Don't Overlook Fixer-Uppers: Renovation Financing Can Open More Doors!

I recently listed a fixer property here in Sacramento that will be on the market soon, and it reminded me of one of the biggest misconceptions I hear from homebuyers: 

"I love the house, but I don't have the cash to renovate it."

The good news? You may not need to. Many buyers assume fixer homes are only for investors or cash buyers with large renovation budgets. In reality, there are financing programs specifically designed to help owner-occupants purchase a home **and** finance the improvements as part of their mortgage. 

Programs such as the FHA 203(k), FHA Limited (formerly known as the Streamline 203(k)), and conventional renovation loans backed by Fannie Mae and Freddie Mac allow qualified buyers to finance both the purchase price and the renovation costs in one loan. Even better, these loans are typically based on the home's "after-repaired value" rather than its current condition. That means you may be able to buy a home that needs updating without having to come up with tens of thousands of dollars after closing. 

Whether the home needs a new kitchen, updated bathrooms, flooring, windows, plumbing, electrical work, roofing, dryrot repair, or other improvements, renovation financing can make those projects possible from day one. The renovation funds are held by the lender and released as the work is completed, allowing buyers to transform the home while building equity. 

There are also financing options for buyers who want to make a home more energy efficient. If a property needs a new HVAC system, upgraded insulation, energy-efficient windows or doors, or other qualifying improvements, an FHA Energy Efficient Mortgage (EEM) may also be an option. In some cases, these programs can even be layered together, allowing buyers to finance both the renovation and eligible energy-efficiency upgrades as part of their home purchase. 

An experienced renovation lender can help determine which combination of programs is available for your situation. 

In today's Sacramento market, that's an opportunity worth considering. Many buyers focus exclusively on turnkey homes, which often attract the most competition and command premium prices. Meanwhile, homes needing a little TLC may offer better value, fewer competing offers, and the chance to create a home that's customized to your tastes instead of paying extra for someone else's remodel. 

That's exactly why I encourage buyers not to dismiss fixer properties too quickly. The right financing can turn what initially looks like an overwhelming project into an affordable path toward homeownership. 

You don't need to be an investor, a contractor, or an all-cash buyer to purchase a fixer. If you've been searching for a home but feel priced out of the move-in-ready market, it may be time to expand your search. A fixer-upper paired with renovation financing could be the opportunity you've been waiting for. If you'd like to learn more about renovation loan programs I'd be happy to connect you with stellar local lenders who can help you navigate renovation financing and determine whether this approach is the right fit for your goals.

Is 2025 the year you make a move? Here is a brief primer on how I help my clients list and sell their homes...

Selling a home is a major life decision that comes with many moving parts, especially in the dynamic Sacramento real estate market. Whether you’re a seasoned seller, or listing a home in a trust or probate estate, or putting your property on the market for the first time, navigating the selling process with clarity and confidence is crucial. Here’s a brief primer of the steps I walk through with my clients when counseling a seller to list a home for sale...

TL;DR -- I always strive to help my clients stay on top of market trends, assess what is in their best interest to optimize their sales price and net proceeds, and assist my clients to evaluate and think through their options as they move through the transaction. I welcome your call at 916-342-1372 to see if we are a good fit to work together.

Step 1: Estimate Your Home’s Value and Develop a Pricing Strategy -- One of the most critical factors in selling your home is pricing it correctly. As your real estate listing agent, I will prepare an estimate of your home’s current market value. This involves analyzing recent sales of comparable homes in your neighborhood, looking at competing listings, current market trends in Sacramento, unique features of your property. My goal is to strike the perfect balance on price, leveraging local expertise and data-driven insights to set a price that attracts qualified buyers and maximizing your profit and net proceeds. 

Step 2: Schedule Pre-Listing Inspections -- conducting inspections before listing can prevent surprises later. I am a huge advocate of this and have written about this extensively. Pre-listing inspections demonstrate transparency and provide buyers with peace of mind -- AND often will take certain repairs off the negotiating table up-front. I often say "disclosure is far better than discovery". If it makes sense to repair issues that arise up front, doing so in advance affords enough time to get multiple bids to ensure you do not overpay. 

