Category — Resources

I’m available to teach the following classes for real estate or law offices. Each class can be tailored to fit a time slot in your office meeting. If any of the classes below sound relevant for your company, let’s set up a date. I prefer groups of 10 or more where possible and 30-45 minutes to have discussion. As long as you are local, there is no charge. This is a great way for me to share solid information and build relationships with local agents and offices. I look forward to connecting soon.

Overview of FHA Property Standards: Since FHA has been so dominant in the market, it’s important to understand the nuts and bolts of what appraisers look for during an FHA appraisal inspection. What does it take for a property to meet FHA minimum requirements? This class will help when listing and marketing a property as well as communicating with loan officers too. See my FHA appraisal articles for reference.

How to Challenge a “Low” Appraisal: Have you had a bad appraisal on one of your deals? What can you do when an appraisal comes in lower than it should? This class goes through a specific format to help you prepare a solid reconsideration of value. We’ll discuss fundamentals about reviewing an appraisal report (what to look for) and specific ways to challenge a low appraisal. Bring your laptop if you have one since we’ll be looking at a Word document together (you’re fine without one too).

Effective Blogging for Real Estate: Real estate blogging has been a big part of my business and it’s something I enjoy doing too. Blogging is an opportunity to share knowledge, build relationships and connect with existing and potential customers. If done right, a blog can help build credibility and expertise for your real estate business as well as serve as a place where potential clients can feel you out before deciding to do give you a call. This class is full of tips, how-tos and gives a framework for creating original content too. Check out “tips for real estate blogging” to get a sense of my blog philosophy.

How to Make Solid Real Estate Videos: Video is a very powerful tool for sharing information and connecting with clients. A good video can help build trust and convey professionalism for your brand, but a bad video can accomplish the opposite. This class will be very practical as we discuss how to create videos that help you stand out (in a good way). We’ll actually edit a video in class so agents can have hands-on experience knowing what to do. I create videos regularly for clients, non-profit ventures, my Sacramento appraisal business and to promote YPC events through the Sacramento Association of Realtors. I also started a real estate video site called “Sacramento Real Estate Tube”.

Introduction to Appraising: This class is great for new agents, lawyers or loan officers to help get them up to speed on the appraisal process. We will look at a common appraisal form to get a good grasp of what an appraiser looks for and how an appraiser does his job. We’ll also discuss practical tips for interacting with appraisers (things to say and not say). While a class of 10 or more is usually preferred, lower numbers are more understandable for an introduction like this.

Let me know if you have any questions or if you want to book a class. Call, email, or text message and I’ll get back to you promptly.

If you have any questions or Sacramento area real estate appraisal or property tax appeal needs, contact me by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.

I met up with a real estate investor friend today to shoot a short video of one of their current rehab projects. Housing Group Fund recently purchased a bank-owned property in the Sacramento area that had been sitting vacant for a very long time. This property actually racked up $48,000 in code enforcement fines too during the long process of foreclosure and vacancy. Anyway, here is a 30-second clip I put together to show the beginning point of the rehab process.

As shown in the video, I found the “pool cover” to be an inventive way to help avoid the safety risk of an empty pool and maybe avoid damage from skateboarding too. This cover was already on the property when it was purchased. What other ways have you seen a pool ”secured” when there is no water?

Offering appraisal services to investors is one of my favorite roles because I enjoy seeing the “before” and “after” product as well as working outside of the scope of appraisals geared toward Fannie Mae. I am not doing any appraisal-related work on this particular house, but in other cases investors will order an appraisal from my company in order to do the following: 1) Present the appraisal to the funding source to secure capital for the project; 2) Use the appraisal as a part of a federal or state rehab program (particular programs simply require an appraisal); 3) Use the appraisal for marketing purposes to include in MLS for buyers and agents (or to get an idea of the “after improved” value for listing purposes).

I hope you enjoyed the brief video. Let me know if you have any questions.

If you have any questions or Sacramento area real estate appraisal or property tax appeal needs, contact me by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.

If you know anything about FHA loans, you’ve likely heard the phrase “health and safety”. That’s because FHA has requirements for a property to be safe and sound for occupants. I shot the video below at a recent inspection. While it may not be a “health and safety” issue if a stair railing has a tiny wobble, this rail is definitely ready to give at some point, which means it’s an obvious safety issue that needs to be addressed before the loan can close. One interesting note is that the listing agent said some of the potential buyers for this property actually backed out in light of being turned off by the wobbly staircase. So on top of being an FHA issue, it’s been somewhat of a deterrent in the market too. See a previous post if you’d like to read about the 10 most common FHA required repairs.

