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.

Installing new flooring? Here are a few things to consider...

Yesterday I had the pleasure of facilitating some contractor visits and bids for one of my buyer clients who is relocating to Carmichael from another state. My buyer client was in town just for the day so we wanted to pack as much into a few hours as possible. 

Flooring is among the home improvements that my client is considering before her family moves in. 

Choosing between laminate and luxury vinyl plank (LVP) flooring can be a tough decision, but understanding key criteria can help you make the right choice for your home. A few things to consider:

• Durability and waterproofing are crucial factors. While laminate offers decent durability, LVP takes the lead with its waterproof properties, making it ideal for areas prone to moisture like kitchens and bathrooms. 
• Price versus value is another consideration. While laminate tends to be more budget-friendly initially, LVP may offer superior long-term value due to its durability and resistance to water damage, potentially saving you money on repairs or replacements down the line. 
• Lighter-colored flooring can also make a room appear larger and more spacious. Both laminate and LVP come in a variety of shades, allowing you to choose the perfect hue to enhance your space. 
• Since both laminate and LVP designs are printed on the planks, it is also important to understand how many repeating designs there are...if all of the planks look the same, your installation may look a little weird. Versus if there are 12 different plank designs that can be spread out across a room, the floor will look more natural. Be sure to check to see how many different plank designs there are.
• When installing new flooring, it's essential to consider the baseboards as well. Opting for flat surface baseboards over beveled ones can make cleaning and dusting much easier, ensuring your floors look pristine with minimal effort.
• Ultimately, whether you choose laminate or LVP depends on your priorities and budget. If durability and waterproofing are top concerns, LVP might be the better option. However, if you're working with a tighter budget and don't require waterproofing, laminate can still provide a stylish and cost-effective solution.

My client chose a middle-grade LVP (the one to the far left in the photo) and a 5-inch flat baseboard! I think it will look super nice.

Livestream Interview with Ryan Lillis of the Sacramento Bee about the local housing market, strategies to sell and buy homes, and more...

I did a really fun hour-long livestream interview with Sacramento Bee reporter Ryan Lillis this last week about Sacramento real estate, strategies for listing your home, negotiating the purchase of a home, etc in today's local market conditions. Catch the recorded interview replay here.

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‼️)

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.

California Proposition 19 passed...now what? Property tax basis portability explained... kinda...

I have had several seller clients ask me recently about the implementation of California Proposition 19, which passed back in November. I think most people assumed it would go into effect at the beginning of 2021, however that is not the case. I prepared a table that I hope will be a helpful reference tool for those seeking general information. 

The property tax basis portability element of Proposition 19 actually goes into effect on April 1, 2021. 

This allows seniors (over age 55), the victims of wildfires, and severely disabled to transfer their existing property tax base up to 3 times, anywhere in the state, and to a property of higher or lower value. 

Many Sacramento home sellers have asked me if they can sell the current home and close the sale prior to April 1. Or if a home they sold in 2020 would qualify if they have not purchased another one yet. The short answer is - I do not know. 

Proposition 19 (which was Assembly Constitutional Amendment 11 in the state Legislature) does not address that. A qualified homeowner has 2 years to identify and close on a replacement property to transfer the low property tax base over to, however it is unclear if that 2 years commences on April 1, or there is perhaps a 2 year lookback period commencing on April 1.

It is possible that there will be some new legislation introduced soon to eliminate that ambiguity in Proposition 19, but as of this minute there is no clarity. 

For now, I suppose the safest solution is -- do not close the sale of your current home until April 1 or later. Realistically, if you want to list your Sacramento home in the near future, you should be able to do so. The closing date of your transaction is completely negotiable. And your listing agent can note in MLS that the sale must close on or after April 1.

So for example, if you were to list your home on February 17th, respond to offers received on the 24th, get into contract with your buyer on the 26th, -- closing on Friday, April 2nd would be slightly over a 30-day escrow. 

I have a couple seller clients who will be employing this very strategy. It's a seller's market right now, and they'd love to list their homes asap.

Since I am not an attorney and not a CPA, it is best to get tax and legal advice from qualified professionals. 

