’re not alone. Many families find themselves balancing legal, financial, and emotional considerations all at once. Having a clear understanding of the tax side of the transaction is one of the first steps toward making the right decision for your situation. I welcome your call to talk through different scenarios to the extent I can be helpful or connect you with an attorney or CPA to assist you. And if you would like some guidance relative to selling via a trust estate or probate estate, here is a link to some common Q&A's I encounter from clients and tips for some practical steps.

Sacramento’s City of Trees… and Tree Roots: Why Every Homebuyer Needs a Sewer Line Camera Inspection...

Buying a home in Sacramento comes with all the usual emotions: excitement, nerves, the constant mental math of “will my sectional sofa fit in the living room?” But there’s one very unglamorous thing home buyers here absolutely have to think about… and it lives underground. 

Sacramento didn’t earn the nickname "City of Trees" by accident. Those towering elms, oaks, and sycamores make our neighborhoods absolutely gorgeous. They also make us, as one local plumbing company jokes in a recent TV ad campaign, Sacramento is also the "City of Tree Roots".  And if there’s one thing tree roots love more than sunshine and soil, it’s old sewer lines. 

A lot of Sacramento’s homes were built decades ago, long before ABS plastic pipes were the material of choice for sewer lines. It is common to find that buried sewer lines are made of cast-iron, clay, cement, or orangeburg pipe. Not surprisingly, time takes its toll on these materials. Small cracks appear. Joints loosen. And the moment a thirsty tree root senses even the tiniest bit of moisture, it makes a beeline straight for the buried sewer. 

The result: tree roots in a sewer line cause blockages, slow drains, or in the worst cases, full-on sewer line failures that cost lots of money to fix. The tricky part is that everything inside the house can look perfect. The paint is fresh, the kitchen sparkles, and the backyard feels like a little urban oasis. Meanwhile, eight feet underground, a root could be strangling that aged sewer pipe. And waste may flow through an obstructed sewer line and the homeowner may never notice an issue...until maybe a *flushable wipe* (umm, please NEVER flush a flushable wipe!!) gets caught up on the root and sewage backs up into the house.

This is why a sewer camera inspection is WORTH EVERY PENNY. A plumber feeds a small scope with a camera through the home’s main sewer line, and in a matter of minutes you get crystal-clear look at what’s going on down there. It's like a colonoscopy for your home. Roots, cracks, bellies (spots that lack proper slope) in the line, buildup… all stuff you can’t see during a regular home inspection but absolutely should know about before you buy. 

Replacement of a line can be expensive...and I have negotiated A LOT of sewer line repairs and sewer replacements in my time as a Realtor.

If you are thinking about buying a home in an older Sacramento neighborhood -- in areas such as Arden-Arcade, Arden Park, Carmichael, Del Dayo, Sierra Oaks, Fair Oaks, East Sac, Land Park, Curtis Park, Tahoe Park, Hollywood Park, Folsom, Orangevale, or Rancho Cordova -- this is especially important. But I also strongly recommend having any sewer line inspected no matter what age the home is.

Given our tree canopy, skipping this inspection in Sacramento is kind of like buying a car without giving it a test drive. Often, things are fine. Perhaps a prior owner replaced or repaired the line... but when there are issues, things get expensive fast. A simple sewer camera inspection can save you thousands of dollars and future inconvenience, not to mention the heartbreak of a sewer backup two weeks after move-in day. If you’re buying a home in Sacramento, especially in an older neighborhood, be sure to invest in a sewer line inspection. 

Aspiring to be a homeowner in Sacramento? Here are 6 things to start doing to prepare...

Lately I have been chatting with several folks who are thinking about taking the plunge into homeownership -- some sooner than later -- and for many of them it is a little overwhelming as far as what to do to get started. I help buyers of all shapes and sizes, price ranges, and experience levels, and what I recognize is that whether this is your first time or your 5th time, many of the steps are the same or they significantly overlap! What is another day at the office for me is a life-changing event for you. So here are some things to think about as you contemplate your future home purchase.

(1) Check your credit score. Lenders use your FICO score to determine your mortgage interest rate...higher FICO scores lead to better interest rates, which can save you tens of thousands of dollars over the life of your mortgage. I cannot emphasize how important it is check your credit. For one, sometimes credit reports have errors, and they take a little time and effort to correct. NOTHING is more frustrating than finding a home you want to buy, and then trying to qualify for a mortgage only to discover some issue on your credit report that you could have proactively resolved -- sometimes this will cost you getting the house you love, or you will have to spend more to purchase it. Second, there are ways to improve your FICO score like paying down credit card balances, avoiding opening new lines of credit, having a solid history of on-time payments, etc. Pro tip: my bank offers free credit score monitoring, which I personally take full advantage of...I would highly recommend this as well. According to the Federal Trade Commission, federal law gives you the right to get a free copy of your credit report every 12 months from each of the three credit bureaus. In addition, the three bureaus have permanently extended a program that lets you check your credit report from each once a week for free at AnnualCreditReport.com. If you do not want to order your credit report online, they offer two other alternatives: call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You can always ask a mortgage lender to run your credit as well for a fee.

