Posts from — June 2009

Website statistics show that someone found this site today when searching for the answer to the following question: What are FHA guidelines for removing lead-base paint? I’d like to shed some light on the answer and hopefully help any future readers too.

As indicated on the HUD website in tremendous detail, whether you are in Sacramento or anywhere in the United States, there is a very specific methodology for the abatement of lead-base paint. To learn more than you probably ever wanted to know about lead-base paint removal, you can DOWNLOAD a PDF document from HUD (50+ pages). In short though, the answer to the question is that a defective paint surface (chipping, cracking, flaking, peeling) on a property built prior to 1978 must be cured by a proper method of scraping and then painting afterward. Careful attention must also be given to flakes of paint falling on the soil during removal. Thus you can see that it doesn’t jive well with HUD to simply slop on some new paint over a cracked or flaking surface and then call it cured. The defective portion of paint actually has to be properly removed and then the bare wood must be painted. Does that make sense?

Why do you think they HUD is so concerned about lead-base paint anyway?   

If you have any questions, feel free to contact me at 916-595-3735 or www.lundquistcompany.com or LundquistCompany@gmail.com

I saw this sign yesterday while driving through the Anatolia neighborhood in Rancho Cordova. What do you think of this marketing strategy?

Someone found this blog last night by typing in the question, “Can I Use an Appraisal for a Loan Modification?” In case the answer was not found, I’d like to shed some light on the matter. The answer is maybe. When you are doing a loan modification you’ll need to consult with your agent, attorney or bank and do what they say. If you already have an appraisal in your hands that demonstrates fair market value for your property and it was recent (and reliable), you may be good to go. However, if you have an outdated appraisal, it might not be acceptable for your loan modification needs since the market has changed so rapidly over the past several years (and months). An older real estate appraisal is often no longer reliable because the market has very likely shifted down or up since the time the appraisal was completed (down most of the time lately).

I hope this helps to answer the question. Please let me know if you need any clarification and if there is anything I can do for you. I am very familiar with doing loan modification appraisals for attorneys and home owners, so I am glad to provide my services to households in the Greater Sacramento Region. Feel free to contact me at 916-595-3735 or www.lundquistcompany.com or LundquistCompany@gmail.com

I find myself doing quite a few FHA appraisals these days in light of the enormous popularity of FHA loans in the Greater Sacramento Region. Sometimes properties are able to easily meet FHA minimum standards, but other times houses might need just a little work (or quite a bit) to bring them up to the level required by HUD.

The primary concern of HUD as it pertains to a property is with safety, soundness and security. The basic gist is that for HUD to guarentee a loan, a property must not have any issues that present a threat to safety, security or soundness.  Minor cosmetic issues don’t fall under this category, so a crack in a window or a stain on carpet or a missing doorknob are not a big deal for FHA loans (so long as there is no threat to safety, security or soundness). Other condition issues though such as peeling or chipping paint, an inoperable heating system or a leaking roof are a big deal to HUD because they do impact safety, security or soundness.

At times it is easy to think that appraisers are being knit-picky over minor issues that could easily be overlooked while inspecting a property, but take a look firsthand what FHA requires for repairs (click HERE).

If you ever have questions about FHA-related required repairs or FHA real estate appraisals in the Sacramento Area (multiple counties surrounding Sacramento), you are welcome to contact me at 916-595-3735 or www.lundquistcompany.com or LundquistCompany@gmail.com  Lastly, you may find HUD to be very helpful when you call (800)CALL-FHA

I have talked on this blog about my property tax appeal company as it relates to residential properties, but now I want to make it a point to mention commercial properties in the Sacramento Region.

What’s the difference in requirements for residential vs. commercial property tax disputes? Not much. The process and timeline for contesting property taxes for commercial properties in the Sacramento area is the same as residential. The exact same application is filled out (Application for Changed Assessment) and the County Assessor asks the commercial property owner to provide the same thing as would be provided in a residential tax dispute - evidence for a true opinion of market value as of January 1, 2009 (that’s where we come in).

