Posts from — February 2009

What’s been happening in the Rosemont area of Sacramento in terms of real estate activity? The trend graph below is based upon the past 90 days of sales and listings from information provided in Sacramento MLS (the only listings included in the graph are those which were actually listed in the past 90 days – some listings have been on the market for well over 90 days and were not used in the graph).

From the trend graph it appears that there are many recent sales and current listings being priced between $175-200K. It appears too that there are a good amount of listings priced below the level of the most recent sales, which is a classic feature of a declining market.

Data for Rosemont Area of Sacramento as of 02/27/09:

• 7 current Actives
• 20 current Short Sale Actives
• 20 current Pendings
• 27 sales over the past 90 days
• Median Price of $190,000 over past 90 days
• Average price per square foot over past 90 days: $126.33

The graph and data is based upon the following boundaries:

Please contact Lundquist Appraisal Company if you have further questions about the Rosemont area of Sacramento or other areas we cover within the Greater Sacramento Region. Thank you.

FHA loans are the hot ticket in town these days, aren’t they? If you are involved in loans in the Sacramento Region, you probably find yourself doing quite a few FHA transactions these days in comparison to the past couple of years (I am certainly doing more FHA appraisals).

Since people sometimes ask me how an FHA appraisal inspection differs from a non-FHA appraisal assignment, I wanted to include a few differences below.  A non-FHA assignment could include some or all of the following, but an FHA inspection MUST include the following and more per strict HUD guidelines:   

• Test appliances to ensure in working order
• Test AC and Heat system
• Observe if paint is chipping, peeling, or flaking
• Test water (pressure, heat, smell, taste…)
• Observe the attic
• Observe the crawl space
• Check all electrical switches to ensure lights come on
• Check outlets to ensure they work
• Flush all toilets and run water in all sinks
• Take angled photos of the subject property
• And more….

If anyone has questions on FHA appraisals within the Greater Sacramento Region, give me a call at 916-595-3735 or see www.lundquistcompany.com

When talking recently with local Realtors, Brokers, and Loan Officers about the Home Valuation Code of Conduct (HVCC), there has been concern and fear about how HVCC might shape the mortgage industry, not to mention, their business. 

Important News from the National Association of Mortgage Broker website:

McLean, VA – The National Association of Mortgage Brokers (NAMB), with the support of Baker & Hostetler LLP, filed a lawsuit today with the United States District Court for the District of Columbia against the Federal Housing Finance Agency (FHFA) Director James B. Lockhart over the controversial Home Valuation Code of Conduct (HVCC) included in the appraisal agreements between the FHFA, Fannie Mae and Freddie Mac (GSEs), and New York Attorney General Andrew Cuomo. 

What does this mean for local mortgage brokers, real estate agents, and all involved parties (including appraisers)? Well, there is nothing definitive to report, but with the lawsuit filed it may be possible to see the deadline for HVCC postponed ,or who knows, maybe they’ll throw it out altogether. We shall see.

Blogs can sometimes be hubs where over-sharing takes place, huh. Have you ever read something and thought, “whoa, that was way too much information.” Well, that’s not the vibe here, but I do want to get a little more personal and share something close to my heart.

After learning recently that there were 680 documented cases of homeless students last year within the Folsom Cordova School District, a group of residents and I decided to something about it. We call ourselves Project 680 and we seek to find simple and practical ways to assist these “680? students located in Folsom and Rancho Cordova. 

The Project 680 Promo Video Explains it All: 

On March 11th, 2009 at 6:30pm we have a community forum set up at 10600 Coloma Road in Rancho Cordova (Cordova Neighborhood Church is giving us free meeting space). We’ll meet with the District Liaison for Homeless Services, have a Q&A, and then take part in discussion as a community about what it can look like to support local students. This is about working together to discover simple solutions to a real problem that is relevant to many areas in the Sacramento Region. You are invited and please spread the word. For more information, see www.cordovatowne.com, leave a comment, or give me a call at 916-595-3735. Thank you.

What does this have to do with real estate appraisal? Not much per se. But isn’t it great when we can pool our resources together to make a meaningful difference in the lives of local students? Isn’t it wonderful when local businesses can network and promote something altruistic that impacts the local community? In both our personal and professional lives we can find ways to bring positive change in our communities, even in this economy - that’s the good stuff in life.

Have a tremendous day of business everyone!!!

I referred a Realtor just a few days ago to the Rancho Cordova Prospector website. This website enables anyone to search for available commercial properties within the City of Rancho Cordova (lease or sale) as well as list commercial properties for free.

