Been a While...

Well, hello! It has been a while and I'm happy to see you're back here. What can I say? Life got in the way of blogging... but you can see my market updates every day almost at Sacramento Home, so if you miss me, just hop over there and take a look!

So, the latest on the Sacramento real estate scene? I wish it was the same old, same old. I really wish it was something. Lately though the market seems to have gotten so lackadaisical that it refuses to get people (homebuyers and homesellers alike) interested in it. Even tenants seem to have trouble hanging on. We should know. Our tenants have decided to move out - get this - after fifteen days in the new home. Something between the husband and wife. And relatives. But they weren't on a lease, so what can we do? Just say okay. End of next month you're free to go.

Hmmm... this is going to be a looong summer.

Rent Slashed!!! Open House this Saturday 11 to 1!

If you have been a regular visitor to this website, you should know that I have a rental home in Colonial Village that is looking for a tenant. Our last tenants were great - lived there for almost two years and we miss them.

Anyway, if you're interested, here's a link to the 3 bedroom 1 bath home in excellent condition. It's ready to move in now! So call me or email me for more information and to schedule a showing.

Also, I should mention that if your home has been foreclosed, we will still consider you as tenants if everything else on your credit report looks sound. We understand the financial hardships homeowners have been going through and will not hold a foreclosure against you if everything else looks okay.

For more information about this rental, you can reach me at 916-712-4255

Yes, We're Still Selling Homes!

As Realtors and brokers cut down massively on their advertising budgets lately, our clients are beginning to wonder if we're still selling homes. Mention to someone that I'm a real estate broker and the look on their face changes. "How IS the real estate market?" is always the next question.

Look, it isn't a great market if you're a seller or a homeowner. I know. I have checked comps on my houses and I don't want to see them for a long, long time. But then, my brother isn't interested in looking at his stock portfolio either. For now. And he's a CPA and a very savvy investor. No one's happy right now.

Oh wait, did I say no one? I'll tell you who's happy. Home buyers are happy. They're more than that - they're ecstatic. And they should be. One look at our tenants' faces when they just bought the house of their dreams could tell you their story. And yes, they deserve it. Excellent care and not one month of missed payments.

So yes, if you're a homebuyer, wipe the worried look off your face. You're going to be just fine. And quit asking how the market's doing. We're still here. We're still selling homes! And it's a great time to buy!

Real Estate Article Worth Reading

At a time when real estate prices have plunged - farther down than most people anticipated - it might seem like a good idea to just get rid of the mortgage payment. A disinclination to be in any kind of debt is one of the goals of most people but you might want to read this article before you get too hasty with paying off that mortgage. Then decide for yourself if it's really, really that high on your list of priorities.

Forget real estate, look towards men's underwear!

This one gave me my first laugh of the day, so I'm sharing it here. Those of you who are homeowners might find this interesting. As we know, it isn't the homebuyers or even the home sellers and potential home sellers looking for signs of the market recovering. Home sellers and home owners believe the market will look much, much better in the coming six months. (Whether this means they will put their homes up for sale has to yet be seen.) The Sacramento Bee has already reported that median sale prices of real estate are beginning to stabilize in Sacramento.

But if you want to know the real state of the economy, forget real estate! Says Michael Brush of MSN Money, look towards men's underwear. Since they're not easily seen (thank God!) most men put off buying underwear during a recession. And that can give you a clue as to where the economy is headed.

Interesting read.

It's Here!

If you're a novice real estate investor, the market is great for being a landlord or jumping into investment property. But, do you know the landmines to avoid? No? Then, pick up my book "Landlord Landmines." Available NOW at Amazon!

Foreclosure Alternatives Program Details Announced

The California Association of Realtors has just sent out news that new details have been announced under the Foreclosure Alternatives Program. According to the CAR email, the program "requires that prior to proceeding with a foreclosure, servicers must determine if a short sale is appropriate." The program is in place until 2012.

