Posts from — December 2009

Have you entered the contest yet? You have 4 more days!!!

The Sacramento Appraisal Blog is hosting a little contest for you, and the prize is a free $125.00 Residential Natural Hazard & Tax Disclosure Report by GeoAssurance. It’s what you wanted for Christmas, right?

There’s no catch here. Win a report worth $125.00 for FREE. These types of reports give great detail for any environmental hazards surrounding your property, and you can use the NHD report for any local residential property you want, whether for business or personal use (or for a friend or family member). What a perfect opportunity to find out more about what is going on right around your property.

All you have to do to enter the contest is comment on the blog post below (or original post HERE) or tweet the following message: ”Christmas Contest from @SacAppraiser: FREE Natural Hazards Report http://bit.ly/7BKVzX”

The Fine Print: Anyone can enter. You must live in or do business in one of the following California counties: Sacramento, Placer, Yolo, El Dorado, San Joaquin, Stanislaus, Merced, Yuba, Sutter, or Solano. Each person only gets one entry, but if you have a Twitter account like me and you tweet the message above, you can have two chances to win (blog comment and tweet).  The NHD report is good for one residential property located in one of the aforementioned counties. A winner will be selected on December 21, 2009 at 3pm PST and announced here and on Twitter. If you do not provide accurate contact information, someone else will be selected. 

Questions? Call 916-595-3735, email ryan@lundquistcompany.com or message me on Twitter at @SacAppraiser. 

www.SacramentoAppraisalBlog.com FREE Hazard Report: 4 Days to Enter to Win!!!

The Sacramento real estate market has been hit hard over the past several years, and Plumas Lake has not escaped the damage either. Plumas Lake is a community located in Yuba County about 30 miles north of Sacramento and 10 miles south of Marysville. This neighborhood was built out over the past six years, with the bulk of houses being constructed between 2003-2005.

Plumas Lake is a suburban community, but it does have somewhat of a secluded feel because of the lack of commercial property and conveniences within the immediate neighborhood. The plan was to have developed many commercial parcels by now, but unfortunately little progress has been made beyond a Walgreens. By the way, kudos to Walgreens because they also built a store in the Anatolia area of Rancho Cordova, which faced a similar situation (a new neighborhood was built, but commercial construction lagged far behind residential construction due to the market bubble burst).

Anyway, let’s take a look at recent real estate market trends in the Plumas Lake neighborhood. The graphs below depict the past three years of sales, past one year of sales and current listings and pendings. 

What do you see in the graphs above? Does anything stand out to you? If you are a home owner in Plumas Lake, what is it you enjoy about your community? If you are considering buying a property in Plumas Lake, what is it that draws you to the neighborhood?

Your comments are welcome below. Please also contact me if you have any questions or a need for more developed research or my appraisal services. 916-595-3735 or ryan@lundquistcompany.com.

NOTE: Plumas Lake is located in Yuba County and so data is interesting. Since both Sacramento MLS and Yuba/Sutter MLS carry data for the Plumas Lake area, it’s important to look at and compare both sets of data to make sure to analyze all market activity. With that being said, the graphs above are based on Sacramento MLS for ease of use. Maybe a future post will analyze and compare both systems.

www.SacramentoAppraisalBlog.com Taking a Dip in the Plumas Lake Real Estate Market

I’m disheartened to hear stats on President Obama’s “Making Home Affordable” program. So far it doesn’t look like the program is working very well (at all). A CNN article last week stated ”The administration projected that between half and three-quarters of applicants would have new mortgages at this point. As of the end of November, the number is 4.3 percent.” That’s not good.

In light of this less-than-wonderful news, I thought it would be interesting to use the “Obama Cam” app on my mobile phone to snap a few images of some local REO and Short Sale properties in the Sacramento area. The “Obama Cam” application overlays an image of President Obama (17 to choose from) on any picture taken with my mobile phone (an Android G1).