Any thoughts or questions?

If you have any questions or Sacramento area real estate appraisal or property tax appeal needs, contact me by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.

If you’re not famliar with the appraisal process, I hope this post can help you know what to expect during an appraisal inspection and how you might prepare for the inspection too. Sacramento Realtor Doug Reynolds interviewed me recently in the video below to get some tips for buyers and sellers. You can check out a more extensive list in a previous post entitled What Should You do Before the Appraiser Comes? Let me know if you have any questions, fears or stories about an appraiser coming to inspect your property. You can give me a call or send me an email.

If you have any questions or Sacramento area real estate appraisal or property tax appeal needs, contact me by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.

How is the real estate market doing in the Greater Sacramento Area? Let’s feel out one aspect of the market’s health today by looking at the level of distressed sales in multiple counties such as Sacramento, Placer, Yolo, El Dorado, San Joaquin and more. As you can see in the chart below, most counties in the Sacramento Region have a combined percentage of distressed sales (bank-owned and short sales) between 60-70%. Does it shock you to think that 6 to 7 out of every 10 sales are distressed? Data within a specific neighborhood or city may of course not reflect the trends listed in an overall given county (as in the clear case of the City of Davis in Yolo County), but the countywide panoramic picture is still important to keep in mind when keeping tabs on market health since regional or countywide trends can tend to impact smaller neighborhood markets over time.

What stands out to you about the figures below?

If you have any questions or Sacramento area real estate appraisal or property tax appeal needs, contact me by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.

Do you want to play a little game called “FHA Roof Trivia”? Nah, I didn’t think so. Me neither. Let’s take a look at some common questions though pertaining to roofs and FHA minimum property standards. I hope this is helpful to answer some questions you might have as a buyer, seller or real estate agent.

Q: How many layers on a roof will FHA accept?
A: “FHA will accept a maximum of 3 layers of existing roofing. If more than 2 layers exist and repair is necessary, then all old roofing must be removed as part of the re-roofing. (4905.1 REV-1, 2-12)”

Q: How much life does a roof need to have left?
A: The roof should have at least two years of physical life left. If the roof does not have two years or looks like it is in really bad shape, the appraiser should call for a roof inspection. This means the roof will have to be certified by a professional to have at least two years of physical life left. If the roof has less than two years of life, then it must be repaired or replaced.

Q: Is it a problem for an FHA loan if the roof is flat?
A: As long as there are no issues pointing toward potential roof problems (such as stains on the ceiling or badly rotted eaves), there is no reason to be alarmed. Straight from HUD, “FHA no longer mandates automatic inspection of flat and/or unobservable roofs. The appraiser must note in the appraisal that he/she could not adequately observe the entire roof area and state which area(s) were unobservable. As with any other type of roof the appraiser is to look for signs that would indicate a possible roof problem. Based on the information reported, either the appraiser or underwriter may call for a roofing inspection.”

Q: Do appraisers have to inspect the attic for an FHA loan?
A: Yes. The appraiser must do a “head and shoulders” inspection of the attic. FHA states the home owner is responsible for making sure the appraiser has clear access. What are appraisers looking for in the attic? Read a previous post HERE. By the way, I’m curious if you find most appraisers to be actually inspecting the attic. I heard from a Sacramento home inspector recently that he has never seen an appraiser with a ladder at an inspection. Hmm…

Q: Are gutters required for the roof?
A: No, they are not. However, as the HUD Handbook 4150.2 tells appraisers: “Check for readily observable evidence of grading and drainage problems. Proper drainage control measures may include gutters and downspouts or appropriate grading or landscaping to divert the flow of water away from the foundation. If the grading does not provide positive drainage from the improvements, make a repair requirement. Note any readily observable evidence of standing water near the property that indicates improper drainage.” In short, gutters are not required, but on the other hand one of the potential repairs to solve a drainage problem could be gutters.

I hope you feel like you know a bit more about the way FHA views a roof now.

If you have any questions or Sacramento area real estate appraisal or property tax appeal needs, contact me by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.