Incentives to lenders in this program include:
- $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure
- $1,500 for borrowers/homeowners to help with relocation expenses
- up to $1,000 toward the cost of paying junior lien holders to release their liens

As we have seen in the market updates, it is the short sale inventory that worries everyone and could hurt the return of a normal real estate market. If this program works, it could just be the answer. It's too soon to tell, however.

The FAP also claims straightforward and streamlined documents and procedures in dealing with short sales.

Watch that real estate inventory!

The Sacramento Bee has today reported that inventory in the Sacramento real estate market is down to 2005 levels. After the peak in listed homes in 2007, inventory has been declining over the last 20 months. We have already been covering these market updates at the company website, so it's no surprise to us.

Could this be a recovery or the beginning of a recovery? REO listing agents don't believe so because they expect more bank-owned homes to be listed beginning June 1st. Banks don't want to flood the market with REOs all at once because the price drops will be scary. So with banks not listing REOs and individual sellers not willing to sell if they have to, inventory has shrunk quite a bit lately.

We'll just have to see what happens in June to get a better picture.

I love my job!

At the risk of sounding like I'm tooting my own horn (a little too loudly!) I want you to read this post on Sacramento-Home recently about me taking over as broker of record.

I love my job. Oh wait, did I say that already?

For Sale by Owner?

I came across this while surfing the internet. Thought it was worth a smile on a Monday morning. Check it out!

Want a Recovery? Look after the Investors!

I came across an excellent article on Yahoo today that brings up the all-important real estate investor and his role in a potential real estate recovery. I couldn't agree more with what the writer, Bob Hunt, says. Go ahead and read the entire article to see if this makes sense. He brings up a valid point in that most sales today are in the lower range of prices. If there were some way to attract not just the homeowners but the investors into the real estate market, the scene might look very different a few years from today.

Unfortunately real estate investors don't get the respect they deserve. We seem to be lumped in with "real estate developers" and "big business" or "those rich people that kill small business." Most real estate investors I know are middle-class hardworking people that just want to save enough for retirement. Maybe we need an image overhaul!

Real Estate Quote of the Month

The Englishman, hidden behind his hedge or wall, is not interested in his neighbor’s house, and the idea of wanting to read about houses bought, sold, or built by total strangers is not even funny; it is merely absurd.... But to an American, it is not only important, it is comforting, it is gratifying that other people are improving your home town; even people who have no personal economic stake in the rise of real-estate values feel the same kind of interest that makes a motherly woman smile with genuine amiability on the children of total strangers. The very linguistic difference between “house” and “home” is significant. All Americans who live in houses, not apartments, live in homes; the Englishman lives in his home but all his neighbors live in houses or flats.

D. W. Brogan in The American Character.

A real estate recovery for Sacramento?

Those of you who follow the real estate market updates I write over at the Elite Properties company blog already know that some areas in Sacramento have hit bottom and have already begun the recovery. But Sacramento real estate as a whole seems to be taking a while.

This article published today suggests mixed information but it's worth a read.

REO Buyers May Pick Title Company

If you're a homebuyer in today's market, the deeply discounted real estate is definitely there. But if you're distressed by the fact that sometimes the bank wants to call all the shots and you seem to be playing only their game, this news might comfort you a little.

The California Association of Realtors claims that "new language" in AB 957 - Choice of Escrow Bill - "protects fair negotiation over settlement services" like title and escrow providers. So basically, if the seller wants to pick a specific title company they will have to cover title and escrow expenses.

So if you're a homebuyer out there, don't assume you cannot pick title and escrow companies. The new bill claims to impose new penalties on banks who violate this law.

Announcement

I'm very excited to announce that as of Monday May 4th 2009 I am taking the position of Broker of Record at Elite Properties. Having worked at three different brokerages over my real estate career, I believe at Elite Properties I have found my niche, as have our other agents that continue to do a fantastic job for our clients in spite of the pressures of this very different real estate market.

