I made this one-minute “before & after” video for a client (Housing Group Fund) to help show one of their recent first-time home buyer projects in Sacramento. I appraised this property and I have permission to post the information here. This is a block  construction house (cinder block) near the Fruitridge area that was purchased recently as a bank-owned fixer and then rehabbed extensively throughout. One of the features I really like about this remodel is that there is now sheetrock and texture on the interior walls so the house does not have a typical “block” feel to it. If you are reading in RSS, you can view the video directly here.

It’s amazing to see the difference from beginning to end. What do you think? 

I’m doing some research for a duplex in South Sacramento. I thought readers would be interested to see a trend graph of all sales over the past twelve months for 2-4 unit properties (duplex, triplex, fourplex) within the South Sacramento & Fruitridge market area. It’s amazing to see how low prices have come down. In 2005, for example, something would have been sincerely wrong to see a residential-income property selling anywhere near $100,000 (or below). For reference, 67% of the sales below were REO and 19% were Short Sales.

What do you see? Also, how have you seen the decline in property value impact rents in the Sacramento area? 

If you woke up this morning itching to see a macro glance at the real estate market in Roseville, you’re in luck. I’m doing some research in the city of Roseville and I wanted to give a glimpse into sales over the past 18 months as well as current listings.

What do you see? Does anything stand out to you? What does it look like the market has done at the high and low end?

Here is some helpful information on condominiums for FHA/HUD, whether you are in the Sacramento area or elsewhere. I wrote previously about FHA condo issues here. This is straight from HUD:

Effective on Monday, June 14, 2010, all condominium inquiries, telephone and email, must be submitted to the FHA Resource Center at: (800)225-5342 or by email at info@fhaoutreach.com. The FHA Resource Center will provide responses to general inquiries received from consumers and industry partners. Responses requiring technical knowledge will be escalated to the jurisdictional Homeownership Center for review and response.

Before contacting the FHA Resource Center, it is recommended that you use
the following resources to search for answer(s) to your question(s).

1. Check to see if your question is already included in the Condo FAQs currently posted on the web here (pdf).

2. To determine if a project is on the FHA Approved List or to obtain the FHA concentration please visit this web page and input the condominium project name or the Condo ID. It is recommended that only the first few letters be entered to return a complete list. If the project is not listed it will require FHA approval.

3. FHA provides the FHA Concentration percentage information on the Condo List Screen. If the percentage is not identified or incorrect, provide documentation to the jurisdictional Homeownership Center so that the system can be updated. This information would include the first two pages of the appraisal or a letter from the HOA providing the number of units in the project.

4. What is the process for obtaining project approval? For documentation and processing requirements, please refer to ML 2009-46B and ML 2009-46A, which can be found on this website (or directly as a PDF here and here).

Good luck everyone. I hope you find what you’re looking for. Make sure to read all the information from the above links. Keep me posted if there is ever anything I can do.

As I mentioned previously, I’ll be heading to Kansas City next week as a part of delegation from the city of Rancho Cordova for the All-America City Awards. I wanted to invite you to follow this exciting journey next Wednesday through Friday through videos, Facebook & Twitter. Technology is going to help us connect!!! It should be great fun. Watch the videos below or here and here.

I’ll be posting from Kansas City mainly from my Twitter account @SacAppraiser and I’ll be getting some videos up at www.facebook.com/Project680 (directly on my YouTube page at www.youtube.com/lundquistco). The official hash-tag on Twitter is #AllAmericaCity (note it is not “American”, but “America”). I’d love to hear from you during my stint in Kansas City. Your support will be a huge encouragement.

This is a real honor for me to represent Project 680 and my city. Go Rancho Cordova!!!!

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?

FHA loans have dominated the local market in the Sacramento area lately, haven’t they? This is why many buyers and sellers are paying careful attention to FHA guidelines. I get calls all the time from concerned sellers, prospective buyers, and real estate agents about FHA compliance issues. The question is usually, “will _________ be an issue for an FHA loan?”

FHA has a very specific set of minimum requirements. If you are planning to sell your house and you think the most likely buyer is going to be using an FHA loan, then strap on your “FHA goggles” to view your property like HUD does. Or if you are purchasing a house, it’s important to be aware of condition issues that may impact qualification for an FHA loan.

