Category — Photos from the Field

What do you get when a builder runs out of money in the current economy, but is only half-way finished with a house? Answer: Probably a foreclosure. This was certainly the case with three 2,222 square foot 4/2.5 properties on the corner of 37th Street and 12th Avenue in the Oak Park Area of Sacramento. 

I am very pleased to see these foreclosures were purchased earlier this year in a bundle deal by the same buyer for $35,000 each, and they are currently being rehabbed. When I think of an area improving, this appears to be a win because improvement happens one house at a time, doesn’t it?

No, this is not a storage container, but a stripped AC unit on a bank-owned multi-unit property in Sacramento. Why do you think REO properties are such easy targets for theft? I gave some thoughts to this a few days back in an audio post. Obviously the properties are vacant, so it makes it easier to give the “five finger discount”, but is there something more sociological to consider here. Is it deemed more “acceptable” to take things that belong to a faceless bank as opposed to an actual person? Your insight and thoughts are welcome in comments below.

I took this photo a few days back as a comp photo for an appraisal I’m doing near the Del Paso Heights area of Sacramento. This image tells an obvious story of a new roof being installed – but not just a newer roof, but a different type of roof. The house is being transformed from flat to hipped in style. The first image is an MLS photo.

The interesting thing to note while driving through this neighborhood is that there was at least one other house having a gable or hipped roof installed. Moreover, though there are still quite a few flat roofs in this neighborhood, many roofs have already been converted to a higher pitch. I’ve seen this same phenomenon in West Sacramento too. Does this say anything about the market?

Which style of roof do you prefer?

Is this still considered a built-in microwave? It’s a marketing feature too, right? Just be careful when taking out your Lean Cuisine or Hot Pockets because they might slide out to splatter you.

There is often a stigma for properties that are listed as “foreclosures”, so it’s no wonder that bank-owned homes tend to sell for less than regular non-distressed transactions. However, consider too that many times REO properties need things like interior paint, carpet, and even new microwaves (and kitchen repairs) like this Sacramento area house. So foreclosures will sell for less than typical arms-length transactions in many cases, but not just because of the REO stigma, but due to obvious condition issues.  

I had to run an errand in between typing reports today and I came across this gem near Bradshaw Road and Highway 50 in Sacramento. I took a double take and this definitely gave me a chuckle. What do you see when you first glance at the website? Do you think it might have been an advantage to have the “d” and “e” capitalized.

What marketing lessons can we learn here?

If you have not been to the Sacramento Central Farmers Market, I highly recommend it. This weekly market takes place on Sundays between 8-12pm off of 8th and W Street near Downtown Sacramento. There are some really great deals for organic fruits, veggies and meat, especially if you go toward the end of the day. We came home with bags full of stuff yesterday for only $20.00. Other than the savings and fresh food, what I appreciate about this market is the location directly under Highway 50. Yes, it’s a bit noisy, but there is always shade, and I’m a huge fan of creative uses like this for locations that would normally not be traveled much at all. 

Does anyone shop here? What other markets do you recommend? 

I took the day off yesterday to enjoy some fishing at Ice House Reservoir. I sure needed a break in life, so it was nice to have a friend take me out on his boat. We ended up bagging ten trout and having ten or more others get away too. We were out on the lake for six hours, and the weather was pretty cold (with wind). It actually started to snow while we were packing up. On that note, I’d never been fishing before when there was a glimpse of snow on the shore, so that was neat. I could get used to a four-day work week and then fishing on Fridays. Anyone else with me on that?

Enjoy a few pictures.

I saw this not too long ago and it’s definitely interesting. Before stepping on the lawn I actually made sure I was not going to sink. Maybe this could provide for some very creative landscaping opportunities.

Everyone has a story, and so does every house. I inspected a Sacramento area property recently that was utterly filthy. In fact, Code Enforcement had to grant me access because it had been boarded up as a “dangerous property” because of its condition and history involving illegal drugs, squatters, prostitution, and many calls to the police from neighbors.  This property was dirty to the core, and as you can see below, I had to be careful where I stepped.

While inspecting this house and seeing the remnants of an existance of desperation and addiction, I couldn’t help but think of the vile things that went on inside and how none of the partakers in drugs and prostitution would have ever imagined they’d end up in this filthy little hole doing what they were doing. I was reminded of a “say no to drugs” commercial campaign from the 80s with the punchline “nobody says they’ll grow up to be a junkie”.

This house will thankfully soon be rehabbed, but I wonder if the former occupants will ever find the help and hope they need.

They say a picture is worth a thousand words, and in this case it’s true. I noted quite a few bullet holes in the stucco of a house on a recent appraisal inspection. I’m not a big gun guy (or CSI fan), so I couldn’t tell you what type of firearm caused this damage, but I do know that holes like this are a sad commentary on reality.

I get a lot of questions about FHA / HUD standards and what a property needs to qualify. Here’s the deal: FHA is primarily concerned that everything in a house functions properly and that there are no health and safety issues. FHA continually says, “Soundness, Safety & Security” as their motto. As an FHA certified real estate appraiser, the inspections I do are based upon guidelines from the United States Department of Housing & Urban Development (HUD).

I was in the town of Locke a couple weeks ago and I snapped the following shot of a property I happened to pass. Do you think this property would qualify for an FHA loan?

Here is a sample of some of the things I look for while on an FHA 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.

The photo above clearly demonstrates there might be a safety issue with the structure. It doesn’t look very sound, does it? Do you see any other violations of HUD minimum standards?

This type of knowledge is vital for first-time buyers, sellers and investors especially. Please let me know if you have any questions. I am glad to help buyers, agents, investors, brokers and anyone else know more about FHA standards and the appraisal process. FHA loans have really dominated the market in the Sacramento Region, so it’s important to be aware of potential issues that might make or break a deal. You can reach me at 916-595-3735 or ryan@lundquistcompany.com.

Last Friday the Sacramento Bee came out with a story that Dorthea Puente’s old house at 1426 F Street in Sacramento would be going up for sale. Who is Dorethea Puente, you ask? She is a woman who ran a “boarding house” in the 1980s out of her Sacramento Victorian duplex. Unfortunately though instead of finding respite her tenants were drugged and murdered so their social security checks could be cashed. Eventually seven bodies were found buried in Dorothea’s backyard.

This property sold for $560,000 on 08/31/2005, went into foreclosure last year, and is now listed on the market at $309,800 as of 02/26/2010. The current MLS listing states, “Property has notorious history that must be disclosed.” 

Would you have any problems purchasing a property like this? Or would you consider renting this house? Would it bother you on any level or be no big deal? Creepy? Good investment? If you are a real estate agent, have you had experience selling a property with a stigma due to a murder, violent crime or some other heinous or notorious issue?

Original photos of 1426 F Street (it was a bit cloudy today unfortunately):