Posts from — October 2009

I’m been crunching numbers since 5am this morning and thought I’d share a graph with you. This is a broad view of a market I am doing an appraisal in right now. This scatter graph is based on all single family detached sales in the city of West Sacramento from October 2006 to October 2009 (Sacramento MLS). It’s always interesting to me to take in a view of the entire market before analyzing and graphing smaller and more comparable niches within that market.

www.SacramentoAppraisalBlog.com City of West Sacramento Sales: Trend Graph of Past Three Years

This is an important reminder. The deadline to appeal property taxes in Sacramento County and most surrounding counties is November 30, 2009. I run a website called www.SacramentoTaxAppeals.com to help property owners in the Greater Sacramento Region in the process of disputing property taxes. We also handle commercial tax appeals depending on the property. We’ve been getting quite a few calls from local property owners lately because the deadline is quickly approaching.

Disputing property taxes does not make good economic sense for everyone, but if it does (or might) for you, let’s talk. If you have questions about the appeals process and whether you might be a good candidate to contest your property taxes this year, feel free to call 916-595-3735 or email me at ryan@SacramentoTaxAppeals.com.

www.SacramentoAppraisalBlog.com  Tax Appeal Reminder: November 30, 2009 Deadline for Sacramento County (and many local counties)

What’s the latest in the “Tahoe Park” market in Sacramento? Below is some basic data based on information from Sacramento MLS as of 10/28/09. The points on the graph represent sales within the entire Tahoe Park neighborhood – all four sections.  I wrote previously about the different areas of Tahoe Park HERE as well as a look at thirty-six months of the market in Tahoe Park.

Tahoe Park Real Estate Market Data:

• 36 sales over the past 90 days (07/28/09 – 10/28/09)
• 15 current Active listings
• 17 current Active Short Sale listings
• 26 Pendings
• Low sale in past 90 days: $67,000
• High sale in past 90 days: $349,500

This graph is a bit interesting. It looks almost like a fork that represents two different segments of the market – a lower end and a higher end. So what does each of those lines represent? Now there is a great question worth exploring. Any thoughts? Let me know if you have any questions or a need for further research. Call me at 916-595-3735 or email ryan@lundquistcompany.com.

www.SacramentoAppraisalBlog.com  “Tahoe Park” Real Estate Market Data in Sacramento: The Past 90 Days

I was driving through West Sacramento today after an appraisal inspection and I snapped the following images while taking comp photos. This house is located off of Jefferson Blvd. and is jacked up on what appears to be stilts. Maybe it was recently moved? Maybe it is awaiting a permanent foundation? Things like this interest me.

Here is an image of the Sacramento River from South River Road in West Sacramento. The River divides Yolo County from Sacramento County. I really enjoy days when I get to appraise properties near locations like this because the scenery is just wonderful to take in and the drive is so peaceful. Regarding properties along the river, most houses do not have a direct view of the river due to the levy, but some do have water rights, which can make a huge difference in market value. If you are from the area, do you ever take drives along South River Road or even in places like Iselton, Courtland and surrounding Sacramento Delta areas?

www.SacramentoAppraisalBlog.com Photos from the Field: Jacked House & River in West Sacramento

What’s been happening with Sacramento County unemployment rates over the past five months? Below are the most recent figures for unemployment per the Employment Development Department. The rates encompass both cities and Census Designated Places (CDP) in Sacramento County from May through September 2009. Data for October 2009 has not yet been released (wait until the third week of November for that). 

As of September 2009, Sacramento County as a whole has an unemployment rate of 12.2% (August was 12.3%, July was 12.0%, June was 11.6% and May was 11.1%). What do you notice about the data below? Does anything stand out to you or surprise you?