Newer tract markets usually have ample sales, but how does an appraiser establish value in a neighborhood with no recent sales? There isn’t a quick answer, but here are some of the things I do as a Sacramento area appraiser.

1. Older Sales: I look at sales over the past 1-3 years in the immediate neighborhood. While it’s ideal to have model match sales within a 90-day time period, that’s rarely possible with more unique neighborhoods with tight market boundaries. It therefore becomes important to use older sales in an appraisal report and then make an adjustment to the sales price depending on whether the market has declined or appreciated in value over time. For example, I might use a sale that is twelve months old in a unique neighborhood and then give a 15% adjustment downward after figuring out the market has declined by 15%. Methodology like this becomes important for appraisals along the Sacramento River, more custom homes in Camden Passage West in Elk Grove, or even sometimes in areas like Curtis Park, Land Park or Midtown depending on the property. Of course if the appraisal is for lending purposes, the lender will likely want to see some newer sales in addition to older ones.
2. Competitive Neighborhoods: If there are no real comps over recent months in the immediate neighborhood, I find competitive neighborhoods for comparison and then use recent sales in those neighborhoods. It’s important to ask the question, “where else would a buyer for this neighborhood shop for a house?” and then look for comparable sales in those neighborhoods. These competitive tracts will likely be outside of a typical one-mile radius, which is okay. This can work well when appraising in places like Little Pocket or Country Club Estates where I might have to cross a freeway or major street to find adequate comparables (I try not to do that though where possible). However, some neighborhoods are very distinct, which makes it more challenging to really find a competitive neighborhood. Take the Woodlake neighborhood in Sacramento, for example. This neighborhood resembles Land Park, yet is located nearly five miles away and is surrounded on all sides by properties with signficantly lower values. There is really nothing comparable to Woodlake in the entire 95815 zip code, so sticking with historical sales to a certain degree seems more reliable to me than picking sales from 5-10 miles away. Even Gold River is a good example of a distinct community. When appraising in Gold River I do not ever use comps outside of Gold River because it really is its own community.
3. Current Listings: I talk with real estate agents who have current listings in the immediate neighborhood to see if I might glean some insight into how the market is seeing the neighborhood. While listings are not sales, they are able to tell us something about the market and are important for consideration.
4. Recent Withdrawn Listings: I run a search of recent withdrawn sales in the immediate neighborhood and then talk with the real estate agents involved. Why did the property not sell? That question usually gleans some insight into how buyers perceive the neighborhood.
5. Other: I talk with appraiser friends, real estate agents, create historical graphs, consider other metrics, rental value, and poke around online to see what I can find too.

I’d be curious to hear more from real estate agents, home owners and appraisers. Why do you think there might not be any comps for the appraiser to use? If you have any insight or a point to add to the discussion, feel free to comment below.

If you have any questions or Sacramento area real estate appraisal or property tax appeal needs, contact me by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.

Do you know someone using social media who just doesn’t get the ”social” part of it? Every post is a one-way ad that says “Buy from me” or “call me”. Yep, we all know those folks, and it’s a turn-off, isn’t it? That’s why this post is important.

If you’re in real estate, here are some tips for how to use Twitter in a way that connects with others, builds trust and avoids that “spammy real estate person” vibe. The five RE pros below from the Sacramento / Placer area have a good grasp of how to use Twitter effectively. I highly recommend following them to get to know them and watch how they work their magic. There is of course no one formula to follow, but here are some nuggets for your consideration:

Tamara Dorris, Realtor in Carmichael CA
Twitter Handle: @TamaraDorris
Website: www.inlovewithsacto.tv/

1) Find and follow local tweeters.
2) Attend or coordinate a local tweet up so you have the opportunity to meet people face to face now and then.
3) Re-tweet interesting and useful information.
 4) Never make it all about you—focus on other people and their tweets and accomplishments.
5) Keep your tweets 90% fun and informative and about 10% promotional, and even then, have fun with it.

Heather Ostrom, Realtor in Roseville CA
Twitter Handle: @RosevilleRockLn
Website: www.rosevilleandrocklin.com/

My approach to Twitter is more a reflection of my personality: I like to make people laugh, interact with others and take care of my local community by spreading their news and needs – I am lucky to have a medium-sized twitter following to push knowledge to a larger audience – locally and nationally. At 5100+ followers – I’m no Real Estate Lady Gaga, but I do have a “Good Romance” with Twitter.

