Cheap Foreclosures in Sacramento

I do business with a colleague that employs “sign shakers” – at least that’s what I call them.  You know the guys who dance on the corners twirling signs, spinning and shaking to whatever they are listing to on their iPod.  There is a guy in Sacramento that dresses up like Spiderman.  I saw a Mr. Pickles dancer the other day – that kind of freaked me out.  My friend’s sign says “Cheap Foreclosures” – that’s it.  In Sacramento, a cheap foreclosure might start at $40,000 (yes, this type of home is a dump in need of much work).

Check out this video about a sign shaker.  I kept thinking it was a Saturday night live video spoof, but it is legit.  Sign Shaker Video.  I love the quote, …what are you feeding that boy?

Enjoy,

Keith Klassen

Real Estate Broker

Cheap Foreclosures Around the World

I came across an interesting article on AP news regarding an entire town in Latvia being sold at auction for $3.1.  Check it out here

Horrific experience with Glen Oaks Escrow

It’s one thing to do a low-end, bank-owned transaction and get paid 2.25% … It’s another thing for the bank to require us to use their escrow company in the Los Angeles area (I am in Sacramento) and have paltry service and poor communication.  By the way, it is now illegal for a bank (owned property) to require a certain title and escrow company, yet they will continue to make it part of the game.

Here’s my real beef… About a week passes and I have not received my commission check (payment for completing the job) from the Title Company, Glen Oaks Escrow.  I called to follow up and they said they would look into it.  I had to call back the next day to check and they said, “Oh yeah, I guess the check got lost in the mail.”  We will reissue it.  I get my check a few days later and deposit it.  To my horror (okay I am now being dramatic), I discovered through viewing my online account that they put a stop payment on my check, and of course my bank slaps me with a fee to boot.

After several phone calls to the bank and to Alenoush (the escrow officer who handled the file) at Glen Oaks Escrow Company, I began to get a little frustrated, since I was the guy who was not getting paid.  I am not worried about getting my pay check eventually, it’s now all about principle.  I called Alenoush with Glen Oaks Escrow and she said she’s looking into it and for me to send proof – no apology or assumption that they did anything wrong (okay, no big deal).  I forwarded my proof and ask for verification that she received it…. I got none.  I called the next day and asked for a status update… I got none.  I called the next day and requested a call back in the next hour… I got none.  Oh, and by the way, I do have to continue my regular fast-paced, heavy work load during this fiasco.  Finally I went over Alenoush’s head and spoke with the supervisor…. a little bit better experience – thank you Carla.  However, I still have not gotten paid!  Carla said, “Well, did your bank tell you why it bounced… we have a trust account and never bounce checks.”  Yeah I get that… but I still have not gotten paid!

I call my bank and they explain that the issuer of the check put a stop payment on it and they have no reason given, but it’s usually because the payment is somehow disputed between the issuer and the recipient (that’d be me).  I convey this to Glen Oaks Escrow Co. and they said, “Oh yeah, there was a stop payment placed on that check… but we don’t know why?”  Then Carla said the magic words…. [wait for it…] “I’M SORRY”  My response… You are the first person who has called me back and apologized – Thank you for helping me get paid.

Sometimes that’s all it takes to soothe that “angry lion.”  Taking blame is not that big of a deal, but it sure goes a long way to iron out the wrinkles.  I know this is true from experience with my wife.  I know this is true from experience with my kids.  I know this is true from experience with friends and clients.  I know this is true from my experience working as a server at a restaurant, in a non-profit, at a church, and other service industries.

Mistakes are a fact of life that can be overlooked and forgiven – I am responsible for plenty of blunders.  Not admitting wrong doing and covering up errors to save face is tempting and can be our cultural, human response, but maybe this needs to be reconsidered. 

I end this rant with the hope of getting paid and not having to work with Glen Oaks Escrow again.

Thanks for bearing with me.

Home Inspection Musings

I make it a practice to attend the home inspection walk-through with my clients – I think this is pretty common.  I want to hear what’s going on and be able to address concerns that are brought up as a result of the inspector’s findings.  Many times this can be a tedious experience… I’ve heard the same spiel from the home inspector 100’s of times now and Mike Phillips (one of the main guys I use) does a great job.  But, following the inspector around for an hour and seeing where the water shut off value is, and hear that it’s typical to smell gas at the meter, and how gutter is Sacramento get leaves in them, and how no one installs their anti-tip bracket on the stove, and…..  Sometimes I have to amuse myself by taking pictures of things that strike me as odd or funny in the “glaze” of the moment.

Here’s the latest…

What’s wrong with this picture?

Did you figure it out?

Enjoy,

Keith Klassen

Real Estate Broker

Trust Agents in Sacramento Real Estate

Today was our first round table meeting to discuss the book, Trust Agents

We have a small group of 5 appraisers (2 out-of-state joining us through Skype) and 2 real estate sales people (like myself), all hungry to learn and develop a new energy around our online presence.

So far so good.

Big thanks to Ryan Lundquist (appraiser) for coordinating this!

Enjoy,

Keith Klassen

Real Estate Broker

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

Chalk It Up – Sacramento (photos)

As promised… some pics from our time with friends and their families, as well as some of my favorite “art squares”

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ciu.2I like this kid’s spikes

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ciu.6The boys making some art!

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ciu.9Shout out to Darby

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Chalk It Up – Sacramento Happenings Over Labor Day

cahlk it up

Chalk It Up has been a local favorite over Labor Day Weekend (if you are in town) for years n0w.  Even if you’ve just come back from a dusty camping trip and your face is sunburned from hanging out at the lake, it’s a must to head down to Fremont Park and peruse the local artwork.

We’ll be there – pics to come.

http://www.chalkitup.org/festival.html

The Value of Neighbors – Curtis Park, Sacramento and Beyond

It is so important what neighborhood you live in, whether it be mediteranian doorfor distinctiveness or convenience of locale, people should spend a good amount of time getting a feel for where they are buying and what they are buying into.   When I purchased my first home in Sacramento, I knew that I was not just buying a house, but a neighborhood too.  I just had a gut feeling that my little East Sac. home and neighborhood was a winner, even though I did not know much about it.  However, I found out, over time, the people no my street kept to themselves and were a bit cold.  At the first meeting of my direct neighbor I said, “Hey, we’re thinking about having a BBQ to get to know everyone on the street.  I’ll let you know when we plan it.”  She quickly replied, “Oh, we won’t be coming to that.”  I was speechless.  “Uhhh, okay.  I guess I’ll see you around.”  I couldn’t believe it!

While you can do research on the potential home and neighborhood, it is very difficult to do in depth research on the people that will be your neighbors.

Before we moved our current home in Curtis Park we drove around the neighborhood extensively, walked up and down the street where our potential home was located, and attempted to talk with as many neighbors as possible.  Picture1I’ll never forget the first woman I spoke with… “Are you looking to buy that house?” the neighbor asked.  “Yes, we are in contract,” I replied.  She went on to introduce herself and tell me all about the neighborhood.  The former owners told us that they were saddened to leave because they’d grown so close to their neighbors.  The evening we finally got everything moved in, our neighbor across the street brought us freshly baked cookies and apologized for only bringing a particle ½ gallon of milk!  The next day a man from down the street dropped off brownies he made for us.  A few weeks later our other neighbor gave us a bundle of kindling for fire wood.  After only several weeks I knew we had move onto a unique and special street.

This is the “Front Porch” ethos – an attitude of community that I find deeply rooted and perpetuated on my street.  I applaud and say a big thank you from my family to our neighbors.  Who cares about home values, when you’ve got neighbors like ours!

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.