Posts from — June 2009

What can you purchase a property in Folsom, CA for these days? As of today there are 273 listings on the market per MLS. The low listing is $209,000 and the high price is $2,500,000. There are currently 43 properties under $300,000 and from the graph it looks like there are quite a few hovering around the $400,000 level.

You are welcome to contact me (Ryan) at 916-595-3735 or by email at LundquistCompany@gmail.com for any questions about Folsom or beyond.

While driving around during an inspection this week in the “Oak Park” area of Sacramento I snapped the following image with my mobile phone. It may be the real estate geek in me, but I get a kick out of noticing properties with issues like this. Do you notice something wrong?

Yep, you got it. There is a door on the second story that opens to nothing below (well, except for concrete). Generally speaking, that’s not a good situation on a number of levels. To see a previous shot of a similar scenario I snapped in Midtown a few months ago, click HERE.

The Vintage Park area of Sacramento is located just North of the city of Elk Grove (Calvine Road) off of Elk Grove Florin Road. The Western side of Elk Grove Florin Road is the 95828 zip code and has homes that were constructed originally with wood shake roofs and built in the late 80s to early 90s typically. Below is an image of the neighborhood boundaries of the 95828 Vintage Park area.

Vintage Park Real Estate Market Data in 95828 zip code:

• 27 sales over past 90 days
• 8 current active listings
• 14 current short sale active listings
• 21 current pending listings
• Low Price over past 90 days:  $102,500
• High Price over past 90 days:  $205,000
• Median Price over past 90 days:  $149,000

East of Elk Grove Florin Road is the 95829 zip code and this portion of housing is really a different real estate market than the 95828 portion of Vintage Park as houses are often several years newer and have tile roofing.

95829 Zip Code Real Estate Market Trends:

• 68 sales over past 90 days
• 11 current active listings
• 55 current short sale active listings
• 44 current pending listings
• Low Price over past 90 days:  $111,000
• High Price over past 90 days:  $295,000
• Median Price over past 90 days:  $170,000

The graph below records all sales in the 95828 zip code (red) and all sales in the 95829 zip code (blue) as shown above in the defined boundaries. What do you notice? What stands out to you?

Elk Grove Florin Road is the dividing street between both of these areas and overall it appears that there is a difference in median price level as well as inventory in the 95828 and 95829 zip codes. It’s always interesting to see how crossing one major street can make a difference in real estate data and potentially home values. This is not a situation where one of the zip codes above is the “other side of the tracks”, but we do see a principle at hand that the best comparables are usually those closest to home because the further away you go (even just across one main street), the more likely you are to enter into other markets. If you have any questions or a need for more detailed research or a real estate appraisal, please contact me (Ryan) at 916-595-3735 or LundquistCompany@gmail.com

If you have been following real estate trends in the Greater Sacramento Region, you have probably noticed that overall there have been fewer foreclosure listings over the past few months and therefore an increased demand for bank-owned properties (resulting in multiple offers and many times offers over asking price). Banks have been holding on to some of their distressed inventory and not releasing these properties on the market. Well, it looks like a moratorium for 90 days may go into effect today per CBS 13 in Sacramento. All of us in the real estate industry have expected a wave of foreclosures to hit the market for many months now, but it looks like that won’t happen for at least another 90 days. Investors, clients and agents have been telling me that this wave would come in March, but then the buzz was June, and then July, and maybe now September. We shall see. What do you think of this?

What does it take for a property to meet minimum FHA requirements? This is a very important question because FHA loans have become extremely popular in the Greater Sacramento Region, especially among first-time buyers.

