Finally...

... a post on Sacramento-home after my own heart.

Go here to read what John Lockwood has to say after months of optimism about real estate thrown at him! Good job, John - and thanks for the support!

Rental Available!

It's that time of year again... another fantastic rental available! Rent is $1050 per month - and with good credit, you could get the first month free!

Get the details here.

Decorating a Baby Room: Dos and Donts

Now that my husband and I are having our first baby, we're dealing with the issue of how to decorate the baby's room. There's also the baby shower and baby furniture and in the midst of all this - it seems like - is also the overall plan of remodeling the rest of the house. Whew! So here are a few pointers on what you should and shouldn't do to decorate the baby's room:

1. Keep in mind the overall plan at all times - It's easy to get carried away with the decorating, especially if - like us - you know the baby's gender. I have seen some houses on the market recently as REOs where the parents obviously got a little carried away with the paint. The room stuck out as a sore thumb. So if you have plans of moving soon, choose a paint that complements the color scheme of the rest of the house. Once the baby gets in there, it's very hard to paint again.

2. If you do decide to put in light fixtures, store the originals in a safe place - I'm sure babies love the carnival fan. You know, the kind with all the crayola colors on the ceiling. Same for the light fixtures that look like teddy bears or ducks or whatever. But keep in mind that your future buyers might not appreciate them as much. Now, there are buyers who like baby rooms, but you will be limiting the pool, not a good idea in this market. So retain the originals, and switch them out when the house goes on the market.

3. Above all, try to stay classic - Classic colors never go out of style. Try to get help and choose these instead of the traditional pink and blue for baby. That way, when it comes time to move and put the house on the market, you're not apologizing for your baby.

And he or she will be happy where Mom and Dad are happy. Promise. Regardless of the paint in the room.

Investors are here!

Something happened to the Sacramento real estate market over the last few days and I'm wondering if anyone has noticed. I've been working pretty closely with one real estate investor lately and he was interested in making a bunch of offers on properties that haven't moved for longer than 60 - 90 days. So off I went on to the MLS... only to notice that many of those properties were in escrow!

Now, you have to ask - after 60, 90, even 100+ days on market, why the sudden activity, almost overnight?

I personally believe if you haven't bought a house yet, you've missed the bottom of the market. But we're still pretty close to the bottom, so don't be disheartened.

Just know that the real real estate investors are here.

About time!

Adding Value to your Home Regardless of the Sacramento Housing Market - Tip # 7

Yes, another one in my favorite series of posts regarding remodeling small things to make your house have more value! And since you know they all relate to my personal designing predicaments, the latest one is a common one here in Pollock Pines: not enough light in the house. It's beautiful out on the back deck, but with all the trees around us, the sunshine never really gets to make it inside the living room. As a result, my orchids haven't flowered and the houseplants need to be set outdoors a few hours each weekend to ensure they don't die.

What's the answer?

This one my electrician husband came up with: metal halides. High intensity metal halides will make plants grow. What's more they'll probably put us in a better mood in the winter months because they are a full spectrum light. But, putting them in can be a bit of a challenge since they won't work in a regular light fixture. To ensure even lighting, we're considering putting them in recessed light fixtures as well.

The entire project should cost approximately $2000 if doing the work yourself. I'll have pictures when we finally put them in. Until then, I have to beat this dim living room and kitchen with fluorescence - yuck!

REO Single Family Residences

For those of you first-time home buyers still on the fence about buying a house, you might want to look at the foreclosures here in Sacramento. Either do the search yourself or follow this link to the foreclosure listings page. I've been showing a lot of these bank-owned properties to prospective investors and - mark my words - these are going to become future rentals.

A recent poll in the Sacramento Bee said that about 50% (or more - I don't have to exact numbers) of potential home buyers are staying away from buying right now, because they are afraid of falling home prices over the next two years. If you're only going to live in the house for two years, I can see being a little concerned. But if this is a house you intend living in for anything more than seven years, I think that thought is foolish, baseless fear. Do the math and see for yourself - also consider that Sacramento area real estate appreciates at about 6% per year on an average, in spite of the dips.

Spring Brings Cautious Enthusiasm

Thank goodness the weather has warmed up! Although Sacramento and Folsom have been beautiful for a few weeks now, uphill Pollock Pines got its first seventy degree plus weekend this last Saturday and Sunday. Flowers are finally beginning to bloom - and with them come the real estate signs. REOs are a rarity here in Pollock Pines and Placerville - and when they come on the market they sell pretty quickly.

In Sacramento though, the opportunity for investors is endless. There seem to be certain areas where REOs sit for a long time before someone buys them. One of these which I've been focusing on with one of my investor buyers is the Fruitridge area. 2 - 3 bedroom houses are selling there for right around $100,000 - an incredible rental if you can make it work. Rents range from around $900 - $1100, so potential for cash flow seems pretty good. The only problem with this area is the homes are older and some are in need of repair. Getting them updated (usually they don't have central air either) requires a cash investment.

