Featured in NPR's Marketplace for a story relating to what pandemic real estate trends will endure after the pandemic...

One of my clients and I were interviewed by NPR Marketplace reporter Matt Levin for a story that aired nationally yesterday. How has the COVID19 pandemic changed the housing market? There are numerous ways, however this segment mostly centered on use of technology to fuel buyer attention to listings. You can check out the broadcast here.

Of course, in the early days of the pandemic, we often found ourselves isolating at home, avoiding contact with others. Surfing home listings online was not a new thing, but in light of in-person home showings being more difficult and potentially unsafe to do, and open houses were literally illegal to conduct, more agents incorporated virtual tours into their marketing repertoire. This is something I have done to market my listings for years, but in the pandemic I noticed that virtual tours became more widely adopted. 

Some virtual tours are more sophisticated than others. The professional photographer I work with uses a really cool tool called a "Matterport" camera that captures 3D video of a home so you can virtually walk through it. It's super awesome. Others just do hand-held iphone walk-through videos posted to Youtube. But you get the idea. I do think home buyers and sellers alike will come to expect this sort of thing.

I have also noticed more "virtual staging" in listing photos. This is essentially photoshopped furniture into images of vacant rooms. You've probably seen this if you have looked through a lot of listings and not realized you were looking at virtual staging rather than real furniture. 

The way appraisals are performed has changed as well. That shift toward a "hybrid appraisal" had already started before the pandemic, however the "Stay-at-Home" orders fueled a rapid adoption of hybrid appraisals. In a hybrid appraisal, someone documents the condition of the property, and sends information and photos to an appraiser who then completes the analysis of value. The appraiser him/herself does not visit the property. In the pandemic, sometimes the homeowners themselves would supply information (this practice of the homeowner providing the info was mostly contained to the early months of the pandemic and has not continued)! Agents are also sometimes asked to supply that information. Most often now, it seems that a 3rd party is sent to the home to quickly take photographs and collect other details. Then an appraiser in an office somewhere else does the analysis. The result is the appraisals that are conducted in this manner are delivered faster. 

As a result, contractual timelines can be shortened. I do foresee these shortened timelines becoming more customary moving forward just because of the added convenience for everyone involved.

Anyway, listen to the broadcast and enjoy.

Pro tip: order your appliances WAY in advance...like months before you need them...

If you are remodeling (like I am) or just replacing broken or worn out appliances, do yourself a favor and order your appliances WAY in advance. I personally just waited about 2 months for an electric cooktop and electric oven to arrive at the warehouse, and then another week for home delivery. I had another client whose appliances were stolen right after a property was vacated wait about a month for an oven and refrigerator...parts for repairs can also be really tricky to order. So if you are planning on any new appliance purchases, place your order early. The pandemic has disrupted the supply chain on so many levels, that these appliances are not manufactured as quickly, and shipping is severely delayed as well.

Erin, where are all the homes that should be for sale in Sacramento?

I was quoted in a Sacramento Bee article last week, that among other things discussed the imbalance of supply of homes for sale and demand to purchase homes. I was quoted in the article saying "At some point there is going to be this backlog of sellers who have forgone selling. We are going to see those people put their houses on the market."

BUT WHEN?

That is a fabulous question. I thought I'd take a minute to describe some of the things I have been hearing from my clients, as well as some of the bottlenecks and challenges sellers have in this environment. At some point the trickle of new listings will be a little more steady, but we have some things to work through in our Sacramento real estate market.

(1) Some sellers still do not feel safe having buyers in their homes. Some homeowners who want to sell have a higher or lower risk tolerance than others. While the COVID19 vaccine has recently become more widely available, it will still be several months before the majority of the population in our region has been fully vaccinated. And cautious sellers who fear catching COVID19 have been staying put. I have conversations with would-be sellers in this category all the time. It does seem like there is a light at the end of the tunnel, but every would-be seller will have a different comfort-level here.