Step 3: Complete Required Disclosures Up Front  -- California law requires sellers to provide detailed disclosures about their property, including any known defects or issues, and items previously repaired or remodeled. Common forms include: Transfer Disclosure Statement (TDS) and Seller Property Questionnaire (SPQ). I like to have these in hand when a property hits the market. Having these up front allows me to field questions from agents, and provide them to buyers. Often, providing these up-front will compel buyers to shorten their inspection or investigation timelines as well.

Step 4: Make Pre-Listing Repairs and Improvements -- Buyers are often looking for homes that are move-in ready. I counsel my clients to focus on repairs and upgrades that provide the highest return on investment, such as touching up paint, replacing old light fixtures, repairing exterior dryrot, refreshing front landscaping, etc. With each client, I provide tailored recommendations to ensure every dollar spent adds value and helps your home stand out in the market. 

Step 5: Stage Your Home to Impress  -- Staging helps potential buyers envision themselves living in your home. This might involve decluttering and deep cleaning, rearranging or renting furniture to highlight your home’s best features, adding finishing touches like fresh flowers or cozy throw blankets. While not every property needs to be staged, generally the homes that are presented well will sell faster and at a higher price.

Step 6: Craft a Winning Marketing Plan Effective marketing is essential to attract buyers. My comprehensive strategy includes professional photography including aerial drone shots, 3D virtual tours, print ads, social media and web optimized campaigns targeting buyers in Sacramento and beyond, hosting open houses and tours to maximize exposure. My goal is to put your property front and center for the right audience, ensuring maximum visibility. 

Step 7: Navigate Offers and Negotiate Like a Hell -- When offers come in, my role is to evaluate them thoroughly and advocate for your best interests. I create a spreadsheet to help my sellers compare the price and terms of multiple offers. Terms like timelines and contingencies are often extremely important in addition to price. Countering offers to achieve the best possible deal. Guiding you through buyer requests and appraisal negotiations. My goal is to ensure you achieve a transaction that aligns with your goals. 

Looking ahead to 2025, Sacramento’s real estate market remains robust, but it’s also evolving. I always strive to help my clients stay on top of market trends, and assist my clients to evaluate and think through their options as they move through the transaction. I welcome your call at 916-342-1372 to see if we are a good 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.

Top 10 Budget-Friendly Home Repairs and Improvements to Boost Value and Prepare Your Sacramento Home for Sale

Whether vacant or occupied, most homes will benefit from cost-effective minor repairs or improvements that will enhance your home's appeal to potential home buyers. Preparing your Sacramento home for sale doesn't have to break the bank. In my experience helping Sacramento sellers prepare their homes for sale, here are the top 10 budget-friendly upgrades that can help you maximize your home's value and make it more enticing to prospective buyers. 

As a note -- as you work through the to-do list to prepare your home for sale, maintain a running record of what you have done to add to your property disclosures. Also, it is worth mentioning that while these cosmetic improvements go a long way to help your home visually appeal to buyers, I strongly recommend performing some pre-listing inspections as well for the sake of disclosure -- I wrote a separate post about that. I welcome your call (916-342-1372) if you have any questions and to see if we are a fit to work together. I also have a full slate of professionals who can assist in tackling a lot of pre-listing to-do's.

(1) Deep Cleaning: Let's start with the basics. A sparkling clean home is just flat out more appealing to home buyers. At the most basic level, roll up your sleeves and thoroughly clean the house. Consider hiring a professional cleaning service to tackle those hard-to-reach spots and ensure your home is spotless for showings. 

(2) Declutter and Depersonalize: A seller client I recently met with said she was going to try to make her home look like an "AirBnb" unit - stylishly minimalist. This is the perfect way to think about it. Decluttering is really key and costs little to nothing just to pack and put things away (something you will need to do anyway eventually) -- or you might even make a few bucks if you have a garage sale. Less is more. Remove excess furniture and personal items, or rearrange furniture if necessary -- creating a clean, open space that allows buyers to envision their own belongings in the home. 

(3) Refresh Interior Paint: A fresh coat of paint can work wonders in transforming the look and feel of your home. It is usually not necessary to paint the entire interior of a home. Typically I would suggest focusing on high-traffic areas and possibly neutralizing loud colors -- painting rooms entirely white is actually the trend at the moment and will create a crisp, clean look. If you think just a simple touch-up may work well, test a small area first and let it dry before you invest a lot of time with touch-up. Oftentimes touch-up will be more work than just repainting an entire wall and may look muddled or worse than before. 