FHA is primarily concerned that everything in a house functions properly and that there are no health and safety issues. As an FHA approved real estate appraiser, the inspections I do are based upon guidelines from the United States Department of Housing & Urban Development (HUD). Here is a sample of some of the things I look for while on an inspection:

• Appliances must be in functional use. If there is a hood, it must work. If there is a dishwasher it must work. If there is a stove, it must work…
• The heating unit must be in working order (and AC if applicable)
• Paint must not be chipping, peeling, or flaking on homes built before 1978. There must be no defective paint or exposed wood for properties built after 1978. If there is an issue with paint, it needs to be cured properly by actually scraping the paint instead of just painting over with new paint.
• The water pressure must be adequate for the house. Appraisers flush toilets, turn on all faucets and ensure that both hot and cold water are working.
• The water heater must be in working order.
• The attic must be inspected and we make sure that there are vents, no evidence of a previous fire, no exposed or frayed wires, and that sunlight is not beaming through.
• Attics and crawlspaces are to be viewed at least with head and shoulders into them (if present)
• The crawl space must be inspected and we make sure there is not excessive debris or signs of standing water or any other foundation support issues.
• Electrical outlets must work.
• Toilets must flush and be mounted
• No leaks in the roof.
• The carpet does not have to be perfect (stains or minor tears okay). If there is a health or safety issue with the flooring, then that is a red flag. 
• A house does not need new interior paint.
• Windows cannot be broken. Cracks can be okay so long as there is not an issue with safety, soundness and security.
• No dangling wires from missing fixtures.
• Water heaters must be properly attached with straps (local code says that water heaters need to be strapped and FHA requires water heaters to meet code).
• Stoves are not required unless they are drop in stoves.
• FHA doesn’t require air conditioning, insulation, smoke detectors or the like, but if they are there they must work as they were intended.

Please let me know if you have any questions. I am glad to help buyers, agents, brokers and anyone else know more about FHA standards and the appraisal process. The great thing about FHA loans too is that the buyer, agent or broker can readily choose whatever appraiser he/she wants because HUD is not bound by HVCC (this is a new law that basically means that brokers and loan officers cannot directly order appraisals from real estate appraisers when the loan is geared toward Fannie Mae). You are welcome to contact me (Ryan) at 916-595-3735 or LundquistCompany@gmail.com

Dear Local Buyers & Agents in the Greater Sacramento Region-

The Home Valuation Code of Conduct (HVCC) is a new law that went into effect on May 1, 2009. What this law aims to do is eliminate pressure from loan departments on appraisers to arrive at a certain conclusion of value. One of the biggest changes since HVCC took root is that loan departments can no longer directly communicate with the appraiser about value-related issues and so they must use an appraisal management company (middle man who takes away part of the appraiser’s fee) or work out some other arrangement to have an in-house department that handles appraisal ordering. As you can imagine, this has certainly changed business for many appraisers as well as loan officers and banks because many of our business contacts are no longer viable sources of connection for doing business. Everyone is adjusting and there are many people who are unhappy at the process.

THE GOOD NEWS though is that when FHA financing is being used, the buyer, agent or broker can readily choose whatever appraiser he/she wants because HUD is not bound by HVCC. In a market full of FHA financing, it is still possible then to work with any appraiser you want to.

NOTE: Home owners, lawyers, investors and others can hire a real estate appraiser any time they want to. If the purpose of the appraisal is not a loan geared toward Fannie Mae (eventually sold to them), then the Home Valuation Code of Conduct DOES NOT apply at all. There has been some confusion on this matter since May 1, 2009, but the truth is that HVCC only applies to loans that may eventually be sold to Fannie Mae. I do appraisals for estate settlement, divorce, property tax appeal, bankruptcy, second opinion of value, home-repair loan programs, litigation and other purposes that have nothing to do with a loan geared toward Fannie Mae. Thankfully in these cases I am able to work directly with home owners, investors, agents or local governmental agencies among others.

Please let me know if you have any questions. Thank you.

Your local appraiser,

Ryan Lundquist
Lundquist Appraisal Company
PH: 916-595-3735 
FAX: 916-361-1964
EMAIL: ryan@lundquistcompany.com
WEBSITE: www.lundquistcompany.com

Yesterday I took some photos from the field of the “Stone Creek” neighborhood in Rancho Cordova.