(2) Where is your downpayment coming from? Often people assume you need 20% down to purchase a home, however that is not true. Many mortgage loan programs only require 3% - 5% down, or even 0% for qualified buyers like veterans who qualify for VA home loan financing. Most people who call me do not realize that they may already have enough in savings to qualify for a mortgage. Or, your downpayment may not already be in hand, and could be coming from the future sale of another property, or often my clients will receive downpayment "gift" funds from a family member -- and you probably need less of a gift than you think. In California, downpayment assistance help is available through a variety of state and local programs. Keep in mind that funding for these programs ebbs and flows. Here are a few available in our area to those who qualify (usually based on things like income, family size, and where the home is located):

• California Housing Finance Agency (CalHFA) Downpayment Assistance Programs – Offers several different types of conventional and FHA loans, and a couple forms of downpayment and closing cost assistance programs. 
• City of Citrus Heights Downpayment Assistance – Offers a low interest loan of up to $40,000 with no monthly payments (a "silent second" loan) for purchase of a home in Citrus Heights.
• City of Elk Grove Homebuyer Assistance Program – Offers a silent second, deferred-payment loans to first-time homebuyers meeting certain income and eligibility requirements
• Golden State Finance Authority (GSFA) Golden Opportunities Program – Helps low-to-moderate income homebuyers in California purchase a home with little-to-no money out of pocket by providing down payment and/or closing cost assistance (DPA) with an FHA, VA or USDA Mortgage Loan. You do not need to be a first time buyer.

(3) Talk to a Lender...please do this before you start sign up for online listing notifications and stalking open houses! Before falling in love with a listing, you really need to know what you can afford. A mortgage lender will help you...they will run your credit (and hopefully you followed step 1 and already have a sense of what your FICO score is and have worked to optimize it). The lender will take a look at your income, assets for a downpayment (or from step 2, downpayment assistance, proceeds from a future sale, gift funds, etc). They will run through different financing scenarios with you to help you understand what you can afford versus what you want to spend -- these are often very different! Perhaps the lender can qualify you for a $750,000 purchase but your comfort level with your monthly payment really lands at a $600,000 purchase. These are very important distinctions to make. ALSO, be sure you are taking all of the factors of the monthly payment into consideration. If your lender is not providing you clarity on the loan principal and interest, property taxes, homeowners insurance, and (if applicable) mortgage insurance then you are talking to the wrong person. Also while you may see lots of online ads for lenders, I would strongly recommend working with someone who is local, and who can sit with you and explain things. I can refer you to some great ones.

(4) What neighborhoods are you interested in? Location. Location. Location! The old adage in real estate is true. You can change a lot about a home's condition but you can't change the location. What vibe best suits you? Whether you want to live near the action of downtown or midtown Sacramento, or in a suburb like Elk Grove or Carmichael, or a charming vintage neighborhood like Land Park or East Sac, take time to do a little research. Common themes I tend to discuss with my clients are:

• School boundaries, and school district boundaries. I have resources to help you research school ratings, and everyone seems to value different things or programs in different schools. Got a particular school in mind where you really want to enroll the kiddos...? You should CALL THE DISTRICT and ensure that the school does not have an impacted enrollment and that your kiddos can actually go there. It can be a rude awakening buying a home down the street from the school where you want your kids to attend only to find out that the school does not have room, and the kiddos get enrolled elsewhere.
• Public amenities like parks, trails, community centers, etc. Sacramento has lots of wonderful recreation opportunities...some folks MUST be near an aquatic center. Or near the river. Or near William Land Park. Or in a secluded area. Being near those amenities may come with trade-offs -- like a higher price. Like traffic. Like noise. Like higher homeowners insurance costs. Like a long commute. Again, explore the areas and make sure living near those amenities (rather than visiting) actually makes sense.
• Safety. I often get asked if "fill-in-the-blank" is a good neighborhood?...well, for one my definition and your definition may differ, and I must emphasize that while realtors can give you certain insight and resources, we legally and ethically CANNOT “steer” buyers to or away from specific neighborhoods for any reason. That’s why doing your own research and visiting areas that interest you is so important. I have resources for clients who want to research crime rates. And drive by the area at different times of the day to get a sense for what the activity level and type is. 
• Demographics. Remember what I just said above? If demographics are important, the US Census has some great info for your perusal. 

(5) What type of property is best for you? Buying a single-family home isn’t your only option. Condos and PUDs can sometimes be more affordable and lower maintenance. Think realistically about your lifestyle, budget, and long-term goals. My first place was a condo before I moved on to a single family home. Each type of property comes with trade-offs: 

• Condos: When you buy a condo, you essentially own the interior of your unit, but not the land or exterior structure. Common areas like landscaping, pools, and roofs are typically managed by a homeowners association (HOA), and you'll pay monthly dues to cover maintaining those. Dues are subject to increase, and HOAs have rules that not everyone enjoys (like to limit the number or size of pets, or to govern the types of decoration you can put in your windows, for example). Not every HOA is the same -- some have deferred maintenance that can lead to sharp dues increases if the HOA governing board is not carefully planning for future expenses.
• Townhomes/Planned Unit Developments (PUDs): these may have many similarities to condos with shared walls and HOAs, however with a townhome/PUD you typically own the structure (interior and exterior walls) and the land it sits on (including the front and backyard, if any). Again, the governing boards of the HOA may be more proactive or reactive when it comes to maintenance.
• Single family homes: these offer more privacy and land space, fewer rules (though single family homes can be in HOAs too) but usually require more upkeep and maintenance as the expenses are not shared with other property owners.
• Side note: if you are interested in HOAs or have questions, I wrote my masters thesis about HOAs and would be happy to nerd out with you. 

