Category Archives: Home Buying

Short Sales Revisited

In past posts I’ve been adamantly against short sales due to all the hiccups involved.  It is still true that a buyer needs patience, emotional disconnect, and a reality check, however, this year and the years to come might be much different.

Definition – Short Sale:  When a home’s value is less than the money owed on the note/mortgage; This produces a scenario where the lender (one holding the note) is given the opportunity to approve or reject an offer to “forgive” the difference between the offer amount (and real estate fees) and the current amount owed on the loan.

To reiterate:

1) Patience – I closed a few short sales this year for buyers and the average wait to hear back from the bank on an approval was 2 months.  I currently have an offer out there for a client on a short sale and we’ve waited about 4 months with no approval from the bank as of yet.  The other agent keeps saying, “soon, soon… hopefully soon.”

2) Emotional Disconnect – This is a tough one… How does one make an offer on a home to live in and not become somewhat emotionally attached?  It can be such an emotional roller coaster!  Here’s the real picture – one can make an offer and finally hear back from the bank 2 months later, only to find out that the sale is not approved.  Or, what is more common, there is no approval or call back, just the information that the home has gone to foreclosure.

3) Reality check – Much of the time short sales are listed in better condition and less expensive than REO/Bank Owned properties.  Why is that?  That’s what I ask my clients.  Here is the answer – the agent is never sure what the bank will accept until an offer is received and submitted to the bank.  So, in fact, the listing price is not completely accurate.  And it stands to reason that an agent might just list it for lower in an attempt to garner offers.

Here’s the other side of the coin.  I just took a short sale listing.  The seller’s were very cooperative in filling out our short sale package.  My staff and I were diligent to contact the bank.  We did out own Broker Price Opinion (BPO) and due diligence.  We priced it fairly and receive multiple offers.  We picked the best one and submitted it to the bank with all of the information they requested (we knew this ahead of time).  The offer was accepted and approved by the bank within ONE WEEK! I add the emphasis because my jaw also dropped with I heard this news.  I can’t really take too much credit either, but I do know that the banks appreciate a complete package and agents that have their act together.

Bottom line, my faith is renewed for short sales.  Also this coming year I believe that along with government incentive, laws being pasted, and banks getting more adept at dealing with short sales, this segment of the market will be huge.

My company is primed and geared to entertain many short sales in the year to come.  Let me know if you have questions, or think you are a candidate for short selling your home.

Enjoy,

Keith Klassen

Real Estate Broker

The Front Porch – Curtis Park, Sacramento and Beyond

[This was an article I wrote for a monthly newsletter I used to produce for my neighborhood (Curtis Park) each month.  A friend of mine inspired me with his writings “The Relevance of the Front Porch for a Community” to re-post my article.

[this is from “The Front Porch” March 2006]IMG_4380

Some of you have asked me about the significance of the news letter’s name.  The name, for me, evokes a feeling and concept that many of our homes already have built in – namely the front porch.  The front porch can be the equivalent of an outdoor sitting room, a place for discussion and relaxation.  As I walk the streets of our neighborhood I see people cooking/barbequing, reading, children playing, writing and even business being done (with the advent of wireless technology) on the front porch.  You might catch some just sitting, gazing at the street or in the trees, entertained by a bird or squirrel.  The front porch welcomes the passer-by, and invites conversation between neighbors.

IMG_4382The word “porch” originally derived from “the Latin word porticus, or the Greek word portico, both of which signify the columned entry to a Classical temple”(Kahn 1).  As history unfolded and the Middle Ages arrived, the porch came to represent a cathedral’s vestibule, “where worshippers could gather to socialize before and after the service”(Kahn 2).  By Victorian times, the word “porch” became interchangeably used with the words “veranda,” “piazza,” “loggia,” and “portico,” each of which could connote individual meanings.  From this period until the second half of the nineteenth century, “the word ‘porch’ itself most often described a small, enclosed vestibule or covered rear entrance” (Kahn 1).  At this time, at the end of the nineteenth century, the word “porch” began to represent its present meaning. This meaning, in its American sense, generally refers to a “roofed, but incompletely walled living area”(McAlester 52) contiguously attached to the frame of a house. Generally, in America, this area would be found attached to the front of a house, offering a covered and shaded area for an array of uses and would be known as the American front porch.

