Living on the Sacramento River is a whole lot more affordable in today’s market than it was in the past. I wanted to share a bit of recent research as I just finished up an apprasial on Garden Highway. Here is a graph of all sales along Garden Highway in Sacramento County over the past ten years. Keep in mind these are only sales that closed in MLS, so there may be other private transactions or newly constructed custom properties not accounted for below. What do you see?
If you have any real estate appraisal, consulting, or property tax appeal needs in the Greater Sacramento Region, contact me at 916.595.3735, by email, on our appraiser website or via Facebook.
57% of sales were REO (bank-owned)
$13,000 was the lowest sale in the past 12 months.
I notice in this market there are a lot of condo complexes that cannot obtain conventional or government financing; which then tends to lower the value of the condo in that complex. As a lender I always want to know three things when my clients are interested in purchasing a condo. The first thing would be the Owner Occupancy Rate of the entire complex. This is important because most lenders / banks are not will to finance any complex with the Owner Occupancy Rate that is below 50 – 55%. The second item I like to look about is the HOA Fees and their Delinquency Rate. The HOA Fees are part of the borrower’s monthly expense and they need to be calculated into the borrower debt to income ratio for loan approval. Also if the entire complex HOA Fees are delinquent by 5% or more, this could also prevent most lenders / banks from financing in the complex. The third item I look for in a complex is to see if the complex is on the HUD / FHA condo approve site. Since most of my clients are applying for FHA financing, it is a good idea it check and see if the complex is already on the approval list. You can find a list of 
The biggest misconception that most people have about condos is that if it’s not on FHA’s list of approved condos, there is no way to do an FHA loan with that condo. Here at Mason McDuffie we have a special department that focuses on condo lending and helping buyers and realtors navigate through the unique aspects of condos loans. When a condo isn’t approved, we can do what’s called a spot approval. The process works much like an underwriter approving a loan. We will gather all the needed documentation and look at the project to make sure it’s a healthy and successful project. The last thing that we want is one of our buyers purchasing a unit in a complex that isn’t collecting enough funds (HOA dues) to support the maintenance and repairs or isn’t putting enough money into their reserve accounts. If the condo is on the FHA approved list already, it’s actually a quick and simple process to complete the loan. Here are a few things we need to verify: 1) To make sure the complex isn’t involved in any litigation; 2) That the delinquency rate is below 15%; and 3) That there is proper insurance on the condo project. This is something we collect for everyone to make sure everything is in order. If you have any questions, call my cell at 916-798-1234, office at 916-266-4181 or