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I’ve driven by this banner twice in the past week while on appraisal inspections in the City of Lincoln. Isn’t it a sign of the times for builders to offer concessions like this to buyers? During the boom years before the market tanked there were no concessions as such because it was a seller’s market and builders did not have to create incentives like this to attract buyers. In fact, builders in those days tended to charge very high amounts for “premium” upgrades too, whereas now these same upgrades such as granite countertops and stainless steel appliances tend to show up in standard models. Since today’s market is more of a buyer’s market,  sellers need to price their properties appropriately and in some cases offer incentives like this to attract homebuyers.

If you’re in real estate, how have you seen concessions in a purchase price impact the market? Do you see a difference in price level between conventional offers asking for no concessions and FHA offers asking for 3% back? Which tends to be higher? If there is a difference, what does that tell us? Lastly, do you think the HOA fees above are really free or is the price inflated to cover the cost of the fees?

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 know a defective paint surface is something that needs to be cured. If the exterior of a house has chipping, peeling or flaking paint, it can be a health and safety issue if the house was built before 1978 due to a potential for lead-base paint exposure. If you didn’t know, FHA has an exhilarating 51-page manual for how to properly cure a defective paint surface (PDF). This is just the type of ready you love to do, right?

DO NOT LEAVE PAINT CHIPS ON THE GROUND: If you’re dealing with a defective paint surface, make sure you or your contractor scrape away any defective paint and then completely reseal the surface with new paint (or some sort of HUD-approved sealant). Moreover, DO NOT leave paint chips or any defective paint dust or residue on the soil. This might seem like a minor point, but you don’t want to have to deal with potential environmental consequences for lead-base paint touching the soil, right? The appraiser cannot verify the paint problem was taken care of if there are paint chips all over the place on the soil.

This is why I include something like the following in my lender reports:

The appraiser noted a defective paint surface on the southern portion of the house near the roofline. All this portion of defective paint should be properly scraped and there should be no bare wood after scraping. The surface should be repainted or sealed according to FHA standards. As always, there should be no paint chips or paint dust left on the soil when the issue is cured.

I’ve written quite a few FHA appraisal articles in case you’d like to know more. 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.

I was interviewed yesterday by Sacramento Realtor Tamara Dorris on her internet radio show to talk briefly on the nuts and bolts of FHA appraisals. With her permission, I turned the 10-minute interview into a YouTube video to further share. These are some of the basics of FHA appraisals and may give you some insight into what an FHA appraiser is looking for during an appraisal inspection. I also have quite a few FHA appraisal articles written that you can check out. Watch the video below (or here). Enjoy.

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 have some interviews and speaking engagements this month that I wanted to invite you to be a part of. Feel free to listen to interviews online or come to one of the events listed below:

January 11:  Interview with Sacramento Realtor Tamara Dorris on her internet radio station on 1/11/12 at 10am. I’ll be talking about FHA appraisals for 10 minutes at the beginning of her show. Check out Tamara’s website here for details.

January 19:  Effective Blogging for Real Estate: I’m teaching a class at the Sacramento Association of Realtors YPC forum from 9-10am at 2003 Howe Avenue in Sacramento on Thursday January 19. Here is the promo: “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 very practical framework for how to create original content and plan posts. Ryan Lundquist runs the Sacramento Appraisal Blog, which is one of the top appraisal blogs in the State of California. Ryan consistently earns new business from his blog and he is considered a leader in his industry when it comes to building a strong online presence.”

January 19: Incorporating Video into your Content: I was invited by the Sacramento Social Media Club to share my experience with video as a local business. In case you didn’t know, I’ve uploaded over 200 videos over the past few years to YouTube and I also created a real estate video library called “Sacramento Real Estate Tube” that hosts nearly 400 videos thus far from local real estate professionals. Video has been something I’ve used to build trust online, be resourceful for clients, and earn business (there are of course quite a few random videos that have nothing at all to do with business, but everything to do with who I am). My plan is to talk about how I got started using video, why I do it, mistakes I’ve made, what specific tools I use and how I incorporate video into my business plan online. This should be an interesting evening because there will be a professional video specialist speaking first (Kerry Shearer) and then I’ll share as a local video practitioner. This will be an informative presentation, so come expecting to learn and have conversation too. I’m really looking forward to meeting people, sharing what I’ve done and learning from everyone. The event will be from 6-8:30pm at The Art Institute. There is a $15 charge. Reserve a ticket HERE.

January 26: Interview with Sacramento Area Loan Officer Sheri Schmitz on her internet radio station on January 26 (time and topic TBA – I’ll share details as I get them). Check out Sheri’s website here.

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.

Might this ceiling fan be a safety issue for an FHA loan? What do you say? No biggie or an issue that’ll require repair before the loan can close? Have a look at the brief video below (or here) and let me know what you think.

If you said yes for being a safety issue called out in an FHA appraisal report, you are correct. FHA is primarily concerned that everything in a house works properly, there are no health and safety issues and there is a sense of economic longevity for the house too. Had I continued the video for a bit longer, you would’ve seen the fan shake even harder. If you don’t think it’s a safety issue, would you put your child’s bed underneath a fan like this? Probably not.