What does it take for a property to meet FHA minimum guidelines? 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. It’s okay if there is some deferred maintenance, but if there is any issue that may pose a threat to health, safety, soundness or security, then it needs to be solved. Examples might include chipping paint, mold, missing appliances, an inoperable HVAC, a broken water heater, dangling wires, trip hazards, etc… You can see a more detailed list of specific requirements in a previous post.

Quiz Time: Now that you have just a bit of information about FHA compliance, take a look at the image below. What do you see that might pose a safety risk and be unacceptable to FHA? Comment below.

Keep me in the loop if you have any questions or if you need to hire my “FHA goggles” to help you make a decision when selling or buying a house. And don’t worry, I don’t actually wear goggles like this on inspections. You can reach me at 916.595.3735, on Facebook, or ryan@LundquistCompany.com.

I’m getting ready to head out to Kansas City in a couple of weeks for the All-America City Awards. The City of Rancho Cordova was selected as a finalist in the competition this year, and I am honored to be a part of the delegation to make the trek to Missouri. My role on the team will be to represent Project 680. I’m very excited to get to travel for a few days, be a team player for my city, and meet so many wonderful people.

Here is a synopsis of the All-America City Award competition from their website:

The National Civic League recognizes ten communities each year for outstanding civic accomplishments. To win, each community must demonstrate innovation, inclusiveness, civic engagement, and cross sector collaboration by describing successful efforts to address pressing local challenges.

I’ve never been to Missouri. What should I expect in KC? Is there anything I should definitely try to do while I’m there?

Check it out. I started a Facebook page for my business last week. My rationale for taking the plunge is threefold: 1) I like Facebook and I use it all the time; 2) Facebook is a ripe arena for conversation; 3) I want to make sure to be available and able to connect with others in this simple (free) way. Click the image below (or here) to visit the page.

You may wonder, “well, Ryan, you are so into social media, so why did it take you so long to create a Facebook page?” Honestly, I felt conflicted for a while, so I needed time to really think this through. Facebook is so personal, and I just didn’t want to be “that guy” who looked and sounded like he was marketing to his friends. This was really a philosophical hurdle that I needed to sift through over time before rolling out in confidence with a page. It just took a bit of time for me to ultimately feel comfortable enough that starting a page was the best move, and that it’s acceptable and non-spammy to have a page for business (well, non-spammy depending on how you use it of course). And by the way, I am not “that guy”.

Do you have a Facebook page? Why? Why not?

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 wrote the other day about the importance of building an online business presence, and I was provoked further today about just how relevant social media truly is. It’s easy to think that newer mediums such as Twitter, Facebook, and blogging are a fad, but take a look at the Socialnomics video below (or here). I saw this today during a presentation by Chris Tellez at the Sacramento Association of Realtors YPC meeting.

What do you think? How does the video make you feel? Do stats like this bring pause about the way you do business or aim to do business in the future? 

I ran into an acquaintance at Starbucks recently and we ended up having a very brief conversation about the real estate market in Sacramento. This friend of a friend just happened to be spending some time with her Realtor, and while waiting for our drinks to come to the bar, the Realtor asked me, “So how is the real estate market doing?”

We literally only had about a minute to talk, and like usual I find that it’s no small task to truly sum up the happenings of the real estate market in only sixty seconds. I suppose technically real estate market conversations can be treated like some sort of a speed-networking introduction, but my sense is that this type of exchange is really best for sitting down over coffee instead of waiting for coffee. Nonetheless, I had the brief conversation of course, but I found myself wishing for more time to realy grapple with different facets of the market. 

I mention this because I have quite a few visitors to this blog every day (thank you). People type in questions in a search engine to find answers to what they are looking for. So I say to you, if you have questions about the local real estate market, appraisal standards, FHA, a particular neighborhood, property taxes, or any other topic you might find on my blog, I just wanted to let you know I’m accessible.

You can reach me at 916-595-3735, ryan@LundquistCompany.com, on Twitter at @SacAppraiser, YouTube, Facebook, or in the form to the right or below. Please contact me for questions, discussion, or if you are in need of my appraisal or property tax appeal services.

By the way, does anyone keep an app on your phone to find coffee shops, whether Starbucks or something else?