Rental Available October 1st!

Don't miss your chance to rent this cute home with a big, shady backyard. Call for more information 916-712-4255 and come by to see it Sunday September 30th and fill out an application!

2 spacious bedrooms, 1 bathroom and a fireplace with separate dining room. Hardwood floors, fresh paint and great landlords!

Address: 4431 45th Street, Sacramento, CA 95820

You can see more details here

Rent is $1050 per month with $1200 deposit. Water and garbage included in rent!

Call for Submissions!

SACRAMENTO REAL ESTATE GAL NEEDS YOUR HELP!

I am currently working on an e-book which will contain axioms for landlords to follow and anecdotes to back them up. If you currently own investment property and have advice, stories (real, not made up), please submit them as comments to be featured in this exciting upcoming e-book!

Question: Why do I have to "prequalify" before I go out looking?

Answer: Almost all prospective buyers that I come in contact with, wonder about (and some resent) the fact that loan prequalification before one goes shopping is a necessity these days, unless the buyer plans to pay cash. Even in a cash deal, a seller will often want the purchase funds to be verified before they accept an offer. For all the rest of us, the seller is almost certainly going to want a lender letter stating that they've investigated the buyer's financial profile and are satisfied that he/she will be able to obtain the financing they desire.

Even more important though, are the benefits that early prequalification offers to the buyer. After all, why would one want to go out looking at a bunch of houses, get an offer accepted, only to find out that they can't get the financing they want, usually for some obscure reason known only to the bank? Approval guidelines change daily, in fact, hourly lately, considering the well publicized, now over-publicized "mortgage crisis." So, even though a buyer may think they can afford a given payment, have great credit, good income and money in the bank, it's entirely possible that a lender will not approve him/her for financing.

Here's an example of what I mean: Lawyer Bob (fictional person in case there's a lawyer named Bob reading) has worked as an employee for a major insurance company for 10 years, making a six figure salary. He decides to open his own practice at the behest of the many potential clients he has met, and the practice explodes with business. Six months later, he's making twice the monthly income of his former salary, has all his bills paid off, beautiful credit, and money in the bank. So he decides to buy a bigger home consistent with his higher financial/professional profile, and for the major tax deductions that the mortgage interest and property taxes offer (a GREAT reason to own a home by the way). Because he has the money and is a conservative guy, he plans to put down 25% of the purchase price. Will he get the financing he desires?

Probably not! Most lenders require self employed borrowers to be able to show a two year track record of earnings. Even if they don't require verification of income ("stated income") they will require that he have been self employed for at least two years as evidenced by business licenses, a letter from his CPA or whatever. Hopefully he hasn't sold the house he already owns before he goes out looking...
Bob could have saved a lot of time and effort by prequalifying and it would have been a lot less expensive (free?) than what he's charging his clients....

On a more positive note, prequalifying means that a prospective buyer gets to talk to a lending professional who can not only sort through that person's particular profile to determine if a loan is possible at all, but also guide them through a selection process to the product that will best fit the buyer's needs. For example, there are probably a dozen or more ways to finance a home with nothing down. Each program has its own peculiar requirements and some are significantly less expensive than others. Unless the buyer has a lot of time and expertise to do the research, there's a good chance he/she will fail to find the best fit on his/her own. Better to talk to a lending professional who can walk them through all the benefits and drawbacks of each. It's a lot quicker, more efficient, and in the end, you can shop with the certainty of having financing when you need it.

Sacramento County Market Update - Fair Oaks (95628)

There's something about Fair Oaks that makes people think they have arrived. If this is where you want to live, there are some bargains there waiting for you right now.

Compared to last year (2006) in which 342 homes sold in Fair Oaks for a median price of $430,000, this year so far 258 homes have sold for a median price of $419,950 - a drop of 2.33% in median prices and of 24.6% in sales!

Condos by comparison have fared a little better. As compared to the 30 condos sold last year, so far 32 have sold and 6 more are pending sale. The median price for condos has dropped from $294,000 in 2006 to $221,682 so far this year.

There are 22 condos for sale between $149,500 to $338,500 and 256 single family residences for sale between $214,900 and $3,350,000.

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!

Downtown Sacramento Building Update

Think $250 a square foot is too high?

Consider this news story from the Sacramento Bee which suggests that downtown Sacramento is booming. Newly constructed lofts are selling for between $400 a square foot and $540 a square foot.

Also read: Downtown Sacramento Headed for Change?

Sacramento Real Estate Gal Answers Tomorrow!