Stone Creek is a fairly new community within Southern Rancho Cordova in the 95670 zip code just South of Highway 50 in between International Drive & Mather Air Field basically. Stone Creek has a unique plan in that it has a large bike/walking path that basically surrounds the entire subdivision. Additionally, Stone Creek has a very nice 21-acre park (Stone Creek Community Park).

This neighborhood is not difficult to spot since there is a giant water tower on the Eastern end of the tract. Have you seen this one while traveling South on Sunrise Blvd?

Stone Creek is just North of Mather Air Field and there is still some vacant land to be built on (probably when the market rebounds). The image below is of the Stone Creek community in the background along with vacant land in the foreground.

This is a view of part of the bike trail/path along the perimeter of the subdivision.

I am very familiar with the Stone Creek neighborhood from my real estate appraisal experience within the community. If you have any questions about Stone Creek or any potential real estate appraisal needs, please contact me at www.lundquistcompany.com or 916-595-3735.

Duplexes and fourplexes are often the hot ticket for many investors because of the positive cash flow possible on certain properties due to current low pricing and decent rents. Let’s take a look below at current listings from MLS in Sacramento County for duplexes and quadruplexes. The units below are not short sale properties, but mostly all bank-owned units.

RESIDENTIAL INCOME – FOURPLEX UNITS UNDER $200K

ACTIVE Properties as of June 5, 2009 (in Sacramento County)

730 Dixieanne Ave Sacramento            99,900  
3801 44th Ave Sacramento                 114,000  
1710 Kenwood St Sacramento           129,900  
3624 Willow St Sacramento                174,500  
10500 Saltana Way Rancho Cordov   189,900  
912 Dornajo Way Sacramento            195,900  
2884 Del Paso Blvd Sacramento         199,000  

RESIDENTIAL INCOME – DUPLEX UNITS UNDER $100K

ACTIVE Properties as of June 5, 2009 (in Sacramento County)

7820-7822 68th Ave Sacramento         50,000  
1529 Orlando Way Sacramento            59,900  
5846 Nina Way Sacramento                  62,500  
641 El Camino Ave Sacramento            64,900  
1528 Frienza Ave Sacramento               74,900  
1840 South Ave Sacramento                 75,000  
2691 norwood Ave Sacramento            78,500  
2318 Empress St Sacramento                84,900  
2742 65th St Sacramento                      93,900  
7612 Bogey Ct Sacramento                   94,900  
7618 Eagle Park Dr Sacramento            94,900  
1517 Tessa Ave Sacramento                 94,900  
730 Dixieanne Ave Sacramento             99,900  
2456 Beaumont St Sacramento              99,999
 
I appraise properties for investors and I am available for desktop appraisals, full interior inspections and market and trend analysis. Please contact me (Ryan) and 916-595-3735 or LundquistCompany@gmail.com with any questions about the information above or to discuss the current real estate market in the Greater Sacramento Region.

Dear Local Realtors,

You can still talk to appraisers. The Home Valuation Code of Conduct (HVCC) went into effect on May 1, 2009 and it means that loan departments and other parties cannot influence an appraiser’s opinion of value. HVCC basically means that an appraiser’s opinion should be independent and not have any outside influence to “hit the number” (meet the sales price, meet the minimum amount for loan qualification, etc…).

This sounds fairly straightforward, but the problem is that there is some confusion in the marketplace about who can speak with appraisers. For instance, last week I emailed a local Realtor to ask her about the details of one of her recent sales. I wanted to obtain information about the condition of the property and any financing terms that were not made available in MLS. The Realtor emailed me back and stated that she could no longer speak with appraisers due to the new law (HVCC). Unfortunately this is not an isolated incident, but most of all it is absolutely wrong.

As far as property details, the Listing & Selling Agent are often an outstanding source of information. When we get answers to questions like, “Why did your buyer purchase this one?” or “How come this was on the market for so long?” or “What did you mean by ‘conversion’ or ‘needs TLC’ in your MLS description?”, we get valuable insight. Just think of the word “fixer”, for example, and how this one word in an MLS listing can mean anything from “infested with mold” to “needs new paint”. Discussing details like this is all a part of the appraiser’s job in analyzing the market to determine a fair market value. Besides, we are not even talking about a value here, but only property characteristics. Keep in mind too that most of the time we are asking about properties that we are not appraising anyway because we are trying to get information on potential comparables to use in an appraisal report.

