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.

Your Potential Savings vs. The Letter from the Sacramento County Assessors Office

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moneyAt some point around June 2009 the Sacramento County Assessor’s Office should be mailing a letter to certain households stating that the Assessor has lowered the assessed value on particular homes (if they determined that value declined). Don’t worry, if you are located in Placer, El Dorado, Yolo, San Joaquin, Solano or any other local county, you may also be getting a letter.

Here is the scenario: You purchased your home in the Sacramento Region for $550,000 in 2005 and so you were paying about $6,000 in property tax based upon 1.25% (the maximum percentage in CA). The assessed value of your home was based upon the purchase price which was assumed to be fair market value at the time of sale. Your home has since declined in value over time and the Assessor says your home is now worth $450,000. Thankfully your current taxes get bumped down then to around $5,500 based on the adjusted assessment at $450,000.

This is wonderful news, right? You are happy to save five hundred dollars and the Assessor looks really good too in light of gaining a ton of positive publicity in the media because he has “lowered property taxes”. This should be great cause for celebration, but the only problem is that your home is actually worth somewhere between $375,000 and $400,000 rather than $450,000. In effect, this means that you are paying for $50,000-$75,000 of value that you don’t actually have. In essence, this comes out to paying $500 to $750 out of your pocket each year that you should not have to pay.

This is only a mild scenario. There are home owners in niches of surrounding counties that are paying way more than $500 too much each year because the assessment is off by $100,000-$400,000.

Think about your property tax assessment this way:

  • Assessed Value $25,000 too high = you overpay by $250 per year
  • Assessed Value $50,000 too high = you overpay by $500 per year 
  • Assessed Value $100,000 too high = you overpay by $1,000 per year
  • Assessed Value $150,000 too high = you overpay by $1,500 per year
  • Assessed Value $200,000 too high = you overpay by $2,000 per year

What are your options?

1) Do nothing. Surprisingly, this is often an option that many people choose because appealing property taxes is unfamiliar turf that people sometimes just don’t know how to handle. Or life is busy and this whole process seems like a pain to deal with. But are you comfortable paying even $50 extra per month to the County? What else could you be doing with that extra $500 each year?

2) Pay a minimal fee to me to handle the entire situation for you. I can do all the research, stand before the appeals board on your behalf, make charts and graphs, assess neighborhood trends, and put together convincing evidence for a lowered opinion of value – a true reflection of the real estate market. You have a potential to save a great deal of money each year.

Taxes are a part of life and there is no escaping them, but we don’t want to pay a penny more than we have to. Make sure that you are keeping your hard-earned money in your pockets by paying your fair share of property tax and no more. Please contact me at 916-595-3735 for any details.

City of Lincoln Real Estate Market Trends (Placer County, CA)

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The city of Lincoln is located off of Highway 65 near the cities of Rocklin, Roseville and Wheatland. Over the past decade Lincoln has changed quite a bit in light of exponential growth due to new construction and affordability. According to Forbes in 2007:

The fastest-growing suburb in the country is Lincoln, Calif., just outside Sacramento. Its population jumped from 11,746 to 39,566, or an increase of 236%.

Lincoln has many new communities sprinkled throughout the city (Sun City Lincoln Hills, Markham Ravine Estates, Lincoln Crossing…), but let’s take a look at an area just West of Highway 65 and Downtown Lincoln. This area of town is comprised of houses built around 1930 to 2006 with most houses being constructed between 1950 to 2000. The most common square footage in this area is between 1150-1350.

lincoln

The graph below shows all sales from the past three years within the defined boundaries above. Sales noted on the graph were limited to houses built between 1920 and 2000. The newly built properties sprinkled throughout this territory could possibly throw off the data a bit, so the most predominant ages for properties were used.

city-of-lincoln-real-estate-market-trends-2009

 Lincoln Real Estate Market Data for Defined Boundaries:

  • 13 sales in the past 90 days
  • 61 sales over the past 12 months
  • 9 Pending listings
  • 1 Active listing
  • 12 Active Short Sale listings

Based on the graph there is a pretty clear trend downward over the past three years, wouldn’t you say? It’s also apparent that properties are selling in the current market since there are nine pendings and only a total of thirteen other listings. One important thing to note is that there is a three month supply of short sale inventory since there are about as many current short sales as total sales over the past 90 days. Short sales sometimes take much longer to sell and they can often end in foreclosure too.

