Not a Real Estate Announcement

Okay, enough prodding already. Here she is.

Baby Sierra was born August 14 at 3:45 in the morning (talk about getting an early start!) with Daddy and Mommy welcoming her bleary-eyed and teary-eyed - hey, that rhymed.

In the coming weeks, I'll be spending most of my time with her and less time on the blog. So excuse the absence and take the time to browse some of the older, more well-written articles which were not the ramblings of a pregnant brain!

An Ode to Pauses... Real Estate or Otherwise

One of the bloggers/writers I love to read is Penelope Trunk. I have subscribed to her blog The Brazen Careerist and look forward to what she says. I don't always agree with her, but her honesty and straightforward writing always appeals to me.

The other day, she wrote about pausing and how important it is in conversations as well as elsewhere and I think she makes some good points. For example, pausing during a conversation or speech gives people a chance to digest what you're saying, to applaud (or not!)

Here's what I think she missed: while we are adding analogies, how about pausing while investing? Why can't we think of the present real estate market as simply a pause instead of a calamity? The best real estate investors are patient. They think. They pause. Sometimes, it seems like, forever.

But you know who didn't pause? Casey Serin. Not once on his way to a million dollars in bad debt.

So breathe. As long as your house is not in foreclosure, look elsewhere. Pause. Take a break. The market will recover.

How Green is your Home?

Since we're all talking about saving lately, I thought I'd add my two cents about saving water. Check out this site. It takes you step by step through each area of the house and points out where you can save water. From landscaping to the kitchen to the bathroom. Very interesting.

I already learned what "Xeriscape" means. Do you know?

Country Living Dreaming

One of the tools I use quite a bit when I'm bored or just wanting to surf the internet without committing myself to anything is Stumble Upon. Today, it found for me this site of hand built log homes. I've always dreamed of owning one of these but never thought I would be able to live for an extended period in the country. I was wrong!

If you're considering moving to a more rural area like Pollock Pines, I can show you a few homes which look quite similar to the ones in the showcase of the above website. (Look those up by the way - they're breathtaking!) In fact, feel free to browse my neighborhood right here.

Landscaping / Gardening in Sacramento Resource

If you're one with a particularly green thumb, you should know that landscaping adds on an average 5% increased value to your home. I'm trying to find the basis for where I read this little nugget of information, but am unable to right now. So you'll just have to believe me. :) Landscaping, especially of the front yard adds curb appeal which will make people stop and notice. You want buyers to notice, don't you?

One resource I found invaluable in Sacramento is Angela Pratt's website SacramentoGardening.com - not only does the site have valuable information about what to plant and prune in your garden this month, it also has a list of nurseries in Sacramento and coupons for purchases of plants.

Remember, all gardening - like real estate - is local. So be sure to check out the site before you plant!

Real Estate Quote (of the year!)

The fact that writers will go through so much to remain writers says something, perhaps everything. It would be far easier (and nearly always more profitable) to become a real estate agent.

- Marie Lenhart

(Perhaps I should send this in a mass email to my fellow ex-students of the writing class at Fresno State?)

Are we Bored Yet?

We're a tired bunch lately. Real estate is so passe. Foreclosures? Oh, yeah - that. My street has about five houses for sale. I don't know how much they're asking, just that they're grossly overpriced. I mean, really... real estate is only just dirt if you really think about it. Think about it. Really.

Investors are vultures, we're sick of them. We're tired of seeing "the faces of foreclosures." Why can't we just throw some tax money at everyone and make them happy? And I'll just go stand in line to protect my $5,000 in that CD the mortgage bank offered me. Never mind the FDIC. I don't trust anything. Except cash. And maybe gold.

Real estate, you say? Even the Sacramento Bee is sick of writing about it. Real estate agents don't answer phone calls and some of them are off having babies! You would think in this market they'd want business.

Now maybe if I could just buy that million dollar home for about $250,000 I could close in a week. Of course, I could also buy a bunch of $50,000 properties - just me and some buddies of mine. We could all chip in. But nah, I'll just wait for a while. I don't know what it is - real estate just isn't calling me today the way it was in 2005. Hmmm...