The Sacramento County Assessor's office has prepared some Prop19-related information with linked forms as well here.

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.

Relocating to Sacramento? Some of my clients virtually view homes via FaceTime or narrated video before making an offer...

I work with a lot of buyers looking to move to Sacramento from another city or state. Not every home buyer who relocates to Sacramento can easily visit town to view new listings as they come on the market. Since the good homes go quickly, often I will preview properties for out-of-town buyers to see if the property is a fit. Then I can assess if they should rush into town to view it in person.

But not every buyer can do that. Sometimes a seller may be reviewing offers before a buyer can visit. Or in some cases buyers don't live within a couple hours drive of Sacramento.

Recently I helped a client who was relocating from the state of Pennsylvania to Roseville for a new job. They identified a really specific neighborhood where they needed to live -- within the boundaries of a particular school for their children -- and given their price range, very few listings matched their criteria. When one popped onto the market, I'd scope it out for them and if it seemed to be a potential fit, I'd send them a video that I would narrate as I walked through.

While this is not an ideal way to house-hunt, sometimes it is the most practical way to find a home from afar. I think it takes a lot of communication and trust for this sort of arrangement to work. In this case, my buyers closed escrow toady on October 4th and will not see the home until the day they drive up with their u-haul in tow next week. And I am confident they will love their home.

In the Top 2% of over 50,000 NRT Agents Nationally!

It’s not everyday I get a letter from the President/CEO of the company with congratulations for being in the top 2% of over 50,000 agents nationally. Cheers to another busy year ahead!

Quoted in a Sacramento Bee article about bay area buyers moving to Sacramento...

I have helped numerous buyers relocate to Sacramento, but one thing is certain -- none of them have been overeager to plunk down a bunch of money on a home here. For some reason there is concern that bay area buyers come to Sacramento with their high tech salaries and recklessly offer more than homes are worth.

Nope.

All of the bay area transplants I have worked with have been very financially prudent and conservative. I relayed this experience to a Sacramento Bee reporter for an article that ran in this weeks newspaper about bay area home buyers moving to Sacramento. He also interviewed some of my recently closed clients in the article as well. They sold their long-time home in Dublin and paid cash for a cute 3 bedroom, 2 bathroom, 1501sf Antelope home for $339,000, closing just last week. They did so in order to retire a little ahead of schedule. We looked at many homes together before they made any decisions, and before they made an offer we carefully reviewed recent comparable sales so their offer was in line with the market value.

July 2017 Sacramento County Real Estate Statistics...

This summer has pretty much flown by and candidly, I can't believe that the kids are going back to school this week, and that the 90 degree days are a welcome relief from the scorching hot temperatures we had in July. Pleasantries aside, the Sacramento real estate market, just like the weather, seasonally changes a bit this time of year and 2017 seems to be no exception.

Inventory has increased! Thank goodness, because the market sorely needs it. Though by increased, I mean it went from about 1 month of inventory for sale, to 1.4 months of inventory for sale. 1.4 months of inventory is still super low. It is still a seller's market for homes priced correctly...multiple offers abound. A balanced market where neither buyer nor seller have an advantage is between 4-6 months of inventory for sale.

A seasonal increase in inventory is typical. If you compare this to the market dynamics from July 2016, you will see it looks remarkably similar.  I expect things will be much the same this year.

The July 2017 Sacramento County single family median home price climbed to $355,000...if typical trends for this time of year hold true, the median price should bump along for the rest of the year and not change too dramatically.

The market is still far from our peak median home price, which per Trendgraphix was $395,000 from August 2005. Adjusted for inflation to today's dollars, that median value would have to reach $492,653 (using the US Department of Labor Consumer Price Index Inflation Calculator) to be equivalent to our previous peak.

