Tag Archives: Sacramento

New Energy Efficient Technology

This post is not very sexy, but hopefully interesting.  No special windows or solar-power… just insulation.  I work with a (re)developer that is partnering with Smud (our local utility co.) on a rehab project in South Sacramento.  Smud’s claim is that this is the first house on the west coast in which this product has been use.  In layman’s terms, it’s a foam, interlocking block that is stacked up around the outside of the house.  Wire and stucco are then applied.  Supposedly it is extremely easy to install (my kids would love to get a hold of this stuff) and super energy efficient.

Enjoy,

Keith Klassen – Real Estate Broker

916.669.9030

Do Governmental Housing Programs Work?

This is in reference specifically to the programs as of late that have tried to keep people in their homes through loan modification. This is a question I and many others have been asking and trying to figure out for some time now.

While I attempt to be eternally optimistic, numbers usually don’t lie (if they are presented honestly – ha ha).  Seriously though, I am an avid reader of anything Mish writes and he nailed it on the head here –

Statistical Nonsense On “Help”

For the 40% that end up defaulting anyway, how much money, time and mental energy did they waste in these programs? Assuming the other 60% keep their houses I have to ask “Who was it that was really helped? The bank or the home owner?”

I suggest in most instances if anyone was “helped” it was the lender. It is no favor to make someone a debt slave forever in these programs. Finally, one must look at other costs.

For example, how many people stopped paying their mortgages just to get “help”? Also note that the sooner housing prices bottom, the better off everyone will be. These programs harm price disclosure, help to keep prices elevated, and thus curtail genuine demand.

From these perspectives, HAMP and the entire gamut of “help” programs has done anything but help. Speaking of government help programs, please consider the Mission Statement of Fannie Mae.

We are a shareholder-owned company with a public mission. We exist to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market.

A quick check now shows the link I had with that mission statement has been redirected to About Fannie Mae

The link now states “Fannie Mae is a government-sponsored enterprise (GSE) chartered by Congress with a mission to provide liquidity, stability and affordability to the U.S. housing and mortgage markets.”

Fannie Mae clearly failed its mission to provide stability and affordability to housing. The truth is no government program ever provides stability or affordability. HAMP won’t either, and the truth should be easy to see.

You can find the full article here

Enjoy,

Keith Klassen – Real Estate Broker

916.669.9030


Housing Tax Credits

Quick run down…

The Federal Government is offering and has extended an $8000 tax credit through the end of this month.  Home buyers need to be in contract on a home by April 30, 2010 and close escrow by June 30, 2010.

Many of my clients have asked how they get the credit once they close.  Go to this website, which will answer most all of your questions – http://www.federalhousingtaxcredit.com/home.html

OR

just click here

_____________________

California Housing Tax Credit

Up to (key phrase) $10,000 tax credit from the State of California for first-time home buyers, who purchase a home after May 1, 2010.  A few qualifications:

– The money is credited over 3 years ($3,333/year) for taxable income.

– The money ($100M) will run out.  While the programs runs through the end of December 2010, some are predicting toward mid-August it will be gone!

Here is site to visit for questions and how to claim this incentive – Ftb.ca.gov

Enjoy,

Keith Klassen – Real Estate Broker

916.669.9030

The Things We See When Viewing Property

I know you were hoping for a risqué story… or the one were the daughter called the police on me for “breaking in” and “accosting her” as the mother said… nope just a cool indoor sauna.  I walked into one of the space rooms of this blue-collar home and “Whoa, didn’t expect to find this…

Enjoy,

Keith Klassen – Real Estate Broker

916.669.9030

Article – Why the Housing Slump Isn’t Getting Better

I hate to be the bearer of bad news, especially in the face of all those who want to stay positive.

The keys numbers that is not publicized or talked about much, according to this article, the growing number of home owners who are unable to afford their mortgage payment.  This is one thing that is not getting better, rather worse, which will obviously curtail any policy and recovery plan of action.

Check out the article here

or cut and paste –

http://articles.moneycentral.msn.com/Banking/HomeFinancing/why-housing-slump-isnt-getting-better.aspx

Enjoy,

Keith Klassen – Real Estate Broker

916.669.9030

Dream House – My Bizarre Real Estate Dream Last Night

When I waited tables at a restaurant in college I use to have, what we called “wait-mares.”  These were stress induced dreams/nightmares usually involving being overwhelmed with too many customers all at once, or showing up to work without your uniform, etc.

Last night I had a crazy dream about me buying a home and facing similar situations as my clients.  I drove up to a gorgeous home to view, that I loved from the pictures and online information – my parents were with me (weird).  When we a got out of the car, another agent was there about to show the home to their client.  I did the courteous thing and said, “We’ll wait until you are done and give you some space.”  In the meantime we struck up a conversation with the owner and bonded over shared interests and our children.  In a genuine way, we won their favor, which may sway them if it came to choosing between offers (a good technique in a “normal” market when dealing directly with a seller.  People that like you, generally want to work with you).

