Tag Archives: Buyer

Consolodated Furnace with Nox Rods

I learn something new everyday.  Last week one of my clients had a home inspected on which they made an offer.  Everything seemed to be going smoothly… then he dropped this bomb on us. ” The heater is a consolidated type with NOx RODS.” The rest of us looked at each other blankly.  “This type of furnace has been recalled because it is know to combust and burned people homes down” – just what the client wants to hear!  From a sales point of view, this could be a deal- killer.  From a safety standpoint, this could save people’s lives.

Do an internet search on Nox Rods and you will be amazed at the long list of warnings.  For us, I was able to negotiate with the seller to hire an HVAC specialist to give this unit a “good bill of health” and their stamp of approval, since not all Nox Rod furnaces are created equal.  If not safe, they said that they would replace it.  Also it re-enforces the premise, just because homes are sold “as-is” and the seller states up front that they will do no repairs… “health and safety” always trumps that rigmarole.

Enjoy,

Keith Klassen

Real Estate Broker

Short Sales – Taking it Personal

I have landed in a place where I am selling a few of the properties I own, in a short sale position.  It seems like a year ago there would have been ridicule and maybe a little pity for those poor folks who find themselves in this situation.  I struggled to come to grips with this reality and felt some remorse.  Now we all know someone who is facing foreclosure, being “upside-down,” late on their mortgage payments, or trying to short sell their home.

Short sales may currently comprise up to 75% of the market right now.  All arrows are pointing to 2010 to be the year of short sales.  Supposedly banks are getting government incentives and getting a clue in general.  Oppose to letting these homes foreclose, a short sale is now the most workable route for both the owners and banks.  Personally I’ve had successes with short sale at the end of last year and one already this year, which has changed my demeanor toward them.  Now I trudge through the grueling process of pushing my own properties through.

I met with an agent and his buyer at my 4-plex that is up for short sale yesterday.  After handing me the offer we discussed the short sale process.  The other agent commented, “They should be called long sales, not short sales!”  For the most part, very true.  I just closed one that took the bank 4 months to approve.  While another one that I listed got approval in 1 week!  I still stand in unbelief.  I just contacted an agent representing a short sale property, where they had a buyer waiting for ….. 15 months!!!! before they said, “Uh, this is ridiculous!  We’re outta here! [my conjecture]”

I hold my breath and wait to see how my own experience will transpire.

Enjoy,

Keith Klassen

Real Estate Broker

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

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

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!

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.

Short Sale Tips in Sacramento Real Estate

http://www.sacbee.com/realestatenews/story/1933693.html?mi_rss=Real%2520Estate