(2) The court systems have been backed up. You may not realize how many transactions are dependent on court orders or other legal processes. For example the probate court system, which governs who will manage the estate of a deceased person, was closed for a few months. There is a tremendous case backlog, and those who will ultimately decide if and when to sell a home that was owned by someone who died are not able to manage the estate affairs without a court order. I have one client who filed for probate back in the summer 2020 who was just recently finally granted authority to handle his father's estate. Courts also often weigh in on the sale of homes in divorce/family law and bankruptcy cases too.

(3) There is an eviction moratorium and various "just cause" ordinances in place preventing landlords from displacing tenants. While I feel for the plight of tenants who face a COVID19-related hardship, there are property owners who would love to sell if they were able to end the tenancy of their current renters. It is often challenging to sell a home with tenants for a variety of reasons. I was contacted by a single-family homeowner last year who had a non-paying tenant, and ultimately they were advised by their attorney that they could not evict the tenants and should not try to sell until the tenants were either paying rent or move out. 

(4) There is a moratorium on foreclosures. While we have been in an increasing price market for a while in Sacramento and distressed property listings (short sales and foreclosures) account for a very small fraction of listings, these listings are not coming on the market as quickly. (4b) Homeowners who are unemployed or under-employed are propped up by federal stimulus, additional pandemic unemployment insurance income, and loan forbearance. At some point, some of these homeowners will sell when the federal assistance expires.

(5) It can be a little more difficult to prepare a home for sale. I have spoken to many contractors are reluctant to work on occupied homes. For those that do, their schedules tend to be booked out for weeks or months. Some organizations have stopped taking certain donated items, so clearing out the house can take longer. Many building materials, supplies, and appliances have become scarce and can be difficult or expensive to obtain. (I personally am still waiting for delivery of a new cooktop I ordered in early March. I will be lucky to have it by the end of May according to the supplier. No it is not stuck on the Ever Given!)

(6) Where will the seller move once they sell? In this low inventory environment for both purchasing AND renting homes, sellers often express concern that if they sell their home they may not be able to purchase or rent something else. Not every seller has an easy move-out plan. I easily have 8 would-be sellers who would list tomorrow if they were confident in finding a replacement property. There are still plenty of ways to work through this, but some of the options can be a little stressful for risk-averse sellers/buyers.

So hopefully this is informative. And as I was quoted in the Sacramento Bee article -- at some point sellers who have not listed their homes WILL sell. I have a queue of many people who very much want to sell. And at some point we will see those homes come to market. There are ways to work within many of these challenges with a little creativity and determination. I am still listing plenty of homes...

The good news is I am seeing a little more inventory as we inch more into the spring. This is the time of year when we normally see more listing inventory...and I can only hope it takes some of the upward pressure off the market for home buyers, as the current trajectory of the market is not sustainable for the long term. but we all know there is less that is the normal we are all used to. 

Sacramento Home Seller B-I-N-G-O!

After one particularly stressful transaction recently that was laced with several pandemic-induced challenges I jokingly asked my seller client "So was 'getting exposed to COVID right before closing' on your BINGO card"? 

And we both laughed.

And then it hit me -- gosh maybe adding some levity during an otherwise stressful time would be a good idea. So, starting now I will be giving my sellers a BINGO card to complete during our transaction. I used an online program that randomizes the squares so each client will have a unique card for their own unique transaction. Any client who achieves a BINGO will get a $100 gift card to a restaurant of their choosing at closing.

The market is a little nutty and things can get chaotic, so let's have some fun too. 

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.

November 2020 - Sacramento pandemic housing market statistics, inventory, home prices, etc...

We are now nearly 9 months into our COVID-19 pandemic. And just how is the Sacramento real estate market during the pandemic? I answer this question for my clients every day. In short: the market has been crazy. And strong. 

While in December 2020, we are FINALLY seeing something that looks like a normal seasonal slowing typical of the holidays, the combination of really low numbers of homes on the market, really low sub-3% interest rates, and people highly valuing different uses of space has lead to HIGH buyer demand and LOW SUPPLY, and increased prices. In fact, from November 2019 to November 2020, according to Trendgraphix, the median home price in Sacramento county has increased 15.3%, from $385,000 in November 2019 to $444,000 today.

Multiple offers abound, homes selling for more than listing price, prices increasing. I know: this is contrary to what you were probably thinking. 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 the housing market trajectory in Sacramento has remained the same.