These images are in no way meant to belittle the President, make a political statement for any political party, or even rant about the Making Home Affordable program. There is actually a deep element here for me since the shots juxtapose governmental programs with real life local distressed properties. I’m reminded of the ever-present struggle in today’s economy for so many households, that recovery is going to take a long time, and also that good intentions in Washington DC do not necessarily translate to good results on “Main Street”.

What do these images evoke in you? Why is the “Making Home Affordable” program not yet working as it should? Please give your two cents and feel free to share your experience. By the way, do you have an app like this on your phone? Your comments are welcome below.

www.SacramentoAppraisalBlog.com ”Obama Cam” Photos in Sacramento

While on an appraisal inspection in Los Banos this morning I made a pit stop to a local “Fotomat” style coffee shop to re-fuel. I’ve noticed this little java hub over the past several years, but never actually stopped, so I figured I would become a customer today.

I don’t know about you, but little drive-through businesses like this remind me of the small blue and yellow photo huts in years past. Do you remember “Fotomat“? Though I doubt Cafe E Via was formerly a Fotomat (too big), this shop is definitely similar in concept. In fact, when I see old Fotomats from time to time, it seems the most predominant use is a coffee shop. Maybe that’s the highest and best use? What do you think? What is the most successful type of business you’ve seen using a former Fotomat building? Did you used to shop at Fotomat?

www.SacramentoAppraisalBlog.com “Fotomat” Coffee Shops: Photos from the Field

I’d like to take a few moments to reflect on my favorite appraisal assignments of the year. Maybe I’m jumping the gun a bit since 2009 is not quite over, but that’s okay. I won’t get specific about addresses or location because I take client confidentiality very seriously.

Top 10 Favorite Appraisal Assignments of 2009

1. Facuets Left On:  I appraised a bank-owned property in Solano County. It was a very nice property, but unfortunately all faucets and spickets were left on (with clogged drains), so there was extensive water damage. It was unclear if the damage was done by the disgruntled home owner or a vandal.
2. Oak Park Fixers:  This year I appraised quite a few fixer properties in the Oak Park area of Sacramento that were purchased by an investment group, re-habbed, and then re-sold on the open market to first-time home buyers. It’s nice to be a part of a project where the end result is good for the community.
3. Vacant Subdivision Land in Sacramento:  Acting as a property tax consultant, I valued two parcels in Sacramento County under the supervision of an AG (Commercial Appraiser). These sites were scheduled to be finished out as a subdivision, but then the market burst and subdivision building virtually stopped.
4. Spring Water & Cesspool:  I appraised a house in Placer County that was on spring water and a cesspool (as opposed to a well and septic tank). Do you think this would have an impact on market value? How much of a price discount would it take for the typical buyer to look over an atypical feature such as this to purchase the property?
5. Dilapidated Fourplex:  This property was interesting because it had repeated damage from squatters. I had to climb through a window to inspect one of the units too, and I cut my finger on broken glass (that made me remember this property even more).
6. Upgraded Duplex:  The residential-income market in Sacramento saw a huge decline in value over recent years. All of the latest sales in this particular neighborhood were fixers. So what is a bright and shiny upgraded non-bank-owned duplex worth in a marketplace of REO fixers?
7. Rancho Cordova Property:  I’ll be honest. Since my office is located in Rancho Cordova, it sure is nice to get local assignments in the same city. I don’t mind at all driving to other counties, but it’s a great thing to travel a mile from the office to take care of business. My business in Rancho Cordova definitely increased this year.  
8. Divorce Appraisals:  I do work for home owners and attorneys during a difficult time of life. It was a pleasure to provide excellent service to home owners in need this year and at least make the appraisal process smooth in the midst of a challenging situation. I grew up in a divorced home and I know it’s not an easy time of life.
9. Pre-Listing Appraisals for Local Agent:  I am a huge fan of working with local Realtors and it was a pleasure to establish a new working relationship with a particular agent who began to rely upon my knowledge and services this year. This year I had more referral work from Realtors and that’s a wonderful thing!!! I am also really grateful to be more connected to some stellar local real estate agents on Facebook and Twitter too.
10. Ripon New Subdivision:  There was nothing terribly complex about this assignment, but I really felt like I did a solid job on this appraisal in Stanislaus County and my client was very happy with the end-product. It’s just one of those I remember putting in a good amount of time and really enjoying the finished product.