(6) Did I mention talk to a REALTOR? Aspiring home buyers tend to reach out to me at different times during their exploration of purchasing a home...I come into the fray often as the first call -- and if that is the case I will help you navigate these steps in whatever order makes sense. Sometimes I am contacted as the last step as someone really wants to dive into their home search. All good either way. I am ready when you are. We will talk through what it means to enter into a Buyer Representation Agreement (the scope of the agreement, timeframe, compensation terms, geographic areas covered, type of property, my fiduciary duty to you) for professional representation, and how I advocate on your behalf, etc.

If you’re thinking about buying your first or 20th home in the Sacramento area, I’d be honored to help and welcome your call to see if we are a fit to work together.

Do you have a home for these buyers?

Do you have a home for any of these buyers? As 2023 begins, and I have lots of buyers in the market to purchase a home, I thought that perhaps I would send this out to the universe with the hopes that someone thinking about selling might notice that I have a buyer looking for a home that sounds like theirs. It seems to be a common belief right now that with changed real estate market dynamics that nobody is buying -- but that is just FALSE. There are MANY motivated buyers out there, and while listing inventory is above where it has been throughout the pandemic, inventory is still relatively low.

So with that, here is a list of my buyer clients, their price ranges, and basic search criteria. If you are thinking about selling a home or know someone who wants to sell their home who has something like any of these, please do not hesitate to reach out to me - 916-342-1372 or erin@erinstumpf.com. I am happy to see if my clients are a fit for your home and explore next steps, or help you strategize preparing your home for sale.

Buyer A: Carmichael, Fair Oaks, Arden/Arcade - this buyer is looking for a minimum of 3 bedrooms, 2 bathrooms, and a minimum of about 1200sf. They would prefer a home that is updated and are not in the market for a fixdr. They'd love a larger-ish yard (like .18ac or above) and a pool would be a bonus. They are well-qualified for a conventional loan up to about $650,000.

Buyer B: Rosemont, College Greens, Rancho Cordova - this buyer is looking for a single level 4 bedroom, 2 bathroom home under 2,000sf. Specifically they want an updated kitchen that opens to the living space. They do not want any interior stairs/steps and specifically do not want a swimming pool. They are well-qualified for a conventional loan up to about $550,000.

Buyer C: Land Park, Hollywood Park, East Sacramento, Med Center, Tahoe Park, Woodlake, South Land Park - this buyer is looking for a 3 bedroom, ideally at least 2 bathrooms. They would also love something updated and turn key. They are well-qualified for a conventional loan up to about $600,000.

Buyer D: Carmichael, Arden/Arcade, Fair Oaks, Citrus Heights - this buyer is specifically looking for a turn-key single-level small home, half-plex, or a condo, and it must have at least 1.5 or preferrably 2 bathrooms, an enclosed private garage space. They are well-qualified for a conventional loan up to about $350,000 (or less if a condo with HOA dues).

Buyer E: Midtown, Downtown, East Sacramento - this buyer is looking for a 2+ bedroom, 1+ bathroom home on the grid that is within a short distance to the state Capitol, restaurants, shops, etc.  They are well-qualified for a conventional loan up to about $550,000.

Buyer F: Oak Park, Tahoe Park, Rosemont, College Greens - this buyer is looking for a 3 bedroom, 2 bathroom home that is not a fixer. Would love an open-floorplan if possible, and an above average sized yard (like .12ac+). They are well-qualified for a conventional loan up to $450,000.

Buyer G: Arden/Arcade, Carmichael - this buyer is looking for a 3 bedroom, 2 bathroom single story home of a maximum of 1800sf. They would prefer something turn-key and would love an open floorplan. They do not want to be on or adjacent to a busy street and would prefer to be within a short walk (less than a half mile) of a dog park. They are well-qualified for a conventional loan up to $750,000.

Buyer H: Swallows Nest in Natomas: Needs to be turn-key, single level. Likely an all-cash purchase up to around $500,000.

Buyer I: Folsom: this buyer is looking for a turn-key minimum 3 bedroom, 2 bathroom home 1,400sf+, in a neighborhood within one of the following elementary school boundaries -- Gallardo, Empire Oaks, Oak Chan, or Gold Ridge. Ideally this home will be updated, and located in a neighborhood with mature trees. They are well-qualified for a VA loan up to $700,000.

Again if any of these sound like you or someone you know, please drop me a line!