If you look at the number of homes for sale, there are approximately half the number of homes available on the market in Sacramento as there were this time last year. And you will also notice that far more homes in contract or that have sold compared to the same months last year. Referring to the graph, it 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, and just in November there were MORE homes that went into contract (dark green bar) or sales that closed (red lines) than the number of homes available. That is absolutely breathtaking.

Aside from a slight slowing that is normal for this time of year with the holidays, I do not see any signs of slowing buyer enthusiasm. In fact, in the last couple of weeks since Thanksgiving, I have received numerous calls from new home buyers who are proclaiming that 2021 is the year they will buy a home.

I think as the pandemic has unfolded there are many people who had planned to sell their homes who have hunkered down, deciding not to sell yet. I personally have several would-be seller clients who were ready to list their homes before COVID-19 hit who are staying put for now. 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. But many sellers are holding off to see what happens.

2021 should be an interesting year. 2020 sure has been! 

 

Quoted in today's Sacramento Bee in an article about the real estate market...

I was quoted in today's Sacramento Bee in an article by Tony Bizjak about the Sacramento real estate market. The headline of the article is a little funny to me -- as prices increase, so (generally) does home equity. Clearly this is great for homeowners and sellers. Higher home prices - not so great for buyers.

Things are complicated.

As I have mentioned before, we have an imbalance of supply and demand in the market right now. This stems from fewer than normal sellers listing their homes, and a high number of buyers who are highly motivated to purchase homes as we are all spending so much more time at home now.

Sellers who would otherwise list their homes are faced with several challenges that are unique to our COVID19 environment:

• Some contractors are reluctant to do repairs or remodeling in occupied homes. This makes things a little more difficult to prepare homes for sale.
• The courts were closed for a prolonged period of time. Courts are now open but caseloads are backed up. Petitioners for probate have had a much longer wait to receive their "orders and letters" needed to appoint a personal representative. Personal representatives, who have authority to act on the estate's behalf, can't prepare or list homes for sale until their authority is ratified by the court. 
• Estate liquidators have some challenges selling the contents from the homes of those who have died. The traditional estate sale is just not really feasible right now due to social distancing. This affects homes in trusts and in the probate process, and these properties now take longer to clear out.
• Ever try to clear out a home yourself where someone has passed away? It it emotionally draining and physically difficult! It takes a long time under normal circumstances, and longer when people are reluctant to come to a garage sale.
• At a time when everyone is supposed to be social distancing, many sellers are not excited to have dozens of people in and out of their homes for showings! Not only can it be overwhelming to sanitize between showings, but many sellers do not want to take the risk of exposure COVID19. While buyers and agents must provide a health declaration swearing they do not have symptoms of COVID19, there may be asymptomatic carriers of the virus who access the property. 
• Spending so much time at home, where can you go during showings? It is best to leave during showings, and many local businesses are closed. Travel is not as easy as it used to be, so it may not be super convenient to pack up the kids and pets to leave.
• The kids are going back to school! Seriously, now that so many people are working from home and kids doing distance-learning during the day, who has time to sell the house? And how much more disruptive will a move be?
• If you have a home to sell in order to purchase your next home, with such low inventory, what will you be able to buy?
• Some sellers want to wait things out and get past the COVID19 situation to a time where things are more predictable and certain.

These are common things I hear from people thinking about selling. And for some would-be sellers, sometimes these challenges are insurmountable. I thankfully have been able to work with and around most of these scenarios with sellers. I have numerous inspectors and tradespeople I can refer who will work through these conditions. I have a really creative estate liquidator who has pivoted to virtual estate sales and some creative online sales techniques. There are viable alternatives in many cases. But things are slower moving for sure.

With low inventory and LOTS of interested buyers including more than usual bay area transplants, it can be a good time to put your Sacramento home on the market if you have a well-crafted plan and circumstances allow.

Interviewed for CapRadio Insight regarding Sacramento real estate amid the COVID19 pandemic...

I was interviewed live on air by Randol White today on CapRadio Insight about the dynamics of the Sacramento real estate market amid the COVID19 pandemic. Here is the link to the entire episode and I come on just after 10 minutes or so.

