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.

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.

Realtor Doug Reynolds interviewed me a short while ago about the impact of distressed sales in a neighborhood. How do short sales and foreclosures impact the real estate market in the Sacramento area? Here are some thoughts in a one-take video interview. For specific statistics, check out “Dear Doctor, how healthy is the real estate market in Sacramento?” and “What happens to foreclosure when prices go up?” I found the data in both of these posts to be very interesting. Enjoy.

Any other insight or thoughts about the affect of distressed sales?

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.

This is exactly what happens when a bank gets tired of having their AC units hijacked from foreclosed properties. I saw this “REO cage” on a Fannie Mae property in Sacramento recently. Yes, each leg is bolted to the ground.

What a sign of the times, 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.

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.

I came across the property below the other day while on an inspection. Granted there are probably some more grandiose examples of festive lights to share, but let’s pause for a moment to recognize the brilliance of using foil on trees for Christmas decor. After passing by this house I’ll be honest to say I’m feeling a bit inspired to find a way to use foil in my front yard. For me foil is one of those amazing products (like duct tape) because there is so much you can do with it.

It really adds to a sense of festivity and even neighborhood pride when residents decorate during the holidays. Do you agree? On the contrast, when streets are pitch black and there are no lights in sight, how does that feel? If you’re planning a trip to enjoy Christmas lights, Realtor Gena Riede has a very detailed list of Christmas Lights in the Sacramento Area on her blog. Check it out and maybe try driving by a few new addresses this year. My family definitely enjoys lights in the Fab 40s, Arden Park, T Street and Dovewood Court in Orangevale.

Where do you recommend going to see lights in the Sacramento area? What do you think of the foil trees below? Points for creativity? Tacky?

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.

It’s been a great week of life and business, and I wanted to share one of the fun appraisals I have in my bag right now. Yes, my client gave me permission to shoot a video of this “fire house” in the Sacramento area. This one is a two-bedroom crispy critter and it’s going to need to be stripped down to the studs for a rehab project. It’s always fun to appraise houses like this. Enjoy a one-minute clip.

What do 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.

While inspecting a house in North Sacramento yesterday I saw this fence. How does this image strike you? What does a fence like this tell you about the neighborhood?

Some might say graffiti has artistic value, while others say it clearly does not. Stepping aside from that discussion, from a real estate perspective, I’ve never seen evidence to suggest graffiti like this helps boost property values. All things considered, graffiti ultimately harms a neighborhood because it contributes to a negative perception of the community. Do others get the sense that residents care about a neighborhood if graffiti runs rampant? No.

Just like I mentioned in my “blight week” series a while back, it’s often the “small things” in a neighborhood like graffiti, debris and unkempt lawns that create a less than positive view of the community and impact the way others feel about the neighborhood too. So focusing on getting to know neighbors and taking care of some of the small signs of decay is often a relevant place to begin to bring change.

Tips for dealing with a neighborhood graffiti problem:

1. Choose: Decide to be a part of the solution. Others may not step up, but you can be a game-changer for your street. Why not you?
2. Local Police: Talk with local law enforcement. What is the nature of the graffiti? Know what you are dealing with in the community and ask for advice from police officers.
3. Band of Neighbors: Get a few neighbors on board to deal with the issue by asking a couple of people to be on a rotating schedule for covering tags. Maybe you can switch on a weekly or monthly basis.
4. Be Quick: Cover graffiti within 24 hours and keep doing that until the problem stops. The issue is likely to lessen or stop over time if it is covered immediately because why would a tagger waste his time if his tags are not seen by others?
5. One Color: Use the same paint color if possible because it’ll look better and less blotchy. The residents in the picture above deserve applause because they are dealing with the issue. My hat goes off to them. Ultimately if they used one color though, it would look better, don’t you think?
6. Ask for Paint: Ask code enforcement, city council members or a local hardware store for free or discounted paint and any resources they might have to assist you. You may not even have to spend your own money because there is bound to be someone out there who wants to get behind your cause.
7. Keep a positive attitude: It’s easy to become discouraged when problems persist, but try not to take the graffiti personally. Try to get to the point where you find joy in getting to take care of your community on a more daily basis. You are doing something that needs to be done. You may never get recognition, but you are helping the community grow in the right direction, so practice thankfulness while you are painting and when you notice new tags too. I know that sounds like an odd concept, but just go with it.
8. Celebrate your successes: Have a casual BBQ with neighbors in your front yard and invite code enforcement and a city council member to eat with you. This could even help spur on more discussion about solving issues.
9. Any other suggestions?

I’d love to hear your thoughts and your story. Feel free to comment below. Thanks for keeping it civil and constructive.

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 nine more tax appeals sitting finished on my desk right now. It’s just past midnight and I’m so glad to be wrapping up for the day. But before I call it quits I wanted to take a minute to share some stats with you from these appeals.

• Assessed value of 9 appeals: $2,855,247
• Market value of 9 appeals: $2,197,000 (23% lower overall)
• Largest overassessment percentage: 49% (a condo)
• Largest overassessment amount: $161,288
• Total potential savings for home owners this year: $8,228

This last bundle of appeals will be turned in today since November 30 is the deadline for disputing 2011 property taxes in many counties surrounding Sacramento (only for “decline in value” situations though – not all tax scenarios such as calamity reassessment). As the authorized agent for each home owner, I’ll be handling discussion with the Assessment Appeals Board in coming months and then the appeals hearing too if necessary. All things considered, the home owners are very happy and I even received some really encouraging feedback today that I wanted to share with everyone (the owner said it was okay to post). This made my day. Pretty cool, huh?

“Your report goes far beyond anything I could have imagined. As a former VP of Real Estate at a major East Coast bank, I’m very impressed. Add-in your quick turn-around time and initial e-mail response and I couldn’t be more pleased. Thank-you so much.”

What do you think about the stats?

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.