Elite Properties has always carved its own space out of the mass of other real estate brokerages out there. Our agents are hard-working, detail-oriented and provide exceptional service. Our competitive advantage has been and will continue to be giving the clients information about choices that affect them so that they can make an informed decision.

I am honored to be part of this team of self motivated and strong individuals and hope you will continue to come back to us with your real estate needs year after year.

Thank you!

Good News in Real Estate?

Maybe! Read all about it here.

The Carnival of Real Estate is Here!

And since it is tax time, I've decided to pick three entries as winners and divide them according to ease of reading and understanding. I call them the 1040s of real estate.

In third place, we have the 1040EZ. Not great for deductions but it sure gets the job done quickly and easily. And for that, the winner is Rev-N-You for tips on How to Deal with Late Paying Tenants.

In second place, comes the 1040A. Slightly more complicated, but hey, at least you got your taxes done. The 1040 winner is Andrew Schultz with What do your Rentals Cost You?

And in first place comes the 1040. A long form, but you know it accounts for every cent you get back and everyone wants bigger deductions (and more of them!), right? The 1040 winner is Pat Friedl with his post Myths that can Sink New Real Estate Investors.

Enjoy! And remember to file your taxes!

What does a Real Estate Broker do?

As I sit here gloating over the fact that I passed my real estate broker exam (at the first attempt - yeah!) I seem to be getting quite a few questions from my readers regarding the difference between a real estate salesperson and a real estate broker. "Weren't you already in real estate?" they ask. "I thought you already were a broker." "How can you sell real estate without a broker's license?"

Okay. I will answer. Besides the fact that Realtors throw around a lot of acronyms most people don't understand, ("Send me over the TDS and the FIRPTA ASAP or we're going to get a 24 hours NTP!" If you understood all those acronyms, chances are you are a Realtor) we also tend to assume the general consumer understands agency and laws and regulations surrounding them. They have been so drilled into our heads by the time we pass our real estate exams that we think everyone knows.

Okay, so here goes. A real estate salesperson can technically only sell real estate when employed by a broker. The broker is usually the only person in a real estate office who is able to sign into an agency agreement with a client. So, in effect, the real estate salesperson (who also needs a license, albeit a "junior license" so to speak) is an agent of the real estate broker and works under his instructions. The salesperson's license is not effective unless employed by a real estate broker.

A broker on the other hand may sell real estate on his or her own without being employed by a real estate brokerage. A broker may also hire real estate salespeople of his own. There are some real estate brokers however who do choose to work with other brokerages as "associate brokers" in that they in effect become salespeople in their job descriptions even though they keep their broker's license.

There also seems to be some confusion over whether the term "Realtor" applies to all real estate agents or the broker alone. "Realtor" is a term adopted by the National Association of Realtors. Any real estate agent (broker or salesperson) who is a member of this trade group is a Realtor and follows a code of ethics. It is an effort to standardize real estate and also provide important business tools used in everyday real estate activities. Usually, if a brokerage is part of the National Association of Realtors, all its salespeople are also required to pay their dues and are each individual members (Realtors) as well.

Hope all of this helps clear up some confusion regarding real estate salespeople and brokers.

I am now a Real Estate Broker!

All righty, then! Cheers!

Landlords: Read This!

Coming Soon! Here are some reviews of what you should be reading coming out soon and available on Amazon. Check back often!

"Landlord Landmines represents the PERFECT balance to all those "How to get rich investing in real estate" books! Only the IRS thinks being a landlord is a "passive" activity! What do they know?
"Purva has written her experience in a light, often funny style, that's easy on the digestion, concise, with a ton of hard earned insights. From me to you: Get a credit report EVERY TIME! People who pay their bills on time will pay their rent on time. Good reading!"
- Huck Ferrill, Sacramento mortgage broker.

“This little book points you in the right direction.
“I like this little book - it contains a lot of what to do and what to avoid. If I was a beginner, I would take it and put tabs on some of the pages, put it in a three ring binder, then add to it whenever something changed or I discovered a great way to do something - Sort of like mom's old cookbook!
“I think the book offers a lot of advice to prospective landlords. You do not have to be certified to be a landlord, but you do need to know a lot about a lot.”
– Michael Mast, landlord for over three decades.