Go to the website and spend a few minutes getting familiar with it. It is fairly easy to navigate and there is even a FAQ section to help out.

This is what the site looks like:

As an example of the power of Rancho Cordova Prospector, when performing a search for available office buildings to purchase within city limits, the following image came up. I was immediately given all addresses of available properties along with the ability to see APN numbers, square footage, and miscellaneous details.  

Moreover, it is possible to further refine your search (as shown below) to  obtain demographics information such as consumer expenditures, local population, workforce, wages, etc… And the icing on the cake is that you can export the data via email, print, Word, Adobe, or Excel.

This is a great resource for residents and anyone in the real estate field to know about. No, I am not paid to mention resources like this. When I see something worthy of talking about, I talk.

On December 8, 2008, flood insurance became mandatory for the Natomas Area of Sacramento. Since the U.S. Army Corps of Engineers determined that the Natomas area was at a greater risk for flooding because of a weakening levy system, the area was rezoned and homeowners are now forking out greenbacks for flood insurance.  

It will be interesting to see how the Natomas situation plays out and to see if there is much of an effect on the real estate market. What are your thoughts? Any home owners, agents, or other real estate professionals want to pitch in here? Do you think buyers care about flood insurance? Do some buyers avoid Natomas to not pay for this insurance? Or is it no real biggie?

I have not conducted an exhaustive study on the matter and so I won’t speak to any real effect, but I will say that when certain changes take place, such as economic, governmental, or zoning changes, there could be an impact on the local market. As an appraiser, this highlights for me how important it is to have “geographical competency” and really know what is going on in the market – especially the changes.   

Eastern Natomas Trend Graph: Below is a 12-month trend graph of a portion of Eastern Natomas with blue dots representing “sales” and red dots representing “listings”. The graph data is bound on the North by Elkhorn Blvd., West by I-5, East by Vacant Land, & South by Del Paso Road.

What has been happening in the Mather real estate market? Here is a trend graph of the past 36 months of sales (blue) within the Mather area as well as all current listings (red). What do you notice?

Mather Data from MLS, DataQuick, and Realist:

• 24 sales in past 90 days (MLS)
• 11 sales since January 1, 2009 (MLS)
• 41 current listings on the market – 10 pending, 18 short sale actives, 13 actives (MLS)
• Decline of 17.40% when comparing January 2008 home sales with January 2009 home sales (Data Quick HERE)
• 21 houses in pre-foreclosure (Realist)

There are 1271 homes in the Mather community, which was built by KB Homes, and dreamed up by the Sacramento Housing and Redevelopment Agency. SHRA spearheaded the building project as an attempt to breathe life back into the Mather area when Mather Air Base was closed in 1988 (huge effects in the community and in Rancho Cordova too). Independence at Mather is an HOA with very minimal monthly fees (basically to cover front landscaping – no swimming pool or clubhouse). Mather is close to a local golf course, lake, trails, the Sacramento Speedway, and Mather Airport.

If you are a home owner in Mather, what is it that attracts you to this community? What are the benefits? What are the downfalls?

If anyone needs further information or has any needs for a real estate appraisal in Mather, I am glad to assist.

Trivia Question: How many zip codes are there in Sacramento County? (answer below)

I use the California HomeTownLocator website when looking for zip codes of particular cities. This site has been valuable for both business and personal use. I keep the link in my bookmarks since it is a quick reference to obtain zip codes for any city in California as well as search for other information such as census data and county details.

Case in point: Whenever I sign up with a new Asset Management Company for bank-owned properties in the Sacramento Region, they typically ask for a list of zip codes I cover. Instead of having to google each city I work in and find each individual zip code, I simply go to the Home Town Locator site and I get the information I need all in one place. Very convenient.

Triva Answer: There are 145 zip codes within Sacramento County.

Improving a neighborhood can feel like trying to resurrect the Titanic, but in reality it’s more like flipping a burger with a family next door. When our prime focus is only on the problems in a community, it can start to feel discouraging and we give up, thinking “I don’t have the time or energy,” or “I can’t do this by myself”, or “I don’t even know where to begin.”  I’d like to suggest though that the beginning point for strengthening a neighborhood is really about small every day choices rather than planning big events or programs.   

Strengthening a community simply recognizes that relationships rather than high fences are what is most important. The truth is you do not need ample time, money, grey hair, or incredible leadership skills to make a difference in your tract. You only need to be attentive to your surroundings and intentional in some very practical ways. This is about a mindset, a lifestyle, a paradigm to live from.