New listing - 5334 Spilman Avenue, Sacramento, CA 95819

Exquisite, custom-remodeled 3 bedroom, 1.5 bathroom, 1,334sf River Park home is ready for a new owner. You will love the impressive aesthetics and attention to detail. Enter to find a large living room overflowing with natural light, and a custom fireplace insert with decorative mantel and shelving. Entertainer's kitchen with white cabinetry featuring interior pull-outs, quartz counters, full subway-tile backsplash, high-end appliances, and dry bar with lighted cabinets. Lovely formal dining room. Designer paint colors, stylish light fixtures, dual pane windows, custom window coverings, and wood flooring throughout. Spacious primary bedroom with sliding door to access the backyard. Enviable remodeled bathroom with lots of storage space, tiled stall shower with custom glass door enclosure, and granite counters. Remodeled half bathroom features an adorable pedestal sink. Indoor laundry area, and remodeled utility room has lots of extra storage space. Backyard is an outdoor oasis with a built-in swimming pool, lots of sunny space to garden or relax, and a private retreat area with outdoor shower. Front yard professionally designed/landscaped with drip irrigation. Close to Glenn Hall Park, the American River Parkway, award-winning schools, shopping, convenient access to CSUS, East Sac, downtown, & more. Don't wait! Offered at $719,000. For more photos and a 3D Virtual Tour, please visit 5334 Spilman Avenue, Sacramento, CA 95819.

Do you have a home for any of these buyers?

Do you have a home for any of these buyers? As 2021 comes to its exciting conclusion, and our Sacramento real estate market at basically record-low inventory (still), I thought that perhaps I would send this out to the universe with the hopes that someone thinking about selling might notice that I have a home buyer looking for a home that sounds like theirs. So with that, here is a list of my buyer clients, their price ranges, and basic search criteria. If you are thinking about selling a home or know someone who wants to sell their home who has something like any of these, please do not hesitate to reach out to me - 916-342-1372 or erin@erinstumpf.com. I am happy to see if my clients are a fit for your home and explore next steps, or help you strategize preparing your home for sale. 

Buyer A: Carmichael, Arden/Arcade - this buyer is looking for a minimum of 3 bedrooms, 2 bathrooms, and about 1200sf. They do not mind something that needs a little updating and are not scared by a fixer property. They'd love a smallish, low-maintenance lot (like .15ac or less, ideally). They are well-qualified for a conventional loan up to about $450,000. 

Buyer B: Carmichael, Arden/Arcade, Fair Oaks - this buyer is looking for a single level 3 bedroom, 2 bathroom home under 2,000sf that is nicely remodeled. Specifically they want a remodeled kitchen that opens to the living space. They specifically do not want a swimming pool. They'd love a lot that already has a shed/workshop or space to build one. They are well-qualified for a conventional loan up to about $750,000. 

Buyer C: Land Park, Hollywood Park, East Sacramento, Med Center, Tahoe Park - this buyer is looking for a 2 bedroom, ideally at least 1.5 bathrooms (2 full preferred). They do not mind something that needs a little updating, but would also love something updated and turn key. They are well-qualified for a conventional loan up to about $700,000. 

Buyer D: Carmichael/Del Dayo - this buyer is specifically looking for the Del Dayo neighborhood or very close to it, to be within the school boundaries of Del Dayo Elementary. They are looking for a minimum of 3 bedrooms, 2 bathrooms, 1600sf, and would love a built-in pool or a pool-sized yard that can accommodate a future pool. They do not mind a fixer. Their budget is around $675,000. 

Buyer E: Sacramento neighborhoods south of 50, east of Hwy 99 as far south as Florin Road - this buyer is looking for a 3 bedroom, 2 bathroom single family home (not a halfplex). Ideally not a fixer. They are well-qualified for a conventional loan up to about $400,000.

Buyer F: West Sacramento/Southport - this buyer is looking for a home in the Bridgeway Lakes community that is 4 bedrooms, 3  bathrooms, and 2700sf or more. They are well-qualified for a conventional loan up to about $650,000. 

Buyer G: Midtown, Downtown, East Sacramento - this buyer is looking for a 4+ bedroom, 2+ bathroom, 2,400sf+ home on the grid that is within a short distance to the state Capitol, restaurants, shops, etc. Ideally it is a higher density home or condo that is newer construction or significantly remodeled. It must have a garage and at least a small ground-level patio yard. Electric vehicle charger is a plus. They are well-qualified for a conventional loan up to about $1.3M. 

Buyer H: Oak Park, Tahoe Park, Rosemont, College Greens - this buyer is looking for a 3 bedroom, 2 bathroom home that is not a fixer. Would love an open-floorplan if possible, and an above average sized yard (like .12ac+). They are well-qualified for a conventional loan up to $450,000.

Buyer I: Arden/Arcade, Carmichael - this buyer is looking for a 3 bedroom, 2 bathroom home of a minimum of 1600sf. They would prefer something turn-key and would love an open floorplan. They do not want to be on or adjacent to a busy street. They are well-qualified for a conventional loan up to $700,000.

Buyer J: Rocklin, Roseville - this buyer is looking for a turn-key/modern or renovated minimum of 3 bedroom, 2 bathroom, and 1800sf or larger home single story gated community. Must have a formal entryway and an open floorplan. 55+ active adult community would be a plus. A beautiful view would also be a plus. Cash buyer, budget is up to about $1.2M.

Buyer K: Arden/Arcade, Carmichael - this buyer is looking for a small studio or one bedroom condo. Must have indoor laundry in the unit. Ideally ground level entrance and single level unit. Needs to be turn-key. They are well-qualified for a conventional loan up to $200,000.