“As a real estate investor herself, Purva and her husband, James, went through their share of landlord horror stories. Landlord Landmines is the book Purva wished they’d had when had when they were getting started. Landlord Landmines is written both from her own experience and from the experience of many other landlords who she interviewed for the book.
“Forget the theory and the spreadsheets — Landlord Landmines puts together decades of collective experience and stories from real investors, who teach you what you need to know and what you need to avoid.”
- John Lockwood, real estate broker of Elite Properties.

Want to know what to avoid without all the jargon? Here’s a simple straightforward book that tells you – without the hype and the legalese! And it might just save you thousands of dollars in mistakes! Check back for details!

If You Live in Folsom...

...and are a homebrewer, you might want to head over to the Brewmeister for your supplies. Today, we were over there to catch a little brewing session in the parking lot - so this notice is a little late. However, besides the fact that real estate is fairly stable in Folsom you homebrewers in Folsom have a lot to celebrate!

You can visit Brewmeister's website here.

It's about January, but still...

... if you're interested in the general state of real estate you might want to read this article on MSN. And remember that real estate is local. For the most up-to-date (and most local) market reports, go to the blog at Sacramento Home.

Sacramento Drivers: Take a Breather!

I don't know if it's because I drive in a small town lately - yes, Pollock Pines is small - about 5000 people! It's been hard lately driving in Sacramento. Actually, no, it's not because I drive in Pollock Pines! And although I hate the drivers in Sacramento tailgating me every time I head into the city, here's my take: have you seen the new lanes being put in? Any doubt population is going up? And if the population goes up, what do you think real estate will do?

Hmmm....

Living in a Box?

This might give new meaning to the term "living in a box!"

Check it out!

Dear Real Estate Broker Exam

Dear Broker Exam,

I know, I know. You're supposed to be tough. After all, a broker's job is a tough job. It involves - amongst keeping track of all the salespeople in a real estate office that are out showing property & managing mounds of paperwork, not to mention storing them for gasp! three years! - keeping a real estate brokerage out of court. But must you be so damn tough?

On the DRE website, you sound almost like a dream. 200 questions. Two and half hours in the morning, then a break, then two and a half hours in the afternoon. Get 75% right and you can get a license! (Well, unless the FBI doesn't clear your fingerprints. But then, getting a license is the least of your worries, holy moley!) And they're multiple choice. Should be a breeze, right? Wrong.

Even studying for two months and doing innumerable mock tests had not prepared me for your fury. And from the conversations outside the examination room during the break, no one else quite tamed you either. A flurry of flash cards and stacks of study materials flew out of purses and bags with such vigor that examinees forgot to eat. Really, broker exam, you are quite the anorexia-creator.

And now as I reflect on the five hours on my brain being bent every which real estate way and then some, I'm wondering about my results. Four days is an extremely long time to wait. My refrigerator is still covered with sticky notes with supposedly meaningless stuff like "43560" and "5280." But I'm not taking that down just yet. Not just yet.

My dear, dear broker exam... you're finally done. All I know is I couldn't have studied any more. Not a minute more than I did. Now to see if you liked me as much as I liked you!

Sincerely,
Sacramento Real Estate Gal.

Landlord Landmines: Another Review

We have another one! This is the third review of my upcoming book "Landlord Landmines" and it comes from Huck Ferrill, a mortgage broker I have worked with very closely in the past for my clients as well as for my own mortgages. Read on!

Landlord Landmines represents the PERFECT balance to all those "How to get rich investing in real estate" books! Only the IRS thinks being a landlord is a "passive" activity! What do they know?

Purva has written her experience in a light, often funny style, that's easy on the digestion, concise, with a ton of hard earned insights. From me to you: Get a credit report EVERY TIME! People who pay their bills on time will pay their rent on time. Good reading!

And remember to buy a copy when it comes out!

