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FHA Appraisal Inspections in the Sacramento Area

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FHA loans are the hot ticket in town these days, aren’t they? If you are involved in loans in the Sacramento Region, you probably find yourself doing quite a few FHA transactions these days in comparison to the past couple of years (I am certainly doing more FHA appraisals).

Since people sometimes ask me how an FHA appraisal inspection differs from a non-FHA appraisal assignment, I wanted to include a few differences below.  A non-FHA assignment could include some or all of the following, but an FHA inspection MUST include the following and more per strict HUD guidelines:   

  • Test appliances to ensure in working order
  • Test AC and Heat system
  • Observe if paint is chipping, peeling, or flaking
  • Test water (pressure, heat, smell, taste…)
  • Observe the attic
  • Observe the crawl space
  • Check all electrical switches to ensure lights come on
  • Check outlets to ensure they work
  • Flush all toilets and run water in all sinks
  • Take angled photos of the subject property
  • And more….

If anyone has questions on FHA appraisals within the Greater Sacramento Region, give me a call at 916-595-3735 or see www.lundquistcompany.com

NAMB Files a Lawsuit: What Will This Mean for Sacramento Region Agents and Brokers?

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When talking recently with local Realtors, Brokers, and Loan Officers about the Home Valuation Code of Conduct (HVCC), there has been concern and fear about how HVCC might shape the mortgage industry, not to mention, their business. 

Important News from the National Association of Mortgage Broker website:

McLean, VA – The National Association of Mortgage Brokers (NAMB), with the support of Baker & Hostetler LLP, filed a lawsuit today with the United States District Court for the District of Columbia against the Federal Housing Finance Agency (FHFA) Director James B. Lockhart over the controversial Home Valuation Code of Conduct (HVCC) included in the appraisal agreements between the FHFA, Fannie Mae and Freddie Mac (GSEs), and New York Attorney General Andrew Cuomo. 

What does this mean for local mortgage brokers, real estate agents, and all involved parties (including appraisers)? Well, there is nothing definitive to report, but with the lawsuit filed it may be possible to see the deadline for HVCC postponed ,or who knows, maybe they’ll throw it out altogether. We shall see.

Could Mandatory Flood Insurance in the Natomas Area of Sacramento Impact the Market?

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On December 8, 2008, flood insurance became mandatory for the Natomas Area of Sacramento. Since the U.S. Army Corps of Engineers determined that the Natomas area was at a greater risk for flooding because of a weakening levy system, the area was rezoned and homeowners are now forking out greenbacks for flood insurance.  

It will be interesting to see how the Natomas situation plays out and to see if there is much of an effect on the real estate market. What are your thoughts? Any home owners, agents, or other real estate professionals want to pitch in here? Do you think buyers care about flood insurance? Do some buyers avoid Natomas to not pay for this insurance? Or is it no real biggie?

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I have not conducted an exhaustive study on the matter and so I won’t speak to any real effect, but I will say that when certain changes take place, such as economic, governmental, or zoning changes, there could be an impact on the local market. As an appraiser, this highlights for me how important it is to have “geographical competency” and really know what is going on in the market – especially the changes.   

Eastern Natomas Trend Graph: Below is a 12-month trend graph of a portion of Eastern Natomas with blue dots representing “sales” and red dots representing “listings”. The graph data is bound on the North by Elkhorn Blvd., West by I-5, East by Vacant Land, & South by Del Paso Road.

natomas-park-sales-and-listings-2

The Lowest Priced House on MLS (Sacramento Region)

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This blog will host a “Lowest Priced House on MLS” category because it’s always interesting to answer the question, “should I buy this house or should I buy a car instead?” Yep, the prices are often that low.  

And the winner is…. $12,500.

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620 E 4th Street, Stockton CA is for sale at $12,500. Per Tax Records, this property was built in 1936, has 1025 square feet of living area, 2 bedrooms, 1 bathroom, and a lot size of 3,920 square feet. So why is it priced so low? Well, it looks like it had a little fire damage to say the least.

It is a banked owned property and has been listed on the market for 142 days total with three separate Listing Agents. The property has been priced for only 21 days at $12,500 and appears to have generated a contract at least once (but back to Active status now). I’ll put you into contact with the Listing Agent if anyone is interested in forking out $12,500 greenbacks – it’s an all cash deal because of the condition (no, I don’t know the Agent).