Get your questions in today. Tomorrow, we are dealing with home sellers and what they need to do to get their homes sold. Also answering questions from some investors.

Check back!

Real Estate Orple of the Week #2

Hi there! NutHound Quincy reporting here. And no, I don't want my picture on here yet. Let's just wait to see if I make it to the Hall of Shame for having caused the real estate "bubble" before we deal with that.

Well, Chicken Little 1.0 is at it again!

This is an interesting one because it was a direct jab at Purva Brown's clients. You see, just because someone has information doesn't make them know everything.

This was a direct comment at a home Purva Brown sold recently:

"Sale [sic] history:
07/11/2007 - $322,000
11/09/2006 - $326,000
The previous owners lost money, but they got lucky with fools bailing them out. As an investment, it absolutely sucks."

Hmmm... nice. However, first of all, the previous owners did not lose money. They had bought it for a lot less and had the home paid off. Secondly, the $326,000 that our friend so bravely researched was a home equity line of credit - which showed up on tax records as a mortgage but was not the purchase price. And it had not been touched. At. All.

The sellers actually walked away with a check for $300,000 plus some.

As an investment it absolutely sucks??!?!? Hey, I'd make sucky investments that got me $300,000 plus all day long!

Come back next week - yes, we actually have a Chicken Little 2.0! Believe it or not!

Also read Real Estate Orple of the Week #1

The Many Perils of Being a Landlord

Now, it doesn't happen often that all your houses are vacant and you're having to get tenants, but by a certain alignment in the planets and that one star that hates you hanging on the horizon, it can.

So be forewarned.

Nothing to panic over, but it throw you off for a while. That's just what happened to me recently, so now we're scurrying around trying to find people that want to rent our two houses:

2 bed, 1 bath - $1050 a month and $1200 deposit - see it here!

3 bed, 1 bath - $1300 a month and $1200 deposit - see it here!

Both are close to Fruitridge and are in impeccable shape. I will have pictures and flyers here and on Craigslist soon.

New Real Estate Orple Coming Soon!

They're at it again - Nut Hound Quincy has got a new one for you.
Stay tuned.
He might just let me publish his photograph this time.

Who said I couldn't hire a celebrity?

Thanks to Jay Thompson - Phoenix Real Estate Guy where I first saw this! You can visit his site here.

Downtown Sacramento - Headed for Change?

It's interesting the kind of remarks that catch your ear sometimes. A long while ago, when I was visiting Fresno, I overheard someone call Sacramento "a farm town that thinks it's urban." And then a little later, a friend of mine complained that downtown Sacramento was "dead, dull and boring." And then of course there was that article about Sacramento being so provincial!

All that might be set to change over the next few years.

I have signed up for updates on quite a few of the luxury condominiums being built in the heart of downtown Sacramento and I must say I am quite excited about them. I like the idea of being able to walk around and not have to get into the car to go have dinner with friends or shopping. And since these residences are in downtown, they might be just what some of us need to feel like we live in a city!

500 N Street boasts upscale shops, restaurants, movies and shopping are a stone's throw away, commuter trains are walking distance. They have a library, a fitness center and a business room. Aura Condos go a step ahead and offer spa facilities and wine and cigar lockers. Epic Tower plans on having two signature restaurants and a cafe and a wine cellar.

Anyone besides me feeling like they have several more lives to live?

You never know...

... who you might find online. I thought I was easy to find on Google. Until I googled my best friend. See for yourself!


Well, she didn't win. But she sings well, doesn't she?

New Features!

If you haven't checked lately, Sacramento Real Estate Gal has added more features! Be sure to visit Ask Sacramento Real Estate Gal for answers to your real estate questions and Sacramento Mortgage for answers to questions related specifically to residential mortgages and financing. Email me or submit a comment with a question and I'll be happy to feature your question and answer it in the weekly features!

Also newly added are the market updates in Sacramento county. You can see them now by zip code and areas.

And, don't forget the Real Estate Orple of the Week. The less said about it the better. I'll just let NutHound Quincy explain this one. By the way, I'm still trying to get his permission to put up his picture. He doesn't want the bubbleheads shooting darts at him on their walls.

This is in addition to all the other great stuff already in place. Suggestions? Please let me know!

Sacramento County Market Updates - Elk Grove (95624, 95757, 95758)

Despite the doom and gloom news, or perhaps because of it, Elk Grove is where the bargains are. I was in Elk Grove showing homes not too long ago and out of the ten homes that my clients had picked, nine were foreclosures or in the process of being foreclosed.