Again if any of these sound like you or someone you know, please drop me a line!

Sacramento is officially on the map!

Ok, so I am having this silly moment of excitement. Every city I travel to seems to have its own Starbucks mug. Except in Sacramento there’s always a generic “California” mug. Until yesterday. I happened to drop by a Starbucks location in Natomas and I did a double take when I saw this beautiful mug! Of course I had to buy one. 

(I feel like we’ve made it‼️)

New Listing - 2717-2719 59th Street, Sacramento, CA 95817

Great investment property opportunity awaits you in Tahoe Park! Convenient, high-demand location in an ideal spot -- just a quick hop skip and a jump from Tahoe Park and its playground, sports fields, and swimming pool AND on a road that is quick jaunt directly into East Sac! The best of both worlds! Front unit is a 2 bedroom/1 bathroom floorplan, with central heat & air, big bedrooms, spacious living and dining areas, wood floors, lots of closet space, and indoor laundry hookups. The rear unit is 2 bedrooms/1 bathroom, formal entry area, wood floors, big bedrooms, central heat & air, large private/fenced backyard with lots of sunny space to garden. Detached 2-car garage has 2 separated parking bays, and a side storage closet area. Property backs up to the 59th Street-2nd Avenue Alley! The possibilities are endless. Close proximity to public transportation, shopping, restaurants, schools, freeways, Sac State, UCDMC, the future planned development at Aggie Square, and more! Don't wait! Inspection reports and income/expense information available. Offered at $449,900. For more photos and detail, please visit 2717-2719 59th Street, Sacramento, CA 95817.

New Listing - 2735 59th Street, Sacramento, CA 95817

Tahoe Park 3 bedroom, 1 bathroom, 1,111sf cutie! Location location location - this adorable fixer property is in an ideal spot -- just a quick hop skip and a jump from Tahoe Park and its playground, sports fields, and swimming pool AND on a road that is quick jaunt directly into East Sac! The best of both worlds! This is the perfect blank canvas for your renovation. You will love the light and bright floorplan, updated kitchen, three spacious bedrooms, indoor laundry room, wood floors, and central heat and air. Large shed is great for storage. Huge backyard with lots of sunny space to garden or play. Backs up to the 59th Street-2nd Avenue Alley! Sewer line was replaced in 2020. The possibilities are endless. Close proximity to public transportation, shopping, restaurants, schools, freeways, UCDMC, the future planned development at Aggie Square, and more! Don't wait! Offered at $399,900. For more photos and details visit 2735 59th Street, Sacramento, CA 95817.

February 2021 - Sacramento pandemic housing market statistics, inventory, home prices, etc...

Spoiler alert: if you are thinking about selling your Sacramento area home, the market is very much in the seller's favor at this moment. 

We are now nearly one year into the COVID-19 pandemic. Wow, where did the time go?? It seems like yesterday and way too long ago that things were "normal"...but what is our new normal looking like a year in?

Just how is the Sacramento real estate market doing a year into the pandemic? I answer this question for my clients every day. In short: the Sacramento market has been heated, prices have climbed significantly, and inventory of homes for sale is so low that many homes are getting 10+ offers because buyers descend on listings like locusts. 

The really low 3%-ish interest rates, people highly valuing different uses of space, and newly discovered mobility and ability to work from home from any location has lead to high home buyer demand in Sacramento. Couple that high demand with the fact that many would-be sellers have hunkered down during the pandemic and not listed their homes, this combination has lead to increased prices. 

You can see in the graph that there's literally HALF the number of listings on the market today as there were a year ago, right before the pandemic started. The graph is a stunning illustration of the supply and demand of the current Sacramento housing market. You will see that in June, July, August, September, October, November, December, January and February there were MORE homes that went into contract (dark green bar) or sales that closed (red lines) than the number of homes available. The fact this dynamic has persisted for so long is shocking.

The effect on price has been significant. From February 2020 to February 2021, according to Trendgraphix, the median home price in Sacramento County has increased 16.1%, from $398,000 in February 2020 to $462,000 as of the end of February 2021. 

Multiple offers abound, homes selling for more than listing price, prices increasing. But if you dig into the dynamics and data it makes a lot of sense. I wrote about Sacramento real estate market dynamics in July 2020 and November 2020 and the housing market trajectory in Sacramento has remained the same.

As we approach the spring, usually we see a lot of new listings hit the market. I do think we will see more listings come onto the market, but there is a persistent buyer demand that I believe will gobble up the new supply of resale homes that hit the market. I personally have several would-be seller clients who were ready to list their homes before COVID-19 hit who are watching closely to see if Sacramento County moves to a more favorable tier, if vaccines are more widely deployed before they re-evaluate if they feel safe to have showings and people in their homes. And I also have a growing list of clients who would love to sell, however they have not been able to find another home to purchase, and hence these clients have not listed their homes for sale.

I am still listing plenty of properties -- folks still need to move, whether relocating out of state, or moving to different school districts, or moving closer to work, finally getting that home with a pool they always wanted, or upsizing to have a home office, or downsizing after the kids move out, or selling an empty home in a living trust or probate estate, etc. 

