Earned a Certified Probate Real Estate Specialist (CPRES) designation

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

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

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

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

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

California Transfer On Death (TOD) Deed -- avoids probate, less expensive, faster...

Thanks to California Assembly Bill 139 that passed in 2015, as of January 1, 2016 a real property owner has a new way to avoid the Probate process. AB 139 created the "Transfer On Death" Deed. Why is this significant? Let me explain...

Generally, if a property owner dies and does not have a Living Trust, any real estate owned must go through the Probate process in order to be sold. This applies even if the property owner has a Will...so don't be fooled into thinking that property named in a Will avoids the Probate process. IT DOES NOT. The Will only serves to specify who the deceased person wants to pass the property along to. Probate is a court process to actually transfer ownership of the property. Probate is expensive, extremely time consuming, and can be highly emotionally charged...trust me, I have helped several clients through the process in order to sell homes of deceased loved ones, and it is not a process I would wish on anyone.

So I am frequently asked -- how can we avoid Probate? Up until this last year, my answer was -- talk to an attorney, form a Living Trust, and do not forget to deed your real estate into the trust. Creating a Living Trust sets up a mechanism that transfers responsibility for real estate to a Successor Trustee, which makes selling a home after death pretty simple. There are two downsides to setting up a Trust though. The first is that forming a Trust is pretty expensive -- an attorney will charge $2,500 - $10,000 depending on how complicated your estate is. The second is that Trusts take time to plan properly -- so it could take a few weeks to a few months to form your Trust and deed your real property into it.

With the passage of AB 139, there is now an inexpensive and faster option -- deed your property into a "Transfer On Death" Deed -- aka, a TOD Deed.

One of my past clients called me in September when her mom was diagnosed with an aggressive form of cancer.  Her mom had just weeks to live, had no trust and no will, and owned a home in Carmichael. I immediately thought of the TOD Deed. With a TOD Deed, the owner remains the owner while that person is alive, and it names a beneficiary that the property is transferred to upon the death of the owner. She called an attorney who prepared a TOD Deed for her mom, had it signed and  notarized and recorded with Sacramento County. She passed away just days later.

The entire process to prepare, execute, and record a TOD Deed was just days and a few hundred dollars. Once her mom's death certificate was available, an "Affidavit Death of Transferor" had to be prepared and filed with Sacramento County. So within a short period of time, and for a few hundred dollars, daughter had full authority to sell the property. No Probate. No excessive costs. Way less stress.

I always suggest getting tax and legal advice before doing something like this, but what I can tell you is that this is a streamlined way to take the expense, time, and stress out of what is already an emotional time. And as a side note, an owner can file a TOD Deed, make changes to the beneficiary during his/her lifetime, sell the property, or deed the property into a trust later. No need to wait until a fatal illness to get one done. In fact I would recommend being proactive.

Handling a Probate or Trust Estate? Why the homeowners insurance policy is one of the first things you should find...

In the last month, I’ve had the same conversation twice with two different people, handling two different probate estates under similar circumstances. 

Both sellers had been named the administrator of a loved one’s Sacramento area probate estate. In both cases, the death of their loved one (the property owner) had occurred more than a year ago and they had delayed filing for probate. And when I asked questions about the property and status of the homeowners insurance policy, both of them admitted that they did not know if there was a homeowners insurance policy for the property. And in each of these cases, the policy coverage had lapsed.

Yikes! That’s a big hairy detail that just CAN NOT be overlooked. 

When someone passes away, often grief, family dynamics, and sheer overwhelm take over. Filing for probate is often not top of mind. And it’s emotionally very daunting to sift through your loved one’s finances, documents, and personal property, but I can’t emphasize enough how important it is…and checking for a homeowners insurance policy on any real estate that person owned is one of the most critical boxes to check. 

Here’s the reality: if a property is uninsured and something happens like a broken pipe, a break-in, vandalism, a fire, etc…the estate could suffer a massive and catastrophic financial loss. A house or other real property is probably going to be the highest-value financial asset of a probate estate. And if it’s uninsured, and there’s a loss, there is no do-over. There is no retroactive insurance coverage if policy coverage has lapsed. 

When someone passes away, the first thing I suggest is look for any and all documentation for existing mortgages and insurance. Contact the insurance agent immediately. You should ask if an existing homeowners policy automatically remains valid after the owner’s death. Some policies may require the insurer to be notified of the death or a change in occupancy status. Vacant homes often need special endorsements or entirely different policies. If the insurance company isn’t informed, a claim could be denied when you need it most. 