Topics covered safety-related requirements for showing property, lacking inventory of homes for sale, how conducting traditional open houses is a misdemeanor, market dynamics, and bay area residents relocating to Sacramento as they have been informed by their employers they are permanently working from home.

How's the Sacramento real estate market during the pandemic?

How's the Sacramento real estate market during the pandemic? I answer this question every day. In short: the market is crazy. Multiple offers abound, homes selling for more than listing price, prices increasing. I know: this is contrary to what you were probably thinking. But if you dig into the dynamics and data it makes a lot of sense.

Inventory is scarce. The graph above is a brilliant visual illustration of what is happening currently in the market. We have far fewer homes actively for sale than are currently pending sale (in contract with buyers) and that have closed escrow (sold). This is a HUGE change from last year, and candidly, all of my last 15 years as a realtor. I think as the pandemic has unfolded there are many people who had planned to sell their homes who have hunkered down, deciding not to sell yet. I personally have several would-be seller clients who were ready to list their homes before COVID19 hit who are staying put for now. 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, or upsizing to have a home office, or downsizing after the kids move out, or selling an empty home in an estate, etc. But many are holding off to see what happens.

With that though, literally none of my buyer clients have suspended their home searches. And thus we have an imbalance of supply and demand. And prices are increasing.

From the conversations I am having with my buyer clients, for those unaffected by job loss or furlough, MANY people are motivated to purchase homes right now. Some have told me that because we now must spend so much time at home, it has caused them to re-evaluate what is important in their home. Renters are very much wanting to buy. And I am working with several bay area buyers -- which itself is not new -- but several who have been told by their employers that they will now be permanently working from home so they are choosing to buy in Sacramento where they can afford a nicer home. The median home price in Sacramento County, which in June 2020 was $415,000, is SUBSTANTIALLY LESS than bay area counties where the median home price can be well over $1,000,000. Let's not forget that interest rates are also insanely low: One of my clients just locked a 30-year fixed conventional loan under 3%.

So as my good friend Ryan Lundquist always says: the market is always moving.

Required for all listings: COVID19 Prevention Plan for In-Person Property Showings...

Typically when one thinks about real estate regulation, the first agencies that comes to mind are not CalOSHA, nor California Department of Public Health. But here we are in 2020, and the murder hornets are coming to get us, and we live in a new world of trying to maintain social distance and sanitary conditions all around us.

As such, it seems only fitting that OSHA and CDPH dip their toes into real estate, yes? Enter the "COVID19 Prevention Plan for In-Person Property Showings".

A prevention plan is required to be posted at the entry of each listing. And available publicly for each listing online. And anyone entering the property is required to review and sign a copy. Did I mention the property must be disinfected between showings too? And open houses are not allowed?

Good times.

I have come up with a pretty organized system for dealing with these new requirements to minimize hassle and to maintain as safe of an environment as possible. So, we roll through this and hope that the alien invasion that is undoubtedly ahead of us in the fall won't be too bad. Perhaps by then NASA will issue some new real estate regulations too.

Listing, AND SAFELY SHOWING, property during the Coronavirus pandemic....

Last week, the Sacramento County Public Health Director modified the our local directive to allow the showing of occupied property. Many of my seller clients rejoiced! And then, after that initial "yay, I can finally sell my house!" excitement, literally all of them had the same realization: "Oh, now I actually have to have a parade of other people in my home."

After having to "Stay at Home" in Sacramento County for nearly 7 weeks, and having limited contact with other people outside of the household, for many sellers this is a scary proposition.

So I have been having the same conversation over and over again lately -- how do I safely show my home? And I thought it might be helpful to post how my seller clients and I are approaching listing and safely (as possible) showing homes.

Given our unique public health circumstances, it is probably pretty important not to let just anyone who wants to see your house inside for a showing. In consultation with my sellers, I came up with a few different types showing options for them to consider.

Again, this is something every Sacramento home seller must contemplate and implement per their own comfort level. As agents we can make no guarantees that these strategies will prevent the risk of getting sick, but sellers may wish to take as many precautions as they believe are necessary.