(With many thanks to John Lockwood.)

Must Read Real Estate Article

I was browsing the usual sites for mental fodder when this real estate article caught my eye. I think it's very important for everyone to read it. If you were one of those people who has bought a house in the last five years, this article might just save you close to $1,000 in property taxes.

Some people have already received letters from the tax assessor with a reduced property tax bill notice. If you have not, learn how to contest your property taxes!

Could Researching Real Estate be your Downfall?

The other day I was chatting with a friend of mine and the topic of investing in real estate comes up. Nothing like something I believe in strongly to brighten up the day. She lives in Canada, where real estate is still pretty hot, she says. I have no way of knowing, so don't take my word for it. We got talking however about how much one needs to know before knowing that buying a house for investment purposes is a good idea.

Just enough, I said. It's important not to read too much of the news. It's a good idea to know what the general mood of the market is but it's just as important not to put too much stock into the everyday details.

She seemed surprised at this. I thought she would be. But hear me out.

I believe it's more important to have a historical view of real estate and a futuristic view of where you want to invest. The rest is just noise. And if noise disturbs your concentration, you're going to fall flat on your face.

Consider the so-called investors that bought during the boom. Because they paid attention to the news everyday that screamed prices were headed upward, they bought. However they could, with money they didn't have. Now that the noise, sorry - news, seems to say the opposite, they are letting these homes go and ruining their credit, when they should have done the opposite.

Even if you ill-timed the purchase of a house, Sacramento has a steadily growing population. Hold on as long as you can. Try to avoid listening to noise.

Sacramento County Condo Market Update

135 condos sold in Sacramento county in the month of July, up from June. Prices fell to $125,000 from last month's $135,000.

130 condos went pending sale, the same as last month! Inventory is up again to 624.

Interestingly enough, I think the lackadaisical response of most home buyers to condos is partly because single family homes are so inexpensive. In my opinion, condos will trail behind single family sales for a while. Especially in Sacramento, we see people buying condos when they can no longer afford houses.

Whether the downtown projects to make upscale condos succeed is yet to be seen.

Sacramento County Real Estate Market Update: Single Family Homes

I just gave myself the biggest fright: while checking statistics for Sacramento county in the MLS, I incorrectly ended up checking sales on only July 1st instead of the entire month of July. The number of sales hovered around a hundred. I thought the end of real estate had definitely begun! In my defense, I am on my first cup of coffee. So - now with the right numbers and another swig of this homemade Starbucks - on to the real statistics...

Median price has fallen again to $215,000 from June's $220,000. Days on market remain at 49. 1968 homes sold in the month of July and pending homes are at almost the same number as June: 2064.

Perhaps the biggest change is how many new listings came on the market: almost three times the amount as in June: 3903. There seems to be evidence that the market is beginning to absorb these however: there are a total of 8005 active homes in Sacramento county but inventory is down to 4 months from June's 4.6 months.

Follow the numbers: June's real estate market update, May's real estate market update.

Sacramento Real Estate Market Update Coming!

Yes, I've fallen behind on it again - something about having a baby makes one a little empty-headed. The other day I was talking to a friend and forgot halfway through a sentence where the conversation was headed.

Yes, conversations are tough. Yes, "mommy-brain" is a real phenomenon.

Yes, please come back tomorrow for the market update on Sacramento county.

Real Estate Spam: an Unfortunate Effect of the Housing Downturn

Is it me?

Every morning, with my trusted cup of coffee, I check my email. And my inbox is absolutely out of control. I would love to say it's all the buyers that are reading this blog and getting very excited about buying a house - what with the buyer's market and all - but alas, it is instead spam.

Maybe I made the mistake of signing up for one too many "real estate training" seminars when I was green and they have never forgiven me for it. Or maybe it is the blog people are hitting, just the wrong people. Or robots.