Taking a more precise statistical look at the city of Elk Grove, 1036 single family houses have sold this year so far as compared with 1967 single family homes last year. That's a reduction in sales of over 45% but the year is not over yet. There are 195 homes that are pending sale, which will add to the numbers and 1572 more homes on the market for the homebuyers to pick from.

Median prices have also fallen in Elk Grove since last year's $430,000 to this year's $380,000 - a drop of 11.6% making the dream of buying a home in Elk Grove more of a possibility for a lot more people.

Remember to take these numbers carefully, though. The year is not over yet and so the year over year medians and sales are not exact. There will be more sales recorded and hopefully the numbers will improve.

Also read: How Real are Real Estate Statistics?; Sacramento Projections

Sacramento Real Estate Gal Answers!

Okay, it's time for Sacramento Real Estate Gal to answer some of those questions that rolled in, without further ado...

Question #1: What is an REO? All these acronyms get thrown around so much and they make no sense to me! - Potential Investor But Don't Know Much.

Dear Potential Investor,
First of all, let me congratulate you on wanting to know more and learn. I always admire people who take initiative to learn about their money, because no one cares about it as much as you do!
As for the alphabet soup you've run into - an REO stands for Real Estate Owned. It is usually a house that has been foreclosed on by a lender for non-payment of the mortgage.
Usually, such a house is put back on the market for sale or auctioned. REO sales are always as-is sales, so it is wise to get all inspections done, including a termite, home inspection and roof inspection.
In today's market, you don't have to go about digging for these houses either. You can search the list of foreclosures at Elite Properties. This list is updated weekly.
Hope that helps you drop the "potential" from your name! Good luck!
Also read: Are Foreclosures Worth It?; Two Types of Investors

Question #2: I'd like to hear your advice for investors. Do you think it makes sense for investors to buy non-owner occupied RE in Sacramento? If so, what sort of deals make sense to you? You often say things like "Such and such was such a gret deal. I wish that I had bought it for my portfolio." So back this up with specific deals and/or strategies. - Bogonflux

Dear Bogonflux,
First off, let me just begin this with a disclaimer that you should never substitute anyone's advice, mine included, for your own research. But more specifically, I am of the buy and hold variety of investors. I would like to flip a house soon, but have not done so yet. I believe in buying houses that are well below the median priced homes in first-time buyer neighborhoods and rent them out to people who cannot afford to buy yet.
To make this even a better investment, it makes sense to buy them as fixers and live in them while you work on them. My husband and I have lived in every house we bought for at least two years while we worked on them.
The strategy goes something like this: buy an inexpensive fixer-upper, fix it up, refinance it, buy another home, rent the previous one out. While the cashflow is a trickle in the beginning, it is well worth it in the long term. I have friends that have used this strategy to build a pretty decent-sized nest egg.
Hope this helps!
Also read: Adding Value to your Real Estate; My Own Real Estate Numbers

Breaking News...

There's been a lot of talk about the Federal Reserve cutting interest rates lately.

And it's finally happened.

Just remember, you read about it on SacramentoRealEstateGal first!

New Blogger Here

Hi,
I'm Huck Ferrill. I've been a mortgage professional for about 31 years. Purva asked me to post occasionally. What would everyone like to read about relative to my field?
As everyone has probably read, we're going through somewhat of a credit crunch and too many homes on the market (many bank owned) at the same time. It's happened before.

To those who would like to own their own home someday, now is not a bad time to be looking-all the homes on the market have caused prices to drop. That phenomenon won't go on forever.

Also, despite the news to the contrary, there is excellent financing to be had, particularly if the loan involved is less than $417,000. For those with decent credit and steady income, it may be possible to buy with no down payment necessary and closing costs paid by the seller.

To those who prefer to rent, I can only say that homeownership is not for everyone. Many simply don't want to deal with the responsibility for maintenance, for example, or the fact that homeownership is a relatively long term committment. Others may be subject to frequent transfer, or whatever. If so, renting is probably a good thing, but a renter always loses the opportunity to build equity in that which one rents.

Focus on Rents - a Landlord's Market?

Recent analysis seems to suggest that a bad sales market in real estate might mean good news for the rental market.

Since more homes are being foreclosed and the majority of these foreclosed homes are investment properties, tenants are having to pay higher rents to live in the few remaining homes.

Some tenants are finding out too late that the house they are living in has been foreclosed and sold on the courthouse steps.