I listed an occupied property late last week and the method we used to control showings seemed to work pretty well. Most importantly, we limited the flow of people through the property to only serious buyers, AND we didn't impede our ability to show and get offers on it. Basically we required buyers and their agents to jump through some hoops before a showing appointment was granted.

First, the buyers were directed to thoroughly review all marketing photos, 3D tours, inspection reports, and disclosures available in MLS in advance. Then if they had significant interest in the property they had to sign a document called a PEAD (Coronavirus Property Entry Advisory and Declaration) where they swear that they have not been exposed to Coronavirus, have not had symptoms, etc and that they will follow best practices for viewing another property (wear personal protective gear, not touch anything, etc).

Second, they had to prove they were either pre-approved or had enough cash to purchase the home for at least the listing price.

Third, they had to sign and submit all showing instructions documents 24 hours in advance of scheduling a showing.

This seemed to do a pretty good job of vetting the looky-loos and we ended up with serious buyers only. A sample of the showing instructions is pictured above.

I drafted three alternate "showing instructions" scenarios for them to consider. These are of varying rigidity and can be modified based on a seller's comfort level.

Option A is what this most recent seller opted to do. It seemed to work well and seemed to successfully screen the looky-loos out while offering a little flexibility to buyers and agents to request showing days/times.

Option B is a bit more rigid -- I replaced the bullet points with spots for buyers to initial (which should ideally convey certain concepts more strongly). I added a section where the buyers/agent can indicate which showing day/time(s) they prefer, where in Option A we allow the buyers/agents to request times. I also added a requirement that the buyers are not making an offer contingent on the sale of another property -- which you may or may not wish to limit, as that will eliminate some showings/buyers.

Option C is very rigid and requires that the buyer actually makes an offer (relying on the virtual tour, photos, and reports) in order to schedule a showing...it also provides fewer appointment time options to see the home.

Of course all of these can be adapted for specific situations.

The California Association of Realtors published some COVID19 Best Practices that you may find useful as well.

While Option A is pictured in this post, if you would like the verbiage from Options B and C, I am happy to share via email. Shoot me a request at erin@erinstumpf.com. And of course if you are thinking about selling your Sacramento home, I am happy to discuss this and welcome your call to see if we are a good fit to work together.

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.

SCAM ALERT! Beware of fee-based services claiming to be able to lower your property taxes...

Be on the lookout for scams.  As a part of the leadership of the Sacramento Association of Realtors (I am the current Secretary/Treasurer of the Board of Directors), often other association members will come to me with questions or to alert me to things that don't look quite right.

BIG shout out to loan officer Scott Short with Mason McDuffie Mortgage who forwarded me a solicitation he received from a service claiming to be able to reduce homeowner's property tax.

The solicitation claims that, with the market potentially softening, it is time to submit an application to the County Tax Assessor for a reduction of your home's property tax assessment.

Please be aware that this is extremely misleading, and probably a predatory solicitation for a fee-based service that will be a fruitless attempt at property tax reduction.

For one, property tax assessment for the current tax year, which is the state’s fiscal year that runs from July 1, 2019 June 30, 2020 is based on the value of the property as of January 1, 2019. There will be no justifiable reason to expect that an appeal can be filed based on any current market activity for the value as of January 1, 2019.

Additionally, the values for the upcoming fiscal year that begins on July 1, 2020 and runs until June 30, 2021 will be based on the property value as of January 1, 2020. Any current market value volatility that we may – or may not – experience as a result of our current public health situation will again provide little, if even any, basis to justify an application for a Proposition 8 decline in property tax assessment.

It should also be noted that even if a homeowner files a legitimate property tax appeal, the timeframe in which to file an application does not even start for more than three months from today. The period opens on July 2 and runs to November 30.

A homeowner can request that the county assessor complete an informal review of the tax assessment FOR FREE. There is a non-refundable $30 fee to the Sacramento County Assessor to formally file an assessment appeal. And you do not need to hire a third party to do this.

I need to point out that if there is a decline in property value in Sacramento, it will take at least a few months of data to be able to determine what the impact will be to real estate values this COVID19 public health situation. As of right now, while we are seeing homes withdrawn from the market and certainly a likelihood of shrinking inventory, MANY agents are getting creative while limiting face-to-face contact and MANY homes are still going into contract with multiple offers. It is really too premature to say what the market will look like when the public health directives are lifted.