I appreciate all my clients and colleagues who made 2009 a fantastic year. This has been a trying year for the appraisal industry in light of HVCC, but I am grateful nonetheless for all the good things that happened this year. Thank you.

If you are a real estate agent or home owner, what was the best experience you had this year with an appraiser? If you are a real estate appraiser reading this post, what were some of your favorite assignments this year.

www.SacramentoAppraisalBlog.com My Top 10 Favorite Appraisals of 2009

It’s hard to imagine doing business without a smart phone these days. I feel like I can leave the office and yet stay in constant communication with clients, while having incredibly useful techie business tools at my disposal. It’s like my six year old says, my phone is “Daddy’s small computer”.

I currently use Google’s Android phone, and as a real estate appraiser I find the following apps most useful for me:

Google Maps: Hands down, this is one of the most useful tools for me while I’m on the road. I have leaned on this app many times for GPS location, directions, and finding different routes to navigate.

Google Voice: It’s still amazing to me that I can talk into my phone and find search results based on what I say.  This helps me find what I need and drive more “hands free”. I’ve used this tool to find phone numbers, addresses, and other needed information while on the road.

Voice Recorder: This is a great little app. I can record a digital note to myself and store it on my phone or email it. I can even send audio notes to a client if need be.

Translator: It’s great to be able to find certain words if I need to use them during an inspection. I speak basic Spanish and I’m always saying things like: “Hola, como estas? Me llamo Ryan” or “Tienes perros en su yarda?” But sometimes I might need a certain word translated to help communication flow even better. The one big downfall with any translation tool though is you could end up saying something insulting if the tool doesn’t work right (hasn’t happened to me yet).

Camera: I don’t know that my camera is technically considered an app, but it has saved me countless times when my handheld ran out of batteries. It’s also handy to email photos to clients during inspections if there are certain issues they should be aware of.

TwitterRide: This is the best Android app for Twitter and it’s handy to tweet from the road and send messages back and forth.

Facebook for Android: Honestly, I’m not too impressed with the Android’s Facebook apps, but this one has been mostly okay for me. Once I needed to get a Listing Agent’s phone number while at a property, but the only problem was that I did not know the agent’s name. I put up a quick “help me” status on Facebook and then local Realtor Erin Attardi saw the post and got me what I needed (now I know I can access a PDA link that Metrolist launched in 2009).

Others: There are some other apps I use from time to time like the flashlight and bubble level, but the ones I use most frequently are listed above. And of course the Star Wars light saber has been a strong defense when dealing with unexpected squatters in REO properties.

What phone apps do you use? What type of business are you in and what apps help you get things done throughout your business day?

www.SacramentoApprasialBlog.com What phone apps do you use for business?

What are the latest unemployment figures for San Joaquin County and El Dorado County? Below you will find the latest rates for all cities and CDPs from October 2009 based on information provided by EDD. Unemployment rates for Sacramento County & Placer County, and Yolo County, Solano County & Merced County are also available. These are all areas I appraise in, so I keep a close eye on unemployment each month.

It’s interesting to hear so much on the news about how the economy is improving, yet one glance at unemployment seems to indicate that things are not so hot. Or is that just me?

www.SacramentoAppraisalBlog.com Unemployment Rates in El Dorado County & San Joaquin County

What are the latest unemployment figures for Yolo County, Solano County and Merced County? Below you will find the latest rates for all cities and CDPs from October 2009 based on information provided by EDD. Unemployment rates for Sacramento County & Placer County, and San Joaquin & El Dorado County are also available. These are all areas I appraise in, so I keep a close eye on unemployment each month.