I see A LOT of demand for purchasing Sacramento homes. My buyer clients face lots of competition from other buyers, and my sellers enjoy the multiple offers. For one, Sacramento rent prices have increased quite a bit, and with that many renters who can afford to buy are looking to purchase to stabilize their monthly housing expense. Additionally, there are many people looking at Sacramento as a less expensive alternative to the bay area where median home prices are more than double and triple those in Sacramento (my most recent closed sale just last week was for a family relocating to Sacramento from Oakland). And then there is the fact that during the decline, fewer homes were built in the greater Sacramento area - so we did not increase the amount of housing stock to keep up with people creating households in the area. We are seeing some new development in Sacramento though not nearly enough.

So with that, the low supply coupled with the high demand and strong underlying economic conditions should keep the Sacramento real estate market on its current trajectory for a while...

Mortgage interest rates - still really low...

A buyer client asked me the other day if I thought the 4.0% mortgage interest rate she was quoted was a good rate. YES. Not only is that a good rate for today, that is an amazing rate given where interest rates have been in the past. For those of you who do not remember when rates were higher than 5.0%, let me refresh your memory.

When I bought my first home in 1998, my interest rate was 7.125%. And for that time, THAT was an amazing interest rate. I remember my mom expressing how jealous she was because the interest rate my parents had on their home was substantially higher.

I recently stumbled across this old newspaper ad from 1985 touting 11.5% as an amazing interest rate! That's correct -- today's interest rates are about 1/3 of that from 1985. And let's not forget that for the mid-1980's 11.5% really was a good rate since they peaked in the high teens earlier in the decade.

What do low interest rates mean for housing affordability? Let's break it down based on monthly payment. Here is monthly loan principal and interest for a 30-year amortization based on a few different rates:

$300,000 loan at 4.0% - $1,432.25
$300,000 loan at 4.5% - $1,520.06
$300,000 loan at 5.0% - $1,610.46
$300,000 loan at 6.0% - $1,798.65
$300,000 loan at 7.0% - $1,995.91
$300,000 loan at 8.0% - $2,201.29

Interest rates matter...and right now they are awesome.

Search for your next home here.

3-D Virtual Tours -- an awesome way to draw attention to Sacramento listings from out of area buyers!

Last month, the Wall Street Journal reported that Sacramento is one of the hottest real estate markets in the country right now. Multiple offers. Homes selling in just a few days. Homes selling for more than their listing prices. Why is this happening? The heat of our local Sacramento real estate market is due to many factors, and among them is buyer demand from bay area residents looking to purchase more affordable homes here in Sacramento.

Home prices in Sacramento are, in many cases, less than half of the median home prices in the bay area. For example, according to the California Association of Realtors, the median home price in San Francisco County in May 2017 is $1,501,680. Santa Clara County's median home price is $1,200,000. Alameda County's median home price is $862,000.

Sacramento County's median home price for May 2017 is....wait for it....$342,100. I don't think you need to be an expert at math to realize this is a screaming deal by comparison. So it is not surprising that people who can work from home, or who are willing to commute, or find comparable employment here in Sacramento would prefer to pay our far lower home prices.

So why do I mention all this? Since many buyers are conducting their home searches remotely from a hundred miles away, 3-D virtual tours have become a KEY piece of my marketing strategy for my listings. I have gotten LOTS of attention from out-of-town buyers who can virtually walk through my listings...so if you are thinking about selling your Sacramento home, and your Realtor is not doing professional photography and 3-D tours, you are probably working with the wrong agent. You will miss a large chunk of the buyers in the Sacramento market by not giving them adequate tools to virtually explore your home listing.

On average, a Sacramento home sells for 100% of its listing price...but be sure to focus on the micro market that applies to you!

I like to meet with new clients at my office first before we ever go look at property to review the process, and among the topics we discuss are the market dynamics for whatever area and price range of interest. Often, my clients have preconceptions about the market that developed as a result of media coverage, advice from a family member, or a friend's past real estate experience.

So I may hear things like "my dad told me to make lowball offers on every home because sellers over-price homes assuming they will negotiate the price" or "my friend got a house for 10% less than the asking price" or "I saw on the news that every home is in a bidding war." Well...everyone has an opinion or a past experience. I let current data speak for itself.

Let me tell you first, that our Sacramento real estate market is a tricky beast. It is full of micro-markets, and no two areas have the same market dynamics. It is very important to look at the market as a whole, and then focus in on the micro market that applies.

