Tag Archives: buying

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 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.

Market Update in Sacramento Real Estate

LOCAL MARKET UPDATE

Here are the most current & accurate real estate statistics — specifically for our area. We saw a 17% increase in residential home sales in April, 2009 compared to April last year. 65% of all sales in April were “Bank-Owned Foreclosures”. This is a significant and quick decrease in the percent of sales that are “Bank-Owned”. Typically, at least 75% of the sales each month have been “Bank-Owned” for the past year. Another significant and quick change is the amount of listing inventory. Comparing April, 2009 to April, 2008 — there is a 37.6% decrease in number of houses for sale on the market. This has changed our supply and demand situation drastically. However, we expect this situation to change back to more of a buyer’s market again soon. Here’s why; there has been a moratorium on bank-owned property. We have been told that the banks will lift their moratoriums and start releasing foreclosed properties over the next four months, which will increase listing inventory again. Does that mean you should wait for more inventory if you are a buyer? No, and here’s why. Last week we saw a 1/2% interest rate increase on home loans. That is equal to $75 per month increase in a mortgage payment on a $200,000 loan. There is currently more than enough inventory to find a great house before rates go up again. Buyers – don’t forget about the $8,000 Tax Credit. You must close escrow by November 30th to qualify.

NATIONAL MARKET UPDATE

Spring is traditionally the home-buying season. True to course, existing home sales rose in April with strong buyer activity. From March to April, sales jumped up 2.9%. Who are the buyers? According to a National Association of Realtors’ survey, 60% are repeat buyers, entering the market to take advantage of the low interest rates, good inventory and more affordable prices. 40% are first-time buyers. First-time buyers as well as buyers who have rented for 3+ years also have the added incentive of an $8,000 tax credit offered by the federal government. Where are the sales? Regionally, home sales last month rose 3.5% in the West, 11.6% in the Northeast, 1.8% in the South, and slipped 2.0% in the Midwest. According to Lawrence Yun, Chief Economist for the NAR, buyers today are attracted to lower priced homes found in California, Nevada, and Florida. Yun forecasts that home sales in the second half of 2009 will be 10 – 20% higher than in 2008. Now may be your time to consider moving. Even if the selling price of your home is lower than expected, that price must be weighed against the opportunity to get an excellent price on your new home, plus the possibility of securing a better tax base. Let me know if you want to meet and talk. I am here to serve your real estate needs.

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.

More Investor Questions in the Sacramento Metro Area Real Estate Market

Here are some more questions I get asked regularly…

1) How much under do you think we can offer?

While this varies, it’s usually asking price to start or over asking.  I always do two things for the client:

– Show the client a market analysis to show them the price point and what other homes in the area are going for.

– I always call or contact the listing agent first to see if there are any offers and if so, how many.

These two things will determine the price range in which we will make our offer.

2) How long are properties sitting on the market?

On the lower end (meaning $100K and under OR on multi-family dwellings, whatever will pencil out), properties usually go within one week or less. If they do not move quickly, then the property is over-priced or compromised somehow (i.e., location, amount of work needed, etc.).