What do you see? Does anything stand out to you or surprise you? There are some fairly high levels of unemployment in each county, aren’t there, particularly Merced County?

www.SacramentoAppraisalBlog.com Unemployment Rates in Yolo County, Solano County & Merced County: October 2009

The Capital Village neighborhood of Rancho Cordova has played host to the Cordova Community Council’s annual tree lighting for the past two years at Village Green Park. Here are some photos showing the lit tree, tower at Capital Village and some of the “fusion” units in the development. I made a video tour of the Capital Village neighborhood last Summer in case you want to see the layout of this community.

www.SacramentoAppraisalBlog.com Photos from the Field: Christmas in Capital Village

Quick data. Here are unemployment rates for all cities and CDPs in Sacramento County and Placer County for October 2009. This data is based upon information provided by EDD. Unemployment rates for Yolo County, Merced County & Solano County and San Joaquin & El Dorado County are also available. These are all areas I appraise in, so I keep a close eye on unemployment each month.

What do you see? Does anything stand out to you or surprise you?  

www.SacramentoAppraisalBlog.com October 2009 Unemployment Rates in Sacramento & Placer County

I think about houses and neighborhoods quite a bit because of my chosen career as a real estate appraiser. But beyond my job considering market value, I find myself delving into a different type of worth: neighborhood value. 

Isolation in Society: Something has happened in our society. There used to be a day and time where kids played outside more often, where families knew and relied upon households next door, and where it was normal to feel a sense of connection amongst neighbors. In thinking back to when you were a kid, did life in your neighborhood seem a bit more interactive and relational than your experience today? Did people trust each other more readily? Did passersby wave? Did you play outside without worrying about Megan’s Law registrants?

What happened?

I’m no big-wig expert by any means, but I wrote a group of short essays in a series entitled “Community Building 101” (pdf file), and I’d like to share them here. My take is that life is not just about the value of our homes, but the quality and value of the relationships we have - even in our neighborhoods. This series made an appearance in The Rancho Cordova Post and Sacramento Press.

Community Building Resources:

• 150 Things you can do to Build Social Capital
• The Citizen’s Handbook: A Guide to Building Community
• The Community Toolbox
• Public Conversations Project
• Community Building 101 Series (pdf)

Let me know if you have any insight, ideas or other resources to share. Feel free to comment below.

www.SacramentoAppraisalBlog.com What Happened to our Neighborhoods?

I inspected a property in the city of Vallejo today and I’m crunching some numbers right now (as I always do) to get a better look at the overall real estate market. During the course of my neighborhood research, for kicks I thought I would plot all sales in the entire city over the past two years to see if there might be any discernable trend or pattern due to the City of Vallejo filing for bankruptcy on May 23, 2008. The blue dots represent sales and the vertical red line represents the date when bankruptcy was filed.

Let’s be honest, this one scatter graph is not meant to display anything revolutionary about the impact of Vallejo’s bankruptcy. Let’s save that for someone hired to delve into intense research to uncover that kind of information. This is purely recreational graphing out of curiosity. But isn’t it still interesting to take a glimpse at sales?

There is certainly a downward trend in the graph above, but that’s not an uncommon phenomenon for Solano County over the past couple of years, is it? The question becomes though, did the City of Vallejo’s bankruptcy impact the market at all, or is the declining trend simply a byproduct of the real estate market bubble burst and economy? 

Have you seen any tangible evidence that the city’s bankruptcy has negatively impacted home values or perception of Vallejo among buyers? If you are considering purchasing a home, is it a turn-off to you that the City of Vallejo filed for bankruptcy? Or is it no big deal for you? Feel free to comment below.

NOTE: All sales above are based upon information found in BAREIS for single family residential properties under $800,000. There were very few sales above $800,000, so it seemed most relevant to disregard a few higher sales because they were outliers.

www.SacramentoAppraisalBlog.com A Trend Graph of Vallejo Since City Bankruptcy