Broker Exam Next Week!

Yes, you read that right. Your very own Sacramento Real Estate Gal is now going to be a real estate broker. Which of course means I can't blame my mistakes on anyone. Ha. Just kidding.

So if you've been wondering where I am and what I've been doing, this is part of it. As of now, I can tell you off the top of my head that there are:

1 mile = 5280 feet
1 acre = 43560 square feet
1 square yard = 9 square feet

....and that's just it for the math! Anyway, studying for this test has been very interesting. If anything, it has renewed my faith in real estate as a long term investment even more!

Home Sellers: Must-Have Product

If your home is currently on the market, chances are you are still living there and wanting to every home buyer interested in buying it or at least making an offer. If you have pets and are a home seller, there's no product I would strongly suggest more than the Pledge Fabric Sweeper for Pet Hair.



I picked it up today along with the rest of my groceries and spent the next half hour picking up an entire cat from my couches and curtains. Okay, just kidding! But still, this product works. I've been so frustrated by cat hair on my couch when guests come over, I can just imagine being a home seller with pets and a current listing on the market!

Try it! It's an essential for home sellers! Realtors, this might be a good gift to give your listing clients as well. I know I will!

Avoid a Real Estate Disaster!

If you haven't given up yet on the real estate market, obviously you're here to stay. Learn what mistakes to avoid today and in the future when the market turns around. Read my posts on Sacramento-home "How to Avoid a Real Estate Disaster!"

Real Estate Broker Exam is Work!

If I had been really smart, I would have got this out of the way before I had a baby. Oh, the things we learn as adults!

However, I am studying like crazy at this exam and learning quite a bit of cool stuff which will be part of my real estate trivia for months to come! But first, some trivia of the real estate broker test in itself: for one, did you know that you must get 75% of answers right to pass it?

Yup! No excuses. I suppose it's because there's no one else to blame in a brokerage when things go wrong but the broker. You're forgiven if you're a salesperson, but as a real estate broker you'd better know better!

Wish me luck!

Things the Current Real Estate Market has Taught Me

Haven't you just been waiting for this post? Chances are if you are invested in real estate in any way, or are even just a Sacramento home owner, you have learned a few things about the real estate market. Here are a few I have learned. Enjoy!

1. Opportunities are always around the corner

There is never a need to be hasty. Yes, I DO mean that. But maybe I need to qualify that with the statement "...when you have educated yourself on the market." I have had clients who made offer after offer on short sales without them owning a home and then lost interest in the process. For them, the opportunities are still there, but they refuse to see them. So the trick is really in your vision. Get that right and you will see what I mean.

2. When the you-know-what hits the fan, EVERYONE (who hasn't done anything)thinks they're smart.

So-called "experts" come out of the woodwork when things look bad in retrospect. Hindvision is always twenty-twenty. Who cares? Ummm, I guess it makes good news. But it's your money on the line. Listen to your gut. Get some education. Look at historical data. If you're wrong, at least you'll know you chose your future. Which is almost impossible to say with the so-called experts. They avoid errors, but they also sidestep successes. If the only thing you can say for your life is that you missed the potholes, that's a sad life, indeed. Remember who these people would be in the old days: the guys that walked around with signs that said "The End is Near!" around their necks!

3. Always bet against the crowd

Okay, so maybe this is an elitist idea but it's the only way to ensure your wealth. Ask any investor what they do and chances are they'll answer with some version of Warren Buffett's idiom of trying to be greedy when others are scared and scared when others are greedy. Think about it.

4. Real estate isn't always the popular investment, but it's a damn good one!

No investment is perfect. But real estate is great because it is so durable. Remember how often you can check your 401(k) and IRA? Change them around? Constantly until you have no idea in the world what you're invested in? Well, you can't do that with real estate. So you pretty much have to sit tight. For maybe a lifetime. But it's worth it. Some of the most stable investors in the world swear by their real estate investments. While it does require work to get the houses rented (if that's what you're into) or researching investment properties out of state, or flipping homes you've bought at distress sales, or orchestrating a 1031 exchange, real estate can be an extremely fulfiling and profitable investment.