Between the rise of the front porch in the middle nineteenth century and its decline in the post World War II era, the front porch developed a cultural significance. It represented the cultural ideals of family, community, and nature.IMG_4381

The new technological development of air conditioning further aided in the decline of the front porch. Providing a cool environment indoors, the front porch was no longer needed as a cool shaded area during the day or as a place to enjoy the cool night air. Families remained indoors comfortably, and a primary use of the front porch was no longer needed. Air conditioning, in a sense, also contributed to another technological development which would affect the front porch: the television. The television, which could exist only inside, provided endless hours of entertainment indoors. As a result, family life shifted from the porch to a family room or TV room, where families could watch the evening news, sporting events, or the early sitcoms, all while enjoying the newly invented “TV dinner.” No longer would families relax outside on the front porch.

Some of our friends, who live in the “burbs,” lament, “Our neighbors just open their garage, pull in, and you never see them – Or, “Everyone hides out in their backyard.”  And, “We still don’t know many people on our street, after all these years.”  Notice what might be missing from these homes… the front porch or at least the “front porch attitude.”  Granted, this home feature will never guarantee a gregarious disposition in life or an abundance of neighbors who are open and friendly, however it does give us a head start.  Why do you think the street side café or coffee shop with outdoor seating will always be a hit?  It’s for the same reason why front porches exist.  Is yours lying dormant?  You may not be the one who throws a block party or is best friends with everyone on your street, yet you may try dusting off those beautiful Adirondack chairs (or whatever furniture you have – pull out a folding chair, it doesn’t matter) and become a part of the front porch culture.

A while back, I received an email from a friend in the community saying, “I came by to visit today, but you were not home.  Hope you don’t mind, but we just sat on your front porch for a while and enjoyed the neighborhood.  We may be back soon, even if you are not home. J  Thanks! “

While my day job consist of real estate investing, property management, and real estate consultation, I hope to also be one who helps draws the community together.  So whether you have one or not, you can still enjoy the ethos and attitude of the front porch.

See you soon, walking by or enjoying a beverage … on the front porch.

McAlester, Virginia and Lee. A Field Guide to American Houses New York: Alfred A. Knopf, 1996.

How walkable is Sacramento? Handy tool when buying Real Estate

There is a lot of talk around this issue of walkability, especially in Sacramento’s urban areas.  A friend of mine said to me the other day, “If I were to move, one of my criteria is that I have to be in walking distance to a bakery,” as donuts were the topic of our provocative conversation.  I am fortunate, there are several bakeries in walking distance from me (Freeport Bakery and Marie’s Donuts just to name a few).

You probably already know the answer to this question, but check out this website to walkscore.com and see where your neighborhood ranks.

For kicks I typed in my address (thinking our neighborhood is very walkable) and came up with a score of 69 out of 100 = “somewhat wakable.”  So I then typed in a  friend’s address who lives in Natomas… as imagined 43 out of 100 = “car-dependent.”  Our old home in Boulevard Park/Midtown gets 86 out of 100 = “very walkable.”

A fun and interesting website, especially in light of our changing cultural values when it comes to how we view our planet.  And, as fuel prices increase, cities become more dense, and as people realize their longing for community, this “walkability measure” will be even a larger factor when buying a home.

The Best Time to Buy/Invest in Sacramento Real Estate

1) Right now Sacramento consumer confidence is on the rise.

2) The interest rate is extremely low (about 5%, maybe lower).  And everyone predicts that it will not stay this low, and in fact may skyrocket (according to Obama, as we continue to borrow from other countries).  As the interest rates go up, even if the prices go down, this will take many potential buyers out of the market.

3) One report shows that the housing affordability index is the best it has been in 40 years.

Call me or write if you want to see the numbers OR discuss your scenario.

Carr Jones Architecture in Sacramento

One of my client turned me on to a home just down the street from where I live, that is now on the market. Check out the virtual tour and pictures online. carr-jones1It was designed by Carr Jones, who mainly built in the San Francisco Bay Area, but designed a few homes in the Sacramento area as well. I was privileged enough to be able to let myself and my client in for a gander. Let me know if you want to take a peek too OR make an offer 🙂

While the home was not that impressive from the outside and only one bedroom in the main house, my breath was taken away upon entering. From what I’ve learn subsequently, Jones built pragmatic and practical homes. He used reclaimed timber and predominantly bricks. A local news paper article explains, “Many of his materials were scrounged. Used bricks were plentiful and cheap after the 1906 quake and he used recycled timbers and phone poles, refrigerator tubing for radiant heat, and disassembled old stoves to create built-in kitchen islands.”

Check out some other examples of his work in this article and this book.

Enjoy!