Sacramento Appraisal Blog

Market trends and real estate appraisals for divorce, estate settlement, loans, property tax appeal, pre-listing and more. We cover Sacramento, Placer and Yolo County. We're professional, courteous and timely.

What types of repairs does HUD require for an FHA loan in the Sacramento Area?

By Leave a Comment

images1I find myself doing quite a few FHA appraisals these days in light of the enormous popularity of FHA loans in the Greater Sacramento Region. Sometimes properties are able to easily meet FHA minimum standards, but other times houses might need just a little work (or quite a bit) to bring them up to the level required by HUD.

The primary concern of HUD as it pertains to a property is with safety, soundness and security. The basic gist is that for HUD to guarentee a loan, a property must not have any issues that present a threat to safety, security or soundness.  Minor cosmetic issues don’t fall under this category, so a crack in a window or a stain on carpet or a missing doorknob are not a big deal for FHA loans (so long as there is no threat to safety, security or soundness). Other condition issues though such as peeling or chipping paint, an inoperable heating system or a leaking roof are a big deal to HUD because they do impact safety, security or soundness.

At times it is easy to think that appraisers are being knit-picky over minor issues that could easily be overlooked while inspecting a property, but take a look firsthand what FHA requires for repairs (click HERE).

If you ever have questions about FHA-related required repairs or FHA real estate appraisals in the Sacramento Area (multiple counties surrounding Sacramento), you are welcome to contact me at 916-595-3735 or www.lundquistcompany.com or LundquistCompany@gmail.com  Lastly, you may find HUD to be very helpful when you call (800)CALL-FHA

Commercial Property Tax Disputes in the Sacramento Region

By Leave a Comment

I have talked on this blog about my property tax appeal company as it relates to residential properties, but now I want to make it a point to mention commercial properties in the Sacramento Region.

What’s the difference in requirements for residential vs. commercial property tax disputes? Not much. The process and timeline for contesting property taxes for commercial properties in the Sacramento area is the same as residential. The exact same application is filled out (Application for Changed Assessment) and the County Assessor asks the commercial property owner to provide the same thing as would be provided in a residential tax dispute – evidence for a true opinion of market value as of January 1, 2009 (that’s where we come in).

Our company at SacramentoTaxAppeals.com handles residential and land property tax appeals for the bulk of our work, but we also collaborate with an experienced General Real Estate Appraiser who handles the commercial properties ordered through our company. Please contact us today so that we can understand your situation and the type of property you have so that we can figure out the depth of work necessary for your tax appeal needs. A full commercial appraisal may not be necessary (we all know how much commercial appraisals can cost). Call us today at 916-595-3735 for more information.

Keep in mind that the time-frame to dispute commercial property taxes in Sacramento County is July 2, 2009 to November 30, 2009 while in Placer County and some surrounding counties the time-frame is July 2, 2009 to September 15, 2009.

Fannie Mae’s Definition of Market Value

By 3 Comments

As an FYI for any readers, this is Fannie Mae’s definition of market value, which is contained in the Fannie Mae appriasal form (1004) that is used for most conventional loans:

imagesMarket value is the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Examples: If you sell your house and include your red corvette in the garage as part of the sale, it probably wouldn’t fit the definition above because the buyer very likely paid a higher price for the house because of the machine parked in the garage (#5). Or if there are $50,000 of concessions contained in the purchase price, chances are that the buyer paid more for the house to get the benefit of money back, right? (#5) Or if a property is listed on the market for 1 day only, it may have been under-priced and not reflective of the market, right? (#3) (not always the case if a property goes quickly, but often so). Or consider when a family member sells to another family member and how the sales price is often much lower than it would have been if a non-family member purchased the house. This would very likely not be an arms-length transaction where each party is acting in his own best interest (#4). Or imagine a couple is getting divorced and they need to sell their house quickly. The house sells $30,000 below other recent sales in the neighborhood and so it does not fit the definition of market value (# 2 & # 3).  These are the types of issues that appraisers must consider constantly (and these are the reasons why speaking with local Realtors is a crucial part of our job. Having reliable and accurate information leads to better appraisals). 

If anyone has questions, feel free to contact me at 916-595-3735 or www.lundquistcompany.com

Why is an appraisal needed during bankruptcy? (Greater Sacramento Region)

By Leave a Comment

Why is a real estate appraisal needed during bankruptcy? During bankruptcy the debtor is required to show the worth of his/her assets to the court. Simply put, an appraisal by a qualified and professional appraiser in the State of California is the official means of verifying the true value of your property (or properties). It is the job of the appraiser to provide thorough and reliable research to demonstrate with clarity what your home is worth so that your proceedings can move forward. It is very likely that your lawyer will ask you to hire an appraiser, so it is important to make a good selection.

Tips for Selecting an Appraiser During Bankrputcy:

1.  Choose an appraiser who understands your local market.

2.  It may be a good idea to ask the appraiser about his/her experience in general as well as knowledge about your area of town.

3.  Let the appraiser know exactly what you need and why you need it. Is the appraiser going to need to go to court? (probably not, but if you know in advance, that is helpful information).

4.  Let the appraiser know when you need the completed report by.

5.  Most appraisal fees will probably hover around the same level because there is usually an acceptable price standard in the market (just like with any other product or service). My fees are very reasonable and I do a fantastic job with bankruptcy appraisals. This is my own philosophy, but I would strongly suggest that you not hire someone who is willing to do the appraisal for vastly less than everyone else. Like the saying goes, “you get what you pay for” (I’ve certainly learned this lesson, especially when hiring contractors).

Please let me know if you have any questions about the appraisal process during bankruptcy. I offer my bankruptcy appraisal services throughout the Greater Sacramento Region in multiple counties such as Sacramento, Placer, Yolo, El Dorado and San Joaquin among others. I can be reached at 916-595-3735, www.lundquistcompany.com or LundquistCompany@gmail.com. Your circumstances may be very difficult understandably, so the hope is that at least the professionals around you can help to smooth over some of the details like this so you don’t have to think too much about them.

Skip to content