Arden Arcade CDP  11.8% (August 11.9%, July 11.7%, June 11.4%, May 10.8%)

Carmichael CDP  9.0%, (August 9.1%, July 8.9%, June 8.7%, May was 8.2%)

Citrus Heights city  8.6% (August 8.6%, July 8.5%  June 8.3%, May 7.8%)

Elk Grove CDP  9.9% (August 10.0%, July 9.8%, June 9.6%, May 9.0%)

Fair Oaks CDP  6.8% (August 6.8%, July 6.7% , June 6.6%, May 6.2%)

Florin CDP  18.1% (August 18.2%, July 17.9  June 17.6%, May 16.7%)

Folsom city  5.6% (August 5.6%, July 5.5%, June 5.4%, May 5.1%)

Foothill Farms CDP  15.5% (August 15.6%, July 15.3%, June 15.0%, May 14.2%)

Galt city  18.3% (August 18.4%, July 18.1% , June 17.8%, May 16.9%)

Gold River CDP  2.1% (August 2.1%, July 2.0%, June 2.0%, May 1.9%)

Isleton city  13.0% (August 13.2%, July 12.9%, June 12.5%, May 11.8%)

La Riviera CDP  6.7% (August 6.7%, July 6.6%, June 6.5%, (May 6.1%)

Laguna CDP  6.3% (August 6.4%, July 6.2%, June 6.1%, May 5.8%)

Laguna West Lakeside CDP  8.2% (August 8.3%, July 8.1%, June 8.0%, May 7.5%)

North Highlands CDP  17.8% (August 18.0%, July 17.6%, June 17.3%, May 16.4%)

Orangevale CDP  8.7% (August 8.8%, July 8.6%, June 8.5%, May 8.0%)

Parkway South Sacramento CDP  20.2% (August 20.4%, July 20.0%, June 19.7%, May 18.7%)

Rancho Cordova City  13.9% (August 14.0%, July 13.8%, June 13.5%, May 12.8%)

Rancho Murieta CDP  3.8% (August 3.8%, July 3.7%, June 3.7%, May 3.5%)

Rio Linda CDP  17.7% (August 17.8%, July 17.5%, June 17.2%, May 16.3%)

Rosemont CDP  9.6% (August 9.7%, July 9.5%, June 9.3%, May 8.8%)

Sacramento city  14.2% (August 14.3%, July 14.1%, June 13.8%, May 13.1%)

Vineyard CDP  5.7% (August 5.7%, July 5.6%, June 5.5%, May 5.2%)

Walnut Grove CDP  26.5% (August 26.5%, July 26.2%, June 25.6%, May 24.5%)

Wilton CDP  7.5% (August 7.5%, July 7.4% , June 7.2%, May 6.8%)

Every single category above, whether city or CDP, either remained the same from August to September 2009 or saw a slight decrease in unemployment rate. There was no increase in unemployment rate in any area of Sacramento County from August to September 2009. If there was a prize for lowest unemployment rate in Sacramento County, Gold River would be the winner at 2.1%. On the other end of the spectrum, Walnut Grove has the highest unemployment rate in Sacramento County at 26.5%.

Let me know if you have any questions about the latest figures. You are welcome to call 916-595-3735 or email ryan@lundquistcompany.com.

www.SacramentoAppraisalBlog.com Comparing Five Months of Unemployment Rates in Sacramento County

I make trend graphs for my real estate appraisal work nearly every day on the job, and since I’m a huge baseball fan, I figured I’d make a scatter graph of the speed of pitches for the Los Angeles Angels during the last game of the American League Championship Series on 10-25-09. I know, it sounds a bit geeky, but when I get a random idea like this, sometimes I just have to make it happen. I would have also plotted the New York Yankees, but Fox did not display pitch speed for the Yankees’ entire first inning, and I was also feeling like tracking two teams was going to be way too tedious for a relaxing Sunday evening. Here is what I came up with:

If you notice, there is a gap of data between pitch 23 and 35, and that is because Fox did NOT supply the data for whatever reason. It seemed that most of the time Fox displayed pitch speed, but oddly they missed nearly all of the second inning for the Angels (as well as the first inning for the Yankees). You’ll also notice I missed a few pitches on accident (17, 123) and that during the 8th inning I called it quits. Between spending time with family, having two toddlers running around, and getting tired of watching more intently than I usually do, I figured it was time to hang up my MLB statistician hat and simply enjoy the rest of the game.