(4) Enhance Curb Appeal: First impressions matter. Spend some effort to improve your home's curb appeal. A fresh coat of paint on the exterior of the front door or on the front window trim goes a long way to brighten things up. Planting colorful flowers, trimming overgrown bushes, and adding a fresh layer of mulch to your garden beds can significantly enhance your home's exterior. 

(5) Touch-Up Exterior Landscape: In addition to curb appeal, invest in small landscaping projects like trimming trees, mowing the lawn, and filling in any bare spots with grass seed. A well-maintained yard adds value. 

(6) Update Plugs and Switches: Replace your dingy almond colored light switches and plugs with new white ones. The before and after appearance will really shock you (pun intended). 

(7) Replace Fixtures: Replacing outdated light fixtures, faucets, or doorknobs and hinges can give your home a more modern and cohesive look. You'd be surprised how much of a difference this can make. 

(8) Minor Kitchen Updates: While a kitchen remodel can be costly, there are budget-friendly ways to refresh this crucial selling point. Consider painting or restaining cabinets, updating cabinet door and drawer hardware, or adding a backsplash for a more contemporary look. 

(9) Repair Leaks and Drips: Fix any leaky faucets or running toilets. Do not forget to look at your exterior hose bibs and sprinkler heads as well. These minor plumbing issues may seem insignificant but can signal to buyers that there are larger maintenance problems lurking. Plumbing leaks can also be the cause of future damage, so best to knock those out as soon as you can anyway.

(10) Enhance Lighting: Nice ambient lighting can make your home feel more spacious and inviting. Replace burnt out bulbs with new ones. Replace old bulbs with brighter, energy-efficient ones, and consider adding inexpensive floor or table lamps in darker areas. Note -- ensure all of the bulbs in each room emit the same color temperature. "Soft White" tends to be warm and yellowish. However "Daylight" tends to has a more bluish tone. If you combine different colors in the same room, the lighting will be distracting to look at.

Preparing your Sacramento home for sale on a budget is entirely possible, and these 10 cost-effective strategic improvements are a great place to start. With a little time and effort, you can significantly increase your home's appeal to potential buyers and potentially raise its value. Ideally, sellers should strive to present a well-maintained, clean and inviting space. 

Sellers, receive a high dollar request for repairs? Get a second opinion...

The buyer on one of my recent listings submitted a whopper of a Request for Repairs...the scope of work consisted of several big-ticket items -- replacing the sewer line, re-plumbing the entire house, and making substantial repairs to the swimming pool and pool equipment. I think the full value of the work based on the bids the buyers had obtained was in the $50,000 range. YIKES! 

The seller, of course, was understandably upset about this and they were trying to wrap their minds around either absorbing the costs of repairs or absorbing a massive price reduction. Even in this hot Sacramento real estate market, some sellers may consider negotiating or accepting requests like this without questioning the validity of the request. Sellers, please don't do that.

I immediately wanted to know two things: (a) were these issues legitimate? And (b) if the issues were legitimate, were the bids the buyers provided competitive prices? 

Some home sellers do not realize -- in the face of massive requests like this, you can and should get a second opinion. We quickly called a couple of my go-to contractors and the seller's pool guy for second opinions and competitive bids.

So to replacing the sewer line: (a) yes the issue was partly legitimate. As it turns out the second contractor was of the opinion that only about half the repairs recommended by the buyer's contractor were actually necessary. And (b) the competitive bid was about a third the price ($8,700 vs. $28,000)!

To re-plumbing the entire house: (a) no, not legitimate. The seller had disclosed some plumbing leaks and the buyer decided that they would prefer to re-plumb the house, however this work turned out to be an upgrade rather than a necessity. And (b) the seller did not obtain a second bid and flatly rejected this part of the request.

To resurfacing the swimming pool: (a) no, not legitimate. They stated that resurfacing would be an upgrade and not a necessity.  And (b) the seller did not obtain a second bid and flatly rejected this part of the request.

Repairing the pool equipment: (a) yes, some repairs were necessary. And (b) competitive bid was much less!