Our company at SacramentoTaxAppeals.com handles residential and land property tax appeals for the bulk of our work, but we also collaborate with an experienced General Real Estate Appraiser who handles the commercial properties ordered through our company. Please contact us today so that we can understand your situation and the type of property you have so that we can figure out the depth of work necessary for your tax appeal needs. A full commercial appraisal may not be necessary (we all know how much commercial appraisals can cost). Call us today at 916-595-3735 for more information.

Keep in mind that the time-frame to dispute commercial property taxes in Sacramento County is July 2, 2009 to November 30, 2009 while in Placer County and some surrounding counties the time-frame is July 2, 2009 to September 15, 2009.

As an FYI for any readers, this is Fannie Mae’s definition of market value, which is contained in the Fannie Mae appriasal form (1004) that is used for most conventional loans:

Market value is the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Examples: If you sell your house and include your red corvette in the garage as part of the sale, it probably wouldn’t fit the definition above because the buyer very likely paid a higher price for the house because of the machine parked in the garage (#5). Or if there are $50,000 of concessions contained in the purchase price, chances are that the buyer paid more for the house to get the benefit of money back, right? (#5) Or if a property is listed on the market for 1 day only, it may have been under-priced and not reflective of the market, right? (#3) (not always the case if a property goes quickly, but often so). Or consider when a family member sells to another family member and how the sales price is often much lower than it would have been if a non-family member purchased the house. This would very likely not be an arms-length transaction where each party is acting in his own best interest (#4). Or imagine a couple is getting divorced and they need to sell their house quickly. The house sells $30,000 below other recent sales in the neighborhood and so it does not fit the definition of market value (# 2 & # 3).  These are the types of issues that appraisers must consider constantly (and these are the reasons why speaking with local Realtors is a crucial part of our job. Having reliable and accurate information leads to better appraisals). 

If anyone has questions, feel free to contact me at 916-595-3735 or www.lundquistcompany.com

Why is a real estate appraisal needed during bankruptcy? During bankruptcy the debtor is required to show the worth of his/her assets to the court. Simply put, an appraisal by a qualified and professional appraiser in the State of California is the official means of verifying the true value of your property (or properties). It is the job of the appraiser to provide thorough and reliable research to demonstrate with clarity what your home is worth so that your proceedings can move forward. It is very likely that your lawyer will ask you to hire an appraiser, so it is important to make a good selection.

Tips for Selecting an Appraiser During Bankrputcy:

1.  Choose an appraiser who understands your local market.

2.  It may be a good idea to ask the appraiser about his/her experience in general as well as knowledge about your area of town.

3.  Let the appraiser know exactly what you need and why you need it. Is the appraiser going to need to go to court? (probably not, but if you know in advance, that is helpful information).

4.  Let the appraiser know when you need the completed report by.

5.  Most appraisal fees will probably hover around the same level because there is usually an acceptable price standard in the market (just like with any other product or service). My fees are very reasonable and I do a fantastic job with bankruptcy appraisals. This is my own philosophy, but I would strongly suggest that you not hire someone who is willing to do the appraisal for vastly less than everyone else. Like the saying goes, “you get what you pay for” (I’ve certainly learned this lesson, especially when hiring contractors).

Please let me know if you have any questions about the appraisal process during bankruptcy. I offer my bankruptcy appraisal services throughout the Greater Sacramento Region in multiple counties such as Sacramento, Placer, Yolo, El Dorado and San Joaquin among others. I can be reached at 916-595-3735, www.lundquistcompany.com or LundquistCompany@gmail.com. Your circumstances may be very difficult understandably, so the hope is that at least the professionals around you can help to smooth over some of the details like this so you don’t have to think too much about them.

Someone found this blog through a search yesterday by typing in the following: “Can a Realtor also be an Appraiser?” In case the answer was not found, I wanted to chime in briefly. The answer is “yes”. It is entirely legal for an appraiser to be a real estate broker, Realtor, loan officer or whatever else he/she wants to be. The key though is that the appraiser can only act as an appraiser when appraising. When working as a Realtor, the appraiser takes off his/her appraiser hat and wears the Realtor hat and makes sure to keep the two trades separate. An appraiser who is a Realtor cannot be doing appraisals for his/her own deals either because there would be a big conflict of interest, don’t you think?