Rents were driven down towards the beginning of 2006 when the sales market was slowing. Some sellers, instead of seeing this as a reason to lower their asking prices, decided to rent out their homes. With no previous landlording experience, and only expecting to have the mortgage paid, they drove rents down.

Now we are beginning to see this change.

There has been an increasing demand on rental homes, which we can expect to continue in the next few months for the reasons mentioned above as well as the fact that it is harder for borrowers with shaky credit to buy a house.

Not sure if what you should charge is too high or too low? Check the rent-o-meter here!

Related articles: Sacramento tenants face foreclosure; Landlording in a Bad Real Estate Market

Also be sure to check out my recent market report on duplexes in Sacramento!

Ask Sacramento Real Estate Gal Answers Tomorrow!

Thank you so much for the response to this new feature!

In brief, answers tomorrow will include:
- My favorite investing tool in real estate and others I'd like to try
- What is an REO? What is an NOD? What is a short sale?
and others.

Be sure to ask those burning real estate questions to be featured here next week!

Seminars and the Like...

I wonder how much of my fellow Realtors' blah mood is created by the fact that sales are in a slump and how much is a result of real estate seminars beginning with the following comments:

"In this tough market..."

"This slumping real estate market..."

"Homes aren't selling because...."

I understand they want to help and I truly believe that being around other professionals is important to uplift your mood, but often the networking that goes on before these seminars becomes a pity party.

Collective pity is worse than self-pity.

That being said, I will be attending a real estate investing seminar next week. Will let you know what I learn!

2 bedroom, 1 bath rental available October!

This beautiful 2 bed 1 bath home is available for rent beginning October 1st.

It is my own home close to Fruitridge and Lawrence Park. Freshly painted and well-cared for.

We pride ourselves on two things:
1. maintaining rental homes that don't feel like rentals to our tenants.
2. being good landlords that fix anything that breaks.

Rent per month $1050 with $1000 deposit. Call 916-712-4255 for details and showing appointments.

Sensationalism & the Housing Bubble by Rich Levin

(This article appeared in Broker Agent News and it bears reading in its entirety - Purva Brown)

This makes me mad every time I see it. Either the National Association of Business Economists is full of people with no real business experience or fools.

This is a headline from a major online Real Estate publication,

"Economists See Credit Problems as Bigger Threat than Terrorism."

I know they were all alive just seven years ago when terrorism cost the lives of three thousand American citizens. That headline goes beyond sensationalism. It is rude and insensitive.

The article goes on to say that one in three members of the NABE, "...Said the housing boom can be described as a 'serious National bubble." Then later in the article three in four said they would "buy a house today if they intended to use it as their primary residence."

Would someone please tell these academic fools that housing is local in nature? While many major markets suffered and are suffering from the over-zealousness of investors followed by the over-zealousness of foolish sub prime lenders; there are many markets that are healthy and many more that are suffering a softening but nothing close to a collapse.

These gloom and doom headlines supported by a minority of questionable economist opinions feed the problem they are describing. While the facts support the opposite conclusion. Even the economists own research supports the opposite conclusion.

In the same article, "Asked to look five years into the future, 42 percent expected US home prices to remain flat, 41 percent said prices would rise." How did 34 percent of the same group call this a bubble that is fed by a threat bigger than terrorism.

Let's give credit where it is due. "59 percent still say there is no national housing bubble, only significant local bubbles. Another 8 percent said there's no bubble at all and that the market is functioning correctly."

Hooray for those groups. They got it right. There are some local bubbles where there were hundreds and thousands of development parcels and homes developed and built in anticipation of future sales and the sales that were feeding that demand was investor speculation (Boise and Sarasota to name two).

In late 2005 and through 2006 the investors realized that the boom was being fed by their own demand so withdrew. This left a tremendous inventory in some cities or areas of cities.

Unfortunately, in 2006, the secondary market lenders realizing that they had allowed a foolish combination of underwriting standards for the previous five years or so immediately followed this. They were buying loans that allowed buyers to have both, little or no down payment and marginal credit. How this happened (and who should be prosecuted for it) is a mystery that will likely to remain such.

The result was that in some communities around the country, particularly where there were high priced homes and with less sophisticated buyers; many of these mortgages were used to purchase homes. That created additional pockets of excess inventory which stalled prices in those areas.

Now in the fall of 2007 the majority of lenders loaning jumbo loans, over $417,000 have stopped funding these high-end loans for some period. This will further increase inventory and dampen prices in some areas.