What I can say is -- if you are thinking about selling your Sacramento area home, the market is very much in the seller's favor at this moment. It may be an opportune time to take advantage of the seller's market right now. If I can help, I welcome your call or email to see if we are a fit to work together.

Do you have a home for these buyers?

Do you have a home for any of these buyers? With the current lack of real estate inventory in our local Sacramento region, I thought that perhaps I would send this out to the universe with the hopes that someone thinking about selling might notice that I have a home buyer looking for a home that sounds like theirs. So with that, here is a list of my buyer clients, their price ranges, and basic search criteria. If you are thinking about selling a home or know someone who wants to sell their home who has something like any of these, please do not hesitate to reach out to me - 916-342-1372 or erin@erinstumpf.com. I am happy to see if my clients are a fit for your home and explore next steps, or help you strategize preparing your home for sale.

Buyer A: Carmichael, Fair Oaks, Orangevale - this buyer is looking for a minimum of 3 bedrooms, 2 bathrooms, and about 1500sf, and would ideally prefer 4 bedrooms or a separate living and family room where they can have a home office. They prefer something that needs a little updating and are not scared by a fixer property. They'd love a larger lot (like more than 0.20ac or 8,700sf or so). They would also love a pool but that is not a deal-breaker. They are well-qualified for a conventional loan up to about $450,000.

Buyer B: Arden/Arcade, Carmichael - this buyer is looking for a single level 3 bedroom, 2 bathroom home under 2,000sf that is nicely remodeled. Specifically they want a remodeled kitchen that opens to the living space. They specifically do not want a swimming pool. They'd love a lot that already has a shed/workshop or space to build one. They are well-qualified for a conventional loan up to about $650,000.

Buyer C: Pocket/Greenhaven, South Land Park, Natomas (if Natomas, along the Garden Hwy Corridor) - this buyer is looking for a 3 bedroom, 2 bathroom home that is above 1500sf. They do not mind something that needs a little updating, but would also love something updated and turn key. They would love a pool, but a pool-sized yard that can accommodate a pool later works too. They are well-qualified for a conventional loan up to about $580,000. They could go higher for the right house if given the opportunity to sell their home first.

Buyer D: Carmichael/Del Dayo - this buyer is specifically looking for the Del Dayo neighborhood or very close to it, to be within the school boundaries of Del Dayo Elementary. They are looking for a minimum of 3 bedrooms, 2 bathrooms, 1600sf, and would love a built-in pool or a pool-sized yard that can accommodate a future pool. They do not mind a fixer. They are well-qualified for a conventional loan up to about $675,000.

Buyer E: Fair Oaks - this buyer is looking for a 4 bedroom, 2 bathroom, minimum of 1600sf, on a large lot (like more than 0.20ac or 8,700sf or so) with a built-in pool. Ideally this home would be situated in a somewhat private/quiet setting. They are well-qualified for a conventional loan up to about $725,000

Buyer F: Land Park, Curtis Park, Oak Park - this buyer is looking for a multi-family property. Ideally this property would be two detached units on one lot (home and an accessory dwelling unit, or two houses on one lot). They might also consider a duplex if perhaps situated on a corner lot where the entrances are separate or there are minimal shared/common walls. This buyer needs a at least one of the units to be vacant and to have 2 bedrooms to owner-occupy it. They are well-qualified for a conventional loan up to about $800,000. 

Buyer G: West Sacramento/Southport - this buyer is looking for a home in the Bridgeway Lakes community that is 4 bedrooms, 3  bathrooms, and 2700sf or more. They are well-qualified for a conventional loan up to about $650,000.

Buyer H: Midtown, Land Park, East Sacramento - this buyer is looking for a single level home with at least 2 full bathrooms. They prefer a fixer and are not scared of something that needs a significant amount of work. They are all cash buyers looking up to about $800,000.

Buyer I: Davis, Woodland, West Sacramento - this buyer is looking for a newer construction home (built within the last 20 years) of at least 3 bedrooms, 2 bathrooms, and 1500sf. They prefer a single family home, however in Davis they are also considering townhomes and condos. They are well qualified for a conventional loan up to $500,000.

Buyer J: Davis, El Macero - this buyer is looking for a minimum 5 bedroom, 3 bathroom, 2,000sf home. They do not want a home built more than 50 years ago. They are doing a 1031 Exchange and the minimum purchase price must be about $800,000, and they can spend up to about $1.2M.

Buyer K: Midtown, East Sacramento - this buyer is looking for a 2 bedroom, 1 bathroom home or condo and would like to be a reasonable walking distance to the state Capitol and surrounding area. They are well-qualified for a conventional loan up to about $500,000.

Buyer L: Midtown, Downtown - this buyer is looking for a 3+ bedroom, 2+ bathroom, 2,000sf+ home on the grid that is within a short distance to the state Capitol, restaurants, shops, etc. Ideally it is a higher density home or condo that is newer construction or significantly remodeled. It must have a garage and at least a small ground-level patio yard. They are well-qualified for a conventional loan up to about $1M.

Buyer M: East Sacramento, Sierra Oaks - this buyer is looking for a 4 bedroom, 3 bathroom, 2,400sf+ home that is newer construction or substantially remodeled. It is either within close proximity to UC Davis Medical Center or to Country Day School. They are well-qualified up to $1.5M.