Here are the most recent figures for unemployment in Placer County as of May 2009 per the Employment Development Department. The figures below consider both cities and Census Designated Places (CDP). Placer County as a whole has an unemployment rate of 10.9% (in comparison to Sacramento County’s rate of 11.1%).

Auburn city        9.0%

Colfax city         14.5%

Dollar Point CDP         12.9%

Foresthill CDP     16.7%

Granite Bay CDP        7.3%

Kings Beach CDP       10.6%

Lincoln city       19.3%

Loomis town      6.9%

Meadow Vista CDP        10.5%

North Auburn CDP         14.0%

Rocklin city       7.5%

Roseville city     10.9%

Sunnyside Tahoe City CDP         11.0%

Tahoe Vista CDP        17.1%

Feel free to give me a call at 916-595-3735 or shoot me an email at LundquistCompany@gmail.com if you have any questions about the figures above, the impact of unemployment on the real estate market or any potential real estate appraisal needs.

What stands out to you about the following data? Below you will find the most recent figures for unemployment in San Joaquin County as of May 2009 per the Employment Develompent Department. The figures below consider both cities and Census Designated Places (CDP). San Joaquin County as a whole has an unemployment rate of 15.0%.

August CDP      22.9%

Country Club CDP       11.0%

Escalon city      13.3%

Farmington CDP       18.9%

French Camp CDP       46.8%

Garden Acres CDP      23.9%

Kennedy CDP    31.9%

Lathrop city     10.5%

Lincoln Village CDP       3.6%

Linden CDP     18.0%

Lockeford CDP    24.5%

Lodi city        11.4%

Manteca city     13.1%

Morada CDP      6.5%

North Woodbridge CDP   5.7%

Ripon city      8.9%

South Woodbridge CDP    10.8%

Stockton city     18.1%

Taft Mosswood CDP     31.8%

Tracy city    9.4%

It is important to note that some of the communities in San Joaquin County are smaller in population and so the rates are easier to be higher. However, Stockton is not a small city and it is alarming to see an unemployment rate of 18.1%. Do you think the unemployment rate might impact real estate values or even the confidence of investors in some cases to purchase properties?

This is not related to real estate per se, but I found a fun online tool where you can make free billboard signs using either pictures or fonts. Click HERE and see what you can come up with. I included some examples below of my appraisal company, HVCC, a broker friend named Keith Klassen, and a local Realtor based in Folsom. Enjoy.

What do you think something like this could be used for? Simply fun? Clever marketing? Web design? I’d be curious to hear from anyone on what you ended up doing with your image.

Here are the most recent figures for unemployment in Sacramento County as of May 2009 per the Employment Develompent Department. The figures below consider both cities and Census Designated Places (CDP). Sacramento County as a whole has an unemployment rate of 11.1%.

Arden Arcade CDP  10.8%

Carmichael CDP  8.2%

Citrus Heights city  7.8%

Elk Grove CDP  9.0%

Fair Oaks CDP  6.2%

Florin CDP  16.7%

Folsom city  5.1%

Foothill Farms CDP  14.2%

Galt city  16.9%

Gold River CDP  1.9%

Isleton city  11.8%

La Riviera CDP  6.1%

Laguna CDP  5.8%

Laguna West Lakeside CDP  7.5%

North Highlands CDP  16.4%

Orangevale CDP  8.0%

Parkway South Sacramento CDP  18.7%

Rancho Cordova City  12.8%

Rancho Murieta CDP  3.5%

Rio Linda CDP  16.3%

Rosemont CDP  8.8%

Sacramento city  13.1%

Vineyard CDP  5.2%

Walnut Grove CDP  24.5%

Wilton CDP  6.8% 

What do you notice? Does any of the data stand out to you? Let me know if you have any questions about the latest figures and how unemployment impacts the local real estate market. You are welcome to call 916-595-3735 or visit our company website at www.lundquistcompany.com