Notice the language, dampen prices in some areas. Most of the country is experiencing a normal buyer's market that normally follows a long healthy seller's market.

The latter group of economists put it perfectly. The market is functioning correctly. In 1986 after two to three years of a soft buyer's market not unlike what we are experiencing now (Although it was driven by different causes.) there was a long strong period of a healthy seller's market with steady appreciation.

There was a momentary softer buyer's market around the Gulf War in 1991 (although not caused by it) followed by over a decade of a healthy seller's market that lasted until 2006. If we learn from history strong seller's markets last longer than softer buyer's markets.

So again, the economists got this right. The same article said 58% of the economists predicted a 'meaningful' recovery in U.S. housing markets before the second half of 2008 or in the second half of 2008. The majority of the other 42% predicted the recovery in 2009.

This is completely consistent with history. This two or three years of soft buyer's market with slightly flattening prices will likely be followed by five or more years of a healthy seller's market with equally healthy price appreciation.

REALTORS® all learned in their first Real Estate class that the market is driven by supply and demand. As long as there is an increasing population of people with reasonable or better incomes, the demand will keep the market healthy.

Add to that the fact that the Federal government repeatedly states that they realize that the Real Estate market is critical to the health of the economy and they will do whatever is necessary to keep mortgage money available.

It all adds up to a principle residence continuing to be the safest and smartest investment for a person living in this fabulous nation. (Just be careful of areas that have experienced rapid appreciation for more than twenty-four months. There could be a windfall or just a fall looming.)

If you are associated with Real Estate, please separate the sensationalism from the truth. If you are in most communities in this country, everything is pretty normal. Prices are appreciating a little slower but still appreciating. Houses are on the market longer. Buyers are fussier. Yes, it is tougher to sell Real Estate. But you still have one of the best jobs in the world with more personal freedom and opportunity for success than any other business person or professional on earth.

If you are in one of those tougher markets, my heart is with you. You do have an uphill battle for another twelve to twenty four months. You have my strongest wish that you can survive and succeed through this. If not, come back to the business in a couple of years. I feel comfortable promising you that the good times will roll again in the not too distant future.

I love this business for what it provides to our society, the people in it, and the strong bright professionals that make me proud to be a part of it.

About the Author: Rich Levin is speaking at this National Association of REALTORs® convention this November in Las Vegas, at the Triple Play Convention this December in Atlantic City and many other venues large and small. Rich is a coach, trainer and speaker who specializes in raising Agent production through highly effective training programs for Real Estate Companies and Individuals. Rich Levin is President of Rich Levin's Success Corp. Contact Rich at 585-244-2700 or rich@richlevin.com or blog with him at RichLevinBlog.com.

Finally... all settled in!

Well, almost.

Apparently, it snows up here in Pollock Pines and we might have about six to seven days of being snowed in - and every once in a while have the power go out in the middle of the winter. So we need a generator and a snow-blower. My husband is putting the generator in as I write.

But it's so beautiful! And - the best part - it's only about 45 minutes from Sacramento. So worth it.

I have however developed a new respect for my homebuyers and homesellers. Moving is not fun. It's taken us about three months to just put things away where they belong!

When was the Last Time the Broker of Record...

...stopped by your Open House? John Lockwood - Broker of Record at Elite Properties - stopped by yesterday at 2792 Sterling Way.

Just another reminder of our personal service.

Finally - some sane voices enter the discussion!

Yes, the news keeps churning the same stories out again and again. Sales are down. Prices are down.

If you're a buyer on the fence, you should consider reading Terri Cullen's article in the Wall Street Journal labeled Home Buyers on the Fence.

If the headlines are scaring you back into bed, you should read this excellent article by John Lockwood on the recent Sacramento Bee foreclosure numbers.

Real Estate Orple of the Week

"Prices are poised for a continual drop for the next 5 years, or until they come back down to historical affordability ranges" - Chicken Little 1.0

"When will the average list prices get in-line with average incomes?For example, you wrote the average price of those duplexes was $381,133. Assuming 20% down, that leaves a loan of $304K. Using 4x gross income as the affordability factor means you need an income of $76K. Does the average person is Sacramento earn $76K? I thought the median income in Sacramento was $42K" - Chicken Little 1.0

Okay, Chicken Little 1.0, let's go over this s-l-o-w-l-y, shall we? Median income has nothing to do with median home prices. Or how do you explain San Diego where the median price of a home is $566,700 and the median income is $55,637?