And if the policy renewal notice comes and goes without being paid, that will likely result in a lapse in coverage. Don’t let that happen. 

This is why early in these conversations I try to slow things down and ask very direct questions: Is there an active insurance policy? Who is the carrier? When was the last premium paid? Has the insurance company been notified of the death?

If no one knows the answers, that’s the signal to stop and investigate as soon as possible. Please make one of your first priorities protecting the estate's assets. Making sure there is an active, appropriate homeowners insurance policy in place is one of the simplest steps and one of the most important. 

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

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

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

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

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

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

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

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

Is selling ‘as-is’ to an off-market investor really my best option? NO.

I closed a transaction last week where I helped my clients net an additional $80,000. Engaging a Realtor can bring a ton of value in situations like this. 

I was connected to the administrator of a probate estate by his attorney, who found me while searching online for a Sacramento probate specialist. 

The situation with this property was challenging and the seller was overwhelmed. The home had been owned by a woman who struggled with hoarding. After her passing, the property sat vacant for over a year. During that time, it was broken into, and suffered significant damage from a plumbing leak. Utilities were shut off. The interior and exterior were filled with excessive debris. Landscaping was overgrown. It was overwhelming. 

Enter the off-market investors. Several approached the seller, offering quick, “as-is” solutions. The highest offer was around $215,000. They positioned themselves as the easy path. No cleanup. No repairs. No Realtors to pay. Just sign and be done. 

Friends: these investors are trying to buy at a steep discount…and they know many sellers in these situations feel stressed, uncertain, and just want relief. After paying off the mortgage and liens, the estate would have netted very little money. Barely enough to cover the cost of the probate itself, with a trivial amount left for the heirs of the estate. The seller was paralyzed by what to do next and tempted to take it. Thankfully I got involved and we went to work. 

The estate had no funds to prepare the property for sale, so I leveraged my network of tradespeople to make it happen with no upfront cost and the expenses billed to escrow: 

• Coordinated a full property trash-out 
• Secured the home and addressed access concerns, including boarding up gaps in the fence
• Arranged exterior vegetation cleanup 
• Got an up-front pest inspection to provide with disclosures 

Then we took professional photos and brought the home to market at $295,000. 

The response was incredible! More than 20 offers. Final sales price that closed last week: $320,000. 

That’s roughly $80,000 more net to the estate after mortgage loan and lien payoffs, and the other costs of preparation and sale than the highest off-market investor offer and a dramatically better outcome for the estate. All because they trusted me to smooth out the rough edges of the situation and take their overwhelm away. This is the difference between taking the “easy” offer versus having the right representation working on your behalf who knows how to get things done. 

Having an experienced Realtor on your side DOES NOT add complexity! We create opportunity, connect the right people to help with strategic repairs or improvements, we protect equity, and make sure sellers fully understand their options. 

Let me tell you… $80,000 makes a tremendous difference in someone’s life. I’m so happy for this family and I’m also relieved to bring a positive conclusion for them to this experience. So when people ask me if selling ‘as-is’ to an off-market investor really my best option? The answer is NO.

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.

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. 

More on private transfer taxes...

For any of you who read my post a few weeks ago regarding "private transfer taxes" (http://sacramentorealestateblog.blogspot.com/2007/10/private-transfer-taxes-be-aware.html), you may be interested to know there are a couple of new laws in CA that will govern and disclose these fees...as far as I know though, these fees are still legal to record on property deeds.

New Disclosure for Private Transfer Fees: Effective January 1, 2008, a seller who must provide a Transfer Disclosure Statement must also provide, at the same time, a disclosure statement of private transfer fees if applicable. A transfer fee is defined as any fee that must be paid upon transfer of real property as imposed by deed, CC&Rs, or other documents, with certain exceptions (such as, but not limited to, transfer fees imposed by probate, trust, court order, or a governmental agency). The new disclosure statement must contain, among other things, a notice that payment is required, the amount of the fee, and the entity to which payment must be made. (Source: Assembly Bill 980.)