Real estate-related items are only a small percentage of my tweets (probably 10-20%) – the reality is, in my opinion, who wants to read about listings or blog posts constantly? Tweeting just listings and blog posts is “twitter cave yelling” in my opinion and it’s a turn-off and comes off quite spammarific.

Advice nuggets: organize the info with Tweetdeck or Hootsuite into columns, and observe by tag terms “real estate” (searches like #Rosevillle #RealEstate #ColdwellBanker, etc), never send spammy Direct Messages (DMs) and don’t be afraid to say a virtual hello (@ them!)

Sheri Schmitz, Loan Officer in Folsom CA
Twitter Handle: @SheriSchmitz 
Website: www.wellsfargo.com/…

In my Twitter experience, I feel that when I do a mixture of business and personal tweets, people are more interested. I also tend to tweet questions or statements that people feel very inclined to retweet or answer. Sometimes those tweets can be controversial - if you will. I like to tweet about politics, current events, mortgage news, etc.  When you have tweets that people can respond to, or that strike a nerve, you get more Twitter action- in that people will follow you to see what you are doing. I also like to retweet things that I find helpful. Re-tweeting gets you more followers, as the original person who tweeted can see the retweet and may want to know about you.  

Sheri Negri, Realtor in Folsom CA
Twitter Handle: @SheriNegri
Website: www.loveforhomessac.com/  

Twitter is a great way to connect with people if you use it right. It’s all about engaging with others to create a personal connection. Look for ways to engage in conversations with other tweeps. This is the only way you will ever connect with people you do not know very well. And be sincere!

Talk about more than just real estate. Be interesting and mix it up! Talk about the things that interest you outside of work. No one wants to follow someone who is one-dimensional. Don’t do tweet blasts to hard sell people all the time. People that do this seem like used car salesman and it can be annoying. If I see too much of this from someone, I will “unfollow” them.

Always respond to a tweet if your name is mentioned, whether it be a direct message or mention. Whether it’s to thank someone for a RT/mention, or to respond to someone who sent you a message. Not responding to a mention or direct message is like not responding to voice mail or email.

Sheena Reithmeier, Realtor in Elk Grove CA
Twitter Handle: @916homevalues
Website: www.916homevalues.com

What should you tweet about? If you closed a tough deal, landed a new client, had a bad day, or tried a new restaurant, share it with your followers.  You will find that your followers are genuinely interested in what you have to tweet and will retweet your content especially if it provides value to their audience.

Who Should You Follow? Search twitter for the industry professionals you rely on day in and day out to help you achieve your goals. It is the same sphere of influence you use outside of social media. Research appraisers, attorneys, bankers, CPA’s, contractors, government agencies, home and pest inspectors, home improvement, home stagers, insurance companies, lenders, locksmiths, plumbers, professional organizations, real estate brokers and agents, title and escrow reps, transaction coordinators, website developers and SEO experts, the list goes on and on. 

Not every tweet has to be that profound piece of knowledge, the nugget of wisdom, the Aha moment of tweets. And not everyone will follow you back. It’s OK. Remember you get 140 characters so be creative, shorten words and links, include photos, keep it clean and every once in a while have fun.

I recommend keeping the profile picture consistent across all of your social media platforms. You will be sending followers to links outside of twitter be it your blog, LinkedIn, foursquare, Instagram, Facebook, Google+ and more. Using the same profile picture lets your readers know they have arrived at the appropriate destination. Consider it part of your branding. Your profile picture can be your picture or your logo.

What themes stand out to you from the tips above? Anything you’d add? What type of information do you think real estate pros should include in their profile description? What’s your Twitter handle?

If you have any questions, or real estate appraisal or property tax appeal needs in the Greater Sacramento Region, contact Lundquist Appraisal by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.

Do you remember how hot the market felt when the first-time homebuyer tax credit hit the streets? If you recall, the tax credit went into effect from November 7, 2009 to April 30, 2010 (but then the deadline was extended to September 30, 2010 – but you had to be in contract by 4/30/10).