In the end, the seller agreed to reduce the price by $10,000 to offset the future expense of repairs, and the buyer completed the purchase of the home as-is...$10,000 is still a chunk of money but still less than the cost of the legitimate repairs...and without validating the request and getting other opinions and bids, that could have easily been a much higher number, and it is a FAR cry from a $50,000 haircut. This is a great outcome for the seller.

So the moral of the story -- sellers, don't let a buyer walk all over you. Validate exorbitant requests like this one and get second opinions and competitive bids.

Excessive pet urine destroys stuff, in case you were totally wondering...

If a picture is worth a thousand words, then it must also be worth about an 9.0 magnitude on the Richter Scale of smell. 

Be glad you can't smell this photo, because your eyes would water and you might want to take an immediate shower.

This is an image of what the subfloor looks like after carpet and pad were removed from a bedroom where a tenant kept a dog who who urinated excessively in the house (in violation of the rental lease, of course). In preparing this home for sale, BEFORE new flooring could be installed in this room, a contractor treated the subfloor with an enzyme in an attempt to kill the odor. They then had to apply an oil based sealer. And then new carpet, pad, and baseboards were installed, and the room painted. 

To remove and dispose of the carpet, pad, tackstrip, baseboards and get rid of the smell cost about $750, plus the cost of reinstalling new flooring. Overall this owner was fortunate that the pet urine seemed to be isolated to this one room, because doing this treatment throughout the entire 2000sf+ home would have been ridiculously expensive. For what it's worth, this owner is replacing all of the flooring and painting the entire interior of the house, so everything will be crisp and clean eventually. And the seller will disclose this to buyers...

The moral of the story: housebreak your pets. Or don't have them...

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.

No sellers, you cannot swap out your fancy Nest Thermostat before the close of escrow...

As one of my seller clients was finishing the final move-out from his home recently, he called to ask me how he should plan to get the extra keys to the buyer at closing. Once we determined he would leave extra keys in the house for the new owner, he then said he "was leaving as soon as he removed the Nest Thermostat and replaced it with a standard one." 

UMM, NO. Thankfully he and I had this conversation, and thankfully it was before he removed it. This off-hand comment saved him and saved me a lot of trouble. A thermostat is a fixture and generally stays with the property. 

Ironically, about a week later one of my other seller clients asked me about removing a Nest Thermostat at a different property. Thankfully this was long before closing and he did not have a screwdriver in his hands. I explained that it needed to stay with the property. 

Paragraph 8 in the current version of the Residential Purchase Agreement addresses items included and excluded from the sale. It specifically states that existing "mechanical" systems stay with the property. It also goes on to say that "home automation" devices and "control units" are included in the sale. This is the default unless you specifically exclude those items from the transaction.

So no, sellers, please do no remove the Nest and ride off into the sunset with something that belongs to the new owner of the house. You will have to replace it with another Nest at your expense.

Now, if you are really attached to your Nest, you can take it with you -- if, and only if -- you do one of the following:

(1) Remove it and replace it with a regular thermostat before you put the house on the market. At that rate, the buyer will never know there was a Nest in the first place. 

--OR--

(2) Make a note in MLS that the Nest is not included in the sale. Maybe even put a little note on the unit in the house in plain sight for potential buyers to see. You will want the buyer to be aware of this at the beginning of the transaction. Then be sure that paragraph 8 in the purchase agreement specifically excludes the Nest from the sale. Then you may remove it at closing. If you make the comment in MLS, but the contract itself does not reflect the exclusion, then the Nest must remain with the house. (this confuses a lot of buyers, sellers, and agents alike)

And really, you can substitute a the same general two formulas for other items in the home that the seller wants to exclude from the sale. Like grandma's antique chandelier. Or your custom fish-shaped mailbox. Or the rose bush in the front yard that your mom gave you.

My suggestion? Remove whatever it is you do not want to include BEFORE the property goes on the market and replace it with something else. That way, the buyer does not know anything different and everyone has the same expectations.

Do I personally think it is a good time to buy property in Sacramento? Yes, and my husband and I just bought another property...

The million dollar question during just about type of real estate market seems to be "is now a good time to buy a home in Sacramento?" I feel there is no good blanket answer for this question since everyone has different motivations to purchase a home, comprised usually of some combination of personal and financial factors. But generally, yes I do think it is still an opportune time in Sacramento to purchase property. And last week my husband and I closed escrow on another property and we could not be more thrilled about it.