Ouch. That hurts your argument, doesn't it? Well, maybe we could look elsewhere. How about New York? City Data reports median income in New York as $43,434 and the median price of homes as $449,000. Hmmm... maybe they should hear your theory and lower their house prices.

Okay, so maybe we should consider Los Angeles. Surely, they understand your measure and what you mean. Okay, Los Angeles, then. A median priced home in Los Angeles sells for $513,800. Median income? $42,667.

Hmmm. (Cough, cough) Ahem!

The problem, Chicken Little 1.0 is that you cannot put a nice little bow on everything that happens. There are no neat little mathematical calculations you can apply to everything. I wish life were that simple.

Median house prices are oranges; median incomes are apples. Compare the two and you get an orple. A nut.

New Feature - Real Estate Orples of the Week!

Bursting the bubble head talk. Coming soon! Stay tuned. Also consider: what exactly is an orple?

Sacramento County Market Update - Citrus Heights (95610, 95621)

The median price for Citrus Heights single family homes has fallen 8.3% from last year. In 2006, 685 houses sold for a median price of $335,000. As of today, there are 446 sold houses for a median price of $307,000, 60 houses pending sale and 461 houses on the market for prices between $102,000 to $849,000 for a median price of $309,000.

Perhaps the most important number here is the median price of the pending sales which is $279,000 suggesting that price more than any other factor is determining which houses sell. Also, as noted in Elite Properties' list of foreclosures, there are 149 bank-owned homes (REOs) for sale in Citrus Heights.

The median price of condos has fallen 10% from $250,000 last year. Citrus Heights saw 132 sold condos in 2006 as compared to 85 this year so far with 12 pending sale.There are 84 condos still on the market for prices between $109,900 and $350,000.

If you're a first time buyer, condos in Citrus Heights is not a bad place to start your search.

Open House at 2792 Sterling Way in Cameron Park tomorrow!

Don't forget. Be sure to stop by between 11am and 1pm.

Related post New Listing in Cameron Park

Adding Value to Your Home Regardless of the Sacramento Housing Market #5

Add container plants and flowers. Especially when you have a container garden near a doorway, it defines an entrance and highlights it. Definition and purpose of every space will always create a positive impact on the buyer thereby adding value to your home.

Plants will likely be considered to be "cosmetic" if you ask an appraiser, but never underestimate first impressions and the psychological impact of anything pleasing to the eye. For potential buyers, the presence of plants and especially flowering plants in a home before they enter it give it a sense of life.

If you've ever been a little concerned to walk by a home with a dead lawn and unkempt hedges, you know what I mean.

Sacramento County Code Enforcement Press Release on Foreclosures

I received this email in my mailbox today and thought it might make interesting reading for some of you. It concerns Sacramento homeowners who have been foreclosed on, their responsibilities for maintaining their homes as well as what their neighbors can do to maintain the neighborhood.

Here is another article in the Sacramento Bee which recently covered concerns with blight in some Sacramento neighborhoods making homes harder to sell.

Sacramento County Market Update - 95608 Carmichael, CA

Buyers clearly prefer single family residences over condos and halfplexes although the latter might be more affordable. Sales in Carmichael over 2006 and 2007 clearly point to this.

Last year, there were 469 single family residences sold in Carmichael for a median price of $414,900 and only 81 condos and halfplexes sold for a median price of $255,000.

This year, so far 259 homes have sold for a median price of $381,000 and 37 more are pending sale (sellers have accepted offers from buyers, but we won't know the final price yet) for a median asking price of $419,000. Condos in Carmichael have taken a larger hit with only 58 sold for a median of $218,750 and 9 pending sale for a median price of $182,900.

If you're looking for a home in the 95608 zip code, there are still 288 single family residences for sale between $209,900 and $2,500,000. There are also 47 condos and halfplexes between $162,500 and $589,000.

New Feature Coming to Sacramento Real Estate Gal!

I'm introducing a new feature to this blog. Once a week, I will be responding to questions that might be on the minds of my future clients out there - that's right! You - ask a question!

Do you have a burning question about some aspect of real estate? It can be as large as buying a vacation home for retirement or as small as what you can do to get your home sold fast. Then email me or write a comment to this post and check back next week to read "Ask Sacramento Real Estate Gal!"

Duplexes in Sacramento County - Market Report

As of today, there are 412 units available in Sacramento at an average price of $381,133.