I just finished up an appraisal in North Highlands and I know the market really well in this particular neighborhood. I’ve been doing appraisals consistently over the past few years in a particular tract for an investor, so I’ve watched the market decline, seemingly stabilize during the tax credit season, and then decline again. The image below includes all of North Highlands as an example of the impact the tax credit appears to have had. There was an uptick in sales and the decline in property value seemed to stop while the credit was alive.

Now that the credit has been expired for over a year, how would you say it impacted the real estate market? Do you see this trend below in other neighborhoods or maybe just in markets under $200,000? What were the positives and negatives of the credit?

If you have any questions, or real estate appraisal or property tax appeal needs in the Greater Sacramento Region, contact Lundquist Appraisal by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.

Just because a model match sells at a certain level does not necessarily mean it’s a good comp, right? Obviously model match sales are great for comparison because they have the same layout, but there are so many factors  why model matches do not always sell at a similar level. This point is particularly evident in the graph below of all MODEL MATCH sales in the Lincoln Crossing neighborhood. Isn’t it amazing to see nearly a 25% difference in price level for the same floor plan?

Here are my observations:

1. There is a vast range of prices among model match sales.
2. The neighborhood has seen a decline in value over time.
3. The range of sales is about $85,000. This range has been seen more or less over the past few years, which is important to note.
4. The sales at the top tend to back the greenbelt and have premium upgrades, while the ones at the bottom tend to be short sales. In this neighborhood short sales are tending to sell for less than foreclosures (for this model anyway).
5. The appraiser could botch the value if simply using model match short sales as “comps” while ignoring traditional sales at the top. At the same time, there could be money left on the table if the property is marketed against the lowest sales in the neighborhood. Also, the home owner could use all the wrong comps in a tax appeal too, right? This brings up the importance of working with local professionals and sifting through bank-owned, short sales and traditional sales to establish market value.
6. Having such a large range of sales means it may prove challenging for online valuation websites like Zillow and Cyberhomes to render a credible value. Granted, a reliable value is not always easy for human appraisers either to be fair, but actually seeing the property and understanding the market makes all the difference.

What stands out to you about the graph? What scenarios have you seen cause a huge difference in price among model match sales?

If you have any questions, or real estate appraisal or property tax appeal needs in the Greater Sacramento Region, contact Lundquist Appraisal by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.

I was interviewed recently by Sacramento Area Realtor Doug Reynolds. This was a one-take video where we discussed the accuracy of Zillow, which has been a hot topic on this blog over the past year. Since Doug has clients asking about Zillow all the time and wondering if they can really rely on Zillow, he wanted to see what I think about Zillow as a real estate appraiser. For reference, here is the Zestimate accuracy table I mentioned in the video. Lastly, I also gave some tips for hiring a local appraiser. Thank you so much, Doug. Enjoy.

What do you think? Any questions or insight?

If you have any questions, or real estate appraisal or property tax appeal needs in the Greater Sacramento Region, contact Lundquist Appraisal by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.

Home owners call me sometimes wondering why their property tax bill has increased over the past few years despite property values clearly declining. Has this ever happened to you? Take the real life situation below as an example. Is it suspect to have a higher tax bill in 2011 than in 2003 since property values clearly having declined in the Sacramento area?

Here’s the deal. If your property is currently assessed for less than true market value, the Assessor can increase your assessed value by 2% per year even if property values are declining (so long as the assessment does not go above the Prop 13 value of course). This can be very frustrating for a home owner, but it’s legitimate in many cases. Keep in mind though that the tax bill includes property taxes, but also direct levies, benefit assessments, and delinquent utilities, which could also be a reason why a tax bill has increased by more than 2%.

On the other hand, sometimes home owners don’t pay attention and this type of normative 2% yearly increase is occurring when in fact there should be a huge decrease due to the downward real estate market. For example, I am working with a Folsom owner who has seen an increase in property taxes over the past three years, yet values in the neighborhood have plummeted to the point where the house is overassessed by $150,000 (yet assessed value is going up each year).

Moral of the story: Pay attention to your property taxes and market value. An increase may or may not be legitimate based on your situation. Know your circumstances and watch closely. If you would like for me to look into your situation to see if there might be a discrepancy between your assessed value and market value, give me a call at 916-595-3735. The deadline to dispute property taxes in Sacramento County is November 30, 2011.

If you have any questions, or real estate appraisal or property tax appeal needs in the Greater Sacramento Region, contact Lundquist Appraisal by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.