Ask Sacramento Real Estate Gal Answers!

Well, here we are again. This week has been a little crazy, so forgive the fact that this Ask Sacramento Real Estate Gal is a day late. Let's just go to the questions directly, shall we?

Question #1: I missed the booming market! I was considering selling my home last year, but reconsidered. Now I would like to move but I'm hearing that homes are not selling. Exactly how bad is it? - Home Seller Who Missed the Mark.

Answer:
Dear Home Seller, I'm sorry to hear that. The truth is, homes are taking longer to sell because of the huge amount of bank-owned inventory. But how bad it really is out there depends on your particular situation. The blanket statement I like to use is, if you don't have to sell, don't. If you can afford to hold on to your home for another three - five years, do so.
Real estate markets are cyclical and this one will come back. The question is not if, it's when.
However, if you just cannot afford to hold on and are not interested in refinancing (to get your money out) and renting this place out and moving, you would do well to talk to a Realtor and see if the price you can expect to get from the sale of your home is something you can live with.
Remember there are still areas (and price ranges) in Sacramento that are not affected by this housing slump. If your home happens to fall into one of them, you can weigh your options and decide the best one for you. Good luck!


Question #2: I am ready to get my hands dirty! Where can I find a cheap home to rehab and sell for a profit? - G.J.

Answer: Wow! I can see you're ready to go! If you are seriously considering flipping a house, I would recommend you do a thorough study of at least three books that explain the ins and outs of it. I would recommend that one of them be Flipping Confidential by Kirsten Kemp.
The second part of this equation is pure math and you must consider this question very carefully in this market - when the house is ready for sale, will you be able to afford to list the home under or at the same price as the bank owned homes in the neighborhood and still make a profit after expenses? If not, you would do better to wait a little longer.
As to where you can find these homes, go to the foreclosure auctions or the HUD website. There are also many online services where you can find out when foreclosed homes will be sold and go buy one at the courthouse. You can also check the county clerk recorder's office.
Good luck, but remember: Do The Math. First.

That's all for today! Remember to ask those questions, so I can feature them next week!