Posts from — April 2009

While inspecting a property yesterday in the “Strawberry Manor” area of Sacramento (Del Paso Heights), I snapped the following image of a boarded-up fourplex. On Fairbanks Avenue there are four 4-plexes in a row on the Southern end of the street and they are ALL boarded as bank-owned properties.

The property above is a fourplex and is currently listed for sale at $132,900. Each of the fourplexes on Fairbanks Avenue like the one above has a total of eight bedrooms and four bathrooms (each unit is a 2/1). Another one of the group of these 4-plexes is currently pending at $129,900. It’s amazing to see such low prices when considering these sold above $300,000 in the past several years.

A quick scan of the 95838 zip code reveals the following:

• 3 Active duplex listings ranging from $69,900 to $360,000
• 10 Active Short Sale duplex listings from $69,900 to $350,000
• 7 of these listings are priced under $150,000
• 4 Active fourplex listings from $132,900 to $500,000
• 11 total pending properties (duplex and fourplex) ranging from $63,900 to $290,000.
• 8 of the 11 pendings are priced under $150,000

If you have any questions about the local real estate market or if you have any potential appraisal needs for your investments, let me know. The information above is just one sliver of the deals to be had out there. Feel free to reach me at 916-595-3735 or www.lundquistcompany.comor “ryan [at] lundquistcompany [dot] com”.

Capital Village is a planned community in Rancho Cordova built by Beazer Homes (construction is ongoing still). Within the development there are a combination of detached and attached housing units ranging from one to three stories. The community has two parks, access to local commercial retail shops within walking distance, active residents, and a convenient location within close proximity to many local employers (and Rancho Cordova City Hall).

There are four housing styles within Capital Village:

• Bungalows:  1 and 2 story properties on the Eastern side of the development.
• Reflections:  Units along and near International Drive that are 2 and 3 stories in design. These units were previously called “Brownstones” and the word is that many residents still refer to them as such.
• Fusion:  As pictured above, these multi-colored attached units are hard to miss when driving through Capital Village. Fusion has a higher HOA fee than the other three property styles due to being attached. There are actually two separate HOAs within the Capital Village development (one for attached units and one for detached units). The Fusion units were formally called “Villas” but Beazer changed their name to Fushion.
• Cottages:  Units with a garage on the front of the house and located between Bungalows and Fusion. All other units have garage access in the rear.

Capital Village Real Estate Data in Rancho Cordova (MLS Data):

• 8 current Active listings in MLS (note: Beazer very likely has other properties that are listed for sale but are not on MLS).
• 3 current Short Sale Active listings
• 21 current Pending listings
• 3 short sales listings are between $195,000-$200,000
• Pendings range from $184,664 to $315,759
• High MLS sale in past 12 months was $312,889
• Low MLS sale in past 12 months was $190,000

If you have any questions about Capital Village or the data above, feel free to contact me at 916-595-3735 or www.lundquistcompany.com or “ryan [at] lundquistcompany [dot] com”. Additionally, if you purchased your home when the Capital Village community was brand new and you feel that your property has declined in value over time, but the Assessor has not adjusted your property taxes accordingly, let’s talk.

NOTE: The data above is based on properties of all sizes and design (attached and detached). Beazer Homes has other properties which have sold maybe higher or lower than the data above indicates. Beazer is tending to list many of their properties on MLS, but they do not list all of them.

I have an appraisal report on my desk right now for the purpose of loan modification. A Sacramento area home owner contacted me because her attorney instructed her to hire a real estate appraiser (this is a fairly common practice in loan modification situations). So here I am entrenched in details and analysis in order to provide the home owner with a reliable appraisal report that she can then give to her attorney (who will then take it to the bank or use in court). The goal of the appraisal report is to stimulate conversation with the bank about the true value of the home vs. the current loan amount and situation.