Connecting with neighbors can be something very natural and it happens over time. It is not something that you have to plan for per se or worry about adding to your busy schedule. Below are some practical tips to connect (or re-connect) with neighbors:

• Sit out in your front yard or on your porch
• Wave to passersby and say “hello” to people
• Introduce yourself to new residents
• Find a resident to exercise with
• Volunteer to collect mail while your neighbor is gone
• Borrow a tool or ask for advice
• Keep your yard well kept
• Invite a few neighbors to holiday parties
• BBQ in your front yard with one other household
• Do an Easter egg hunt for your street
• Take regular walks (remember – dogs and kids are conversation magnets)
• Exchange phone numbers with your neighbors in case of an emergency 

 Most of life in a neighborhood consists of non-glamorous regular moments, but these small instances present opportunity for connection and are the building blocks for the future. Mother Teresa once said, “We can do no great things, only small things with great love.” Now go and do small things.

What tips do you have to connect with neighbors?

NOTE: The entry above comes from a series I wrote in 2008, entitled “Community Building 101?. If you are interested in reading the series, you can download a PDF file HERE. You may wonder why an article on community building is showing up on a real estate appraisal blog. Well, this happens to be one of my big passions in life, but also the series could be helpful for some of us and maybe even Agents who are selling houses to first-time buyers in the Sacramento area. This series is one way to bring on conversation about what it can look like to increase a sense of connectivity in our neighborhoods. Living in a more vibant community makes a house feel more like home, huh?

This blog will host a “Lowest Priced House on MLS” category because it’s always interesting to answer the question, “should I buy this house or should I buy a car instead?” Yep, the prices are often that low.  

And the winner is…. $12,500.

620 E 4th Street, Stockton CA is for sale at $12,500. Per Tax Records, this property was built in 1936, has 1025 square feet of living area, 2 bedrooms, 1 bathroom, and a lot size of 3,920 square feet. So why is it priced so low? Well, it looks like it had a little fire damage to say the least.

It is a banked owned property and has been listed on the market for 142 days total with three separate Listing Agents. The property has been priced for only 21 days at $12,500 and appears to have generated a contract at least once (but back to Active status now). I’ll put you into contact with the Listing Agent if anyone is interested in forking out $12,500 greenbacks – it’s an all cash deal because of the condition (no, I don’t know the Agent).

Have you heard of www.zilpy.com? Visit the web page, type in your Sacramento area address, and see if the estimation of rent is anywhere close to what you think is accurate for the property you are thinking of.

Here is how it works. I typed in 6901 14th Avenue in Sacramento and then the following information popped up. Zilpy located 30-50 rental properties within the immediate neighborhood. That’s fairly impressive, huh?

Zilpy also provided basic information about some of the demographics of the neighborhood. This is always interesting. As a side note, when an appraiser completes a Rental Survey, he or she needs to not consider things like Ethnicity and the Ethnic Composition of the neighborhood in determining market rent. If an appraiser included this type of information in his report, the appraiser could get in some hot water.

Lastly, Zilpy comes up with a range of rent and an overall estimation of rent based upon the data provided from the search parameters. 

Zilpy is a great tool to obtain some basic rental data to help determine what you could rent a particular property for. It’s one of those sites that is fun to mess around with for a while. BUT like any online tool delving into the world of estimation or valuation, while it has potential to be useful, it can also be gravely inaccurate. After all, without seeing the property or knowing its characteristics, and maybe not knowing the local market and important geographical boundaries that make a huge difference with rent, it makes sense that there is some room for error. 

Like the Zilpy site says:

“Use Zilpy Rent as a starting point to get the market fair estimate for a specific location and property characteristics”

Bottom line: Have fun with this tool, but just know its limitations. If you play around with it and type in your address, please comment above to let everyone know if you think it is anywhere close to accurate. Enjoy.

It’s interesting to take a look at what the market is doing in a neighborhood by comparing sales over the past months as well as current listings. Here is a graph I made this afternoon on current sales over the past year within the Vintage Park neighborhood in the Sacramento area (95828 zip code only – not 95829). The blue dots are sales and the red dots are current listings. Click the following thumbnail image to enlarge:

Vintage Park Neighborhood Data: 

• 56 current listings
• 64% of current listings are bank-owned
• 21% of current listings are short sales
• 5 listings priced under $125K
• 13 listings priced between $125-150K
• 12 listings priced between $150-175K

The data was taken from Sacramento MLS and is based upon detached single family residential properties within the following boundaries: Calvine Road to the South, UP RR to the West, Elk Grove Florin Road to the East, & Vacant Land to the North.