Earned a Certified Probate Real Estate Specialist (CPRES) designation

Not that I have loads of spare time, but as we are spending more time at home during the COVID19 pandemic, I have dedicated more time in 2020 to continuing education. While I have closed many probate estate transactions and already consider that to be an area of expertise, I recently earned a Certified Probate Real Estate Specialist (CPRES) designation. This additional education will be an asset as I assist estate personal representatives throughout Sacramento to sell properties that are in probate estates. 

Probate is a legal process through which the applicable county court verifies that a deceased person's assets are distributed according to the deceased's Will or via applicable law. Most people filing for probate need to connect with an attorney who specializes in estate law - I know several great ones if you need a referral.

It is an emotional time for any family, and a confusing path to navigate. Having an expert to help sell the real estate assets of a probate estate is really a key. 

This is a path I have traveled both personally and professionally. Not only have I sold many homes via probate processes, but I have also been the personal representative and administrator of my mom's probate estate when she passed away unexpectedly. 

I know first hand what the process is like from the inside out, and I try to smooth out the rough edges for my clients. 

New Listing - 3125 Carly Way, Sacramento, CA 95816

Your search is over! This stunning 2 bedroom, 2 bathroom, 1,040sf East Sac home has unmatched style and features. Step inside to find an open floorplan, gleaming wood floors, plantation shutters, and cozy fireplace. Formal dining room opens to an enviable kitchen with granite counters, tile backsplash, stainless appliances, and roomy breakfast bar. Two spacious bedrooms, and two full bathrooms that have both been tastefully remodeled. You will love the primary bedroom with ensuite bathroom, which is a truly rare find! The backyard is a tranquil, private retreat. Relax under the expansive covered lighted patio and enjoy the delta breeze! Detached garage is a great place to store your toys. Energy efficiency abounds with a tankless water heater and added insulation. Roof is 4 years new. Exterior recently repainted. All this in close proximity to the grid, shopping, restaurants, public transportation, UCDMC, and more! Don't wait! Offered at $499,900. For more photos and a 3D Virtual Tour, visit 3125 Carly Way, Sacramento, CA 95816.

Adapting to virtual meetings as I work from home...

I do miss meeting clients in person. But for now, with the current Sacramento County "Stay-at-Home" directive from the department of public health, my clients and I are adapting to using things like Zoom to have group meetings, or FaceTime to virtually meet one-on-one.

I'm not gonna lie -- physical distancing is a pain. But I can't think of anything that is more important than my health or my client's health.

This is normally the busiest time of the year in Sacramento real estate, and the current COVID19 situation may be keeping people at home, but my clients and I are still in close communication.

For example, one of my sellers has been packing and putting her belongings away. Typically I would pop by to chat with my client and see the progress, but in this case we did a little tour of her home via FaceTime. She was able to show me all of the work she's done to prepare her home for sale.

Many buyers and sellers are highly motivated to buy or sell despite the health directives. I have buyers who are relying heavily on virtual tours and inspection reports to contemplate purchasing decisions. I also have sellers that will likely be listing their properties for various reasons in the near future, hoping to find buyers who feel comfortable making offers before they can personally view the properties. Luckily, using 3D tours, video, or other virtual technology to market my listings is not a new concept to me, so it was not anything I had to figure out with my hair on fire. I have been doing that for many years.

I am hopeful that this current situation is relatively short and we can ease back into some limited in-person meetings soon...of course from 6 feet apart and with hand sanitizer in tow.

Sacramento City Council approves a temporary moratorium on tenant evictions relating to hardships caused by COVID-19

Our local elected leaders, responding to calls from tenant advocates to provide relief to renters experiencing hardship related to our current public health situation, enacted an ordinance aimed at preventing renter displacement.

Last night, the Sacramento City Council approved a temporary moratorium on tenant evictions relating specifically to COVID-19. Keep in mind, this applies to all residential rental units within the city limits of the City of Sacramento.

Details of the new ordinance:

• Effective Immediately, but not retroactively applied if tenant was already delinquent in rent
• Moratorium applies to evictions due to nonpayment of rent due to COVID-19
• Tenant was sick or caring for COVID-19 family member 
• Tenant experience layoff or other income reduction associated with COVID-19 
• Tenant’s compliance with a recommendation from a government agency to stay home, self-quarantine, or avoid congregating 
• Tenant needed to miss work to care for a home-bound school-aged child 
• Tenant must do all of the following: 
• Notify landlord in writing before rent is due that the tenant has a valid reason for delayed payment 
• Provide verifiable documentation of a covered reason 
• Pay the portion of rent the tenant is able to pay 
• Tenant has 120 days after the termination of the Sacramento County public health emergency order to pay landlord all unpaid rent. 
• Landlord and Tenant may voluntarily agree to an alternate timeline for payment of rent due in arrears. 

Here is a link to a Delay in Payment Notification Form provided by the City of Sacramento.

The County of Sacramento has not taken similar action as of now, nor have the other cities within Sacramento County.