When you need an appraisal to convince your bank of the true and current value of your home, I suggest the following:

• Find an appraiser who knows your market area very well.
• Look over the appraiser’s website to see which areas he covers. Is your neighborhood located within the coverage territory? It should be.
• Keep in mind that appraisers often do have experience in cities located much further from where their office is located (this is certainly the case with me). It’s reasonable for an appraiser to cover large territories, but the real key is that the appraiser is knowledgeable enough in your market to be able to correctly value your property (geographical competency).
• It might be a good idea to interview the appraiser and ask him about his experience as it pertains to your area of town. 
• Tell the appraiser a little about your property so that he can assess whether your property is something he can take on. For example, if you have a detached single family residential house in Fairfield, Roseville or Sacramento on a fairly typical lot size, that is something much different than if you have a mansion on 250 acres with agricultural production.
• Don’t go with the lowest price. If you look hard enough in any trade it is inevitable to find someone who is willing to provide a service for a little cheaper than anyone else. But what kind of product do you usually get for the lowest fee? Your loan modification is a very crucial decision and it is important that you are presented with the best possible product to suit your needs.

If you have any questions, feel free to contact me at 916-595-3735 or www.lundquistcompany.com or “ryan [at] lundquistcompany [dot] com”. I am more than happy to walk home owners through what the appraisal process entails.

Below is an article I wrote in 2008 in a series entitled “Community Building 101” (pdf file). “A Legacy for Our Children” is part 5 in this mini-essay series and I wanted to share it here on my real estate appraisal blog because life is not just about the value of our homes, but the quality and value of the relationships we have, even in our neighborhoods – and especially in this economy.

A Legacy for Our Children by Ryan Lundquist

Fred had a big problem. He and his next door neighbor were in the habit of heated arguments, squirting each other with the water hose, and even on the verge of fist fights. These two men despised each other. Fred was in the thick of a worst-case scenario situation where moving to another neighborhood seemed inevitable. He clearly had some issues to work on, but the real question I wonder about was what his three daughters were learning from their Dad as they watched his belligerence toward the man next door.

What type of neighbor do you want your children to be one day? What are your hopes for them when they plant their roots in a community?

It’s easy to think of our children’s success in terms of academics, sports, a college education, and a good job. Certainly these are gauges for accomplishment, but let’s make sure that no matter what our kids do in life, that we teach them to be good neighbors for along the way. Passing on a value for neighborliness will give our sons and daughters an edge in the world because they will learn to grasp the importance of enjoying life with the people around them, solving problems, being considerate, and building social networks in the real world beyond Myspace and Facebook. If our kids watch us being friendly to residents, grilling steaks with people next door, taking in mail when neighbors are on vacation, or calling the police when seeing suspicious activity, they will discover something valuable: that relying on others is important, that people can be trusted, and that being connected to other residents is a dynamic part of what makes home feel like home.

At one time children readily learned to be great neighbors because there were different expectations. Kids were expected to be participants in their community, to be visible in the neighborhood, be outside until dinner was ready, and even be polite to other adults and families in the neighborhood (otherwise they’d discipline you too). But these days our society is increasingly more disconnected and people tend to not trust each other. Nowadays parents need to monitor closely where their children are and practically interview other households before letting their kids play together. Today’s children are often found inside glued to video games, television, or doing homework, all while getting less exercise and spending fewer moments outside in the tract. Overall it seems more challenging for parents to impart a lifestyle of neighborliness today because it goes against the grain of our society. But what will happen if we don’t? That’s the bigger question.

It’s rarely too late to pass on values or start over. Maybe your kids are nearly out of the house, long gone, or you are just getting started. No matter how old they are, think of the impact you can have while your kids or even grandkids watch you interact with people next door or hear about how you are finding simple ways to be involved in your subdivision. I think of two residents in my community, Georgia & Paul, who are 86 and 83 years old respectively. Six months ago they showed up for a neighborhood beautification project where residents painted an expansive wall to help curb tagging. What do you think Georgia and Paul’s children and grandchildren thought of them when hearing about the painting project? What values do you think Georgia and Paul were able to amplify for their family?