Please be on the lookout for these types of opportunists looking to take advantage of homeowners. We are definitely in a time of economic uncertainty, and like we witnessed during the last recession, scammers will prey on the most vulnerable people who are desperately seeking financial relief.

Here is a Q&A on the Sacramento County Assessor's website about Proposition 8 Decline in Value adjustment and assessment appeals. The assessor's office also has a an overview on how to reduce property taxes in other circumstances as well, and that link is here.

COVID19 Temporary Mortgage Payment Relief Toolkit

As you may have heard, the federal government has directed Fannie Mae, Freddie Mac, and HUD to provide borrowers experiencing a COVID19-related financial hardship with temporary mortgage payment relief. This is indeed true, however in order to take advantage of any suspension of mortgage payments, homeowners must apply directly with their loan servicers (aka, the mortgage company).

Since we in Sacramento County have been directed to "stay at home" I have had a little extra time on my hands as I avoid meeting with people face-to-face. I wanted to put  that extra time to a productive use.

I have created a detailed DIY Mortgage Relief Toolkit to help my clients through the process of asking for a forbearance or suspension of payments. If you would like a copy for yourself or for anyone you think may need it, please shoot me a quick email to erin@erinstumpf.com or text me your email address at 916-342-1372. I will forward you a copy. It's FREE. And it is my hope this toolkit will aid those seeking mortgage payment relief as we all go through this crazy time together.

Here are some links to federal government directives:

Fannie Mae Assistance Options for Homeowners Impacted by COVID-19

https://www.fanniemae.com/portal/media/corporate-news/2020/covid-homeowner-assistance-options-7000.html

Freddie Mac: COVID-19 Response

http://www.freddiemac.com/about/covid-19.html

HUD/FHA: COVID-19 Q&A

https://www.hud.gov/sites/dfiles/SFH/documents/SFH_COVID_19_QA_03_18_20.pdf

VA: Special Relief for those Potentially Impacted by COVID-19 

https://www.benefits.va.gov/HOMELOANS/documents/circulars/26_20_7.pdf

USDA: Foreclosure and Eviction Relief in Connection with Presidentially Declared COVID-19 National Emergency

https://www.rd.usda.gov/sites/default/files/USDA_RD_SA_Foreclosure_and_Eviction_Relief_COVID19_NationalEmergency.pdf

Consumer Financial Protection Bureau: Protecting your credit during the coronavirus pandemic

https://www.consumerfinance.gov/about-us/blog/protecting-your-credit-during-coronavirus-pandemic/

Find a HUD-approved housing counselor:

https://www.consumerfinance.gov/find-a-housing-counselor/

City Council for the City of West Sacramento approves a temporary moratorium on residential and commercial tenant evictions relating to hardships caused by COVID-19

A few days ago, on March 18, 2020, the City of West Sacramento's City Council adopted its own temporary moratorium on residential and commercial tenant evictions, provided those tenants suffer loss of wages or loss of revenue relating to COVID-19. This is not a free pass for tenants to skip rent. Tenants who can afford rent SHOULD PAY THE RENT. This ordinance allows financially affected tenants to defer rent payments until after the public health emergency period is over. The hope is that the tenants should be able to return to work at that time, or should be able to reopen non-essential businesses that were required to close.

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
• For residential tenants, either: 
• The tenant is sick with COVID-19 or has to care for a member of the household who has COVID 19; 
• The tenant experienced a lay-off, loss of hours, or other income reduction due to COVID-19; 
• The tenant complied with a recommendation from a government agency to stay at home, self-quarantine, or avoid congregating with others; or 
• Tenant had to miss work to care for a home-bound school-age child. 
• For commercial tenants, either: 
• Commercial tenant’s business was required to close in compliance with a recommendation from a government agency; 
• Commercial tenant experienced a substantial loss of business resulting from a state, federal or local emergency declaration; 
• Commercial business owner is sick with COVID-19 or has to care for a member of the household who has COVID-19.
• 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 
• Pays the portion of rent owed that the tenant is able to pay based on the amount of income received. For example, if the tenant owes $1,500 in rent and the tenant suffered a $500 wage loss in March, the tenant would pay the landlord $1,000 for April rent. 
• Rent is due to landlord at the conclusion of the moratorium:
• Residential and commercial tenants who were afforded eviction protection under this Ordinance shall have up to 120 days after this Ordinance terminates to pay their landlord all unpaid rent. 
• During that 120-day period, the protections against eviction found in this Ordinance apply for such tenants.
• Landlord and Tenant may voluntarily agree to an alternate timeline for payment of rent due in arrears. 