We purchased a cute fixer single family property in the Del Paso Manor neighborhood and will embark on a little renovation project over the coming weeks to restore the home to its former glory. 

What is that red device and why did it have to be installed on the gas meter of one of my listings?

Well, even after nearly 13 years as an agent and after hundreds of sold properties, I still every now and then come across new things in my transactions. You might be looking at that photo wondering what is that red thing on that gas meter?

Candidly I had never seen one before either until being required to install one on the gas meter of one of my listings prior to the close of escrow. It is an automatic gas shut off valve device.

When the buyer for one of my listings was in the process of getting homeowners insurance quotes, he had to fill out a questionnaire about the property. One of the questions was "Is the house bolted to the foundation?" This actually mirrors one of the questions on a seller property disclosure called the Residential Earthquake Hazards Report. My seller clients answered this question as "Don't Know."

This set off alarm bells with the insurance company.

You might think, well duh, of course the house is bolted to the foundation. Not so fast...this home was built in 1922 when construction standards were different. We asked the home inspector to go down in the basement and look for anchor bolts. The manner in which the home was constructed either concealed the bolts (probably likely), or the house was indeed not bolted to the foundation.

So is a house that is not bolted to its foundation un-insurable? Apparently not being bolted to the foundation is not all that uncommon. That alone won't disqualify the home from being eligible for a homeowners insurance policy, however the insurance company mandated the home have an automatic gas shut off valve installed prior to issuing a new insurance policy.

Why? We were told that in the event of an earthquake, if the home somehow shimmied off its foundation, this shut off valve would at least prevent a natural gas leak. Ok then.

I called several plumbing contractors to have this thing installed, and literally none of them even knew what I was talking about when I described what I needed. Apparently this is way more common in the bay area where earthquake and seismic risk is greater, but nobody locally here in Sacramento had ever seen one or heard of it being required.

So...$720 later, the buyer is now the proud owner of a cute home in Land Park with a shiny red gas shut off valve.

City of Sacramento offering free leak repair services to qualified households

The City of Sacramento is offering free leak repair services to qualified households until March 31, 2018. This is a great opportunity to have a city contractor to investigate, repair or replace fixtures at no cost!

The program, called "Leak Free Sacramento" is available to those Sacramento home owners who meet the following criteria:

• Live within a Disadvantage Area Community (here is a map);
• Complete and submit the application (linked here);
• Single family residential homeowners that are customers of Sacramento County Utilities;
• Show irregular water usage, need leak detection and repair or replacement services;
• Applicants must own both the home and the land (for example, mobile homes on rented land do not qualify); and 
• Applicants must be the permanent resident of the home.

The program may be used to repair leaks and install water efficient fixtures. Residents can contact the program at 916-808-5605 or email leakfree@cityofsacramento.org. Do not wait! This program is available for a very limited time between March 19, 2018 - March 31, 2018.

What needs to be removed from a home before the close of escrow?

Sometimes sellers, in their haste to move out, decide to "gift" to the buyers some of their personal property. And when I say "gift" what I really mean is - they can't fit all of their stuff into the U-Haul, or are too lazy to remove the junk from the garage and make that final dump run, or they think because the house wasn't fully cleared out when they bought it as a bank repo they can just leave it in a sub-par state for the new owners. WRONG. Sellers are contractually obligated to remove all debris and personal property prior to closing.

A seller's "gift" is often a buyer's unwanted crap that they then have to remove, donate or dispose of. I recently had a seller client who left all kinds of stuff in the property despite our conversations that they would remove everything and have the home cleaned and ready to go...escrow closed, buyer got the keys and was really upset. And rightfully so.

The buyer's agent called me to make me aware of the situation. Of course I was horrified. I had to have a pretty blunt conversation with my seller (which candidly, I never want to have to do) to emphasize that what they did was not ok and they needed to take responsibility to correct this situation. Needless to say, they paid someone to come and remove the junk-- and probably paid a lot more to have that done on short notice after the fact than they would have if they had proactively done it before they moved out.

A little planning is the key to an less stressful move-out. And I have a lot of go-to people who can help off-haul junk, clean, or whatever. Ask me for help! It is a hectic time for sure. However, a seller's poor planning is absolutely NOT the buyer's fault. And no matter which side of the transaction I am on, I will do my very best to ensure that the property is turned over to the buyers in the condition it should be.