What will your legacy be?

“River Park” is a neighborhood in Sacramento just under the American River Parkway and North of H Street and East of the railroad. The neighborhood consists mostly of single family detached properties built in the 50s and 60s along with a smaller amount of multi-units, a commercial strip, and local park (Glen Hall) and school. The boundaries of River Park are shown below.

In the words of the River Park Neighborhood Association :

River Park is special in part because of the way it is situated: bordered by H Street on the south, the American River on the north and east, and the Southern Pacific Railroad on the west. It features two public accesses to the American River, two renowned parks, a thick canopy of old-growth and new-growth trees, abundant wildlife among a large riverside habitat, an exemplary K-8 school, easy access to Sacramento State University, and several supportive businesses.

Services at the Carlson Drive shopping center include an Italian restaurant, Chinese restaurant, market, barber shop, beauty salon, dry cleaning, dentist, and pet grooming.

River Park’s residents are generally a mix of established and newcomers. Many of our neighborhood’s 1700 households are still occupied by original homeowners who moved here in the 1950s and 60s. River Park is also an increasingly attractive neighborhood to young families who are interested in good schools and proximity to urban work centers.

Below is a graph of all sales over the past three years (only sales listed in MLS) within the defined “River Park” boundaries as shown above.

River Park Neighborhood Real Estate Market Data (Sacramento):

• 10 current Active listings
• 2 current Short Sale Active listings
• 5 current Pending listings
• 2 sales over past 90 days
• 23 sales over past 12 months
• 105 sales over past 36 months
• Low sale in past 36 months:  $287,500
• High sale in past 36 months:  $879,000
• 2 sales under $300,000 in past 36 months
• 34 sales below $400,000 in past 36 months

What do you notice in the graph above? For starters, the graph does not resemble a ski slope as much as some other areas in Sacramento when plotting three years of sales. Would you say though still that the overall trend appears to indicate a decline over the past three years? It looks like the market has declined in that there have been less sales at higher levels, particularly above $500,000 lately. Most current listings within River Park are priced in the 300s or 400s too, though there is one pending sale at $695,000 (a newly constructed 3000+ square foot house. Well, technically this might not be “new” because if the owner did not remove all of the original structure, it could be considered a “remodel”).

One thing to consider in River Park is that properties can vary greatly in level of condition, size, upgrades, charm and overall desirability for buyers. This graph does not take into consideration any of these factors, but only reports the sales price and date of sale. More detailed analysis beyond this one graph would uncover more specific market trends for the River Park area (trends based on size, location within River Park, level of upgrades, style of property…). 

If you have any questions about the information above or any other appraisal-related questions or issues, please see our company website at www.lundquistcompany.comor contact me at 916-595-3735 or ryan [at] lundquistcompany [dot] com.

What’s been going on in the “Meadowview” real estate market in Sacramento? Meadowview is an area located in South Sacramento which is bordered by Florin Road to the North, Open Land to the South, Freeport Blvd. to the West, and the Light Rail line to the East. The data and trends below take into consideration the Southwestern portion of the Meadowview area as pictured in the map.

The above area is comprised of mostly single-family detached residences (some duplexes) buit between the late 1950s through the 1970s. There are a handful of properties built in the early 1980s too as well as a newer development within the Southwestern portion of this territory (houses built between 2001-2005).

Let’s take a look at the newer portion of Southern Meadowview:

Meadowview Houses Built after 2000 – Real Estate Market Trends:

• These houses were built between 2001-2005
• 168 sales in past 12 months
• 45 sales in past 90 days
• Median Price in past 90 days: $160,000
• Low Price in past 90 days: $111,000
• High Price in past 90 days: $260,000
• Average of 75 days on market for sales in past 90 days
• 1948 average square feet of living area
• 6 Active listings
• 21 Active Short Sale listings
• 39 Pending listings (median price of $174,900)

Let’s take a look at the older portion of Southern Meadowview:

Meadowview Houses Built before 1999 – Real Estate Market Trends:

• These houses were built mostly between the late 50s to late 70s
• 151 sales in past 12 months
• 54 sales in past 90 days
• Median Price over past 90 days: $62,000
• Low Price in past 90 days: $28,000
• High Price in past 90 days: $130,000
• Average of 105 days on market for sales in past 90 days
• 1192 average square feet of living area
• 9 Active listings
• 15 Active Short Sale listings
• 23 Pending listings (median price of $69,950)

It’s interesting to take a look at the data above and to see such a difference between two portions of the Southern Meadowview market even though they are located within the same general area. But this is true in so many settings and we regularly see a dynamic in real estate where buyers are willing to pay more or less for certain areas depending on location, quality of construction, condition of homes, year built, pride of ownership, the public perception of the area, etc… When comparing the older and newer portions of the Southern Meadowview area in Sacramento, there is a clear difference in median price level, size, and maybe even overall appeal. What else do you notice about the data or graphs presented above?

If you have any questions regarding the Meadowview area of Sacramento or any potential appraisal needs, feel free to see my company website at www.lundquistcompany.com, call me at 916-595-3735 or email at ryan [at] lundquistcompany.com  I am available to assist local home owners, attorneys, buyers, banks, mortgage professionals and more.

The “Arden Manor” neighborhood is located off of Watt Avenue just South of Arden Way and West of the “Arden Park” area. The map below depicts the boundaries of what is referred to as ”Arden Manor”. The subdivisions due West, East & South tend to have larger houses and lot sizes and are deemed less comparable to Arden Manor.

The Arden Manor subdivision consists of single-story houses for the most part which range from 2-3 bedrooms typically. Houses usually have a 1-car garage and tend to be between 930-1200 square feet in size (930 and 1081 are two of the most common sizes). There are a number of households with either converted garages or additions. I have appraised quite a few houses in this neighborhood over the years.

Below are two trend graphs to depict sales over the past 36 months as well as current listings in Arden Manor as of today. 

If you have any questions regarding “Arden Manor” real estate market trends or have any appraisal-related needs in the Sacramento Region, please give me a call at 916-595-3735 or shoot me an email at ryan [at] lundquistcompany [dot] com. Our company website is located at www.lundquistcompany.com.

“Tahoe Park” is an area of Sacramento off of Highway 50 and 65th street in the 95820 zip code (with one portion of the neighborhood in the 95817 zip code). The neighborhood consists mostly of single family detached ranch-style houses (some multi-units and occasional 2-story houses) that are most often 2 or 3 bedrooms with a 1-car garage (2-car garage sometimes). In Tahoe Park there are two commercial property strips, local schools, several newly constructed college dormitories (roughly 5 years ago), three church buildings, and a planned redevelopment project on 65th Street just South of Highway 50 on the Eastern side of the street.

The area of “Tahoe Park” can be described with five portions as shown below:

Dark Blue: This area is Tahoe Park proper and is referred to as “Tahoe Park“  It is the main area that contains the park (hence “Tahoe Park”).

Black: This portion North of Broadway is referred to as “Tahoe Terrace”. This section is located in the 95817 zip code, whereas other sections are located in 95820. The 95817 zip code is also shared by some other areas of Sacramento that are definitely a different market area than Tahoe Park. Just because a zip code is shared does not mean that two areas are the same neighborhood. The area to the West of this section is the “Elmhurst” neighborhood.

Light Blue: This portion is referred to as “West Tahoe Park“. The houses in this area are located close to a main street (Stockton Blvd) and tend to be fairly similar, but there are several streets that have a different feel to them in terms of design. These different portions contain brick houses or bungalows which are less prominent throughout other areas of Tahoe Park. There are also a couple of houses built in the 1990s in this area.

Green:  This portion is called “Tahoe Park South”. Just West of this section is the “Colonial Heights” neighborhood. 21st Street at the Southern border of this section is a natural divider due to its large median. There is an element of “charm” throughout Tahoe Park due to the area being generally kept up and houses containing era elements that buyers prefer. This “charm” element begins to fade the further South one travels from the green portion to “Tallac Village“. There is a noticeable value difference for being located in “Tahoe Park” when considering other nearby neighborhoods.

