The Bottom of the Market

Industry experts are starting to speculate whether we are at the bottom of the housing market. These same experts also say that we won't know for sure when the bottom of the market is until 6 months after it bottoms out. However, I'm sensing we are getting close. And by close I'm guessing next spring. For the first week in well over a year I have noticed that the "Notice of Defaults" for Sacramento County has dropped from the 500-600 range to the 200-300 range, and that's good news.

We still have issues with people qualifying for loans, but word is getting out that to get a house, you need to save money and fix your credit. Those buyers who are serious and have been saving money, will soon be poised to get a great deal on a home. Call me :0)!

It's a Seller's Market?

The media is still calling this a Buyer's market, and in some cases it is. However, if you're trying to buy a bank owned property, it's a seller's market. Banks are pricing their listings at rock bottom, which is bringing in multiple offers. A client called and wanted to look at a home that was just listed for an incredible price in Elk Grove, I checked with the agent and it had 17 offers. SEVENTEEN! Sellers of "normal sales" of homes are begging for just one offer, but those homes are overpriced.

So if you're a buyer and making offers on bank owned homes, don't lowball...the bank won't even acknowledge you. Also, be patient, your home is out there and when it's supposed to be yours, that's the house you'll get.

Did You Buy Your Sacramento County Home Between 2004 and 2006?

If so, you could be eligible for a property tax reassessment on your home. The County recently sent out letters to many homeowners regarding the lower property values and the resulting lower tax assessment. Our home has gone down, according to Sacramento County, $107K -- actually it's lower than that, but I'm not going to argue with a reduction of my property taxes in any form.

If you feel your home has lowered in value since you bought it and still have yet to receive a letter stating so from the County, you can do so online at: http://www.assessor.saccounty.net/DeclineinValueReassessments/default.htm

Losing a Home is More Than Just a Crazy Loan

In the past couple of months I am meeting more and more homeowners who are on the verge of foreclosure and it has nothing do with adjustable loans. These are people who are unable to make the payment on their 30-year-fixed mortgages. These are people who are finding themselves in tough times, many of which have lost their jobs and are unable to get new ones. Our economy is worse than the we think.

It is heartbreaking for a Realtor to see a client lose a home you represented them in buying. You remember that exciting day of handing them over the keys, never once thinking that they could lose that home in the future. But, now you end up trying to help them lessen the blow to their credit and offer to try to sell it before the bank takes it back. There really is no silver lining in losing your home. Just another of life's crappy lessons.

I'm really looking forward to our Sacramento Region getting out of this foreclosure mess and back to a nice stable housing market.

We're Back to Multiple Offers

The real estate frenzy of multiple offers in the Sacramento Region is back, just as it was at the height of the market a few years, only now it's at the opposite end of the spectrum. We have plenty of inventory; however, the homes priced really well are getting multiple offers the first day on the market.

I was out showing homes in Elk Grove in the $210-240k range. There are a lot of buyers in this price range. After looking at several homes last weekend that all had multiple offers on them, I told this particular client that we needed to jump on a home the day it came on the market. So that's what we were doing, but we weren't alone. The first house we went to, which was new on the market that day, had buyers inside the house, we were next and as we were waiting, more buyers showed up. That house was pending by the next morning. Same thing happened at the second house we went to, which was also new on the market that day.

The days of waiting a few days to weeks to make an offer on a home -- that is priced well -- are over. Homes are flying off the shelf. I'm not sure if we're at the bottom of the market yet, but if you're on the fence, now is the time to get off.

Today's Housing Market is Different From Tomorrow's

And by tomorrow, I literally mean Friday, today is Thursday. This was brought to my attention so clearly today while I was researching the potential value of a plot of land in Nevada for a client. The real estate agent I spoke to said, "I will call you back with a rough of estimate of what it's worth today, NOT TOMORROW." I truly understood where she was coming from.

This market is changing faster than I can blog about how much it's changing. What was a competitive price on Tuesday is increasingly much different by the weekend. It's crazy, but also a bit fun to watch all this happen daily. Before the fall of 2005, you could price a home a bit higher than the last comparative home sold and be safe and probably get multiple offers. Today, you try and price it a bit lower than the last comp. But sometimes that doesn't even work. There's where the fun lies. As Realtors our job requires much more of a pulse on the market than in the previous few years. A Realtor needs to be extremely informed and technically savvy to survive in this market. Of course . . . this could all change tomorrow.

Selling Your Home in a Buyer's Market

With all the negative press geared toward home sellers in the Sacramento Region, it's amazing anyone who doesn't have to absolutely sell would even think of putting their home up for sale. However, if you have some equity and are looking to move up into a bigger home, better neighborhood, etc., then it's an excellent time to sell. Yes, you will likely take it in the shorts when you sell your home; however, chances are you will more than make up for it in your new home.

One stumbling block home sellers have is whatever the highest price they could have ever received for their home at one time (probably over two years ago). This price is stuck in their mind that they have lost that much money on their home. If you bought your home 5 years ago, you probably have not lost money. Say in 2003, you paid $200K for your house and in the fall of 2005 your neighbors sold their home for $380K. Now your home is worth $280K. You have actual equity of $80K, not a loss of $180K. Those buyers who actually bought at the height of the market around the fall of 2005, have lost real dollars. My husband and I happen to be one of those buyers, we are $160K in the red; however, we plan to be in our home for many more years since our home represents our quality of life in a neighborhood we enjoy and not a day trader stock.