Key Points:

• The spread of speed varied by about 20 mph.
• Joe Saunders pitched from pitch 1 to pitch 115.
• Ervin Santana pitched from pitch 116 to 130.
• In the 8th inning when I called it quits, there were two more pitchers from the Angels who went to the mound (Scott Kazmir & Jered Weaver).

This was just for fun. Feel free to comment if you’d like. Or if you have any ideas for what sort of baseball stat I might experiment with graphing during the World Series, let me know what you think.

www.SacramentoAppraisalBlog.com The Speed of Pitching for the Los Angeles Angels: ALCS 10-25-09

Do appraisers need to use comps within a one-mile radius of the property they are appraising? That’s a good question. Many times underwriting guidelines of various lenders mandate that the appraiser MUST use comps located within a mile of the subject property.

I was thinking about this today after a conversation I had with a Realtor in Sacramento about his renovated listing that is pending far higher than anything else in the immediate neighborhood. His suggestion was that the appraiser for his deal should use comps North of the immediate neighborhood, while ignoring the most recent sales on surrounding streets. I know, this sounds heinous, but there is actually some validity to his case because the neighborhood to the North is competitive to the subject neighborhood, and only big-time fixers have sold recently on surrounding streets to the subject.

What does Fannie Mae say? The Fannie Mae Seller’s Guide (PDF) addresses the importance of selecting a minimum of three truly comparable properties in an appraisal report, but there is no mention anywhere of a “one mile radius” standard. The Fannie Mae Seller’s Guide is 1,126 pages, so if you are interested in researching more about comp selection, start at page 477 and scan through 5-10 pages. Fannie Mae basically says that the appraiser needs to use the best available similar properties for comparison, and that comps from competing neighborhoods can be used too (but the appraiser must explain why he/she went out of the immediate neighborhood to utilize “comps” from a different neighborhood – there better be a good reason).

Ultimately lenders have set up their own “one-mile” guideline. Many underwriters mandate that an appraiser is to stay within a one-mile radius of the subject property when in a suburban setting and then a five-mile radius when in a rural area. That’s fine as long as the best available comparables are truly located within those parameters, and if the lender can be understanding why this rule does not work out in every case too. In an ideal world, there will be three recent model match sales within a 1/4 mile of the subject property. But anyone in the housing industry knows how rare that is – especially in today’s market. 

I can see the value of a “one mile” guideline from a lender’s standpoint because they want to make sure that an appraiser is not cherry-picking comps from a far superior neighborhood to justify an inflated value in a neighborhood where properties sell for astronomically less. For example, when looking at the map above, an appraiser probably shouldn’t be selecting “comps” from Curtis Park or Land Park when appraising in Oak Park - unless there is a sincerely good reason to do so of course.

Let me know if you have any questions. 916-595-3735.

www.SacramentoAppraisalBlog.com Do comps need to be within a one-mile radius?

What is a half-built house worth in today’s market? I snapped the following image recently while heading through the Oak Park area of Sacramento. These three houses had begun construction, but during the building process they went into foreclosure.

This is not an uncommon scenario in today’s market, is it? We’ve all heard stories of builders who went under, a project that is on hold (or dead), and a very real slowness in new construction right now.

www.SacramentoAppraisalBlog.com Photos from the Field: Half-Built Houses

I had someone ask me the other day about when a real estate appraisal is needed during the divorce process. I have written previously about some of the details of divorce valuations, but to answer the question here, I’ll say the following. An appraisal should be completed whenever your attorney gives you the go-ahead to have an appraisal done. Usually that takes place after divorce papers have been formally filed and before any court or mediation date. On the other hand, if you are not working with an attorney, then it’s really up to you. 