Orange: This portion is referred to as “Tahoe Park East” (includes Hiram Johnson High School too) and I actually used to live in this part of Sacramento years ago. The main stretch of housing is located off of Maita Circle and contains single family detached ranch-style properties along with a row of duplexes off of Redding Avenue (Eastern side of Redding). The local High School, Hiram Johnson HS, is located just West of Redding Avenue. North of Maita Circle on Redding Avenue are some properties with larger lot sizes on the Western portion of the street. There is a Little League field tucked in the corner of this orange section as well as a string of commercial properties on the Eastern edge.

All in all, each portion above may be described separately to a degree and yet they all tend to show up in MLS listings as “Tahoe Park”. This brings us to ask then if there are value premiums for certain areas of Tahoe Park. Well, some say that the further North you go, properties become more preferable to buyers, but some say there is no premium because if a house and street in any of the portions is right for the buyer, the market may see similar pricing in any section of Tahoe Park. It seems that there is generally not a hard and fast rule at hand because the location, view, condition, design, level of charm, lot size and layout, among other features all play into the equation for buyers.

Asking these types of questions, doing research, and knowing the intricacies of the local market is a crucial part of the appraisal process. If you have any questions about Tahoe Park or any potential appraisal needs, please contact me at 916-595-3735 or ryan [at] lundquistcompany.com

I just added a nifty feature on this website that will remind everyone of property tax appeal deadlines in surrounding counties. Let’s face it, life is busy and it is sometimes difficult to stay on top of these details because of all that we are juggling. So if you are located in the Greater Sacramento Region, Central Valley or Bay Area, feel free to sign up. We don’t need to know each other personally or be connected in any way. Maybe you’re a home owner or someone who happened to stumble on this website. Or maybe you are an agent or broker who will look good when you remind your clients of these important deadlines and what they entail.

All you need to do is enter your phone number and mobile carrier in a sidebar feature to the left and push “Subscribe” (I included an image above in this post of what you need to look for in the left sidebar). Then I’ll make sure to send you a text message prior to July 2, November 30, and anything else that becomes relevant. You will NOT be called, your phone number will NOT be given to anyone, and you will NOT be spammed with texts or solicited for business either. This is simply a helpful reminder for you. Also, if any of your friends or family would benefit from a reminder, you are welcome to send them here too.

If you have any questions regarding the property tax appeal process or property tax appeal appraisals, contact (or text) me at 916-595-3735 or email me at ryan [at] lundquistcompany [dot] com.

North Highlands is a census-designated place in Sacramento County just South of Antelope, East of Rio Linda, West of the Foothill Farms area and generally surrounded by Sacramento. 

What’s been happening in the North Highlands real estate market lately?

North Highlands Real Estate Market Data (entire area):

• 738 sales in past 12 months
• 163 sales in past 90 days
• Median Price over past 12 months: $108,900
• 83 current Pending listings
• 32 current Active listings
• 89 current Short Sale Active listings

Let’s take a closer look in North Highlands in a particular area typically called “Larchmont Village” or “McClellan Meadows”. Below is a map of this defined area.

The trend graph and data below represent the area of North Highlands as pictured above in the map.

Larchmont Village / McClellan Meadows Market Data:

• 200 sales over past 12 months
• 49 sales over past 90 days
• 25 current Pending listings
• 8 current Active listings
• 23 current Short Sale Active listings
• Median Price over past 12 months: $105,000

Short Sales & Loan Modification:

When observing the data above in both the overall trend of North Highlands and a look at a specific neighborhood (Larchmont), it seems clear that the trend has been a declining market. It seems evident too that the current prices are becoming more attractive to buyers since there are a good deal of current pendings in comparison to the level of active listings.