It's a great time to buy. Home prices are so affordable -- for many people. Home buyers are buying homes they thought they could never afford. So, if you want that move up home or better school district, go for it and put your home up for sale at a great price. You might be surprised.

House Worthy Credit

For those of you who are thinking about buying a home, whether it be in the next month or next year, there are several things you can do to raise your credit score and keep it in good standing. With the stricter guidelines for home loans, thanks to all the foreclosures from subprime loans, good credit is a necessity in buying a home today.

Tips to get your loan approved for good credit:

1. Do not buy anything on credit -- not a car, couch or even a toothbrush; if you open new credit cards, keep the balances low and pay them on time; any credit cards you currently have, try to pay off as much of the balance as you can
2. Do not let anyone check your credit, unless it is for a home loan and keep that to three companies -- each time your credit is checked your credit score, which can be anywhere from 350 to 850, gets points deducted from it; when shopping for a mortgage loan, you only get dinged once, but it must be in a timely time frame
3. Contact a mortgage lender as soon as possible -- you may think just because you won't be buying for a year that it's not necessary; however, a lender will advise you on how to raise your credit, as well as ways to fix any negative credit you may have
4. Register on https://www.optoutprescreen.com/ -- once registered on this website, offers for credit will stop coming to you and will help raise your credit a few points since you won't be tempted to open new lines of credit; once you own a home you can "opt" back in and get offers again, if you choose
5. Check your credit report -- you may check your credit once a year for free and be able to make sure everything is correct and if not, to take corrective action
6. SAVE MONEY -- the 100% financed loans are going away quickly; this is not to say they won't come back someday, but for the current and near future -- with the exception of some first-time buyer programs -- they are leaving; lenders will want to see at least two months of reserves in your savings to pay your mortgage should you lose your job or some other financial hardship, as well as money to put down on a home, which is a minimum of 3% of the purchase price of the home; also, owning a home costs a lot more than renting with regard to maintenance, taxes, etc...but the reward is much greater than any home you could rent

For more information, contact your bank or mortgage lender of choice.

It's a House Feeding Frenzy

Despite all the doom and gloom regarding the housing market in the news, I'm seeing a strong comeback. I was out showing homes in Elk Grove zip code 95757 last Saturday and there were homes buyers and real estate agents all over the area. Everywhere we went we were all bumping into each other.

I have a few clients who have even lost out on homes before they could even make an offer. The smart banks are starting to list their foreclosed homes around the $100 per square foot mark. One home some clients missed out on was a 3-year-old home listed for $103 a square foot. Before we could even make an offer it went pending with 12 offers and going for more than asking price.

So, ignore the media...the Sacramento Region housing market is coming back and you won't know we hit the bottom until about 6 months later.

Staging Your Home to Sell

Many factors are combined for a successful home sale: competitive sale price, well-kept home, marketing, excellent property photos, curb appeal, desirable location and lastly, good staging.

Good staging consists of the following (for additional tips, go to http://www.hgtv.com/ and search "staging"):

1. Remove clutter
   You may love your salt and pepper collection, but buyers won't. Make your home look like a model home and be sure to have at least 50% of space on everything. This includes closets, shelves, the garage. If buyers see stuff crammed everywhere they will unconsciously think there's not enough room for their stuff. Rent a storage unit or two.
2. Take down your family photos
   All those photos of junior are adorable, but it will distract buyers and take their focus off of your home.
3. Clean inside and out
   I know this seems obvious, but I can't tell you how many homes I show where there are dirty dishes in the sink, crumbs on the floor, yucky litter boxes, Fido "droppings" on the lawn...you get the picture.
4. Hide the toys
   Get a toy box and use it. Whatever doesn't fit in the toy box, goes in storage. Make it look like the adults own the home, not the kids.
5. Remove unnecessary furniture
   Although it may be useful for your family to have a couch, love seat and Dad's favorite recliner, it is probably making your living room small. The less furniture, the bigger your house looks. This goes ditto for huge bedroom furniture -- unless, of course, you have a 1200 square foot master suite. Be sure there is ample space for a family to tour your home and not have to squeeze between furniture pieces to move around.
6. Put away the exercise equipment
   You're probably not using it anyway, except to hang clothing, so for the sale of your home, put it away. The only time this is okay, is when you have a room that is specifically being used as a workout room.
7. Hire a professional home stager
   Professional staging has become a booming business and can really help in the quick and profitable sale of a home, particularly in a challenging home selling market. To find a home stager in your area, visit www.stagedhomes.com/

2008 is the Year to Get Off the Fence

Since the day after Christmas, my phone has been ringing off the hook with clients -- both new and long-time fence sitters -- who are getting ready to purchase a home. It looks like buyers are starting to figure out that we may be close to rock bottom. Of course, no one really knows we've hit rock bottom until about six months afterwards.

Our well-priced listings are getting lots of showings and I can just feel the offers coming in. This is the year to buy a home. If you're a buyer waiting for the right moment, this is it. Get out there, shop and make offers. In my opinion, we won't see a year like this for a long time.