Good luck! And keep the faith!

I Told You So!

If you've been a reader of the Sacramento Real Estate Gal for a while, you'll recognize this as old news. However, it's good to know. But remember, Sacramento Real Estate Gal called it first!

If you're looking to escape Sacramento...

...it's snowing in Pollock Pines.

If you can't tell, that's two feet of snow. I would know. I helped shovel it!

Landlord Landmines Review #2

Overachiever that I am, I've decided to squeeze in as much as I could into the shortest month of the year! Besides studying for the real estate broker exam, I'm also working on the final draft of my very short (but very helpful) book called Landlord Landmines. Here is another review from a landlord for you.

I like it. It contains a lot of what to do and not to do. If I was a beginner, I would take your book and put tabs on some of the pages, put it in a three ring binder, then add to it whenever something changed or I discovered a great way to do something - Sort of like mom's old cookbook! I think the book offers a lot of advice to prospective landlords. You do not have to be certified to be a landlord, but you do need to know a lot about a lot. This little book points you in the right direction. - Michael Mast, long-time landlord.

The book is scheduled to be out in Spring 2009 and will be available on Amazon. To get more details, head over to Landlord Landmines.

First Time Homebuyer Question

I received this email the other day and I wanted to answer it here because this is an issue that comes up often. Read on!

Dear Sacramento Real Estate Gal,

I thoroughly enjoyed reading your posts because it really helped point me, a first time homebuyer, in the right direction. I have a question for you that I'm hoping you would be able to help me out with.

I started looking at houses about 4 months ago and am working with a realtor (family friend) in the Contra Costa county. However, I live and am looking in the Alameda county and I'm not sure if he has my best interest at heart.

Here's the situation:

I have found a house that I'm really interested in. I saw this house almost 2 months ago and put an offer in at the beginning of December. At the time, list price was $325k. My realtor told me that the selling agent had 27 other offers and that I'd have to offer above asking price if I wanted to be competitive. So I put in an offer of $350k. After I put in my offer, the selling agent told my realtor that the bank had picked someone to work with. In the meantime, I kept checking up on the house and noticed the house went active again at the end of December. So I asked my realtor to contact the selling agent to find out what was going on. The selling agent told my realtor that the house was back on the market and so far he's gotten another 15 offers. So my realtor re-submitted my offer, but I have not heard anything since then. Then a couple days ago, I checked up on the same house listing again and noticed that the asking price had dropped to $309k.

So now I'm confused. First of all, I offered above the asking price and it wasn't good enough for the selling agent. Then he said the bank had a pending sale, but then the house went back onto the market. So I resubmitted the same offer and I didn't hear anything back. Now the selling agent has lowered the asking price. I can understand that the selling agent is trying to look for the highest bidder, but why then would they drop the price on the house? This also leads me to wonder if my realtor is doing all he can to help me out.

If you have any suggestions, insight, or ideas, I would greatly appreciate it.

-S.T.

Here's what I wrote back:

Hi, S.T.

I’m glad you’re enjoying the blog and I’m providing useful information to you and others. I really think in this situation it is not usually the agent’s fault. It is normal for you to worry – buying a home is very stressful and sometimes you can wonder if everyone is really on your side. But Realtors don’t get paid unless you buy a home, so we really have no reason to keep you from the home you want. The biggest error I think your agent may have made is not assuring you enough of being on the same page.

I think the person here that is at fault is perhaps the bank. I have been in situations where the bank keeps dropping the price so they can see multiple offers. Then they pick the best one and try to work with it. if it falls through, they don’t go back and look at the others because they never put anything in back up positions and assume the buyers have moved on anyway. Technically, your offer is only good for 3 days, so they assume you have moved on.

