Sacramento Real Estate Reflections

We had some friends in town last weekend from Southern California. Somehow we got talking about the subject of how busy everybody tends to be, or at least a common response to the question, “How are you?” regularly is, “Ohhh, soooo busy!” or some form of this statement. Our friends were saying that it’s actually an almost knee jerk response for people to say, “I’m just crazy busy!”

After our conversation I began listing to others and myself.

I’ve concluded that it seems to be a great cultural excuse for not managing ones own life. I have a hunch that time management and balance will always be an on-going factor in life. I, however, desire to be different with a strong desire to overcome this “crazy busy” trap/trend I see all around me. Of course there are emergencies and some unavoidable commitments that cause busy-ness, but is it not me and you who schedule our lives or at least make these commitments in the first place?

I am in a transaction with another agent right now where he seems to always be out of breath and on the run. He never seems to be organized and always respondes reactionary with phrases like, “I’ll get right on it; sure thing, sure thing; It’s on my calendar I’m not sure what happened?”

I recently sought out another investor/broker to learn from… his assistant confided in me, “Oh, he’s so busy… lunch or coffee would be out of the question. He doesn’t even have time for his family.” This alarmed me. Is this the price of “success”? I made an inward commitment that moment to not be like this man. Perhaps this was the lesson he has inadvertantly taught me, as if we sat down for coffee he would have said, “Don’t do what I’ve done!”

We have a motto at Keller Williams that I’ve adopted, “Building careers worth having, businesses worth owning, and lives worth living.”

On a practical note, systems are a must, in particular filing systems. These will save you and caue your business to grow! I’ve begun to also take time each week (sometimes each day) to clear my desk and organize. I find that de-cluttering keeps my stress level to a minimum.

Cheers in developing your business, not busy-ness!

You will read it in the news – REAL ESTATE MARKET SLOWING DOWN. Let me tell you why this is true, but not as true for the Sacramento Area.

This statement is true due primarily to interest rate going up – money is more expensive, making it harder to afford a home. A natural or imposed correction is needed so that our economy continues to growth steadily. Secondly, during boom times there is always a segment of society that is looking for the “grey clouds” on the horizon. The headlines actually create fear and panic, which ward people off.

Sacramento is not insulated, however, the factors that bolster our local economy are favorable in conjunction with a steady rise in the housing market.

1. Immigration to California, especially the Sacramento and surrounding area has increase the demand for housing. You might not know this, but statistics show that immigrants to the United States (not just from Mexico) are a prime candidate for buying a home within 8-10 years of immigrating. FYI, the Russian and Eastern European community is huge in Sacramento.
2. Cost of housing is still relatively affordable in comparison to the Bay Area. Therefore we have a huge immigration of people from the San Francisco area who exclaim, “Look at the house we can now buy!”
3. Company Relocation and New Jobs: Many large companies are relocating and placing their big offices in the Sacramento area, creating a large demand for housing.
4. New Home building: Places like Natomas, Elk Grove, Folsom, Rocklin, and now even Lincoln are building houses like crazy to accommodate the demand. They literally can’t build ‘em fast enough.
5. Urban Renewal: There has been a resurgence of people who want to live in the Midtown/Downtown area, with the onslaught of new restaurants, clubs, and hip/trendy businesses, popping everywhere – yes there is beginning to be culture in a place that use to be only know as a cow-town. The city has current plans to renovate the old train yard to be transformed into a premiere Riverfront attraction – perhaps even housing a new arena for the Kings!
6. Inflation – this is a factor that is not localized, but actually continues to keep the housing market growing. Or as my dad says, “As long as the government keeps printing money, I’m not worried about my home loosing it’s value.”

Everyone, including myself has suspicions about the housing market and the so called bubble. “Is now the time to buy?” you ask. Or, “Maybe I should sell while the market is still decent?”