One important observation to consider also is that there are more short sale listings than active listings (active listings are regular non-distressed properties or bank-owned homes). Short sales generally tend to stay on the market for a longer period of time and/or are less appealing for local buyers. Sometimes agents and buyers avoid short sales because they can be time-consuming or unfruitful to get an offer accepted in a timely manner. In light of this, it is common for many short sales to end up in foreclosure. So when we see a higher amount of short sales in an area, it is a bit of a red flag unless the market readily absorbs short sales (it does not appear to be the case here).

If you are potentially facing foreclosure, it is important to communicate with your bank or lender and find out what your options are. Sometimes banks are willing to modify the rate and terms of your loan, so that can be an excellent option to explore. If that is the case, you can always present your bank with a current and detailed appraisal to show them what the true value of your home is. I would be happy to help you with the appraisal process by providing you with a detailed analysis of your house and neighborhood so that the bank can see clearly what values are doing in your area.

You are welcome to call me at 916-595-3735, see my company website at www.lundquistcompany.com, or email me at ryan [at] lundquistcompany [dot] com. Whether you live in North Highlands or anywhere in the Sacramento Region, if I am able to help you, I will be glad to do so.

Lastly, the Sacramento Housing and Redevelopment Agency has excellent resources for home owners facing foreclosure. Please see www.shra.org for details.

What’s been going on in the Granite Bay real estate market over the past 36 months? What do you see in the trend graph below? 

Granite Bay Real Estate Market Trends:

• 659 sales in Granite Bay over past 36 months
• 182 sales above $1,000,000 in past 36 months
• 175 sales in past 12 months in Granite Bay
• 33 sales sold above $1,000,000 in past 12 months
• 29 sales in past 90 days
• 45 current Pending listings
• 164 current Active listings
• 43 current Active Short Sale listings
• Low Price in past 12 months: $204,000
• High Price in past 12 months: $3,000,000 (9500 square ft house)

The graph and data above are based upon research from Sacramento Metrolist of single family residential detached properties.

Granite Bay Links:

• Granite Bay Community Association
• Granite Bay Information
• Granite Bay Wikipedia Page
• Granite Bay Press Tribune

If you have any questions about the data above or the real estate market in general, give me a call at 916-595-3735 or see the “contact” page to email me.

Whenever title transfers on a deed, a real estate appraisal is usually needed. Situations like the death of a loved one, inheritance of property, divorce, refinance, estate settlement, and buyout of other persons on title warrant a credible real estate appraisal so that decisions can be made about the property. 

Tips for Hiring an Appraiser for a Title Transfer Situation:

• Make sure the appraiser knows the real estate market where the property is located. This is key toward producing a reliable appraisal. It’s okay to ask the appraiser questions about his/her experience.
• Help the appraiser understand why the appraisal is needed. Did you inherit property? Are your elderly parents moving and title is transferring to you? Was there a death in the family? Is there a divorce or break-up in progress? The appraiser is bound to confidentiality and cannot by law share your situation with others.
• Inform the appraiser what type of value is needed. An experienced appraiser will be able to easily figure this out with you in just a couple of minutes of conversation. Is this a market value as of today’s date or do you need an appraisal based upon a previous date? For example, in estate settlement appraisals, it is common for the appraisal to be based upon the date which title was transferred in the past or the date of death of the loved one. This is called a “retrospective value”.
• If you are a home owner working with an attorney and it would be easiest on you for the appraiser to work directly with the attorney, that’s definitely doable. I see it work out either way and I defer to whatever the client needs and prefers.
• Remember that the lowest-priced fees for appraisals usually produce the lowest-quality of work (my fees are very reasonable). The last thing you want is for an unreliable appraisal to get in the way of what you are trying to accomplish with a transfer of title.

If you have any questions about the information above or would like to talk more, feel free to call me at 916-595-3735, see my company website at www.lundquistcompany.com or email me at ryan [at] lundquistcompany [dot] com.  I am available to help you in your time of need and I am glad to speak with you about your situation.