Recording Private Transfer Fees: Also effective January 1, 2008, any person or entity imposing a private transfer fee must, as a condition of payment of the fee, record the instrument creating the transfer fee and a separate notice of "Payment of Transfer Fee Required." These two documents must be recorded concurrently in the county recorder's office for which a property is located. The notice of "Payment of Transfer Fee Required" must include the following information:
- Names of the current property owners;
- Assessor's parcel number and legal description;
- Amount of the fee (or percentage of sales price);
- Actual dollar-cost examples of the fee for residential property priced at $250,000, $500,000, and $750,000;
- When the fee expires if applicable;
- Purpose of the funds;
- Name of entity to be paid and that entity's contact information for sending the funds; and
- Signature of that entity's authorized representative.
The title of the notice of "Payment of Transfer Fee Required" must be in at least 14-point bold type. For transfer fees imposed before January 1, 2008, the receiver of the fee must, as a condition of payment of any fee after December 31, 2008, record a notice of "Payment of Transfer Fee Required" by December 31, 2008 (or record a substantial equivalent as specified). (Source: Assembly Bill 980.)


http://www.ErinAttardi.com • http://Erin.Golyon.com

Trying to sell a house in Living Trust? MAKE SURE your house is actually included in the Living Trust. No really.

If you follow me on Twitter, you will already know that I have had the great displeasure of working through a pretty random "Title" issue on one of my listing transactions...and then the same issue to occured on another one of my buyer transactions! All within the course of a week's time!

So a little background. In both instances where I am experiencing this issue, the homeowner had passed away, leaving their heirs (or if you want to get technical, the "Successor Trustees") the responsibility to deal with the estate, including selling the home. Under normal circumstances, the Successor Trustee has full authority to list the property for sale, and sign a new Grant Deed to transfer title to a new buyer.

So regarding the first instance of this title issue...I am representing a seller - aka, the Successor Trustee of his father's Living Trust. This man's father passed away in January, and the seller is in Sacramento (he lives in Puerto Rico) dealing with his father's estate. He wanted to list the house immediately. He informed me that he had full authority per the Living Trust to sell the home. When I looked in the tax records, it appeared that the name on the title of the property was an individual, rather than the name of the Living Trust itself. OK. So I asked Placer Title Company to provide me with a property profile....sure enough, the title to the property was held in the name of the deceased father. The seller was frustrated...the house was specifically named in the Living Trust as being owned by the Living Trust, so what was the issue? Well, in order for the Living Trust to actually own the house, and for the Successor Trustee to have full authority to sell the house, a new Deed naming the Trust MUST HAVE been recorded at the county recorder's office. And that had not been done.

So regarding the second instances of this title issue...I am representing a buyer of a property whose owner had passed away. I received a copy of the preliminary title report from the title company, and it again named an individual as the property owner, rather than a Trust entity as the owner. Inspections were completed, the transaction was rolling forward nicely, and the buyer's loan documents on the way...BUT the Successor Trustee can't sell the house, because again he does not have full authority to do so, because a new Deed naming the Trust as the property owner was never recorded. UGH.

So what do we do to remedy this situation? Well, the Successor Trustee must schedule a Sacramento County court hearing, and file what is known as a Heggstad Petition so that the home does not have to go through the probate process. This process, from what I have been told, can take about two months from start to finish.

My seller client in scenario one has this Heggstad Petition process underway, and we are not listing it until he has been granted full authority. Definitely an inconvenience, as the seller wants to get back to his life in Puerto Rico...but our proactivity will be rewarded with the ease of being able to list and sell the home in a few weeks.

My buyer client in scenario two, however, is getting the short end of the stick. We are just a week from our scheduled closing, and the Heggstad Petition process is just now getting underway. He will loose his interest rate lock. He must postpone his move. UGH.

The moral of the story - if you have a Living Trust, or are planning to create one, PLEASE be sure to record a new Deed so that not only is the house named in the Living Trust, but so that the Living Trust actually owns the house! If you have an elderly parent, it probably makes sense to check to see if this has been done for their trust. You will potentially save yourself lots of time and money later.

New Listing - 2091 Arliss Way, Sacramento, CA 95822

This 3 bed, 1.5 bath Golf Course Terrace fixer home is a diamond in the rough! A blank canvas awaiting your personal touches, this house has a nice layout, spacious living room and large bedrooms. This sale is subject to both lender approval of short sale, AND probate court approval. Offered at $79,000. For more photos and additional detail, please visit http://www.2091ArlissWay.com.