Similar to the stock market, the real estate market is cyclical. In other words, it ebbs and flows. There are seasons of highs and lows. However, historically real estate has only risen in value over time. While there are bumps along the way, the graph steadily points upward. Those that get hurt are the ones that are forced to move when the market is on a decline, or need to buy when prices are on the rise. Also selling is detrimental when forces to move out of an appreciating market into a stable or declining one. For instance, we have many friends that have taken jobs out of California and are forced to sell. Of course I’ve always said, “Hold on to your property here or you will hard-pressed to ever return.” And, “You will be saying a year from now, ‘I wish we never sold our home!’” This is all based on the fact that the California housing market has been and will be the most appreciable of any place in the country!

Here’s another way to look at the above questions. We had a neighbor growing up that sold his house in a depressed market. My dad said, “Wow, you’re really going to take a hit selling at this time!” The neighbor responded, “Yes and no. I will also be buying in a depressed market and buying for a lower price.” The key is that you continue to own property. It’s not whether the market is up or down, it’s whether you are in it or not. I could go on and on….

Bottom line, statistically housing prices have doubled every 10 years in the United States. In California, it’s been more like every 6-7 years, and for some recently, more like every 2-3 years. I just sold a home where the owner bought it for $240K, two to three years ago. It just sold in one week for $485K. Do the math! Who doesn’t like that kind of investment.

Email me now to brainstorm how you can own your own home or income property.

It’s one thing to be a buyer’s agent and shop for the “home of their dreams,” but it gets a lot stickier when trying to shop for your own “perfect” home. In this transaction I am essentially my wife’s agent – this is not an easy task! Have you heard the adage, “If you want to remain married, don’t remodel your home”? Perhaps there is some crossover wisdom in is by not being the adgent for your own home as well?

[back to the story]
Just picture me, my wife, my 2 year old son (Drew), and our 6 week old (Luke) driving around looking out houses… I’ve now trained Drew to find the lockbox – he jumps out of the car yelling, “Key, key, key….,” as he searches the perimeter of the home. I’ve been impressed to see how he now starts looking at the door, then proceeds to the gas meter – smart kid! One of the last homes we toured, Luke (the newborn) started crying uncontrollably for mama’s milk. While I had my goal of visiting at least 4 homes on our outing, the mid-tour feeding cut things short.

After seeing about 100+ homes online and touring at least 30 we made an offer. In my gut I knew we were biting off more than we could chew – bottom line, we could afford the payments, but we’d have no money to fix it up. When we recieved the counter offer I breathed a sigh of relief knowing that this was our escape hatch. However, my wife had already decorated the home in her mind and envisioned our kids growing up in this home!

Besides the emotion roller coaster of falling in and out of love with homes, there are always at least two opinions on all of the home buying factors (price, size, amenities, location, location, location, etc.). You might be asking, “Why are there more than two opinions between two people?” Friends, the vasilation of opionions flourish in the setting I’m describing. And I’m only talking about my own, let alone my wife’s and all those that you let in on your journey. Oh the pressure!

Rule number one with buyers: Before you do anything, have a consultation. This is where you find out their needs and expectation, as well as you communicating your role and the relationship you will have with them as their agent. Most all disappointed revolve around unmet expectations. The “Buyers Consultation” is a must. So why is it such a knee jerk reaction for an agent to want to hop in the car and start driving the prospect around, not even knowing what the buyer is looking for – except that it must have four walls and maybe a roof? Ring the bell of house shopping and we all start salivating. Let’s all just control our appetite and do our job – serve the client. Meet and exceed their expectations.

Now if this is rule #1, why did I think that I should do anything else, even with my own family? Note to self:
1) Next time schedule a family meeting and do a self-imposed needs analysis before jumping into the car.
2) While I know what I want, this does not mean that it necessarily correlates with what my family wants OR needs. (e.g., 3 car garage with tool shop in any old neighborhood isn’t a turn on to my wife).

Maybe there is a parallel to my family-home-buying adventure? Perhaps I can learn an even greater patience with the buyer, with the biggest crucible being my own family? If you haven’t figured it out, one well-served client produces a career of referals! I’m learning that my wife and family are my #1 client and much, much more. How priceless it is to serve them and exceed their expectations!