Pro Tip: use inexpensive lights and light timers to keep a vacant property secure

Occasionally I will list a vacant property, and my sellers will be jittery about the home's security during the time it is on the market. One quick and easy way to make a vacant home seem occupied is to install lights and on timers so that lights go on and off all night long. This gives the appearance that there is activity inside the house, and can be a strong deterrent for would-be troublemakers. These lights in the photos were about $7 and the timer devices were about $5 at a hardware store. A good investment!

Check Before You Burn in Sacramento -- from November to February!

Check Before You Burn: it's that time of year again...my husband and I love to have fires in our backyard fire pit this time of year. And as per usual between November and February, in Sacramento, I had to check the Sacramento Metropolitan Air Quality Management District website - luckily it was ok to burn the evening we wanted to roast marshmallows.

Sacramento County residents and businesses are restricted -- or potentially prohibited -- from using indoor or outdoor fireplaces, wood stoves, firepits and chimineas that burn wood, pellets, manufactured logs or any other solid fuel, when the "fine particle pollution" is forecast to be elevated. And if you burn on a "no burn day" there are penalties. If you see someone burning a fire on a day where burning is restricted, you can file a complaint here. First time violators face a $50 fine or an option to complete and pass a wood smoke awareness course. Fines for subsequent violations are higher. Or if a fireplace is your home's only heat source, you can apply for a waiver. That waiver document is here.

Call 1-877-NOBURN-5 (1-877-662-8765) to get the daily burn status, check online, or you can subscribe to a daily "Air Alert" as I have, where the air forecast is emailed to you.

New Listing - 2175 35th Street, Sacramento, CA 95817

Stunning 3 bedroom, 2 bathroom, 1,903sf Med Center area Tudor style home! You will love the classic features and modern amenities in this painstakingly maintained property. Enter through the arched doorway into the formal living room, elegant fireplace with gas insert, inlaid wood floors, built-ins & tray ceilings. Large formal dining room. Updated kitchen features white cabinets, granite counters, tile backsplash, lots of storage, & breakfast counter. Family room off kitchen leads to serene and quiet backyard space with a great deck for entertaining and lots of sunny space to garden or play! Downstairs bedroom and full bathroom. Upstairs find 2 large bedrooms & huge remodeled master bathroom with dual sinks & huge closet! Central heating & air with separate remote-controlled units exclusively for upstairs. Freshly painted interior. Dual pane windows. Quarter basement. Detached garage with secure alley access. Located close to public transportation, UC Davis Med Center, shopping, restaurants, easy access to midtown and downtown, & more! Don't wait! MLS# 19046138. Offered at $599,900. For more photos and information please visit 2175 35th Street, Sacramento, CA 95817.

Planning to sell a home that one of my buyers may like?

It's mid-February in Sacramento. And, like our seasonal real estate cycles typically predict, it is that wonderful time of the year when home buyers really get motivated to buy, and sellers start to prep their homes for sale...the perfect storm when buyers are ready to go, but there is not quite yet an abundance of housing inventory on the market for buyers to choose from. Which brings me to today's post...do you have a home that you would like to sell that my buyers would like to buy? I am working with some really well-qualified (pre-approved!), amazing people...

Buyer A
Seeking a home in the Arden / Arcade, Carmichael, or Fair Oaks areas. In a perfect world, the property would have 3 bedrooms, 2 bathrooms, 1600sf or larger, a built-in pool, AND an Accessory Dwelling Unit for a multi-generational situation. An ADU is also commonly referred to as a "granny flat", "in-law unit", or "studio". A home with room to add an ADU may also work, or they are also willing to retrofit some existing space to create an ADU. They are pre-approved up to $500,000.

Buyer B
Seeking a home in the Tahoe Park, Tallac Village, Hollywood Park, or surrounding areas. Ideally the property would be a 2 bedroom, 1 bathroom home of 900sf or larger, be pretty turn-key and not need a lot of work, but this buyer would happily do some minor repairs, replace flooring and paint if need be. This buyer is pre-approved up to $335,000.

Buyer C
Seeking a home in the East Sacramento, Land Park, or Midtown Sacramento areas. They would prefer something with architectural character that is walkable. They are down-sizing and a 2 bedroom, 1 bathroom home of 1200sf+ would be great. A second bathroom would be a bonus. Ideally the home has an open layout where the kitchen is open to the living area. A garage is a must, and they'd also love a basement too but that is not required. They are pre-approved up to $600,000.

Buyer D
Seeking a home in the South Land Park, Pocket / Greenhaven, or Little Pocket areas. They would love a 4 bedroom home, but are also fine with a 3 bedroom, 2 bathroom home of at least 1200sf. A half-plex would also be ok too. The house must have a decent-sized yard for their soon-to-be adopted dog. They are pre-approved up to $350,000.

Buyer E
Seeking a newer home (2014 or newer, but not new construction) in Roseville or Rocklin areas at least 4 bedrooms, 2.5 bathrooms, and 2000sf+, and with a good-sized yard (aka, larger than just a patio). They are doing a tax-deferred 1031 Exchange and are all cash buyers. By the rules of their exchange, they need to spend a minimum of $500,000 and a max of $550,000.

So anyway, if you own a home something like what I have described here and are thinking about selling it, drop me a line at erin@erinstumpf.com or 916-342-1372! My buyers would love to hear about it. And if it is not a great fit for one of them, I can help you prep your home for sale and list your home as well.