So as an example, this first table is a look at the entire Sacramento real estate market as a whole with regard to average days on market, and the average listing price to selling price ratio. On average, in Sacramento in May 2017, a single family home in Sacramento County sold in 20 days on the market for 100% of its listing price.

Clearly, these are averages - so for every home that sold in 5 days for 5% over its listing price, there is another home balancing out the average that sold in 35 days for 5% less. You get the idea.

But then compare that data to that for Folsom homes under $500,000 in this second chart. In May 2017, a single family home in Folsom sold in 12 days for 101% of its listing price. Those may not seem like big differences, but those are significant! That means that buyers have to be prepared to act faster when a property hits the market, and more often than not be prepared to offer an amount over the listing price.

Even the Folsom table is still probably too broad, and if there is a specific neighborhood or tract that interests you, be sure to specifically examine those sales and trends. It is important for both buyers and sellers to arm themselves with data. And not just any data -- but the correct and most current data.

Sacramento Ranked 6th Hottest Housing Market in United States

Realtor Magazine today ranked Sacramento the 6th Hottest Housing Market in the country, which is up one notch from 7th last month. In fact, six of the top ten markets are in California. This is not at all surprising, since the market is hitting its spring fever time of the year. There are A LOT of buyers in the market, and not nearly enough homes to satisfy the demand. My listings are getting multiple offers and selling above their listing prices. I attribute that not only to the heat of the market, but also to my stellar property marketing that involves staging, professional photography, virtual tours, and all kinds of other cool stuff. And I am advising my buyers on how to strategically craft their offers to stand out from the other ones, without going too crazy on price. Anyway, if you are interested to know how much your Sacramento home might sell for, click here and I am happy to provide you with an analysis. And if you are looking to buy a home, click here and I am happy to set up a custom portal for you that will notify you of new listings that match your search criteria. Happy spring!

New Downtown Sacramento Arena "Golden 1 Center" gets two thumbs up from me!

I had the opportunity to attend the very first event at the new Downtown Sacramento Arena, the Golden 1 Center, earlier this week and wanted to share my experience. All in all, I give it two thumbs up!

For mother's day, my brother and I gave my mom tickets to the Paul McCartney Concert for Tuesday, October 4th, and ultimately it became a party of seven, with my husband, my brother's girlfriend, my mom's boyfriend and his son attending with us. Quite the good time!

My husband works downtown, so I took an Uber from our house in the Arden area to downtown Sacramento around 6pm. Traffic into downtown was minimal. We left my husband's car in the City Hall Parking Garage at 11th and J Streets, and walked a few blocks to K-Bar for a beer and dinner. We then walked a few more blocks over to the new Irish pub Malt & Mash that overlooks Saint Rose of Lima Park and the Arena. Both places were busy but not slammed, we got good service and found places to sit.

We then walked in to the arena and the security was thorough, but there were numerous security lines, so no backlog getting on the grounds. We met up the other five, who had walked over from my brother's house, which is just across the Tower Bridge in West Sacramento.

The arena is nice and modern! Lots of food and beverage selections...our seats were in the second row of the upper level. The ONLY complaint I have about the arena is that there was pretty minimal leg-room in the row where we sat. I'm not sure if the rest of the upper level lacks leg-room as we did. Basically sitting was fine, however if someone mid-row needed to go to the restroom, everyone had to stand up to accommodate that person leaving. There is no way to shuffle in your seat to move out of the way.

Of course the concert was amazing. My parents actually took me (and my brother) to my first concert in 1990 which was also Paul McCartney! I was 12 and probably lacked appreciation for his performance at that time. But I have to say, he rocks! He played a nice mix of Beatles music, Wings, and his more recent stuff. I hope I have his energy level when I am 74. He played non-stop for over 3 hours and it was a lively performance.

Once the concert was over, we exited the arena pretty easily. We then walked back to the parking garage. I was surprised that it was only about a quarter full! We had no trouble getting out of the garage, and no trouble getting to 16th Street to take the freeway home to Arden.