New listing - 3729 Erlewine Circle, Sacramento, CA 95819

River Park home is ready for a new owner - this 3 bedroom, 2 bathroom, 1,307sf fixer is the perfect blank canvas for your personal touches and renovation. You will love the spacious layout, large living room with gas fireplace, formal dining room, central heat and air, HUGE .22ac lot on a cul-de-sac with a built-in pool, lots of sunny space to garden or play. Close proximity to the river parkway, baseball fields, parks, Caleb Greenwood Elementary, Sac State, and all East Sacramento has to offer. Don't wait! Probate sale. Offered at $325,000. For more photos and additional detail please visit 3729 Erlewine Circle, Sacramento, CA 95819. MLS#18025100

New Listing - 6604 Willowleaf Drive, Citrus Heights, CA 95621

Enviable, remodeled 3 bedroom, 2 bathroom, approximately 1,273sf home with built-in swimming pool in Citrus Heights! Inviting front courtyard and charming curb appeal. You will love the light and bright open floorplan. Enter into the foyer. To your left find a spacious formal living room with vaulted ceilings and a lovely picture window overlooking the front yard. To the right of the foyer, find a cute dining area and the remodeled kitchen, offering white cabinets, quartz surfaces, tile backsplash, stainless appliances, and a large breakfast counter. The kitchen overlooks a family room with a cozy fireplace and sliding door to the backyard. Vinyl plank floors throughout the living spaces. Primary suite has a large remodeled ensuite bathroom with dual sinks, a closet, and stall shower. Remodeled hallway bathroom with a tub/shower combo, and two more bedrooms with ample closet space. The backyard is an outdoor oasis with a covered patio and built-in swimming pool with lots of sunny space to sunbathe, or to garden or play! Large side-yard and extra-wide driveway offers RV parking for your toys. Newer roof. Dual pane windows. 2-car attached garage. All this in close proximity to schools, parks, shopping, restaurants, and more. Don't wait! Offered at $509,000. Probate estate, and seller has full authority to sell. For more photos, a 3D virtual tour, and information, please visit 6604 Willowleaf Drive, Citrus Heights, CA 95621.

2018 - review of my real estate transaction statistics and how I compare to Sacramento market averages...

I ended last year with a bang, and had a busy start to 2018. I can't believe the year is over already! And what a year it was...it was one of my busiest years ever in my 13+ years in Sacramento real estate and did so while finishing my master's degree.

I like to track the statistics of my transactions, and toward the year end I always reflect on what I have done, how I compare to the rest of the agents in the market, and how I can improve. So as a follow up to my similar post last year, I thought I would publish some statistics and my thoughts on the coming year. Keep in mind, I am not a part of a "team" and this is all my own production. This year, all of my transactions are in Metrolist MLS, so this information is easily verifiable (although one sale was erroneously attributed to me that is not included in here)...in 2018:

-I closed 36 transactions and closed $14,473,000 in volume. My lowest transaction was $190,000, and my highest transaction was $749,900. The average was $402,028 and the median was $376,050.
-41.67% of my transactions were past/repeat clients (which is amazing to me!) 58.33% were new clients.
-94.4% of my transactions were residential properties (condos, single family homes), 5.6% were multi-family properties (duplexes, triplexes, fourplexes), and 0 were other (commercial, land).
-58.3% of my transactions I represented the seller, while 41.61% of my transactions I represented the buyer.
-My typical residential listing sold for an average of 100.56% of its original listing price (meaning, 0.56% over the original listing price) in just 17 cumulative days on the market. The distinction of original and cumulative is important...original means even after a price reduction from the initial listing price, and cumulative means even if a property is re-listed or comes back on the market.
-My typical multi-family listing sold for an average of 108.7% of its original listing price (8.7% over the listing price) in just 2 cumulative days on the market.
-My typical listing had an average of 4.14 buyer offers on it! (For further disclosure though, one listing really skewed this statistic and had 23 offers on it alone...removing that one, then it becomes an average of 3.2 buyer offers)

Comparing my production statistics to the overall Sacramento real estate market averages, my clients and I had another stellar year.

For one, to qualify for the Sacramento Association of Realtors Masters Club, a realtor must close $5M in transaction volume and a minimum of 8 closed transactions. Clearly I blew those numbers out of the water. I would guess that with 36 closed transactions and nearly $14.5M in volume I am likely in the top 1-2% of all agents in greater Sacramento.

My clients are all over the spectrum from first-time buyers, move-up buyers (those who sell their home and then purchase another home), investors, sellers of property they inherited via a trust or probate, sellers retiring and moving out of the area, sellers divorcing, etc. My average and median transactions at $402,028 and $376,050 are basically in line with the average and median home prices in the Sacramento region according to Trendgraphix data. My high and low range indicates I work with a broad economic client spectrum as well, from those working with downpayment assistance to those among top-income earners in the region. I closed just one short sale listing in 2018, and I also did list one foreclosure/bank repo. Distressed properties are a very small part of the marketplace right now though 5 or so years ago they were the bulk of my transactions.