Whatever the case, I wish I could stop getting daily ads from real estate brokers wanting to hire me ("We offer 100% commission AND the broker's time share in Florida every time you close a transaction - we have hired 4000 agents in one week!"), real estate trainers wanting to show me how to do short sales ("If you get all the paperwork just right, you might have a snowball's chance in hell it will go through...") and just plain old lies from relocation and lead generation companies ("We have buyers lined up for you! Just give us $1000 a month!")

Perhaps they have stepped up their advertising to make up for the fact that Realtors do less of it now. I can swear bus stop benches don't have as many real estate ads any more unless they say something like "foreclosure specialist." Or perhaps I just notice all the annoying ads now, because I have more time.

Or maybe the people that used to call have now resorted to email. So it's a good thing. Thank God for the "delete" key!

Hope for Zero Down Home Buyers

Lately I've been speaking to a few real estate buyers that have the willingnesss to buy but do not have the down payment. Today, it is impossible to buy a house without 3% down. While lenders are quick to follow this up with "it can be a gift," most people that would like to buy a house don't have relatives who can gift them approximately $9,000.

Here's the good news: I recently heard about the USDA Rural Access Program. This is a new 100% financing program you can use to finance the purchase of a house in rural areas. Most areas in El Dorado and east of El Dorado may qualify.

If you are considering buying a home and don't have money down, you might want to consider El Dorado county. Call me for details!

Mortgage Update

From Huck Ferrill, our guest mortgage blogger, the nuts and bolts of Congress' housing reform package is below. Some good, some not so good.

The not so good:
Seller funded down payment assistance (Nehemiah) will be gone if the loan is not approved by Sept 30, 2008. Gifts from relatives and public nonprofits is still OK
Minimum borrower cash investment requirement for FHA is increased from 3% to 3.5%. It can all be a gift. Seller credits are still allowed for closing costs but not down payment.

The good:
Higher conforming loan limits are being made permanent. Max $625,000 and dependent on area median price.

The great:
$7500 tax credit for a first time buyer(s). Max income $75,000 for a single person and $150,000 for a married couple. Everyone who doesn't own a home should find out about this as fast as you can tell them.

Considering Remodeling? Think Rustic!

If you're considering sprucing up your house this summer, consider a style often ignored in real estate, but one that - when done right - adds dollars and makes sense. I'm talking about the rustic look. You know, the country house. And before you turn up your nose like you smelled a stable, consider the following:

1. There might be evidence that consumers are getting bored of granite and the polished, seemingly new look it seems to beg for from the rest of the house. I can't remember where I read it, but now that I have I see evidence of it everywhere. Most home buyers say, "oh, granite countertops," instead of "ooooh, granite countertops!!!" like they used to. They're thinking maintenance and co-ordination from the rest of the house will be a pain. You might disagree, but know that the granite craze is over and on its way out.

2. Rustic can mean green. Many home owners are now getting interested in creating green spaces that are low maintenance and this refers not just to the outside of the house, but inside as well. If you choose the right elements, you can make your home become natural and green, a living, breathing space that doesn't consume too much and pays you back in savings.

3. It seems more natural, again, green. To go back to the countertop example, in a rustic home, you could use any element that blended in with the ambience. You could try high end concrete or even wood! (Just don't cut anything directly on the countertop if you go with wood!) Consider your options. There are many. Then see if they fit. You might be surprised.

4. Rustic doesn't have to be expensive. This one is tested and proven. Rustic can be cheaper. Take floors for example. If you are one of those absolutely in love with oak floors (like me!) and hate laminate, carpet or even tile (like me!) consider buying scrap wood from a discount floor place. It's cheaper and it looks very authentic. Just remember to buy more because you will be discarding a lot of it.

5. Creating a flow from inside to outside is easier. If there's one thing the green revolution has done, it's made living on sunshine fashionable again. Consider natural light, skylights, and lots of windows. See if you can extend your living space to the outside. Make your backyard part of your home. You'll be well rewarded when it's time to sell your home.