Overall, it was a great experience! I admit I was highly skeptical of having an arena downtown for many reasons, but I have to say that I give it two thumbs up and I am excited to attend more events there. Great job Sacramento!

Quoted in a Sactown Magazine article about the local Sacramento real estate market and about the Masters Club...

If you pick up the recent August/September issue of Sactown Magazine, you may see a piece about the Sacramento Association of Realtors Masters Club where I was quoted extensively. The article talks about the local real estate market, philanthropic efforts of the Masters Club, how to choose a Sacramento real estate agent, and what Sacramento-area home buyers are typically seeking, among other things...

Being a past president of the Masters Club myself (in 2012), I can confidently state that the organization is amazing, and made up of amazing individuals. It raises thousands of dollars for local charities, and we get out in the community volunteering at local non-profits. For example, several times per year we prep and serve food at Loaves and Fishes. It's a great group to be associated with! And of course, in order to participate, an agent must be a top producing Realtor as well.

Buyers - be sure to check those property tax bills before you make an offer!

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

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

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

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

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

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

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

What properties are most likely to be loaded up with these goodies on the tax bill? Generally (but not always) the homes will be newer construction, built within the last 10-15 years. Mello Roos and other bonds usually have a lifespan of 10-30 years, so if you want to purchase a home built in 1999, there's a decent chance that some or all of those additional fees will have aged out, or will disappear soon.

Do I personally think it is a good time to buy? Yes, and I just did myself again...

I get asked pretty frequently "is now a good time to buy a home?" As a Realtor I feel this is a bit of a loaded question, because everyone's personal and financial situation, what neighborhood we are talking about, price range, and other factors will play a large role in determining if and when is the right time for that person or family to buy a house...but very generally yes, I do think now is an opportune time to buy a home in Sacramento. Prices are increasing slowly and steadily (aka, sustainably, with no large spikes one way or another), interest rates are good (right now in the low 4% range), and the economy seems to be back on track in the Sacramento region.

So given all that, my husband and I just purchased a home in the summer of 2014. That purchase was a fixer property that we spent some time and effort remodeling. It was never intended to be a home we would live in long-term.

This last summer, we got the itch again and started looking to purchase either an investment property or another home for ourselves. We were lucky to find a great home that is a much better fit for our needs, also located in the Arden area. This home is a little dated cosmetically but we will add our own personal touches over time. It's a bit more space, with larger yard now that we have our dog Citra, and a better neighborhood. We will be turning our current home into a rental.

I am not a fan of moving, so after suffering through this next move, I think this is a home we will probably stay in a little while and our future purchases will likely be investment properties.

Sacramento Real Estate Statistics for December 2015

Years from now, I will look back on Sacramento real estate in 2015 and probably think, "wow, what a nice enjoyable year." I say this because from my perspective, 2015 was the year that things seemed more or less normal.

What do I mean by normal anyway? Isn't complete and total chaos normal?

Gosh, it doesn't have to be. Have you ever been in a totally volatile personal relationship, and after a while the craziness just becomes status quo? Yeah. We all have, whether it has been a significant other, friend, acquaintance, child, fill-in-the-blank-in-law, or someone else. Then, the time that follows the once that toxic person has been extricated from your life can only be described as one thing: nirvana. And not the kind that smells like teen spirit. I mean heaven.

The last several years of Sacramento real estate have been so volatile, the local economy so precarious, that 2015 by comparison was nirvana. At least for me. Sure, certain transactions were stressful, but the market conditions were such that there was no unnecessary external chaos.

So back to real estate statistics for Sacramento. Aside from the bounce back from a slight dip in value that ended 2014, values were nice and steady with a slight value appreciation. This is nice and sustainable. No wild value swings up, no wild value swings down. Despite the Federal Reserve Board announcement that they would raise the short term rate for the first time in 9 years, this action did not really increase mortgage rates much, and those 30 year fixed mortgage rates are hovering in the low 4% range right now. The number of short sale and foreclosure continue to decline. The number of homeowners with equity in their homes is increasing.

I think we will see more of the same in 2016, and with that I am hopeful that at the end of the coming year I can describe 2016 much the same way.