Real Life Real Estate Blog

Sacramento’s under $300K market is “popping,” and many first time home buyers aren’t preparing themselves to take advantage of it.  I get calls everyday from folks who’ve finally made the decision to get into the real estate loop. The problem now is TIMING. For the first time in 2+ years, I run a report for active listings in the morning, show about a half dozen homes, pick one we like, call the agent to see if any offers have been made…and find out that the home has just gone pending with 3 to 8 offers.

So what’s happening out there? Well, the investors are swooping in like hawks and scarfing down anything that has a pulse. They often make all cash offers on the best deals; namely bank-owned REO’s. How does a first time home buyer have a chance in this market? The solution is to get PRE-APPROVED, have a good down-payment (borrow it from family if you must), and be ready to pounce the second something scurries onto the market. A good agent can follow default short sale properties and place a low offer just to see if you get it! They should continue to follow the defaults that don’t sell … and be ready when it re-lists as an REO listing from the bank. All can be done simultaneously. Many inexperienced buyers don’t know you can make offers on different properties at the same time. So find a good, honest loan person to help you be armed and ready. I have a few trustworthy sources …as I’m sure many an agent does.

Ever hear the phrases, “turn that frown upside down” or “see the glass as half full?” Each one is a reaction to the palpable pessimism of the person at whom it is directed (try saying this three times fast…palpable… pessi… uh!). Depending on your mood, or which parking space you didn’t get into this morning, these phrases can be quite annoying. Yet, other times you’ll find yourself repeating these colloquialisms to a downtrodden friend or co-worker. Even though I’m a pretty optimistic person, I am certainly not one of those suspiciously cheerful gals who smiles widely no matter what’s going on around me. However, I am willing to run the risk of offending some of my more pessimistic readers (none of which is intended) by applying a “look on the bright-side” mentality to the current Sacramento Real Estate market.
I know there are people out there whose houses are “upside down” and that is definitely reason to frown. But even in the worst of situations some good can be found for someone. Short sales with governmental debt forgiveness help or even a phone call to the bank for loan modification might possibly save some owners from complete despair. Instead of going down the path of Chicken Little, I would like to address the flipside of the housing downturn for the new fortunate members of society. There are plenty of people who would like to own homes that never have before, and others who are finally able to afford to invest in real estate for the long term benefits. These people are the yang (tranquility) to the housing markets ying (chaos). While average home prices are still lowering, the number of great deals on homes for sale is slowly starting to decline. “Why?” one might ask. It’s simply because… many people who buy homes now for $250K that sold years ago for so much more…are finding their “diamond in the rough” instead of a “sinking ship.” Great deals are going into “pending status” daily in the greater Sacramento area. My advice, change your frame of reference and act now because people will still be complaining of the housing market woes when the glass really does get to half empty and the housing market starts to bubble up again.

My advice is to forget the media, water-cooler buzz, bank advertisements, etc… and go straight to your favorite Realtor and ask for recent pending & sold statistics within a 1/4 mile neighborhood radius of your “dream home.” Why? Because the bottom has literally gone up in some markets. Since February 1st, I have been involved with more multiple offerings than all of last year combined! Anatolia and Elk Grove in the Sacramento Valley have people clammering over short sales and bank owned properties. Just last week, I could no longer find what 2 of my buyers were looking for in these areas. They were priced out with 8 offers on one home and 15 on another. Ok, I admit the homes are priced to sell, but eventually they will ALL sell. I think you get the point. Don’t hedge your bets so closely that you get greedy! Think about it for a minute. That was pretty much the mindset that got us into this mess. All I can say is go out and purchase now and make any reasonable offer on a traditional listing, short sale or bank owned home you like. Regardless of what you hear about the market going up or down…you are likely to get a great home in the scheme of things. So cheers, California has NEVER been so affordable…and I’ll drink to that!

The first time home buyer market (especially) just might be getting some good news soon, however it’s bittersweet for most I’ve connected with. It seems that even with the rate cut, most of my buyers cannot get a loan; so the rate cut seems futile to them.

Just yesterday a young buyer called because her loan will not be able to go through because of some new ruling that just came down from the banks for 2008. Her offer was presented and accepted in the last days of 2007, but now her former loan is no longer available. She must come up with another 5% down in order to attain her first home. Needless-to-say, my buyer is crushed!

Even though I understand the conservative stance of most banks, I wish there were a more personalized calculator for granting a loan. It now seems as though they are following one round rubric for everyone. I guess you are out of luck right now if you’re a square peg!

Washington News You Can Use: The Internal Revenue Service unveiled news on September 17, 2007 regarding a special web section dedicated to possible tax breaks and relief provisions for property owners facing short sale or foreclosure. However, many desperate sellers I’ve come in contact with in the past few months are not yet aware of these possible benefits. The IRS urges all owners to research their options carefully. For instance, rental and business property owners may find limited relief, while primary residence owners may find a bigger reprieve. Check out their site to see what kind of tax bite you may or may not incur…

Fish gotta swim, golf balls gotta fly, and people gotta live somewhere! Nobody knows this better than the happy go lucky residents living in Rancho Murieta, California. The surprising thing is…few folks outside the Country Club gates seem to know about the 5 bass-filled fishing lakes and 2 championship golf courses (w/ membership costs among the lowest in Nor Cal)…located just minutes from Downtown Sac or Folsom.

I can’t tell you how many times I’ve heard, “You live all the way out there!” I just love enlightening the nay Sayers that my former commute from Elk Grove to my kid’s private school in downtown took at least 45 sleepy-eyed minutes each morning; all freeway and I still couldn’t cut the time with that darn carpool lane. We moved to Rancho Murieta off Jackson Hwy and now drive just 30 scenic minutes and drop right onto Folsom Blvd to downtown no sweat—no freeway! Life is gooood…

So I ask myself, “Why don’t more people buy homes in Rancho Murieta?” Could it be they don’t like deer frolicking in the streets, green rolling golf course hills steaming with the sunrise, country club dining & dancing a mere stroll away, outdoor lakeside starlit summer concerts, spectacular fireworks & 4th of July parades complete with decorated golf carts saddled by proud kiddo drivers??? Perhaps it’s the affordability factor? After all, single family homes start in the low $300K’s and town homes even lower.

No, that’s not it! I think it’s just the best kept secret around.