We waited about a half an hour (kind of a long time) and the folks before us were not through viewing the property, so we decided to politely press forward and have a look around.  When we got to the kitchen, we noticed that the first shoppers were engaged with their agent in writing an offer, right there at the kitchen table – the nerve!  We kept our cool and calmly continued viewing the home.  Parts of the home were upgraded, while other things were stuck in a time period.  There were many things that I did not completely care for, but my dad kept pointing out the great things about the house (which he never does in real life), such as, “But Keith, these things you don’t like are all easy fixes – just cosmetic.”  Or, my dad added, “Those things that concern you are small in comparison to the great price!  And it even has view of the beach!”  (Even though it was in the center of an urban area [don’t you love how dreams can bend reality?!]  I guess this is my secret desire, to live on the beach while still being connected to the city?  Come to think of it, that would be pretty awesome!).  As we walked around the house, we noticed more home buyers filtering though the house, until almost every room had people in it, all discussing the offer they were going to make – oh the pressure!

[This was quite a vivid and emotional dream]

I felt so torn inside, not knowing if I should move forward, and if so, how much over asking price should I offer?  We bumped into the owner while easing our way back to the front door.  She said, “Don’t miss the flat screen TV we installed on the porch or the toaster!”  What!?!?  Yes, I saw the perfectly mounted TV, and to the left of it hung a chrome toaster suspended from an overhang.  (I have no idea how that would work, but it was freakin’ cool.  Mark my words, the new future trend in real estate…. suspended outdoor, chrome toasters).

There my dream ended…

What does this all mean?  Am I stressed out?  Am I just feeling my clients’ angst?  Is my father a picture of myself and the things I tell clients? (uh oh).  Should I move to the beach?

Any dream therapists out there want to analyze me?

Enjoy,

Keith Klassen – Real Estate Broker

916.669.9030

Home in Escrow – Oak Park Victorian!

I just got into contract with one of my clients on this property in Oak Park.  It’s a fantastic 1890’s Victorian.

We just did the home and pest inspection yesterday.  I love days like this when the nspections moves forward without any big surprises.  I say this because every home has issues, especially ones built-in the late 1800’s.

Can you believe this home, in a decent part of Oak Park, in reasonable condition, is selling for a little over $100,000?  The home inspector asked if it is on slab or has a crawl space… I said “neither.  It’s a walk space!”  This basement (well it’s above ground) has at least 9 foot high ceilings!  My first thought when I viewed the property was, finish this out and double your square footage!

I was shocked with how little dry rot there was, plus a new foundation (no bricks) and an almost-new roof!

Check out the pics.

Keith Klassen – Real Estate Broker

916.669.9030

Overview of Curtis Park Village

Recently the environmental plans were approved for the Curtis Park Village development. I have not formed a strong opinion about this project…  I’m all for trading a toxic wasteland for development.  However, I like what one person said about the scale of the retail development side of things – I can move to Roseville if I wanted a suburban neighborhood and outlet stores. Others complain about it being too auto-centric.  I just hope that it will not be a strip mall feel, but somehow reflect the historic Curtis Park and Land Park feel.  I know many of my neighbors who are adamantly for or against it.  It always if fascinating to watch public administration in action and how opinions and attitudes are shaped based on how it affects people.  Currently, I am gathering more information as I now see some bigger progress.

Here is the overview from Petrovich’s website.

Enjoy,

Keith Klassen – Real Estate Broker

916.669.9030

Things That Eat Your Home (Sacramento CA)

Viewing thousands of homes and participating in hundreds of inspections, there are things that become familiar sights – things to look out for that could adversely affect the purchase of a home.

I showed an investor a home that I was about to list.  Originally it was going to be a flip, but the owner has his hands full with about 20 other homes that they are rehabbing.  When previewing this home, there were the normal checklist-thoughts of what needs to be done to get this home ready to rent or sell:  Paint and carpet, rip out and rehab kitchen, new HVAC unit, restore garage from illegal conversion, etc.  Before we left, I pulled back a window curtain and ah ha….

This my friends is a termite “tunnel.”

While these items may seem daunting, they are curable at a relatively reasonable expense.

Enjoy,

Keith Klassen – Real Estate Broker

916.669.9030

Great Remodeled Home for First Time Home Buyer in Sacramento CA

Welcome to 5761 Sampson Way.

This house has been renewed… all you will need to do is move in (and plant a garden in the humongous backyard).

This home has been painted inside and out.  There are new doors (including security doors), new trim, new carpet and tile flooring.  The kitchen and bathrooms have been renovated and upgraded.  Check out the granite-slab counter tops and recessed lighting.

Just to mention a few more of the many upgrades – New central heat and air units, new landscaping, and newly pour concrete driveway (these costs and really add up).

You get all this for under $100,000.  That’s only about $775.00 per month in housing payments, which is less than you’d pay to rent this house!  We have more for sale like this.

Enjoy,

Keith Klassen – Real Estate Broker

916.669.9030