Measure twice, cut once...or in this case order the right size doors once...

I was showing a really nicely renovated Antelope home to a buyer client the other day, and wanted to take a look inside the fireplace. That's something I routinely do, looking for evidence of cracks inside the firebox area and other things...the doors of the fireplace were open and pushed to either side. When I was done looking inside the fireplace, I went to shut the doors. Ooops! They don't exactly fit this space. Sounds like a request for repairs in the making.

How to blow up your house...

Step one: hook a flexible gas line up to both your water heater and dryer.

Step two: 😖

Sometimes I wonder what goes through people's minds when they do really goofy do-it-yourself home repairs. Like this. I saw this showing property in Fair Oaks. Seriously?

Beware of inaccessible areas in termite inspection reports...you never know what's lurking...

In past posts I have mentioned how important it is to read inspection reports...often, inspectors will note areas as inaccessible for inspection, or note a stain or something that warrants further investigation.

On an inspection report that noted a stain on a closet baseboard, we had the baseboard removed to discover this condition. That is some concealed dryrot that affected a large section of an exterior wall. Thankfully the seller agreed to repair this for the buyer.

Heirs: please do not throw out home maintenance records if you find them...

I listed a Sacramento home recently where the owner passed away earlier this year. The person selling the home is the "successor trustee" of the owner's Living Trust -- the niece of the owner. She came out from Texas to go through the house, clean it out and get it ready for sale.

I visited the house the other day as they were packing items up to move and getting ready for a huge garage sale, and the niece handed me a box. Looking inside, I discovered the owner retained records for EVERYTHING. And by everything, I mean everything. Every appliance she purchased, service records for maintenance, extended warranty information and more dating back nearly 40 years.

We were able to purge a little of it -- for example the central heat and air system she installed in the 1980s was replaced just a few years ago. And the coffee maker she bought in 1996 was being sold in a garage sale and not coming with the house.

Homes that are sold by the successor trustees of a living trust where the owner has passed away or become incapacitated are exempt from many of the typical disclosures given to buyers during a home sale. Often, successor trustees have never occupied the home and don't know pertinent information about the home. If you are ever in the position to have to sell the home of a deceased person via a probate estate or a living trust PLEASE do not throw out these records if you find them while sorting out the affairs of the estate. This sort of cache of information is absolutely invaluable to the new owner.

Be sure to keep your central heating and air conditioning system healthy...

While the temperature on average Sacramento summer days tends to be between the upper-80's and low-90's, a couple times each summer we usually see the weather extend above 100 degrees for a several days or a week straight. Those days I usually crank up the air conditioning, binge watch something on Netflix, head to the movies, or do other indoor activities. Or if you are Nugget, my sweet mini aussie, you might lay directly on the HVAC floor vent to cool down. The LAST thing anyone wants during that hot week is to turn on the air conditioner and find that it is not working.

HVAC maintenance is really important. I highly recommend having your unit(s) professionally serviced at least one per year...and in the meantime there are a couple of DIY things you can do as well.

First, be sure to change your HVAC filter at least every other month -- maybe more often if you notice the filter looks dirty. As more particles are caught in the filter, the more clogged it becomes. If it becomes difficult for the unit to suck air through the filter, you unnecessarily burden your system. Not only will that cost you more in monthly utility bills, but it makes the system work harder and will possibly be more prone to failure. Filters are relatively inexpensive, and I tend to keep a few on hand and replace them as often as I need to.

Second, if you have an outdoor unit as I do - it is important to keep the top and sides free from debris. I have lots of leaves in my backyard and they tend to fall into that top exposed fan area. I use a shop vac to clean them out. Also, try not to stack things on top of them...it's best to allow unrestricted air flow.

Third, whether your interior vents are in the floor or ceiling, occasionally take the vent covers off and clean them out. The vents in my house are on the floor, and they get dusty, dog hair and other small debris gets caught in them, etc. Again we take the shop vac and clean them out and wipe off the vent covers.

Doing these little maintenance items can help make sure that the air flows nicely...

Quoted in an article in Sactown Magazine about listing strategies in the current Sacramento real estate market...

In this month's Sactown Magazine I was quoted extensively about the Sacramento real estate market. In many areas and price ranges, the market conditions favor sellers. As such, it is imperative when listing a property to employ strategies that will maximize exposure to buyers, maximize disclosure to potential buyers, and maximize net proceeds...and minimize surprises.