HVCC simply means that nobody can influence us toward a certain value opinion. Can you still provide property details? Yes. Can you help us understand a certain neighborhood market better? Absolutely yes. Are you able to give us insight into the financing of one of your deals? Yes. Are you within the law to coerce us and influence an opinion of value? No. That’s the gist. 

Your insight is valuable and providing basic information to appraisers really helps us do our job well. Thank you in advance for your communication and expertise. 

Your local appraiser,

Ryan Lundquist
Lundquist Appraisal Company
PH: 916-595-3735 
FAX: 916-361-1964
EMAIL: ryan@lundquistcompany.com
WEBSITE: www.lundquistcompany.com

Rosemont is a community of single story, two-story and tri-level houses just South of Highway 50 and East of Watt Avenue in Sacramento. The neighborhood has easy access to Folsom Blvd and the Light Rail Station and is located within close proximity to Downtown Sacramento.

What’s been happening in the Rosemont area of Sacramento in terms of real estate activity? The data below is based upon information provided in Sacramento Metrolist within the following defined boundaries:

• Sales in Past 12 Months:  139
• Sales in Past 90 Days:  31
• Current Active Listings:  6
• Current Active Short Sale Listings:  19
• Current Pending Listings:  18
• Low Sale in Past 90 Days:  $90,000
• High Sale in Past 90 Days:  $230,000
• Low Sale in Past 12 Months:  $90,000
• High Sale in Past 12 Months:  $280,000

It looks like the oversupply of listings is being absorbed and that price levels are becoming more attractive to local buyers. That’s a good thing and encouraging to home owneres too. Yet one question to ponder within Rosemont and any local neighborhood is how many foreclosures are coming to the market soon and how that might impact property values. Are banks holding on to some of their inventory within Rosemont right now? That’s a key factor in evaluating the coming future of local real estate. If you have any questions about the Rosemont area of Sacramento or any other local neighborhoods, feel free to give us a call at 916-595-3735 or see www.lundquistcompany.com

The deadline for contesting property taxes in Placer County is September 15, 2009. This means that if you are intent to appeal the assessed value on your property, that you will need to turn in the Application for Changed Assessment as well as evidence for a lowered opinion of value at some point between July 2, 2009 and September 15, 2009. You also have the option to fill out the Decline in Value Reassessment Application, but I highly recommend that home owners not fill this out because this application is NOT an appeal. The Decline in Value form does not have any real power of appeal and so if you choose to only fill out the Decline in Value form and the deadline passes for appealing property taxes, then there is nothing more you can do to contest property taxes for the year. This happens to home owners every year and so I hope now that it does not happen to any readers of this blog.

The Assessor’s Office in Placer County says they will mail property owners a letter in July 2009 if the owner’s property experienced a decline in value over the past year that impacts the level of property taxes.

Placer County Links:

• Placer County Assessor’s Office
• Placer County Website
• Placer County on Wikipedia
• Placer County Library
• Placer County Office of Education

If you have questions about the process of appealing property taxes in Placer County or any other surrounding county, give us a call at 916-595-3735. We are happy to help Placer County home owners understand what you need to do as well as how we can help you. We are a local company that knows the local real easte market well. We do have a main property tax website at www.SacramentoTaxAppeals.com also and you may find further helpful information there.

Here is a quick post to show what you can buy a house for in the 95670 zip code in Rancho Cordova these days. It looks like there are some good deals, huh? The 95670 zip code covers the North side of the freeway (”Riverside” portion) as well as some of the Southern side of Highway 50 (Stone Creek, Capital Village, some older tracts). There are currently 193 listings in MLS for detached single family residential properties.

If you have any questions about the Rancho Cordova real estate market, feel free to give us a call at 916-595-3735 and see www.lundquistcompany.com or www.ranchocordovaappraiser.com