Your best recourse if you are really in love with the home is to resubmit your offer and let your agent know that even if your offer is not selected you would like to be kept in back up position. If not, tell him you would like to write as many offers as necessary (as many times the home comes back on the market) to get into escrow. Also, it would be a good idea to find out why the home is back on the market. If it was buyer financing, that might be okay, but if it was related to inspections, you would want to know and save yourself some time and money.

I wish you luck. I’m posting this on my blog since many buyers have this question. But I will not use your name to protect your identity.

Hope this helps you first time homebuyers looking at REOs right now!

Real Estate Good Ideas? Yes, There Are Some!

Just so you know, I am still writing about real estate. Read my latest post about Good Ideas in Real Estate at Sacramento-Home. I have another one coming up tomorrow as well about good investing ideas in real estate.

Citrus Heights Real Estate: December 2008

I mentioned a while ago that there is anecdotal evidence that short sales are beginning to sell and now we are beginning to see that in the numbers as well. Citrus Heights, for one, has seen a 600% increase in short sales year over year! Couple that with a 129% increase in foreclosure sales (REO sales) and you have the making of a perfect storm of home buyers in Citrus Heights.

Non-distressed properties have suffered a decline of 35% year over year, and that is not surprising seeing the fallen prices. REOs and short sales are, frankly, just better bargains today. Overall sales are also up in Citrus Heights by 78%.

This is the reason: average sold price per square foot is 28% lower than it was last year at the same time. Sold price per square foot has gone from $175.96 to $127.01. Average sales price has also dropped 27% from $250,639 to $181,844. Median price has dropped from $250,350 to $180,000 - a drop of 28%.

Inventory is at 4 months and 3.5 months. If you're considering buying in Citrus Heights, this might be a good time. I was showing homes in the area last week and for all the complaints I hear about it being "too busy" or "too noisy" I should mention that there are some areas within Citrus Heights that couldn't be quieter! Take a look, you might be surprised!

My Real Estate Broker's License: the Trials

I suppose the title could have read "Why I Love Working in a Small Real Estate Company" but it wouldn't be as catchy. For those of you who know, I'm currently studying for my real estate broker's license. With the market being slow and with all the time on my hands during my almost-five-month-old's nap time, I decided adding another feather to my cap was a good idea.

At first sight, studying for the broker's exam is a lot like studying for the real estate salesperson's test. There is a lot of theory and many laws to know. And it teaches you almost nothing about how to deal with the real world with real people and about how everyday real estate transactions are put together. Nevertheless, it is interesting and a good refresher on the basics of real estate.

One requirement though is documenting real estate sales transactions in the last two years as a licensee. And this is where your current brokers have to vouch for you. I've worked with three real estate brokerages in all - two big brokerages and one small company - Elite Properties. Well, guess who was quickest in getting me what I required and who put me through three days of phone calls and unanswered voice messages and general heartache.

That's right. Now you know why we're better. Like a famous commercial said, We try harder.

Update on First Time Homebuyer Post

This just in. I had written earlier about the USDA Rural Access Program and then, just last week, I received this email from Huck Ferrill, our contributing mortgage lender.

Apparently the 100% program has enjoyed so much success that USDA has suspended it until they've appropriated more money. Best guess is March, 2009. We will keep you informed!

However, if you are a first time homebuyer, there might still be a program out there for you. So give me a call and I will help you get into the home you want and pointed in the direction of a good mortgage that fits you!

Sacramento County Real Estate: December 2008

Well, here they are: the numbers. Obviously, with the holidays and the general gloomy environment in real estate, nothing much changed this December over last month. Obviously, the bargain hunters are still out there, though, as evidenced by the 106% increase in sold home year over year.

A total of 1916 houses sold in December of 2008 as compared with December 2007. The real difference though is in the number of non-distressed homes: just 329 this year as compared with 450 last December. That's a decline of 27%. Of course, sales of bank-owned homes are through the roof. 1385 REOs sold in the month of December. But wait... here's the real caveat: 200 short sales also closed escrow. That makes almost 83% of all residential units sold distress sales! No wonder no private seller is interested in putting his house on the market.