Keep in mind that the appraised value is typically based upon the date that divorce papers were filed, so it’s not a bad idea to hire an appraiser not long after filing (maybe a matter of months as opposed to waiting two years). I find that most clients dealing with divorce in the Sacramento Region typically order these types of appraisals within 3-6 months of papers being filed, though each situation is different.

If you have any questions, feel free to reach me at ryan@lundquistcompany.com or 916-595-3735.

www.SacramentoAppraisalBlog.com When do you do the appraisal during a divorce?

This post is not related to real estate appraisal per se, but it has everything to do with “value”. Project 680 is something I wholeheartedly support, help organize and lead, and sponsor as a business.

I firmly believe we can find creative solutions to some of the problems we face in our society, especially as it pertains to local children in need.

Project 680 is a grassroots community effort to find relevant and practical ways to support local students in need. We are working closely with the Folsom Cordova School District Liaison for Homeless Services to support her yearly shoe drive for needy students, and our goal is to raise $1,500 to cover the cost of 100 pairs of brand new shoes. Project 680 is a volunteer team effort and we partner with local residents, individuals, households, organizations, churches, and businesses, to advocate for local kids.

There are many ways to get involved in the shoe drive as mentioned on the Project 680 website, but one specific and creative way that I wanted to make note of is to be a part of the P680 Bike Ride. On Saturday, 11/07/09, Project 680 is hosting a community bike ride as a creative and fun way to raise money for new shoes for needy students. Riders are invited to donate $5.00 each or $10.00 per household, or even put together a “Riding for Shoes” team.

Please have a look at the Project 680 website at www.project680.org and specifically under “Shoes” and “Bike” for information on the Shoe Drive and the Community Bike Ride. This is a short ride and very family-friendly. Even if you haven’t been on a bike for a few decades, you can do this one!!!

Thank you everyone for taking a moment to listen and for your support. Let me know if you have any questions!!!

www.SacramentoAppraisalBlog.com Project 680 Shoe Drive & Bike Ride

I set up a Twitter page, so come along and follow me if you’d like. I’ll tweet about business, personal and community stuff. Don’t worry, there won’t be any blatant and wild over-sharing on my part. If you have any tips for how to maximize Twitter, I am open ears. Unfortunately my full name was not available, so “SacAppraiser” will suffice. The Twitter adventure now begins… www.twitter.com/SacAppraiser

www.SacramentoAppraisalBlog.com Lundquist Appraisal is now on Twitter

I recently came across some heavy duty security doors and steel window coverings in a certain area of Sacramento, and I was impressed with the overall set-up. Has anyone else seen these or used them before? These types of doors and window coverings are rented by the seller and used when selling a vacant property in an area that might have a need for such doors and windows for one reason or another. Access is keyless and is granted by using a particular sequential code.  

I haven’t seen steel doors and window coverings on many properties in the Sacramento area, but my guess is they are used sporadically at most, and probably at the discretion of the Listing Agent and bank. I can see doors as such being valuable for certain vacant properties since empty houses are often sitting ducks awaiting stripping of appliances, copper wire, cabinetry, fixtures, and of course squatters. For reference, it looks like the company behind the doors and window coverings in these pictures is www.vacantpropertysecurity.com. (no, I am not paid to mention them).

These types of things are interesting to me, not only because of the unique and clever property access, but the bigger question of why doors like this are placed in certain areas as opposed to others. How does a neighborhood over time become “worthy” of steel doors and window coverings? Why would we not imagine seeing these doors in a community like Granite Bay, but then we’d expect to see them in other neighborhoods? There just might be some social commentary and discussion to be had here.

www.SacramentoAppraisalBlog.com Photos from the Field: Heavy Duty Security Doors & Window Coverings for Vacant Properties