While an issue like this needs to be corrected before an FHA loan can be guaranteed, it’s really not a big-ticket item. Either the fan needs to be repaired or replaced or a cheap light fixture can be purchased and installed in its place. This is an older property and ceiling fans didn’t even exist when the property was built, so a simple light fixture is entirely reasonable in this case. This is not just my opinion either, but the Santa Ana FHA Home Ownership Center said the same thing during a recent phone conversation.

NOTE: This does not mean all wobbly ceiling fans will need to be repaired or replaced. This is where the FHA appraiser is subjective and has to use good judgment according to FHA guidelines and/or the spirit of FHA.

Let me know if you have any questions or insight. I hope this was helpful. You can see more FHA appraisal articles here.

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 don’t make predictions about the real estate market, but I’m glad to report unemployment has been trending downward lately – and that’s a good thing!! It’s nice to see that arch on the right side of the graph getting a bit more defined as unemployment is currently at 2009 levels. If we see jobs increase in the Sacramento area, that can only be positive for the housing market, don’t you think?

How far have property values declined? Generally speaking, property values in Sacramento are at a level near 2001 right now. Some areas like Pocket / Greenhaven show a trend in 2002, whereas other zip codes in East Sacramento are closer to 2003, while still other zip codes or property types are definitely before 2001. Generally, the areas with higher values tend to sell near 2002 or maybe 2003 levels when considering the overall market median sales price by zip code. At the same time, many areas that we’d think of as “challenged” due to crime or other issues are definitely before 2001 in many cases. Keep in mind the median sales price by zip code encompasses an entire geographical area and may or may not represent a certain niche or neighborhood within that zip code (that’s the problem when looking at data for an entire area).

DOWNLOAD HERE: Sacramento Area Median Price Graphs for sales between 1997-2011 (PDF) from the Sacramento Association of Realtors. This may be helpful to glean some context into some of the aforementioned bits I mentioned above.

Any thoughts about unemployment or how the real estate market is doing?

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.

Here’s a glimpse of what’s been going on in the duplex and fourplex real estate market in Sacramento County. Have a look at the graphs below and let me know what you see. There is quite span in price level of course because there is a big difference between areas such as Del Paso Heights, Land Park, Pocket/Greenhaven, South Sacramento, Midtown, etc… If you’ve been paying attention to the 2-4 unit market, what trends have you been seeing lately? If you are an investor, what price range and/or area do you target most often?

By the way, I have a few videos coming up in the next month or so with a local real estate investment specialist. The videos will highlight 2-4 unit trends in more detail. Be on the lookout.

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.

People can change and so can houses. Do you believe that? That’s a loaded question, I know. Maybe sometimes it’s easier for a house to change though.  Anyway, I appraised a fire-burned home in Citrus Heights a few months back and I stopped by the rehabbed version this morning to check things out while in the same neighborhood on an appraisal inspection. Housing Group Fund flipped this house with  Neighborhood Stabilization Program (NSP) funds, so you know it was done to very high standards. The difference is remarkable and change like this pumps me up because it’s really good for a neighborhood. What do you think?

NOTE: The first three “after” photos are MLS photos and the “before” photos are my own. The agent’s “afters” turned out better than most of mine this morning, so I used hers instead. Contact Real Estate Agent Tera Coombs for more information on this property. And no, I am not being paid to promote this listing. I just think things like this are worthy of sharing. A bit of good news is nice these days in our economy, don’t you think?

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.

Don’t you love unique landmarks? I sure do. While driving on Wilton Road today on my way to an appraisal inspection, I decided to actually stop and snap a few pictures of this “cannon/mining” motif in the front of a property in Elk Grove (literally next to the border of Wilton). I always get a kick out of this one each time I pass by. My lot size is far too small to have this theme in my yard. Well, my neighbors would probably flog me too due to the principle of conformity in real estate. But if I was on acreage…. What do you think?

While we’re on the subject of Wilton, here are all sales in Wilton over the past five years. What do you see? Does anything stand out to you? The trend in many other areas of Sacramento tends to have a much sharper decline, but that’s less of the case here. What makes Wilton different in your mind? If you live in Wilton, what do you find desirable about the community?

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.

What is a firewall? Defined by Wikipedia, it’s ”a fireproof barrier used to prevent the spread of fire between or through buildings, structures, electrical substation transformers, or within an aircraft or vehicle.” The firewall shown below is a standard one found between a garage and a house as this wall serves to help stop the spread of fire. Do you see a problem with this firewall though?

The cost to repair the large hole is very minimal, but it’s still a safety issue for occupants, which means it is something that needs to be repaired for an FHA loan. I’ve actually seen this issue twice in the past month on investor flips in the Sacramento area, so clearly it’s not something that is being cured every time by sellers before the appraiser heads out.

Here is a photo of a “before” and “after” of a firewall breach. Have you seen a hole as such cause problems before in a house? Might rodents be able to get into the house this way too? Can you think of any other issues this might pose?

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’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 wanted to wish you a very merry Christmas. May you find joy and rest during this holiday season, hopefully not too much drama with family and vision for the coming year ahead. I’ll be taking the rest of the year off from blogging to enjoy some time with family and friends. Thank you for stopping by the Sacramento Appraisal Blog for 207 posts in 2011. I’m really looking forward to connecting in 2012. Again, thank you for all the conversation and sharing of life and business this year.

Merry Christmas and Happy Holidays!!

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.