Here they are, in alphabetical order:

Carmichael #Units 24 Average List Price $439,665

Citrus Heights #Units 17 Average List Price $376,874

Citrus Heights #Units 17 Average List Price $376,874

Elk Grove #Units 8 Average List Price $413,981

Elverta #Units 2 Average List Price $269,950

Fair Oaks #Units 16 Average List Price $484,581

Folsom #Units 16 Average List Price $484,581

Galt #Units 6 Average List Price $393,242

North Highlands #Units 14 Average List Price $371,093

Orangevale #Units 5 Average List Price $344,800

Gold River #Units 19 Average List Price $364,087

Rancho Cordova #Units 1 Average List Price $515,000

Sacramento Downtown/Midtown #Units 8 Average List Price $468,663

Sacramento Arden/Arden Creek #Units 23 Average List Price $307,430

Sacramento Downtown/Midtown #Units 6 Average List Price $520,650

East Sacramento #Units 18 Average List Price $328,328

Sacramento Land Park/Curtis Park #Units 8 Average List Price $520,863

East Sacramento Vicinity #Units 7 Average List Price $413,714

Sacramento Elder Creek/Fruitridge #Units 14 Average List Price $288,204

Sacramento Arden Vicinity #Units 9 Average List Price $367,733

Sacramento S. Land Park/Greenhaven #Units 23 Average List Price $388,539

Sacramento Franklin/Freeport #Units 19 Average List Price $382,763

Sacramento Elder Creek/Fruitridge #Units 15 Average List Price $290,427

Sacramento Arden/Arden Creek #Units 13 Average List Price $375,258

Sacramento Rosemont/College Greens #Units 9 Average List Price $401,138

Sacramento Rosemont/Mayhew #Units 15 Average List Price $377,713

Sacramento Florin Vicinity #Units 25 Average List Price $307,844

Sacramento S. Land Park/Greenhaven #Units 14 Average List Price $539,339

Sacramento Franklin/Freeport #Units 1 Average List Price $280,000

North Sacramento/Natomas/Del Paso #Units 2 Average List Price $412,475

Sacramento Airport Vicinity #Units 1 Average List Price $322,500

North Sacramento/Del Paso Heights #Units 19 Average List Price $333,179

Sacramento Arden/ Arden Creek #Units 14 Average List Price $362,482

Sacramento Foothill Farms #Units 18 Average List Price $358,291

Sacramento Arden Creek #Units 4 Average List Price $462,225

Some of the names for the area overlap because they spread across different zip codes. Or course you might want to search across different zip codes if you are interested in a particular area.

Rules for Posting Comments to Sacramento Real Estate Gal

I know I've let a few comments slip by mainly because they were objections I wanted to respond to. However, I feel compelled to lay down the law in this regard.

1. Absolutely no bad language. I will not stand for it and at the first sign of any off-color speech not only will your comment not be published, it will also not be read by me. It will be immediately deleted.

2. I will not allow you to bad-mouth my clients, my broker, and Elite Properties. Name-calling is not a sign of intelligence. These comments will also be immediately deleted.

3. And please, do not rehash what's on the news. I've read all of it. I read it everyday. If all you can do is be chicken-little and reiterate "The Sky is Falling!" go do it someplace else.

How Real Estate is Appraised and Home Value Determined

It all comes down to one word: comps. Well, okay, maybe two - market comparables. When you call a Realtor to come and tell you what your home is worth, the first thing we do is pull up market comparables.

Market comparables are nothing but homes that are similar to yours, with the same square footage, bedrooms, baths, and so on and have been built close to the time yours has been and - this one is very important - have sold or are active listings in a one mile radius around your property. These houses are the raw data we begin with.

The sold properties usually give us a low to high range within which your property is located. If you have recently remodeled your house with expensive materials (Corian countertops throughout and a granite fireplace for example) we would price the home at the higher end of the market range. If the home has deferred maintenance, it would go on the lower end.

Even more important than the sold comparables however, which were more commonly noticed when the market was going upwards, are the active listings on the market right now. While you might be able to price your property on the high end if you have remodeled, you are limited by your competition which are the active listings.

This balance between actives and solds give us a pretty good idea of what a house will sell for. Of course, no one knows for sure the exact price because the market (read: the buyer) will determine that.

Want to know the value of your property? Drop me an email with the address and I'll be happy to pull up some close comparables!

Crosswoods Condos Holding their Value

I've always maintained that if you buy a house in a good neighborhood, it will (mostly) maintain its value even in a bad market. One of those good neighborhoods is Crosswoods in Citrus Heights. I remember a client of mine who would buy nowhere else but in that neighborhood.