My listing statistics are also excellent...according to Trendgraphix for Sacramento County, the lowest average days on market for a single family listing in the last 14 months was 23 days on market (with a high of 41 days on market), versus my listings at 17 cumulative days on market. My original listing price versus final selling price ratio is also outstanding as my listings sell for 100.56% above original listing price on average, versus the highest month of the last 14 months at 100% (lowest at 96%). I think these numbers are indicative of my strategic approach to listing property -- complete with pre-listing inspections, staging, repairs, professional photography, 3D virtual tours, TV ads, and multi-faceted marketing.

Comparing 2017 to 2018, the market went from crazy nuts to a little more balanced between buyer and seller. This, as far as I am concerned, is a welcome change and brings a slightly more equitable transaction between buyer and seller. Sellers need to price according to the market, and buyers won't have to offer their first born to actually have their offers accepted.

 It is a good thing for buyers not to be faced with such intense competition from other buyers -- though don't get me wrong: properly marketed, appropriately priced, good homes still sell with plenty of competition and offers.

Of course I hope to improve these numbers this year in 2019...so we shall see how that shapes up! If you think we would be a good fit to work together toward your next property sale or purchase, I welcome your contact via phone or email.

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! 

 

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.

2017 - my real estate transaction statistics and how I compare to Sacramento market averages...

I closed what will likely be my final real estate transaction of 2017 yesterday - not that I have any shortage of work to do between now and the end of the year! 2018 is shaping up to be extremely busy as well.

I like to track the statistics of my transactions, and toward the year end I always reflect on what I have done, how I compare to the rest of the agents in the market, and how I can improve. So for the sake of transparency, I thought I would post some statistics and my thoughts on the coming year. Keep in mind, I am not a part of a "team" and this is all my own production. This year, all of my transactions are in Metrolist MLS, so this information is easily verifiable...in 2017:

-I closed 38 transactions and closed $13,448,865 in volume. My lowest transaction was $95,000, and my highest transaction was $815,500. The average was $353,917 and the median was $334,500.
-65.8% of my transactions were past/repeat clients (which is amazing to me!) 34.2% were new clients.
-81.6% of my transactions were residential properties (condos, single family homes), 15.8% were multi-family properties (duplexes, triplexes, fourplexes), and 2.6% were other (commercial, land).
-57.9% of my transactions I represented the seller, while 42.1% of my transactions I represented the buyer.
-My typical residential listing sold for an average of 101.64% of its original listing price (meaning, 1.64% over the original listing price) in just 11.55 cumulative days on the market. The distinction of original and cumulative is important...original means even after a price reduction from the initial listing price, and cumulative means even if a property is re-listed or comes back on the market.
-My typical multi-family listing sold for an average of 101.4% of its original listing price (1.4% over the listing price) in just 6 cumulative days on the market.
-My typical listing had an average of 3.8 buyer offers on it!

Comparing these statistics to the overall Sacramento real estate market averages, I had a stellar year.

For one, to qualify for the Sacramento Association of Realtors Masters Club, a realtor must close $5M in transaction volume and a minimum of 8 closed transactions. Clearly I blew those numbers out of the water. I would guess that with 38 closed transactions and nearly $13.5M in volume I am likely in the top 1-2% of all agents in greater Sacramento.

My clients are all over the spectrum from first-time buyers, move-up buyers (those who sell their home and then purchase another home), investors, sellers of property they inherited via a trust or probate, sellers retiring and moving out of the area, sellers divorcing, etc. My average and median transactions at $334,500 and $353,917 are right in line with the average and median home prices in the Sacramento region according to Trendgraphix data. My high and low range indicates I work with a broad economic client spectrum as well, from those working with downpayment assistance to those among top-income earners in the region. Unlike past years, I did not close any short sale listings in 2017 (though I do have a short sale listing that is pending/approved, and scheduled close in 2018). Distressed properties are a very small part of the marketplace right now though just a few years ago they were the bulk of my transactions.

My listing statistics are also excellent...according to Trendgraphix for Sacramento County, the lowest average days on market for a single family listing in the last 14 months was 19 days on market, versus my listings at 11.55 cumulative days on market. My original listing price versus final selling price ratio is also outstanding as my listings sell for 101.64% above original listing price on average, versus the highest month of the last 14 months at 100%. I think these numbers are indicative of my strategic approach to listing property -- complete with pre-listing inspections, staging, repairs, professional photography, 3D virtual tours, and multi-faceted marketing.

Of course I hope to improve these numbers next year in 2018...so we shall see how that shapes up! If you think we would be a good fit to work together toward your next property sale or purchase, I welcome your contact via phone or email.