Some averages: sold price per square foot for Sacramento county is now at $120.64. Average sales price is now at $192,773. That's a drop of 31.6% for price per square foot year over year and a drop of 36.3% for average sales price year over year.

First Time Home Buyers: New Loan Program

I am hearing from so many people lately that they feel like homeownership is actually within their reach. Just recently, some friends of mine in the Bay Area bought a home and are absolutely thrilled with it. In their own words:

We love the house. We are never moving. If something needs to change, we'll just work with it.

These were sworn tenants by the way, buying their first home in their fifties. Sigh! I love hearing such stories!

But what I hear most from first time buyers is that they don't have enough for a down payment. Although with an FHA loan, the down payment is small (3.5%) there is a program called the USDA Rural Access which requires no down payment and no mortgage insurance! It is not for refinances, as I just found out, but for purchases only in the technically "rural" areas of Cameron Park, El Dorado, Shingle Springs and so on along Highway 50.

So if you're considering buying anywhere along Highway 50, give me a call and we'll see if the home qualifies! I should check with Huck, our lender, but so far I don't believe this program is for first time buyers only.

In Addition to REOs...

... more short sales have begun to sell. Now that I've been watching the numbers over at the Elite Properties blog for the tri-county area as well as specific neighborhoods and here are some trends I've begun to notice throughout the end of 2008.

REOs are still good deals
We have been seeing some excellent bargains as REOs on the market. But be forewarned, some of these are going fast. Especially if they don't require much work to be liveable, these bank-owned homes are being picked up. The fastest to get sold are - of course - the model homes and others built in the last five to ten years. Banks are still pricing homes under the market and encouraging multiple offers.

Short sales are beginning to sell
Around the beginning of last year, we saw many home buyers make offers on short sales, but banks were taking a month or more to approve them. Not any more. The numbers seem to suggest that twice or even three times the number of short sales that sold around the beginning of the year are selling today. Whether they are the same ones, I can't say. Statistics have their limitations and this is one of them.

Some areas are showing signs of improvement
Even though Sacramento county as a whole seems to be bouncing around the bottom, there are areas and neighborhoods within it that seem to be showing signs of recovery. Some that come to mind are Fair Oaks, Greenhaven, and downtown Sacramento. This change seems to occur every time the REO inventory in any little pocket dries up and one of the non-distressed homes sells.

So there you have it... the three big trends toward the end of 2008. We'll see if they carry into the new year!

Real Estate Quote of the Month

You simply adapt your strategy and techniques to whatever new market conditions are emerging. Savvy real estate investors ignore the media chatter about bubbles and peaks, hard times, and depressed markets. Instead, they work the available opportunities - no matter what type of market they face.

- Gary W. Eldred, investor, author.

Real Estate Resolutions I Intend to Keep

It's resolution time! And while I remember saying sometime in college - during my smart alec days - that my resolution was not to make any, I'm breaking that rule right now to make some. So here are a few that are top on my list of real estate resolutions to keep in 2009:

1. I resolve not to constantly check comps to get an idea of the value of my house or my rental properties. I will use the Metrolist MLS for the purposes it was invented - as a way to search for listings for my clients.

2. I resolve to love my home - flaws and all - and not fall for any home I am showing my clients. Yes, even the million dollar ones.

3. I resolve not to drive my husband insane trying to get my house to look like either the ones on HGTV or the new homes.

4. I resolve not to watch so much HGTV.

5. ...or Property Ladder.

6. I resolve to write this blog at least every other day.

7. ...and write it for my readers, not the Chicken Littles.

Well, there they are. Pretty good handful there, huh? If buying a home is one of your resolutions this year, be sure to get in touch with me!

Happy New Year!

And - along with everyone else - I'm hoping this is a good year for real estate. I must say with long term mortgage rates falling, there seems to be a renewed interest in real estate just lately. While this information is only anecdotal right now, I imagine the numbers will start bearing them out.

Anyway, I'm back at work, so please do come back to read more features!