And I must say, I agree with him.

Here are the numbers: in an overall dismal condo market for Sacramento county where there were over the last six months 1478 condos on the market, only 39% were sold or pending sale. The median price for these condos was $215,000.

By contrast, there were only 40 Crosswoods condos for sale over the last six months of which 47.5% sold for a median price of $237,500.

Before and After Pics from First-time Buyers Coming!

I received a very pleasant email the other day from my clients of last year. I represented Jacob & Zoila in the purchase of a home in October of 2006 close to Curtis Park and I remember the entire transaction as specially relaxed and easy.

Of course, that always happens when you look back on something through the eyes of nostalgia. They had the usual fears of first-timers but were (I thought) marvelously aware of their goals and what they wanted out of a home.

And got it.

They bought a fixer with a Cal HFA loan (not FHA) which was 100% financed with a silent second (state funded for first-time buyers.) Recently I heard that they have made a huge amount of repairs to the house and I will be getting "before and during" pictures, not "before and after." The pictures will be here soon.

It is my belief however that they will be laughing all the way to the bank when this market turns. And I will be the first to congratulate them. I'm so proud of clients that know what they want and go for it even in the face of fear.

Yes, buying a first home can be scary. Buying ANY home is scary. But if you have done your research and know you are buying it cheap enough, you will reap the rewards.

No matter what the bubble-heads say.

New Listing in Cameron Park!

2792 Sterling Way, Cameron Park, CA 95682

An entertainer's delight - this home features four bedrooms, two and a half bathrooms, and a separate family room with a fireplace. Granite countertops in a completely updated kitchen with stainless steel appliances.

Asking price $459,000.

I will be at the Open House scheduled for next Saturday September 15th from 11 am to 1 pm.

Stop by, say hello and preview this lovely home!

Sacramento Foreclosures by Zip Code

A lot of my clients have asked how many foreclosures there are on the market. Here's a good starting point.

John has put a great list of foreclosures in Sacramento county together for you to browse.

Also, those of you overly concerned about the state of the housing market can go see the US home appreciation chart from 1976 through the present.

And rest easy.

Psst... want a great deal?

This one shocked even me - I was searching the MLS today and found a house near Colonial Village, where the price for a single family three bedroom, one bath home averages about $235,000 - $260,000. What would you consider a deal in this neighborhood?

$200,000? $190,000? Or maybe $160,000 like me?

Wrong. Wrong. And wrong.

How about $100,000?

That's right. A home asking $200,000 sold for $100,000.

No, I'm not kidding. I'm kicking myself for not having bought it. Someone made a comment a day or two ago about changing or losing - maybe it's time to change your mind about what's possible for your future?

August Real Estate Statistics for Sacramento are Here!

Straight off the MLS. So please don't comment and tell me these are numbers from the MLS. I already know that.

August was not a good month for median prices in Sacramento county.

Here are the numbers:

Total listings on the market before August 31, 2007: 11581

Total homes sold in the month of August: 989 with median price of $314,400 - a drop of $15,600 or 4.7%

Total homes that went pending in the month of August: 879

Sales, by the way, were actually up 6.5% compared to July. And inventory is down just a tad - 11.7 months as compared to July's 11.8 months.

Days on market averaged 63.

August Resale Statistics Coming!

I know some others have already beaten me to it, including John Lockwood but the August statistics are coming just as soon as I can clear some things that didn't get done while I was on vacation.
Check back tomorrow!

Back from Vacation...but still couldn't stop thinking about real estate!

I took Labor Day weekend off - a well deserved break I thought. It felt like I had been working very hard lately. And settled into it very well.

I met some wonderful people, got to know my neighbors here in Pollock Pines better and did quite a bit of driving around to get to know our neighborhood better as well.

Learned for example that there are some fantastic vineyards around Pollock Pines. El Dorado county and Amador county are great places to live for wine lovers. And the reds are actually different from the kinds you get in Lodi in that they are not as fruity. We were lucky enough to be out there wine tasting during the crush.

So my big real estate thoughts over the vacation were:
1. Wouldn't it be nice to own a vineyard on top of a hill overlooking the pines? (Yes, they're available - asking price begins at $1.5 million)
2. Wouldn't it be nice to find another fixer upper in El Dorado county? (Or well, maybe we should just work on our home first!)
3. I'm going to learn about making wine, so that we can buy a vineyard sometime in the future.

Yes, when you're on vacation your thoughts are allowed to ramble.