Surprises are expensive, and they may cost a seller big-time when conditions are discovered mid-transaction. I wrote a blog post about disclosure versus discovery a couple years ago. You might think -- "oh but this is a seller's market so why would I need to do anything like that?"

The very best advice I can give a home seller to maximize selling price and net proceeds is to obtain pre-listing inspections for the property, and disclose the reports to potential buyers in advance, BEFORE responding to any offers. With our current Sacramento real estate market favoring sellers, it is most advantageous for sellers to disclose as much as possible in advance -- when the home goes on the market -- so that buyers may make informed purchasing decisions while they are still in competition with other buyers. Often times, with the heat of the market, while competing with other buyers, many buyers will offer to buy the property as-is with full knowledge of the findings of the reports.

That is the key...while buyers are still competing with other buyers...because often once the seller accepts an offer and the house is marked pending, most buyers move on and get excited about other property. Alternatively, if sellers do not disclose inspection reports up front, and then buyers complete their own inspections a few weeks into the transaction and discover issues not previously disclosed, this provides the opportunity for a secondary negotiation which often leads to price concessions or seller-paid repairs.

Sellers -- to maximize your net proceeds: disclose, disclose, disclose. I provide my sellers with a few key pre-listing inspection reports as a part of my listing services at no added expense (in addition to many other things). I can not tell you how many times these reports have earned or saved my clients tens of thousands of dollars.

Do not skip your "final walk through" before closing escrow on your new home...

I have written in the past about the importance of the final walk-through to verify the condition of a property right before closing, and this last weekend was a good reminder why it is so critical for buyers to take one last look at the house after the seller moves out and before closing.

Paragraph 15 of the California Residential Purchase Agreement addresses the final verification of property condition...this is not a contingency of the sale (meaning, the buyer can't cancel the contract), however it gives the buyer the right to verify the condition of the property within 5 calendar days of closing. So if the seller has agreed to make repairs, the buyer can use this as an opportunity to visually verify the repairs are done. Or that the appliances that are included in the sale are indeed still in the property. Or that the seller has been maintaining the property in substantially the same condition as when the buyer's offer was initially agreed upon.

I could post lots of photos from my final walk-through with my buyers this last weekend, but this one is probably the most telling. The carpet is a creamy white color, and this particular room was filled with rugs and dining room furniture before the seller moved out. Now that the property is vacant, we can see that the carpet is horribly stained. This condition was not disclosed.

Aside from that, the home was pretty filthy, there were some holes in walls that were not there before, there was a large previously concealed stain on the vinyl flooring in the master bathroom, all three of the flat screen television brackets were removed and holes not patched, texture not touched up, etc. Again, thankfully we discovered these conditions BEFORE closing the transaction. While the final walk-through is not a contingency of the sale, the seller should turn over the property to the buyer in satisfactory condition.

How was this situation remedied? The seller did not want to delay closing, and did not want to do any additional work or repairs. We negotiated a $1,000 credit to the buyers to offset the costs of these newly discovered issues.

Had we not done a final walk-through and discovered this before closing, it would have been very difficult to negotiate any sort of compensation for the buyer for the condition of the house after closing, short to taking the seller to small claims court.

Make sure to read inspection reports provided to you...

Not long ago, I represented the buyer for the purchase of an investment property in Rancho Cordova. The duplex had previously been in contract with another buyer who ultimately was unable to complete the purchase. That buyer had obtained a few inspections on the property, which were passed along to us as disclosures. They had also negotiated a section one termite clearance with the seller and that repair work had been completed already. Section one work includes remediating things like treating for active termites and repairing deteriorated wood. That's obviously nice!

However upon reading the original termite inspection that the clearance was based upon, I noticed there was a glaring omission. The sub-area, aka the crawl space under the structure, had not been inspected and was not included in the clearance! That's a big exclusion...often times a home that looks pristine on the exterior can have major issues underneath.

So, we requested that a smaller inspector come back out to the duplex, one who could fit underneath, and complete the inspection. The supplemental inspection found some rotten floor joists. Obviously that needed to be addressed, and we negotiated that the seller took pay for those repairs.

The moral of the story is -- make sure to read inspection reports that are provided to you.