This ordinance is an emergency measure that is in effect immediately through at least May 31st.

It is very similar to the eviction moratorium ordinance enacted by the City of Sacramento.

Here is a link to the ordinance language

Here is a link to a FAQ about the eviction moratorium.

Here is a link to the Delay of Rent Notification Form.

Adapting my real estate work and "social distancing" with my clients...

I am easily adapting to transacting real estate amid COVID-19 thus far. While docusign makes signing most paperwork convenient, sometimes it is difficult for some clients to complete everything virtually. My elderly seller doesn’t have easy access to a computer and printer, and we’re reluctant to make direct contact. So today I left documents she needs to fill out and sign in her front patio flower pot, as she instructed, and we’ll review them together on the phone later. Then once she completes them, I will pick them up to scan. So far, so good.

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.

Coronavirus and Sacramento real estate...

I was interviewed by Tony Bizjak of the Sacramento Bee a couple weeks ago about how Coronavirus was affecting the Sacramento real estate market at that time, and when the story ran in the March 7th edition of the Bee, my answer was that the real estate market was super active. I had written offers for clients, among MANY multiple offers, and at that time there was no lack of enthusiasm for real estate.

On this last Friday, I closed two transactions, and my buyers were absolutely thrilled. Instead of sharing hugs, we shared congratulatory elbow bumps instead.

Today is Saint Patrick's Day. 10 days since that article ran, and just a weekend after handing keys to excited new homeowners. I feel like a lot has happened in that time. 

But I am happy to report that I can still do my job. And so can the other professionals connected to real estate transactions in Sacramento. Realtors can still show property. Lenders can still underwrite mortgages. Appraisers can still visit properties to value them. Insurance agents can issue homeowners insurance policies. Inspectors can still inspect properties. Contractors can still make repairs. Escrow officers can still notarize loan documents. And the Sacramento County Recorders Office is still open for business to record new deeds for property change of ownership transfer.

Other parts of our state are not so fortunate. For example, some California county recorder offices have closed to the public or reduced public operating hours, which may have an impact transaction closings.

But right now in Sacramento and our surrounding counties, we can transact. I had multiple offers on my new Carmichael listing this weekend. And I wrote an offer for a buyer that was one of many on a property in Folsom. People still need to buy and sell, people still want to buy and sell, and I don't think Coronavirus changes that, though it may put a new filter on things for a while. 

A week ago I had few if any concerns about being able to close a real estate transaction. And today, we are still open for business, though some contractual nuances may take extra time. Right now, all systems are go. But we have to be deliberate with what we are doing. I emailed my active buyers these thoughts just this morning:

"If there is a home you want to see, we need to be pretty deliberate about setting showing appointments, wiping doorknobs, keeping appropriate “social distance” etc. I’m mostly working from home at this point, and luckily things like Docusign can allow us to do paperwork and a lot of our functions virtually. As of now, lending, escrow/title, appraisal, inspection, and county recorder functions are all running, so while we may have to be deliberate and might move a little slower with scheduling certain things (some of them are working from home too), we can all still do our jobs at this point. And interest rates are insanely good right now, which is a bonus. If anything in that realm changes I can let you know. I’m optimistic we can all go back to business as usual in the coming weeks. Let me know if you have any questions or concerns. And while buying a house may not be your top priority at the moment, if something pops up, I’m here and healthy."

I'm super thankful to be in good health, not part of any at-risk group, and pretty well-stocked up on Clorox wipes and hand sanitizer. 

This too shall pass.