The clients I'm working with now seem enthusiastic about buying a home at this time but are also cautious. It's a good idea to be cautious anyway - you do better due diligence that way. Especially with REOs since no one knows the condition of the property it is especially important to get all your inspections done.

If you're looking for a good cash flowing rental, go here. You might just be surprised.

Realtor not to Blame: Jury

For those of you following the Ummel vs. Little case that some blogger had so kindly deposited into the comments section of my blog, the verdict is in.

The Realtor is not to blame. The jury's decision was unanimous. Read all about it here.

I will say however that even though a buyer's agent is not technically required to disclose the appraisal report to you, the buyer, I always get a copy of it and send it over anyway.

Sacramento Condos for March: the Numbers

Condos seem to be getting a bad rap lately. I don't know if it's just me, but I see investors - who were very interested in condos for a while - seem to back away from them. I guess given the choice between having a backyard you can call your very own and paying condo fees, people choose the former.

Anyway, let's get right to the numbers. The median price for condos didn't fare as well as the median price for single family residences. It dropped 24.6% from February to stop at $138,500.

Sales were up however. Sacramento county saw 90 condos sell in March, an increase of 52.5% over February. Pending sales were higher as well - 130 over last month's 116.

202 condos came on the market as new listings in March, bringing inventory down to 7.8 months, an improvement over last month's 11.9

Also read: February's numbers; January's numbers.

How Optimistic am I about Real Estate?

As optimistic as ever. And perhaps will be more so when this market recovers, because then I will have been there, done it (or seen it).

I was talking to a potential real estate investor yesterday. One thing that always strikes me about people that have been investing in real estate for a while (a while = more than a decade) is that they seem very calm about what's going on in the market. They see prices falling and REOs and they realize it is only part of a cycle. What's more, they all insist it has been much, much worse.

I yearn to have that knowledge first-hand.

I am as invested in this market as ever. True, when we bought our rentals, we probably did not time the purchase perfectly. But we haven't panicked and sold them either. There is a method to this madness and it is this: TIME. What is debt today is equity tomorrow. And the houses are rented, so why sell anyway? What difference does short term fluctuation make except to my net worth and that too for a short while?

Real estate investing is all about learning and the learning curve can sometimes be pretty sharp. But life on the other side is worth it and I can't wait!

Some have criticized my "uber enthusiasm" (And for heaven's sake... Please stop using that U word - it's so pretentious!) for real estate, but I'm sticking to my guns. Even in a down market. I just wish I had seen it coming and had enough capital to buy more rentals at this time. Oh well, I'll be better prepared the next time.

Yes, as optimistic as ever! That about sums it up.

Market Statistics for Single Family Residences for March

Good news, everyone.

We have bounced off the bottom, even if it be ever so slightly. Here are the details on Sacramento county's real estate market recovery in March, 2008.

Median price remains steady (or almost steady) at $254,000. It has hovered around $255,000 since January.

2332 new listings were added to the market and 1006 sold. Existing inventory now stands at 8632, smaller again than January or February's. We now have 8.5 months of inventory on the market, a change of 15.84% over February and of 28.6% over January!

More good news - 2021 homes went in escrow in the month of March, a whopping 37% higher than pending sales in February, which were already higher than January, which were higher than... well, you get the idea.

So... median prices have steadied, inventory is down and sales are up! The Sacramento real estate market recovery has begun.

Also read: January's numbers; February's numbers and come back tomorrow for updates on the Sacramento condo market.

REOs, Asset Managers, Multiple Offers... Grrr!

I've written in the past about one of my clients who has been making offers on homes in the Anatolia area of Rancho Cordova and getting outbid every time. Well, yesterday was what seemed to be a historic day for both of us - one of her offers was accepted.

Mind you, she's been looking since January of this year.

Back to the story. After getting outbid each time, on new homes and waiting forever on a short sale, today was the last straw. I received a call from an apologetic listing agent saying that no, our offer has been rejected after all. Apparently, the asset manager in the bank changed and someone else took over the files and they decided to go with another offer. This AFTER my client has sent over good faith deposit cashier's check, and I had made an appointment for a property inspection!

In a span of 24 hours, I lost a great, motivated home buyer.

Thanks, asset managers!

A Sick Realtor is Better than None?

No, it isn't a case of the market blues - I have really fallen ill this week. Woke up on Monday after a hectic weekend and a hectic last week of showing homes in Elk Grove and Rancho Cordova and I seem to have caught my husband's cold. It the kind that drains you of energy and won't let you stand upright for longer than ten minutes... you know the kind.

So bear with me while I recover. And in the meanwhile, if you're searching for some great investments, you might want to search online for Elk Grove. I noticed some fantastic homes there - 3 bedrooms, 2 baths for right around $200,000 - some of them right in Laguna West!