The graph is based only on sales price and date of sale, while other relevant factors such as age, condition, level of upgrades, view, size, location, amenities, layout and design among others, were not considered. These other characteristics can have a large impact on the value of a particular home or group of homes within the boundaries above. A more detailed and thorough analysis can be provide for you based upon your real estate needs.

If you have any questions about the data above or any related questions about other portions of Lincoln (newer or older), feel free to contact me at 916-595-3735 or ryan [at] lundquistcompany [dot] com.

Mather, CA Real Estate Market Trends

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Mather is a housing community with a history. The “Independence at Mather” development is a subdivision with 1271 homes that were built by KB Homes within the past ten years (with the strategic vision and planning of SHRA of course). Portions of the current housing tract were formally used as military barracks for military personnel from Mather Air Force Base just down the road, so when the base was decommissioned on October 1, 1993, it was a wonder what would happen to the land. Well, a subdivision was birthed and the old base was converted to Sacramento Mather Airport as well as for local commerce. 

What’s been happening in the Mather, CA real estate market over the past six months? Let’s take a look at all sales listed in MLS.

mater-ca-real-estate-market-trends-in-2009

Mather, CA Real Estate Market Data:

  • 21 sales over past 90 days
  • Low sale in past 90 days:  $162,500
  • High sale in past 90 days:  $351,000
  • Average days on market for sales: 85 days
  • Current Pending listings: 10
  • Current Active listings: 8
  • Current Active Short Sale listings: 23
  • Low Current Listing: a short sale at $99,000

mather-ca-real-estate-market-trends-may-2009

What do you notice from the graphs and data above? Listings certainly are lower than they used to be, aren’t they? It appears that there are not as many sales at higher levels too over the past 90 days than in the previous 90 days. Short sales often are priced aggressively to help offset the negative perception in the minds of many buyers, and it is eye-raising that a majority of current listings are short sales. How do you think that will impact the market in coming weeks and months?

If you have any questions about the data above or Independence at Mather in general, feel free to give me a call. The size, location, condition, layout, design, lot size, amenities, upgrades and so many other factors can affect the value of your home. The information listed above is general and not specific to any particular point of data other than being located in Mather. For a more detailed analysis of your home, please contact me at 916-595-3735 or www.lundquistcompany.com or “ryan [at] lundquistcompany [dot] com”. Additionally, if you purchased your property in recent years and you feel that your house has gone down in value, but the Assessor’s office has not recognized that decline, let’s talk about what your options may be.

Low Prices on Foreclosure Duplex and Fourplex Properties in Sacramento Region

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While inspecting a property yesterday in the “Strawberry Manor” area of Sacramento (Del Paso Heights), I snapped the following image of a boarded-up fourplex. On Fairbanks Avenue there are four 4-plexes in a row on the Southern end of the street and they are ALL boarded as bank-owned properties.

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The property above is a fourplex and is currently listed for sale at $132,900. Each of the fourplexes on Fairbanks Avenue like the one above has a total of eight bedrooms and four bathrooms (each unit is a 2/1). Another one of the group of these 4-plexes is currently pending at $129,900. It’s amazing to see such low prices when considering these sold above $300,000 in the past several years.

A quick scan of the 95838 zip code reveals the following:

  • 3 Active duplex listings ranging from $69,900 to $360,000
  • 10 Active Short Sale duplex listings from $69,900 to $350,000
  • 7 of these listings are priced under $150,000
  • 4 Active fourplex listings from $132,900 to $500,000
  • 11 total pending properties (duplex and fourplex) ranging from $63,900 to $290,000.
  • 8 of the 11 pendings are priced under $150,000

If you have any questions about the local real estate market or if you have any potential appraisal needs for your investments, let me know. The information above is just one sliver of the deals to be had out there. Feel free to reach me at 916-595-3735 or www.lundquistcompany.comor “ryan [at] lundquistcompany [dot] com”.

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